This Top Stock Pick Continues To Crush It

Just as surging interest in Trackstar turns us on to potentially sound trades and investments, it also tells us a thing or two when a stock flies under the radar. 

Consider DoorDash (DASH). For the life of us, we can’t understand why investor searches for DASH lag so far behind one of our other top picks for 2023 – Uber (UBER). It might just be because Uber is a better known name nationally? While DoorDash operates all over the country, it’s not quite as ubiquitous, particularly from a mindshare standpoint, as Uber or even Lyft (LYFT). 

We’re all for stocks that fly under the radar. Nothing like owning something before everybody and their brother-in-law jumps on board. 

Since we first recommended looking at DASH in late November, 2022, it’s up roughly 38%. In that article, we suggested approaching the stock like this:

We like the idea of buying a little bit of DASH, alongside UBER, at regular intervals in the speculative part of your long-term portfolio.

Basically, dollar cost averaging. The idea of committing the same amount of money to a stock each time you buy it on a consistent schedule. With this strategy, you’ll purchase fewer shares when the stock price is high and more shares when it’s low. If you did this with DASH, you have had plenty of opportunities to buy on dips, even as, over time, the stock has gone up in what turns out to be a sweet, clean, straight line. 

We updated our bull case on DASH in early March of this year, noting that it continued to expand its ecosystem via partnerships with companies such as Mastercard (MA), Starbucks (SBUX), Tractor Supply (TSCO) and WeWork (WE). When that edition of The Juice hit, DASH was on a dip. Since then, the stock is up 30%. 

We last discussed DASH in April, noting new and expanded partnerships with grocery stores as well as an impressive 15 million members in its DashPass program. Since then, the stock is up about 22.5%. 

YTD, DASH is up around 56%. Not quite as impressive as UBER’s roughly 68% run, but still pretty darn good. For comparison sake, LYFT is down approximately 11.5% since the beginning of the year. 

We remain bullish because DASH continues to execute. 

We love what DoorDash unveiled the other day. The biggest update to its app ever. 

Here are the highlights, directly from DASH’s press release on the news followed by the bottom line on why we think it matters:

• With our newly redesigned consumer app, it’s now easier than ever to get anything you need in your neighborhood on-demand.
• With numerous categories to now shop from, you can now start multiple shopping carts in the app, check out whenever you’re ready, and never lose progress on an order again. Now you can add to your weekly grocery cart, start another to order today’s lunch, and another to start a separate school supplies order for your kids. It’s easy to view and manage all of your open carts by simply tapping the cart icon in the top-right corner of the app.

The Bottom Line: You see what DASH is doing here. And it’s right out of Amazon.com’s (AMZN) playbook. They’re creating a comprehensive ecosystem designed to touch consumers in more ways – and more times – than one. 

While DASH remains most popular for ordering from restaurants, it does give you access to “anything you need in your neighborhood on-demand.” By letting users create and save multiple carts for different purposes, DoorDash is basically saying we’re Amazon for the things you really need on a daily basis and, amazingly, you can order those things more efficiently and get them to your door faster than even Amazon can. 

And the beauty of it is, DoorDash doesn’t need to beat Amazon to win. It only needs to continue to grow its core restaurant business (and it is), expand its grocery business (it is) and take a little bit in a handful of other areas where people might – at the moment – think of Amazon first. 

All of this said, we would not be shocked to see Amazon or another big player make a run at DoorDash sometime soon. Stay tuned. DASH reports Q2 earnings in early August. We’ll listen to the conference call and relay the most important happenings.

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