DoorDash stock dips on downgrade, student loans resuming
DoorDash (DASH) shares tick lower this morning after a downgrade by MoffettNathanson analysts citing the resumption of student loan payments in October. Yahoo Finance Live assesses the coming impact of student loans on services like DoorDash as U.S. borrowers attempt to cut back on spending.
Video Transcript
JULIE HYMAN: Another move we're watching is DoorDash. MoffettNathanson downgrading the stock to market perform from outperform, and the firm citing the resumption of student loan payments as a bookings risk to the food delivery businesses, not just DoorDash but the others as well, though I think they're still positive on the likes of Uber. So those shares down about 3% today. But this is interesting-- we keep talking about the student loan resumption.
DIANE KING: And what that's going to do.
JULIE HYMAN: And we're going to be talking about it later in the show as part of our series on the topic. But then we keep getting these waves of commentary about how it's going to affect the business.
DIANE KING: Yeah. But interesting to note, like you just noted about Adobe and how far they've run up this year, similar story for DoorDash. They're up more than 60% year to date, so it's not that much of a knock on effect in terms of the share price for it. So it looks like it's just a little bit of cooling, based on this perspective from MoffettNathanson, this headwind that we're seeing, that a lot of companies are kind of bracing for what is going to be the fallout from the student loan repayments, where will people be cutting back. They could potentially be cutting back. It's not a necessity.
JULIE HYMAN: Right. And as he talks about, if you think about the cohort of Americans that uses these services the most, as he says, it's in the 25 to 44 age range. That also happens to be the age range that is the most saddled or the most affected with the student debt that is going to have to be starting the repayment. So it makes sense. We'll see if it actually has that effect.
DIANE KING: Oh one other tidbit, we know DoorDash is moving to the NASDAQ.
[INTERPOSING VOICES]
JULIE HYMAN: Well, we'll keep an eye on that as well.
