Stock Analysis & Ideas

DoorDash Stock (NYSE:DASH): Can Benefit from Employees’ Coping Mechanisms

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Like it or not, the macroeconomic winds suggest that companies will start recalling their employees, possibly sparking upside for DoorDash stock. With worker bees stuck again in the confines of the corporate office, DASH stock may rise thanks to a surge in coping.

While employees may be dreading a large-scale return to the office, food-delivery service DoorDash (NYSE:DASH) stock may benefit from a collective coping mechanism. Faced with the return of the morning commute along with the typical office drudgery, workers may require an adjustment process. DoorDash may help by providing a little bit of joy in the nine-to-five. I am bullish on DASH stock.

To be fair, the prospect of a complete return to normalization in the workplace does not represent a guaranteed outcome. In particular, it’s not just workers that benefit from remote operations. By not having employees in a large campus, businesses can save on overhead. Further, with rising talks about recessionary fears dominating headlines, even well-heeled enterprises can use some savings.

However, reading the tea leaves suggests that workers phoning it in from their living room may face a rude awakening. Conspicuously, entertainment giant Disney (NYSE:DIS) not too long ago announced an end to its remote-work policy. Starting from March 1, hybrid employees must return to the office four days a week.

Fundamentally, this decision may spark a copycat effect, with other enterprises following suit. If so, directly relevant gig-economy companies may benefit tremendously. However, DASH stock may also enjoy downwind favors. As workers begrudgingly return to their cubicles, they’ll want a taste of the “outside” world. Thus, food-delivery services can help these poor souls cope.

DASH Stock May Rise as Workers Adjust to Their New Normal

Again, while a total normalization of the workforce is not guaranteed, should this materialize, the change would be dramatic. According to a Pew Research Center report last year, most teleworkers stated that they prefer to operate remotely. By logical deduction, most people prefer the home to the office. Thus, if recalls start picking up pace, the emotional effect may eventually (albeit cynically) reward DASH stock.

Medical and psychological literature indicates that significant life changes may create stress, leading to negative emotions. Fundamentally, a sharp transition from working at home for three years to returning to the cubicles represents a paradigm shift. Invariably, many will seek out coping mechanisms to acclimate to the transition, and that’s also where the narrative for DASH stock intrigues.

According to The City University of New York, stressors and other strong emotional states influence a desire for comfort food. Psychologically, comfort food sparks feelings of safety and control. Beyond their palatable attributes, they also lessen the impact of stress hormones.

Naturally, then, DoorDash offers a readymade solution to those in the midst of a return-to-office crisis. Further, the debate about returning to the office likely leans in favor of corporate executives, who will be clamping down on their employees.

As well, both workers and investors should recognize the current winds. Amid waves of layoffs for high-paying technology jobs, the last thing anybody wants to do is not be seen. Bluntly, it’s easier to shoot someone in the back than it is in the face, and this, too, should cynically boost DASH stock.

It’s Not Just About the Narrative

Although the above framework for DASH stock might score points for creativity, it’s the underlying objective reality that also supports the investment thesis. Mainly, DoorDash continues to be a growth monster, irrespective of various macro headwinds.

Back in 2019, the company posted revenue of $885 million, representing a more than three-fold increase from the prior year’s tally. Further, in the pandemic-disrupted year of 2020, DoorDash rang up sales of $2.89 billion. Again, the food-delivery service posted a more than three-fold increase, this time to a greater magnitude.

Even more startling, the hits keep coming. In 2021, DoorDash inked $4.89 billion on the top line. On a trailing-12-month basis, revenue stands at over $6 billion. In the most recent third-quarter earnings report, the company generated sales of $1.7 billion, up 33% against the year-ago quarter.

Today, standing on the cusp of a major pivot in the workplace, DASH stock may benefit from an emotional catalyst. For speculators, it may be too enticing of a trade to pass up.

Is DASH Stock a Buy, According to Analysts?

Turning to Wall Street, DASH stock has a Moderate Buy consensus rating based on seven Buys, seven Holds, and two Sell ratings. The average DASH price target is $71.44, implying 12% upside potential.

Conclusion: For DASH Stock, the Performance Justifies the Plot

Psychologically, food has long served as both a source of nourishment and a comforter. With recessionary pressures at the back of corporate executives, the recall to the office will likely materialize. As a stressful event, workers will likely gravitate toward coping mechanisms, and DoorDash will be all too happy to help. Though it’s cynical, the narrative presents much promise for DASH stock.


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