This Stock Soared 309% From Its 2022 Low -- 2 Reasons to Buy It Now, and 1 Reason to Stay Away

Core Viewpoint - DoorDash has shown strong operating results with significant revenue growth and improved profitability, but caution is advised due to high valuation metrics [2][13]. Group 1: Revenue Growth - DoorDash's stock has increased by 309% from its 2022 low, driven by steady revenue growth and expansion into new markets [2]. - The company's Marketplace Gross Order Value (GOV) reached $20 billion in Q3 2024, resulting in a record revenue of$2.7 billion [4]. - GOV grew by 19% year-over-year, marking the slowest quarterly growth in 2024, while revenue grew by 25%, the fastest quarterly growth this year [5]. - The net revenue margin improved to 13.5%, up from 12.9% year-over-year, due to enhanced efficiency in logistics and increased advertising revenue [5][6]. - DoorDash is expanding beyond food delivery into groceries and retail, with over 100,000 retailers now on its platform, indicating potential for significant future growth [7]. Group 2: Profitability - DoorDash has adopted a more prudent spending strategy, increasing operating expenses by only 14% year-over-year to $2.6 billion [9]. - The company achieved a net income of$162 million in Q3, marking its first quarterly GAAP profit in history [10]. - Adjusted EBITDA reached a record $533 million, reflecting a 55$11.2 billion in revenue across all segments [14][15]. - Investors may consider DoorDash a long-term hold, but shorter-term investors might find better opportunities in competitors like Uber [15].