Will the shipping business continue to jump after the corona? Dordesh is still far from the peak

by time news

The corona has made many changes in our lives. Some are timeless, while others have received wider adoption that may remain with us even after the disappearance of the corona from our lives. One of the habits that existed even before the corona but gained significant momentum due to the epidemic is the field of shopping through delivery in general and the field of food deliveries in particular. Will the sector continue to grow even after returning to routine?

Dordesh Company


DOORDASH INC
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Has established itself as a leading company in its countries in the field of food shipments. The company also recently received headlines in Israel due to the acquisition of the very active Walt company in Israel for $ 8 billion, but it is also prominent in other places. According to investment analyst Raymond James, its control over food shipments is expected to lead to 15% growth a year in the long run.

“We expect that through the continued adoption of customer deliveries and an increase in the frequency of orders, continued market expansion, expansion beyond the core business of the restaurant category and expansion nationally, Dordesh will be able to maintain 15% growth in long-term revenue,” wrote Aaron Kessler. Despite the positive outlook it preserves a market weight recommendation per share and is positive in relation to the fundamentalist data, but notes that now the risk ratio has a balanced chance at these price levels.

Although consumers are rapidly returning to pre-epidemic habits, so going out to restaurants and traveling around the world, the habit of ordering meals home from restaurants seems to be here to stay and even continues to grow. Raymond James recently conducted a survey and found that the increase in the use of food deliveries continues with about 37% of respondents using third-party apps (i.e., not of the restaurant itself), compared to 33% in 2020 and 29% in 2019. The survey also shows On an increase in the frequency of bookings compared to pre-corona levels. The number of respondents who booked once a week or more rose to 51% compared to 45% before the corona plague.

At the same time Dordesh is not alone in the arena. It competes with companies such as Uber, which operates a service that includes food deliveries (Uber Eats) as well as other companies. Despite intense competition Dordesh has managed to position itself as the leading company with 59% of orders in the Allies in April, and a higher percentage in the suburbs.

The company’s shares are trading today, but as part of the growth stock sector it has experienced sharp declines in recent months. Since the beginning of the year, the stock has fallen over 50%. The peak levels recorded at the end of 2021 are already more than 70%.

Do the sharp declines put it at an attractive price? The company is still trading at a value of about $ 25 billion, which is when revenues in the first quarter of 2022 reached $ 1.4 billion and in 2021 to $ 4.9 billion, and the bottom line is that the company still shows a loss that amounted to almost half a billion dollars in 2021 and 167 million Dollars in the first quarter of 2022. These are numbers of a growth company, and the market currently does not like growth companies. Will the sentiment change soon, especially in a company that is in a market that is growing aggressively, and it is quite clear that the losses are in favor of continued expansion?

Analysts apparently disagree on the issue. According to the Yahoo Finance website, half of the analysts hold a positive opinion of the stock with a strong buy or buy recommendation, while the other half, 13 in number, strongly recommend it.

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