PreMarket Prep Stock Of The Day: DoorDash

Benzinga's PreMarket Prep airs every morning from 8-9 a.m. ET. During that fast-paced, highly informative hour, traders and investors tune in to get the major news of the day, the catalysts behind those moves and the corresponding price action for the upcoming session.

On any given day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick along with producer Spencer Israel.

After a company has its IPO, the first fundamental information investors will receive — besides comments from Wall Street analysts — is its inaugural earnings report. DoorDash Inc DASH, which reported for the first time Thursday, is the PreMarket Prep Stock of the Day. 

DoorDash Volatile Off Its IPO: DoorDash made its Wall Street debut Dec. 9 at $182 and ended its first session at $189.51. 

It went on to make its all-time low Dec. 31 ($135.38) and ended the year just off that low at $139.19. 

Off that low, it caught a relentless bid that was only temporarily interrupted, and it surged to its all-time high on Jan. 27 ($256.09).  DoorDash was unable to sustain that elevated level and cratered to close that day at $193.07. The issue’s all-time closing high was made Feb. 10 ($215.16).

Street Leans Bearish Into DoorDash Report: After making its all-time closing high, DoorDash was able to hover in the $200 handle but gave way on Feb. 19, swooning from $205.97 to $178.07. 

The move lower continued, and it closed on Thursday ahead of the report at $166.87. 

That marked the lowest close for the issue since Jan. 8, when it ended the session at $156.09.

DoorDash's Q4 Report: After the close on Thursday, the company announced a fourth-quarter EPS loss of $2.67, down from a $3.05 loss one year ago. DoorDash posted adjusted EBITDA of $94 million vs. a loss of $103 million in the same quarter last year.

Sales of $970 million modestly beat a $937.95-million Street estimate. 

Total orders surged 233% year-over-year to 273 million, a figure no doubt boosted by consumers who dining in during the pandemic. 

DASH Price Action: After opening $11 lower Friday, the issue immediately bottomed at $155.03 and reversed course. 

The low came in just above the Jan. 11 low of $153.19. The ensuing rebound took the issue into the green. 

The stock was trading 1.89% higher at $170.02 at last check. 

DoorDash Moving Forward: From a technical standpoint, this issue is in no man’s land. If attempting to go long the issue at this level, the first possible exit point may not be until the current low ($155.01) or, stretching it but further, leaning on the Jan. 11 low ($153.11).

Unfortunately, under that low, there is no daily support until the Jan. 8 low ($147.30).

For those investors who want a sliver lining from Friday’s price action, a higher close on the session — over $166.87 — may signal that a short-term bottom is in place.