DoorDash stock rises on upgrade from Morgan Stanley
Shares DoorDash (DASH) are moving higher on Thursday after the stock received an upgrade to Overweight from Equal-Weight at Morgan Stanley. In a note to clients, the analysts behind the upgrade say that the company "continues to deliver peer-leading and better-than-expected consumer spend and gross order value results across its expanding platform."
Yahoo Finance Anchors Josh Lipton and Julie Hyman break down the latest development for DoorDash and what it could mean for the company moving forward.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
JULIE HYMAN: Morgan Stanley upgrading DoorDash to overweight. The firm seeing leading growth and profit execution driving better than expected cash flow for the company. The shares are up by 6% in today's session. And basically, they say that the runway remains long for the company's core restaurant and grocery growth, and that that's a positive for the company.
JOSH LIPTON: And remember, they just reported results very recently, and the stock slid on those results hard because some weren't happy with the guidance and specifically the guidance for full-year marketplace gross order value. That's what upset some investors. But clearly, Morgan Stanley says that as a way to get in, a time to get in, seize opportunity. And the move though, even with that recent slide, you look at this stock, I mean, it's still up about 20% already this year. It's up more than 100% in the past 12 months.
JULIE HYMAN: Yeah. And Morgan Stanley addressed that pullback directly. They say it was driven by investor concerns surrounding investment levels, competitive dynamics, and forward guidance achievability. But they say we have confidence in the company's model in part because of what they say is the durable US restaurant business.
JOSH LIPTON: Yeah, Street is actually kind of divided on this one, 20 buys, 17 holds, 2 sells but not Morgan Stanley.
JULIE HYMAN: Yeah.
JOSH LIPTON: No.
