https://i.imgur.com/sOIoP2p.png
-Doordash has 2x as much revenue as Grub.
-But the market cap is 10x.
There are two ways you could go with this, either Grub undervalued or Door is overvalued. I pick the second.
Doordash, like every other food delivery, is still losing money. This is important because the pandemic is "as good as it gets" for Doordash--there will never be another time with so many people "forced" into ordering delivered food. Yet with all these factors lining up beyond their wildest dreams, Doordash is still unprofitable. How unprofitable?
4th quarter 2020: net loss of $2.67 per share.
Compared to $3.05 loss per share in Q4 2019.
That's a gain of 12.5%. Worldwide pandemic with people holed up in their houses, doordash only ups by 12.5%. Not bullish.
Lockup expiration:
Doordash float is 144M.
Doordash stock lockup expires 3/9, making 110M shares available.
The stock has basically "peaked". Won't there be a massive selloff in the coming weeks? It seems rational to me, that DDash insiders know the stock has peaked, and will want to get rid of shares while the going is good.
However, the short interest is only 5.4%. I would expect a much higher short if it were really going to tank. For comparison, GRUB shortint is a whopping 20%. Thoughts?
Submitted March 07, 2021 at 09:32PM by Avogadro_seed https://ift.tt/3v34uJZ
