DoorDash (NYSE: DASH) stock made a dash of its own as it surged almost 86% in its first day of trading.
However, despite this early momentum, I do not see a scenario in which I will buy DoorDash stock. This is not because the consumer discretionary company lost some of its gains in subsequent trading days following the Dec. 9 IPO.
I made this determination, because in the end, stocks thrive on expanding profits, and DoorDash offers no obvious path to continuous earnings growth. Although the company provides a valuable service, it appears destined to struggle as a low-margin operation.