DoorDash Stock Lost 20%, Buy Or Wait?
DoorDash (DASH) stock is down 19.7% in 5 trading days. The stock still looks expensive which, combined with history of sub-par recovery following large dips, suggests risk. Consider the following data:
- Size: DoorDash is a $88 Bil company with $13 Bil in revenue currently trading at $204.31.
- Fundamentals: Last 12 month revenue growth of 24.5% and operating margin of 5.5%.
- Liquidity: Has Debt to Equity ratio of 0.04 and Cash to Assets ratio of 0.24
- Valuation: DoorDash stock is currently trading at P/E multiple of 101.5 and P/EBIT multiple of 126.1
- Has returned (median) -24.4% within a year following sharp dips since 2010. See DASH Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for DASH, see Buy or Sell DASH Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and DASH drops another 20-30% to $143 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience. Turns out, the stock saw an impact slightly worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
A single stock can be risky, but there is a huge value to a broader, diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the Trefis High Quality Portfolio (HQ). HQ has outperformed its benchmark — a combination of S&P 500, Russell, and S&P midcap index — and achieved returns exceeding 105% since its inception. Risk management is key — consider what the long-term portfolio performance could be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
Below are the details, but before that, as a quick background: DASH provides a logistics platform connecting merchants, consumers, and drivers, offering services like customer acquisition, delivery, analytics, merchandising, payment processing, and support.
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2022 Inflation Shock
- DASH stock fell 82.5% from a high of $245.97 on 12 November 2021 to $43.06 on 14 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 30 June 2025
- Since then, the stock increased to a high of $281.74 on 6 October 2025 , and currently trades at $204.31
| DASH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -82.5% | -25.4% |
| Time to Full Recovery | 990 days | 464 days |
2020 Covid Pandemic
- DASH stock fell 26.0% from a high of $189.51 on 9 December 2020 to $140.20 on 30 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 12 January 2021
| DASH | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -26.0% | -33.9% |
| Time to Full Recovery | 13 days | 148 days |
It is a good thing to keep in mind how low DASH could go during a downturn. And you should also check how the stock fared when compared with the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.