​DoorDash (DASH) Down 21% YTD, Should You Buy?

​DoorDash, Inc. (NASDAQ:DASH) has declined more than 21% year-to-date, mainly due to investors worrying that the rising inflation and lower disposable income can impact consumer spending and increase delivery margins to impact DoorDash’s business.

​However, the Street remains positive on a recovery as the analysts’ 12-month average price target suggests more than 44% upside from the current level. DoorDash, Inc. (NASDAQ:DASH) is one of the Stocks Expected to Bounce Back According to Analysts.

​On June 15, Bank of America Securities reiterated a Buy rating on the stock with a price target of $272. Earlier on June 8, BofA had released a research note stating that they expect DoorDash to outperform as the current AI cycle progresses. The firm noted that investor money is flowing toward semiconductors and hardware to capture AI infrastructure buildout gains. This has weighed on internet stocks like DASH, even among companies that are beating expectations.

​BofA believes that these dynamics will shift once the hardware capacity catches up with the demand. Once that point is reached, then internet stocks such as DoorDash will benefit as applications will be built on the AI infrastructure that is being deployed currently.

DoorDash Inc. (NASDAQ:DASH) operates a food delivery and logistics platform, serving consumers in the US, Canada, and Australia. The company is based in San Francisco, California and was founded on January 2013 by Andy Fang, Tony Xu, Stanley Tang, and Evan Moore.

While we acknowledge the risk and potential of DASH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DASH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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