Having been the go-to coffee shop for under-40 parents doesn't make Dutch Bros' coffee stands "uncool" either. Dutch Bros is unique to Gen Zers and millennials, founded in the early 1990s and just starting to get attention. Younger folks' disposable and discretionary earnings will grow, so expect them to become and stay Dutch Bros' customers.
Dust is finally settling. Why is Dutch Bros stock down nearly 60% from its 2021 high if the company's future is so bright? The answer depends on the company's IPO date and circumstances.
Dutch Bros has been around since the 1990s but began public trading in September 2021. The COVID-19 epidemic was still a public health problem. But the stock market was positive because the world has found methods to do business despite the pandemic
As many people kept their social distancing efforts, which prevented them from enjoying other hobbies, some turned to the stock market for fun. Dutch Bros shares rose from $23 at its IPO to $81.40 in November 2021 as investors sought new investment opportunities.
As usual, the exhilaration faded, and not only for Dutch Bros. Amid the 2022 bear market, the stock fell. However, the pendulum that once swung too far bullishly has now gone too far and for too long bearishly. Salespeople overshot. Dutch Bros stock is inexpensive since the company is underrated. This happens often post-IPO.
However, shares are up 40% from February's 2024 low and over 50% from October's all-time low. This month, the stock achieved a new 52-week high, a subtle indicator that the market is beginning to regret sending it down so much.
Does Dutch Bros stock suit you? Dutch Bros' development story is interesting, but it doesn't make it a good stock for every investor. Many aspects of it are still new. It will continue investing extensively on growth
At the start of March, it issued 8 million new shares at $29.05 each, increasing the number of outstanding shares to just over 70 million and diluting current shareholders. These variables increase the volatility of a firm with a promising but uncertain future. Dutch Bros delivers above-average earnings if you can handle the risk and volatility.
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