DoorDash won't deliver for investors. Here's how to short it

American food-delivery app DoorDash can’t even make money in a pandemic. Matthew Partridge explains the best way to short it.

DoorDash app
DoorDash has many rivals waiting to eat its lunch
(Image credit: © True Images/Alamy Stock Photo)

Last year was a good one for the US stockmarket: the benchmark S&P 500 index shrugged off the effects of Covid-19 and finished the year up by 16%. Technology stocks did even better thanks to constant money printing by the Federal Reserve; interest from first-time investors using “free” trading apps, such as Robinhood; and a belief that the pandemic would result in major economic changes.

One tech stock that has done very well from this boom is the food-delivery app DoorDash (NYSE: DASH). It nearly doubled on its first day of trading in early December, rising to $190 from its initial price of $102. Even today it is trading at $156, a jump of 50%, giving the group a value of nearly $50bn.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri