Long Trade Idea
Enter your long position between $153.73 (yesterday’s intra-day low) and $160.96 (yesterday’s intra-day high).
Market Index Analysis
- DoorDash (NASDAQ:DASH) is a member of the NASDAQ 100 Index and the S&P 500 Index.
- Both indices continue to trade near all-time highs, fueled by AI and hopes that the consumer is bending but not breaking.
- The Bull Bear Power Indicator for the NASDAQ 100 Index is bullish with a negative divergence.
Market Sentiment Analysis
Equity futures are lower this morning amid renewed tensions between the US and Iran, but they remain near record highs. US equity markets reached a CAPE ratio of 40:1, which has happened only twice in history: 1929 and 1999, both of which were among the worst market crashes in US history. Still, the VIX remains within its average range, adding to risks, while bearish trading volumes are rising.
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DoorDash Fundamental Analysis
DoorDash is the largest food delivery company in the US, with a 56% market share and a 60% share in convenience store deliveries. It caters to over 450,000 merchants, over 50,000,000 users across 40+ countries, and employs over 1,000,000 couriers.
So, why am I bullish on DASH despite mixed earnings?
DoorDash missed revenue expectations of $4.15 billion, reporting $4.04 billion, but beat earnings-per-share estimates of $0.36, reporting $0.42. Still, I remain bullish following the successful Deliveroo integration and strategic acquisitions, including SevenRooms and Symbiosys, while DoorDash still managed an impressive 21% organic growth rate. I am equally bullish on its Urban Outfitters partnership, as it expands its footprint into on-demand retail and diversifies its revenue streams.
Metric | Value | Verdict |
P/E Ratio | 74.68 | Bearish |
P/B Ratio | 6.58 | Bearish |
PEG Ratio | 3.15 | Bearish |
Current Ratio | 1.43 | Bearish |
ROIC-WACC Ratio | Negative | Bearish |
DoorDash Fundamental Analysis Snapshot
The price-to-earnings (P/E) ratio of 74.68 makes DASH an expensive stock. By comparison, the P/E ratio for the NASDAQ 100 Index is 36.53.
The average analyst price target for DASH is $245.99. This suggests excellent upside potential with decreasing downside risks.
DoorDash Technical Analysis
Today’s DASH Signal
DoorDash Price Chart
- The DASH D1 chart shows price action breaking out above its horizontal support zone.
- It also shows price action between its descending 38.2% and 50.0% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator is bearish with an ascending trendline, nearing a bullish crossover.
- The average bullish trading volumes are higher than the average bearish trading volumes.
- DASH corrected as the NASDAQ 100 Index advanced, a bearish confirmation, but bullish catalysts are accumulating.
My DASH Long Stock Trade
- DASH Entry Level: Between $153.73 and $160.96
- DASH Take Profit: Between $200.20 and $205.58
- DASH Stop Loss: Between $136.05 and $140.53
- Risk/Reward Ratio: 2.63
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