Wells Fargo notes Alphabet’s (GOOG) (GOOGL) Waymo announced first food delivery partnership with DoorDash (DASH), launching initial pilot in Phoenix before year-end 2025. The firm believes current Waymo unit economics are extraordinarily limiting for scaled food delivery. Wells estimates $3.50 contribution loss/delivery order. Maybe a utilization play here, but Wells struggles to see near-term opportunity unless vehicle and sensor costs fall materially. The firm has an Equal Weight rating on DoorDash with a price target of $301 on the shares.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on DASH:
- Morning News Wrap-Up: Thursday’s Biggest Stock Market Stories!
- DoorDash Stock (DASH) Pops on Driverless Delivery Deal with Waymo in Phoenix
- Early notable gainers among liquid option names on October 16th
- DoorDash teams with Waymo to launch autonomous delivery service in Phoenix area
- DoorDash price target raised to $350 from $310 at Oppenheimer