DoorDash’s (DASH) shares have soared 38.3% in price over the past three months on investors’ optimism surrounding its expansion into Japan and its strategic partnerships. But can the stock continue rallying despite the company reporting a wider-than-expected loss in the second quarter? Let’s find out.Shares of logistic platform provider DoorDash, Inc. (DASH) soared 85% in price on the company’s stock market debut on December 9, 2020. Moreover, the stock of the San Francisco concern has gained 38.3% over the past three months to close yesterday’s trading session at $191.63 due to investor optimism surrounding the company’s market expansion and strategic developments.
DASH announced its official launch in Japan on June 9, 2021, and announced its partnership with Beyond Meat, Inc. (NASDAQ:BYND) later that month. However, the stock has lost 4.2% in price over the past six months and is currently trading 25.2% below its $256.09 all-time high, which it hit on January 27.
DASH’s wider-than-expected loss in the second quarter has been worrying investors. Also, the company anticipates a seasonal decline in new consumer acquisition and order rates in the third quarter. In addition, it continues to face intense competition from other players in the industry, such as Uber Technologies, Inc.’s (NYSE:UBER) Uber Eats, and from retail giants such as Amazon.com, Inc. (NASDAQ:AMZN) and Walmart Inc. (NYSE:WMT) that rely on their employees for delivery services. So, DASH’s near-term prospects look bleak.