Why DoorDash Shares Still Trade Too High

The COVID pandemic unlocked a fountain of growth for many emerging technologies. DoorDash (NYSE: DASH) was a clear beneficiary of economic lockdowns that triggered a boom in the food delivery industry. Despite this powerful tailwind, the company still failed to deliver positive earnings amid additional expenditure on key line items like marketing. As the pandemic fades and consumers return to restaurants, DoorDash may have missed its opportunity.

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DoorDash makes the bulk of its revenue by taking a percentage of restaurant sales on its platform. It reports these sales as "marketplace gross order value," or GOV, in its financials, which totaled $24.66 billion in 2020 — a 326% increase over 2019. Put simply, it's the total amount of money that DoorDash users paid for food.

Source Fool.com