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The Risk and Reward For DASH Stock Are Two Sides of a Coin

1 28 27
13.08.2021

DoorDash (NASDAQ: DASH) was one of the most highly sought-after initial public offerings in 2020. Investors got their third look at earnings on August 12, 2021. If after-hours trading is any indication, investors don’t like what they are seeing. DASH stock is down 6.75%.

The food delivery company posted higher revenue than expected. The $1.24 billion was 83% higher than the prior quarter and well above the $1.08 billion forecast by analysts. However, the company also posted a larger than expected net loss of $102 million, which on a per-share basis came out to negative 30 cents per share which was significantly higher than the loss of 20 cents per share that analysts expected.

Prior to earnings, the analyst community was predicting DASH stock to drop overr 9%. In the next 12 months. At first glance, there’s no reason for that outlook to change.

The novelty of food delivery has worn off. And that means analysts are beginning to evaluate these companies on their own merits. And that kind of comparison may not play well for DASH stock. One reason for this comes from the company’s financials.

DoorDash is not yet profitable, so we’ll take a look........

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