DoorDash's Heavy Spending Triggers Sharp Decline

2 months ago

Nathan Hager

"Yeah, DASH is your ticker. Shares are spiraling lower, down about 11% this morning, trading at $212 a share and change. They are doing a meta, which is a verb now. I'm making it a verb. They're doing a meta where they're doing bigger investments, higher capbacks. They're trying to innovate. They're trying to invest in some of their platforms. Door Dash, for example, has recently acquired Deliveroo, which is a UK uh food delivery business. So, they're really trying to invest in a big way that they keep saying is going to help them in the long term. The Street is looking at that and saying, "This is way too much spend, and we don't see how this is going to show the same returns that you're promising." And they're getting punished for it. Door Dash shares down uh some 11% as we speak."

The discussion around DoorDash (DASH) emphasizes that despite heavy investments aimed at long-term innovation, the market penalized the stock with an 11% drop due to concerns over excessive spending and uncertain returns.

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