DoorDash Inc. (DASH) Expands Fuel Relief for Dashers amid Costs Concerns

DoorDash Inc. (NASDAQ:DASH) is one of the top growth stocks in billionaire Philippe Laffont’s portfolio. On March 30, Wolfe Research reiterated DoorDash Inc. (NASDAQ:DASH) with an Outperform but cut the price target to $195 from $265.

DoorDash Inc. (DASH) Expands Fuel Relief for Dashers amid Costs Concerns

Proxima13/Shutterstock.com

The price target cut comes on the heels of the company announcing fuel price relief for delivery drivers. The fuel relief program also includes 10% cash back on gas for delivery drivers with a DoorDash Crimson Visa debit card, five times the standard 2% rate. Dashers who drive 125 miles or more are also entitled to a relief payment starting at $5 to a maximum of $15.

The firm expects the relief to trigger $15 million in costs in the next four weeks, with the majority of the impact, at $11 million, coming in the second quarter. If DoorDash decides to continue the fuel relief effort, the research firm expects the company to incur an incremental cost of $15 million monthly. It has also lowered its gross order value and EBITDA estimates to account for the fuel price relief.

DoorDash Inc. (NASDAQ:DASH) is a leading local commerce platform and technology company that facilitates on-demand delivery and pickup services. The company connects consumers with a variety of local businesses, including restaurants, grocery stores, retail shops, and convenience stores via its app and website.

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.

READ NEXT: 10 Undervalued Large Cap Stocks to Buy and 9 Best Gold Mining Companies to Buy With High Upside Potential.

Disclosure: None. Follow Insider Monkey on Google News.