DoorDash: Uncertain Prospects, Poor Risk/Reward

Summary

• DoorDash, Inc. has managed to continue to grow revenue at the expense of ballooning operating losses.
• Regulators are itching to drop the hammer on companies that make generous use of the "independent contractor" classification.
• DoorDash faces intense competition with no path to profitability and a low-value business model that doesn't seem to be viable as it's currently constructed.
• We struggle to find a reason to own DoorDash, Inc. stock until they can prove their business model is viable and can achieve GAAP profitability.

Michael M. Santiago

DoorDash, Inc. (NASDAQ:DASH) had a rough 2022 and vastly underperformed the S&P 500.

DoorDash certainly wasn't the only company to have a rough 2022, and some investors may believe this year could be better for the company. Is this

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.