Sell DoorDash (DASH)
It’s been encouraging to see the market stabilize over the last two days (though yesterday was a crazy session).
It might just be that the Trump administration is getting the message – which is coming in loud and clear from every angle – that they should put more emphasis on how they are open to negotiations and see a path forward, rather than a hard-line, “our way or the highway” approach.
But two days of market “stabilization” is not a trend. Where we go from here is anybody’s guess.
It’ll depend on how the Trump administration plays things from here and how the market interprets the various big-picture results, i.e. recession risk, Fed policy, U.S. dollar and U.S. deficit, to name a few.
In any event, with recession risks rising it seems rather obvious that consumers will pull back. Even if we avoid a recession, I suspect people will take steps to spend a little less on luxuries in the coming weeks/months.
That brings me to DoorDash (DASH). The stock has actually held up OK during this correction, but we got in after the latest earnings reports when things sounded fantastic and the stock was trading near multi-year highs. It has since fallen about 20%, which really is the max loss I want to take on any of our positions if we have a window to exit.
Given that we currently have two other stocks with similar paper losses in Dutch Bros (BROS), which I think will be more resilient, and Freshworks (FRSH), which we can still average down into, DoorDash is the one to go.
I’ll keep an eye on it since I like the story and it’ll likely be fine once all this blows over. But for now, it’s a sell. SELL
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