Food delivery company DoorDash (NYSE:DASH) reported its fourth-quarter earnings last week. In Q4, revenue totaled $1.82 billion and was up an impressive 40% year over year. That was higher than Wall Street expectations of $1.77 billion. That's also a bit higher than the 33% growth it achieved a quarter earlier. Unfortunately, its $1.65 per-share loss was much steeper than the analyst projections of a loss of only $0.68. DoorDash finished the year with a net loss of $3.68 per share.
Another positive was that its monthly average users for December was 32 million, which is an increase of 28% year over year. The company also expects strong growth ahead, forecasting that its gross order volume will be strong for the current quarter, coming in between $15.1 billion and $15.5 billion – higher than the $15 billion analysts were expecting.
Overall, there were many positives to take away from the earnings release as the business remains strong even amid inflation and a possible recession on the horizon.
Over the past year, shares of DoorDash have declined 34% as investors have backed away from growth stocks. The stock was trading around $60 on Friday, down more than 50% from its 52-week high of $130.20.
But while the stock may seem cheap, given the possible headwinds facing the economy, I would remain hesitant on investing in DoorDash despite its encouraging numbers. While the company is still seeing strong growth, that could inevitably slow down as economic conditions could worsen and impact demand later this year.
