DoorDash stock price gains over 18% after acquiring salad-making robotics company Chowbotics

DoorDash (NYSE: DASH) stock price has soared nearly 18% in the past two days after the company agreed to acquire the robotics startup Chowbotics, known for its salad-making robot, Sally. 

Fundamental analysis: Investing in consumer access

Chowbotics is a startup that launched in 2014 and has secured about $21 million in funding to date, including an $11 million raised in 2018. The company is best known for its salad vending machine named Sally, which can create different kinds of salad, cereals and snacks. 

“We have long admired the work that Chowbotics has done to increase access to fresh meals, with its groundbreaking robotics product and vision,” said DoorDash co-founder Stanley Tang.

“At DoorDash, we are always working to innovate and continue improving how we support our merchant partners and their success — and are excited to leverage this technology to do so in new ways. With the Chowbotics team on board, we can explore new use cases and customers, providing another service to help our merchants grow.”

Chowbotics has introduced a new feature for Sally which allows users to order their ahead of time using an app.

It remains unclear what use DoorDash makes of Chowbotics’ technology, however, the delivery service company said the deal is set to reinforce consumer access to fresh meals and improve its merchant offerings and logistics platform. Also, it is still not known whether Chowbotics will continue to operate as an individual company within DoorDash or not.

Technical analysis: A new leg higher?

DoorDash stock price is trading around 10% higher today after adding almost 6% yesterday. The company’s stock is trading about 12% higher compared to the opening IPO price from December.

DASH daily chart (TradingView)

We may see a new leg higher that is taking the price action north of $200 as DASH has added about $30 to its price in just two days. The next major target on the upside is $225.

Summary

Delivery service company DoorDash said it has bought the company that designed the salad-making robot Sally, Chowbotics. Shares are now trading about 18% higher since Tuesday.

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