Yesterday, Evercore ISI increased DASH’s target price to $256. Its street low target price is a premium of almost 25% while the street high target price of $270 is a 92% premium. The stock has a median target price of $225 which is a premium of almost 60% over current prices. Of the 23 analysts covering the stock, 12 have a buy rating while 11 have a hold rating. Wall Street analysts have a split rating on DoorDash stock but it has a consensus buy rating. Demand for delivery services has been gradually rising even as the growth rates are below pandemic highs. In November, it has partnered with beauty retailer Ulta Beauty for same-day delivery. Many New Yorkers already turn to DoorDash for their next meal or essentials purchases, which puts us in an exciting place to deliver on the promise of ultra-fast delivery,” said Christopher Payne, DASH CEO. “As the largest and most reliable logistics network in the US, DoorDash is positioned to enter this emerging industry and provide consistent quality, speed and convenience that customers know and trust. Last year, it announced that it would enter the instant grocery delivery business in New York City. DoorDash stock recent developmentsĭoorDash has been making new partnerships to increase the business. Deliveroo and Grab which went public last year are also way below the IPO price. Both Uber and Lyft, which went public in 2019 are below the IPO price. Ride-hailing and delivery companies have otherwise have had a terrible run as publicly-traded companies. To be sure, DASH still trades above the IPO price. DoorDash has been in the penalty box for all these reasons and it’s reflected in its price action as well. Also, markets have been in general been turning bearish on richly valued tech stocks that have all their profits skewed towards the future. Meanwhile, growth stocks, especially those whose revenues had surged during the lockdowns are now witnessing a growth slowdown. Most IPOs of 2020 listed at massive premiums and even Berkshire Hathaway invested in Snowflake, which was among the most highly-priced IPOs of all time.Īs Airbnb and DASH almost doubled on the listing, at least two companies, Affirm and Roblox delayed the IPO to 2021 so that they can increase the price and don’t leave too much on the table for new investors.Ħ8% of all retail investor accounts lose money when trading CFDs with this provider. To be sure, DoorDash wasn’t the only company that listed at a massive premium to its private market valuation. The company was valued at only about $1.4 billion in 2018 and its valuations jumped by 25x in less than three years. DoorDash commanded a valuation of $39 billion in the IPO, which was over twice its private market valuation at the beginning of the year. Tech IPOs, especially growth companies that were witnessing a bump in sales due to the pandemic were in hot demand. Companies were generously increasing the IPO price and even it did not deter investors. DASH listed in 2020ĭASH IPO summed up everything that was going right with IPOs. The company had increased the IPO price range to $90-$95 during the IPO process itself. DoorDash priced the IPO at $102 per share, which was way above the initial price range of $75-$85. Both DASH and Airbnb went public in the same week and both the stocks soared on the listing day. It was an exciting year for US IPOs and many stocks doubled on the listing day. What’s the forecast for the stock and is it a good buy in January 2022? DoorDash had a blockbuster IPOĭoorDash went public in December 2020. The stock has fallen by almost 30% over the last year while the S&P 500 is up 25% over the period.ĭASH stock is now down over 45% from its peak. The last few months have been terrible for growth stocks and DoorDash (NYSE: DASH) is no exception. The content on this page is for information purposes only. Please note that we are not authorised to provide any investment advice.
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