Lackluster Profit Forecast Dings DoorDash Stock

Shares could today close below long-time support

Digital Content Manager
May 2, 2024 at 10:45 AM
facebook X logo linkedin


DoorDash Inc (NASDAQ:DASH) reported better-than-expected first-quarter revenue, as a rise in grocery orders helped offset weaker demand for restaurant deliveries. The company issued a lackluster profit forecast for the fiscal second quarter, though, due to rising marketing and research costs. DASH was last seen 13.1% lower at $110.73.

No fewer than nine brokerages cut their price objectives on DASH, with Piper Sandler adjusting from $127 to $115. The 12-month consensus target price of $135.57 is still a 22.6% premium to current levels, however, and 19 of 31 firms in coverage still DASH a "buy" or better.

Options bears are piling on as well, with 19,000 puts and 7,776 calls exchanged so far -- overall volume that is nine times the intraday average amount. The most active contract is the weekly 5/3 110-strike put, but traders are now opening positions at the 98-strike put in that series.

Pessimism became prevalent in the last several weeks. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity's 50-day put/call volume ratio of 2.16 sits higher than 85% of readings from the past 12 months.

DoorDash stock could today close below the 40-day moving average for the first time this year, and earlier gapped to its lowest level since February. Shares carry an 18.6% quarter-to-date deficit, and are on track for their third-straight daily loss and worst day since May 2022.

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI