Legendary short-seller Jim Chanos has a position against delivery company DoorDash . Chanos, the founder of Kynikos Associates, laid out his short thesis on Door Dash on CNBC's " Halftime Report ," saying that the company's failure to generate cash and profits during a period of heightened demand exposed a flaw in the business model. "You're not making money in the pandemic, when everyone is ordering food and everyone is staying at home and you have a captive audience," Chanos said. "If not now, when?" DoorDash went public nearly a year ago after the Covid pandemic had caused a surge in usage for food delivery services. The second quarter of 2020, shortly before the company went public, is the only quarter DoorDash has reported positive net income. The company reported a loss of $101 million for the third quarter of 2021. The stock is up 17% year to date but has struggled recently. Shares are down more than 30% since mid-November. Chanos has previously said that he was short Grubhub, a DoorDash competitor. Grubhub was acquired by Just Eat Takeaway earlier this year. "If you're not making a lot of money, and the capital markets turn a lot less friendly ... valuations get destroyed for money-losing companies when capital is not avaiable," Chanos said on Thursday. During his career, Chanos has made several successful bets against companies that later proved to have major flaws, most famously Enron two decades ago. Wall Street is broadly skeptical of DoorDash, as more than half of analysts have a hold rating on the stock, according to FactSet. Shares of DoorDash were up more than 3% for the day before Chanos made his comments on CNBC. The stock was last up about 1.4%. Correction: DoorDash had positive net income in the second quarter of 2020. An earlier version misstated the company's historical results.
Scott Mlyn | CNBC
Legendary short-seller Jim Chanos has a position against delivery company DoorDash.