[I own DoorDash stock. This is not investment advice. Please do your own due diligence.]
In the second half of 2021, DoorDash’s stock price more than doubled. In a short span of a few days in November 2021, DoorDash’ stock price surged by more than 30% to over $250 a share. Clearly, DoorDash’s company fundamentals had not improved by 30% in those past few days. Recognizing that stock prices reflected more of investors’ emotions and less of business fundamentals, I sold all my DoorDash stock in early November 2021.
Coming into 2022, DoorDash’s share price has dropped by over 65%. Over the past few days, it has come down by 20%. DoorDash’s actual business did not come down by 20% over the past few days. Realizing that stock prices reflect more of investors’ emotions and less of business fundamentals, I kept buying DoorDash stocks in recent days.
I am going to explain what I think has happened in the stock market and why I remain bullish about DoorDash.
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