Buy This Juice Stock Pick That Continues To Crush It |
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The Juice loves two story stocks. Uber Technologies (UBER) and DoorDash (DASH). After you read through this installment of The Juice, head to the bottom of the page. In the Freshly Squeezed section, you’ll find one of our recent articles where we compare DASH’s ecosystem approach to Amazon.com (AMZN). We have a similar bear case for UBER, which you can find at the links in the above-mentioned article. Interestingly, UBER is always one of software application stocks investors search for most in our Trackstar database, but DASH doesn’t show up until 14th position. While it’s nice to see significant interest to reaffirm a position, it’s equally as nice to see a stock fly (relatively) under the radar. This can indicate that you’re onto something good that will further explode in price once interest searches. We’ll see. But, all we know is this.
And, believe it or not, we expect even more upside. |
Continued… |
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DoorDash is in the early innings of becoming an Amazon-like consumer ecosystem in the United States and — super important to the continued growth story — abroad. When we wrote about DASH in January, we touted its international expansion: Anyhow, right now Dash operates in 29 markets. It either buys or partners with delivery companies, particularly in Europe, where it recently bought Wolt, a delivery app in Finland. In these countries where it operates, Dash still has not penetrated the entire population. So there’s room to grow. The other day, in a newsletter The Juice subscribes to about the European venture capital market — called Sifted — there was an interesting blurb about DASH’s acquisition of Wolt: When Finnish food delivery scaleup Wolt announced it was being acquired by US competitor DoorDash in 2021 for €7bn, it was one of Europe’s biggest tech acquisitions for years. The business had more than 4,000 employees and was operating in 23 countries — and turned down a term sheet for a pre-IPO funding round of €1.1bn, cofounder and CEO Miki Kuusi told the Sifted Summit last week. But that was far from the end of the story for Wolt. Today, the company turns 10 — and has 12k employees, with customers in 1,000 cities in 28 countries… It’s got plenty more countries, and products, to expand into — whether via acquisitions or in-house operations — and that could include a whole lot more in fintech. “We always thought that we would evolve to become more like a bank,” says Kuusi. Sifted thinks Wolt can become “a European superapp.” Quick aside: what a ballsy move to turn down more than a billion in funding ahead of the DoorDash acquisition. Anyhow, The Juice doesn’t have to add much to what we’ve written already. The quote from Wolt’s CEO says it all really, as it jibes with what we hear from DoorDash. In the company’s most recent Q2/2024 earnings press release, it noted: It has now been two full years since we joined forces with Wolt to expand our international potential. In that time frame, we have expanded to four new countries and over 500 new cities. Our international ambitions remain well above what we have achieved to date, but we are very pleased with the performance our teams are generating. In the majority of our largest international markets 3 , our six-month consumer retention 4 is in line with or higher than it is in the U.S., where third-party data suggests we have maintained category leading consumer retention for several years… Similar to the U.S., we have expanded the number of categories we offer on our international marketplaces and are seeing an excellent consumer response, which suggests demand for convenience stretches across categories and across borders. Say it with us— Ecosystem. As for the numbers:
The Bottom Line: Buy this stock. It has near- and long-term upside. And don’t be shocked if somebody big comes in and swoops up DoorDash at a premium. As we explained in yesterday’s Juice on ETFs (see below), focus your investing in three areas:
Yesterday, we hit point one. Today, DASH falls squarely within point two. It’s the most obvious ecosystem play we have seen since AMZN. And, next week, we plan to hit point three hard as we commence what will be an ongoing series, spanning into 2025, on alternative investing. So forward The Juice to a friend and tell them to subscribe for free. |
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