Jim Cramer Says "DoorDash is a Relative Bargain"

DoorDash, Inc. (NASDAQ:DASH) is one of the stocks that Jim Cramer expressed thoughts on. Cramer said that the stock is relatively cheap compared to its growth rate. He stated:

“DoorDash’s ad revenue now exceeds $1 billion on an annualized basis. That’s real money. You know what? I think it’s a principal reason why the stock’s been so robust… So, where do I come down on the stock here? Well, surprisingly, even though DoorDash is already up almost 65% for the year, the stock’s still relatively inexpensive, at least compared to its growth rate. Right now, DoorDash sells at roughly 43 times next year’s earnings estimates, I know, not that cheap.

But when you consider… this company, with nearly 30% earnings growth expected next year, that price to future earnings multiple looks very reasonable. It’s one of the reasons why I include it… Let me give you the bottom line: Yes, consumers are desperate for value, but that doesn’t necessarily mean low price. Sometimes it means paying up for a service simply because it’s a relative bargain. DoorDash is a relative bargain. The convenience of delivery service is worth a lot more to people than the cost, which is why the stock’s been on fire, and why I’m betting that it’s not done going higher.”

DoorDash, Inc. (NASDAQ:DASH) runs a commerce platform that connects merchants, consumers, and delivery partners through its DoorDash and Wolt marketplaces. It provides delivery, payment, and marketing solutions, along with subscription and white-label services for businesses.

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Disclosure: None. This article is originally published at Insider Monkey.