Is It Too Late to Buy DoorDash Stock?
DoorDash's (NYSE: DASH) stock surged 12% on Nov. 10 after the online food delivery company posted its third-quarter earnings report and revealed its plans to buy Wolt, a Finnish delivery start-up, for about $8 billion in stock. DoorDash's third-quarter revenue rose 45% year-over-year to $1.3 billion, which beat estimates by $90 million. But its net loss widened from $43 million last year to $101 million, and its net loss of $0.30 per share missed expectations by three cents. Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stayed flat at $86 million.
Those results indicated DoorDash could continue to grow on top of its pandemic-induced growth spurt in 2020. However, its expected takeover of Wolt, which provides delivery services in 23 countries, gained a lot more attention for its ability to accelerate DoorDash's overseas growth. Should investors consider buying DoorDash before that deal closes in the second half of 2022? Or is it a bit too late to buy this high-flying stock?
Image source: DoorDash.
Source Fool.com
