DoorDash Inc. (DASH) shares plunged 5.19% in after-hours on Thursday, August 12, 2021, and closed the daily trading at $178.45. Even in the regular trading session of Thursday, DASH’s stock lost 1.23%. DASH shares have moved up 3.79% in the past week. Over the past three months, the stock has gained 62.97%, while over the past six months, it has declined 11.75%.
Let’s see is there any reason behind its Thursday loss?
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DASH recent financial results announcement
On August 12, 2021, DoorDash Inc. (DASH) announced its financial results for the quarter that ended June 30, 2021.
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Q2 2021 Financial highlights
- DASH reported sales of $1.24 billion for the second quarter of 2021 compared to $675 million in Q2 2020.
- In Q2 2021, GAAP gross profit was $657 million compared to $327 million in Q2 2020.
- It suffered a net loss of $102 million in the second quarter of 2021, compared to a net income of $23 million in Q2 2020.
- Total operating expenses were $1.34 billion in Q2 2021, compared to $648 million in Q2 2020.
- Adjusted EBITDA was $113 million in Q2 2021 compared to $79 million in Q2 2020.
Q3 2021 financial outlook
For Q3 2021, the company is expecting,
- Marketplace GOV to be in a range of $9.3 billion to $9.8 billion
- Adjusted EBITDA in a range of $0 million to $100 million.
DASH failed to buy Instacart
The U.S. food delivery firm DoorDash Inc (DASH) was in discussions over the past two months to buy grocery delivery company Instacart for a likely price of between $40 billion and $50 billion.
The talks have fallen apart in recent weeks, partly over concerns about whether the deal would get antitrust regulators’ approval.
DASH expands its ghost kitchen concept
DoorDash is giving the “delivery-only food service” a boost, using a version it opened nearly two years ago in California.
On July 29, 2021, DASH opened its second DoorDash Kitchens inside a local mall in San Jose, California.
Under one roof, six “ghost kitchen” restaurants, including Aria Korean Street Food, Canter’s Deli, Milk Bar and Curry Up Now, The Melt Express, and YiFang Taiwan Fruit Tea will be available for delivery and pickup services through DoorDash’s app.
DASH spar with City of San Francisco
The city of San Francisco has been sued by DoorDash and Grubhub over a 15% delivery fee cap. The surcharge which was imposed soon after the pandemic began, has now become permanent. It was set to expire on August 15, 60 days after restaurants were allowed to fully reopen in California but now San Francisco wants to make it permanent.
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Conclusion
The recent financial results missed the analyst’s estimates which resulted in DASH stock plummeting on Thursday. it can further slide down on Friday to close the week on a negative note.