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- 1 The company’s shares were changing hands at $78.71 at publication time.
- 2 The world was dealing with food insecurity way before Russia invaded Ukraine.
Food businesses suffered in the United States with food prices rising by almost 10% in 2022 according to the U.S. Department of Agriculture (USDA). DoorDash Inc. (NYSE: DASH), an online food delivery company, has not been negatively affected by this scenario. Data shows that the organization has grown substantially with DASH stock rising by 70% since the year began.
2023 Might Be Rough For the Food Industry
Global food shortage is an important issue that many companies in the food business are facing. The Russia-Ukraine war has affected the supply of cereals which may bump bread manufacturing prices. Additionally, the war is anticipated to disrupt crop production in Europe’s breadbasket.
Edible oils are not an exception as Ukraine delivered nearly half the sunflower oil supply globally in 2020, according to the think tank Brookings Institution. The ‘Xylella Fastidiosa bacterium’ has plagued olive trees in Italy where 12% of the global supply is produced. According to the British Broadcasting Corporation (BBC) report in January 2023, the virus has killed 21 Million trees in Puglia, Italy.
Furthermore, climate change is exerting an influence on the beef market. Droughts in the Texas region are troubling livestock productivity. This has led ranchers to sell a large chunk of cattles. In December 2022, a Tennessee farmer told American news media Fox News that “2023 is going to be rough.”
FOOD FEARS: The worst is yet to come, the farm worker says. https://t.co/QZRGDl2QlO pic.twitter.com/3SbmKl64gl
— Fox News (@FoxNews) December 27, 2022
DASH Stock Price Performance
DASH stock is on an uphill trajectory since November 2022. The price remained volatile for nearly 5 months, with the price hitting a high of $70 and a low of $44.5 during this period. Since then, DASH shares have gradually climbed the charts. The company shares were changing hands at $78.71 at the time of publication.
Elder force index (EFI) is constantly hovering above the zero line, identifying a positive trend continuation. Relative strength indicator (RSI) has entered the overbought zone, depicting potential sellers’ entry into the market. Average true range (ATR) is down to 2.36 points, indicating decreased volatility in price, which also highlights the possibility that DASH shares may maintain momentum.
The International Monetary Fund (IMF) asserts that the world has been dealing with food insecurity way before Russia invaded Ukraine. The war worsened the situation, but was not its primary cause. Food shortages may impact companies in the sector at large. Moreover, food waste, carbon footprints, plastic waste from packaging, and other factors could further have a negative impact.
DoorDash Inc’s rival Uber Technologies Inc (NYSE: UBER) recently announced its strategy to reduce greenhouse emissions. The company plans to use 100% zero emission vehicles for delivery and to place restaurants involved in sustainable packaging on their app.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
