Prior to the IPO of DoorDash (DASH) shares were priced at $102. In the event, the listing was well received and price soared to $189 by close of trading on the Wednesday, December 9th debut. DoorDash was established in 2013 to deliver restaurant meals but has recently expanded into grocery orders. 

DoorDash has a market capitalization of $71.6 billion but has yet to post a profit. Twelve-month trailing operating margin was -11.6 percent and profit margin -12.8 percent. For the twelve-months ending September 30th 2020, DoorDash posted revenue of $2,214 million with a net loss of $283 million.  Total assets amounted to $2,874 million with total debt of $606 million.

The food delivery market is extremely competitive.  DoorDash claims 50 percent of the market, Uber Delivery, 26 percent; Grubhub, 16 percent; Postmates seven percent and the remaining share by local delivery companies.

Taking aside an apparent speculative frenzy for trendy IPOs investors should consider whether the company can ever become profitable. Realities include competition in the market, a looming and prolonged recession and a reversion to previous dining habits following control of COVID by vaccination and public health precautions by mid-2021.