Daily Stock Opinions and Ratings

Opinions

Jim Cramer - Mad MoneyDoordashDASHDON'T BUYDec 18, 2020

The $53 billion valuation may be too high. Maybe after we all get vaccinations, people may return to restaurants and use DD less, or we could get used to DD food delivery. Even if they everything goes right for them, it isn't worth this valuation. Also, its competitors like GrubHub are smart.

Jim Cramer - Mad Money

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$166.35

Stock price when the opinion was issued

$173.50

As of Jun 18, 2026. Market Open.

food services

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BUY

They just delivered good numbers. Likes it.

BUY

It just reported a clean revenue beat and raised guidance for this quarter and the full year.

BUY

They report Thursday. He expects them to report a profit.

BUY

It had a strong run in 2021, but has lost 78% of its value from the peak. DASH last week reported a super quarter; gross order value was up 25% YOY. People are continuing to order food delivered to their homes and this won't go away. Wall Street worries that DASH could get hit in a recession.

COMMENT

They report Thursday. They endured the pandemic with flying colours. But the standards are set so high for quarterly reports these days that if they don't beat handily, shares will fall.

DON'T BUY

Wall Street has left certain "pandemic" stocks for dead. It fell from $250 to below $75 then bounced to $127. He has high hopes for the company long term, but it is losing money. So, he can't recommend his stock. The stock is still pricey and it's losing money. Many restaurants will still use Doordash, though.

BUY

A Covid winner and now a post-Covid buy The street expecting customers to abandon these food-delivery apps once the pandemic lifted. Consumers hung up because of the convenience.

BUY

Like Airbnb, it's taken permanent market share because of the pandemic. People now like to order food delivered home through the app.

BUY

It reports Tuesday. Uber's delivery service is still thriving as the pandemic fades, so he expects a great quarter from DD.

PARTIAL BUY

It reports Thursday. It has lined up amazon partnerships during the pandemic. It can make good money, not great, because many people want to dine in person and take-out less.

DON'T BUY

He misjudged the initial appetite for this stock. It's plunged since then. Now, it's a lockdown stock with too many competitors.

BUY

They IPO Wednesday and will be the biggest debut this year after Snowflake. They have 390,000 merchants and 18 million customers. They've processed 900 million orders. Food delivery become essential during Covid. Meanwhile, Doordash has bought competitors and the space has actively consolidated. Covid has accelerated it development because of the lockdowns. DD is the biggest player in food delivery, taking 50% market share. There's a lot of room to grow. They are expanding into groceries and flowers. DD is unprofitable given huge marketing costs, but these costs are worth attracting more customers. Revenues grew 204% YOY, total orders by 217% and gross order volume 186%. It's far from profitable, but margins are widening. DASH will be priced at $90-95 at IPO, less than 7x 2021 sales estimates, but he thinks $100 is reasonable, but no more--business will slow a lot next year when society reopens. He predicts a pullback in 2021.

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