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DoorDash (DASH)
NASDAQ:DASH

DoorDash (DASH) AI Stock Analysis

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DoorDash

(NASDAQ:DASH)

Rating:76Outperform
Price Target:
$249.00
▲(14.33%Upside)
DoorDash's overall score of 76 reflects strong financial performance, robust growth prospects, and positive earnings sentiment. The technical analysis supports a bullish outlook, though caution is advised due to high valuation and overbought technical indicators. Strategic expansions and successful financial management underpin the company's promising future, albeit with risks related to valuation and market expectations.
Positive Factors
Advertising Growth
There is ample runway to improve advertising monetization, and if DoorDash can increase advertising penetration, it would equate to an incremental $1.8bn in advertising revenue.
International Expansion
The prospective purchase of Deliveroo would allow DoorDash seamless entry into 10 new geographies, reducing the marketing intensity required to establish a footprint organically in Western Europe.
Market Leadership
DoorDash is currently the market leader in restaurant delivery and continues to expand into adjacent categories and markets such as grocery, convenience, alcohol, general retail, and home improvement.
Negative Factors
Competitive Pressure
The competitive environment also continues to grow, with the Uber Eats + Instacart partnership adding additional delivery verticals.
Profitability Challenges
Grocery gross margin remains dilutive, and the impact on volume is not yet clear, posing a challenge to profitability.
Valuation Concerns
Despite these positives, shares are considered fairly valued at the moment, with a more positive outlook likely on a pullback.

DoorDash (DASH) vs. SPDR S&P 500 ETF (SPY)

DoorDash Business Overview & Revenue Model

Company DescriptionDoorDash, Inc. operates a logistics platform that connects merchants, consumers, and dashers in the United States and internationally. It operates DoorDash and Wolt marketplaces, which provides an array of services that enable merchants to solve mission-critical challenges, such as customer acquisition, delivery, insights and analytics, merchandising, payment processing, and customer support; DashPass and Wolt+, a membership products; and offers DoorDash Drive and Wolt Drive, a white-label delivery fulfillment services; DoorDash Storefront that enables merchants to offer consumers on-demand access to e-commerce; and Bbot, which offers merchants digital ordering and payment solutions for in-store and online channels. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was incorporated in 2013 and is headquartered in San Francisco, California.
How the Company Makes MoneyDoorDash generates revenue primarily through commissions and fees from its marketplace platform. The company charges restaurants a commission fee for using its platform, which can vary based on factors such as location and service tier. Additionally, DoorDash earns money from delivery and service fees charged to consumers, as well as subscription fees from its DashPass service, which offers consumers benefits like reduced delivery fees for a monthly charge. The company also partners with businesses to provide marketing and advertising solutions, enabling them to increase their visibility on the platform. Strategic partnerships with businesses in the convenience and grocery sectors further expand DoorDash's revenue streams, solidifying its position in the competitive on-demand delivery market.

DoorDash Key Performance Indicators (KPIs)

Any
Any
Total Orders
Total Orders
Counts the number of orders processed, reflecting customer demand, market reach, and the platform's growth trajectory.
Chart InsightsDoorDash's total orders have shown consistent growth, with a notable acceleration in 2024. The latest earnings call highlights strong international market performance and growing profitability, alongside rapid expansion in new verticals and membership programs like DashPass. Despite seasonal impacts on take rates and challenges in grocery delivery, the strategic focus on product improvements and advertising expansion suggests a robust path to increased profitability and market share. This momentum, particularly in international markets, positions DoorDash well against competitors.
Data provided by:Main Street Data

DoorDash Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 6.04%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
DoorDash's Q1 2025 earnings call showcased robust growth in the grocery segment and DashPass, along with strategic expansions in Europe. However, challenges such as decreased net revenue margins and increased CapEx were noted. Despite these issues, the positive growth metrics and strategic initiatives suggest a strong overall performance.
Q1-2025 Updates
Positive Updates
Strong Q1 2025 Performance
DoorDash reported strong growth in Q1 2025, with increased GOV growth and EBITDA profit dollar growth. The company is pleased with the overall business performance, which has shown consistent improvement over several quarters.
Expansion in Europe with Deliveroo Acquisition
DoorDash announced the acquisition of Deliveroo to expand its presence in Europe, operating in 30 countries across the continent. This move is expected to increase scale and enhance profit potential in the region.
Significant Growth in Grocery Segment
The grocery segment showed significant growth, with an increase in MAUs and order frequency. DoorDash has a majority of the top 20 grocers on its platform and continues to expand selection and improve product quality.
DashPass Growth
DashPass reached an all-time high in subscribers, with accelerated growth in Q1. The program continues to drive order frequency and user retention.
Negative Updates
Decrease in Net Revenue Margins
Net revenue margins were down quarter-on-quarter due to affordability initiatives and mix shift. However, the company expects margins to improve in Q2 and the second half of the year.
Challenges with European Market Positioning
Deliveroo's growth and margins have been lower than DoorDash's, with most of its GMV in market laggard positions. DoorDash aims to improve Deliveroo's competitive positioning over time.
Increased CapEx
There was a notable increase in CapEx due to a refresh of merchant tablets and investments in autonomous delivery, impacting cash reserves.
Company Guidance
During the DoorDash Q1 2025 Earnings Conference Call, the company provided guidance indicating strong performance across its business lines, with a particular focus on expanding their international presence. CEO Tony Xu highlighted the potential acquisition of Deliveroo, which would expand DoorDash's reach to approximately 30 countries in Europe and 45 globally, adding scale and potential profit pools. DoorDash's investments in grocery were emphasized, with CFO Ravi Inukonda noting that about one-fourth of monthly active users (MAUs) utilize both grocery and restaurant services, driving growth and improving retention. Xu mentioned ongoing affordability initiatives and product improvements as vital strategies, aiming to increase consumer retention and order frequency. The company reported continued improvements in unit economics, with expectations for higher take rates in the latter half of 2025. Despite increased CapEx, attributed to tablet refreshes and autonomous delivery investments, DoorDash maintained a focus on long-term profit dollar growth. The call underscored DoorDash's commitment to advancing its product offerings and maintaining strong growth momentum.

DoorDash Financial Statement Overview

Summary
DoorDash demonstrates strong financial performance with rapid revenue growth, improving profitability, and robust cash flow generation. The company's financial stability is supported by a strong equity base and manageable debt levels. Continued focus on profitability and cash management will be key to sustaining this positive trajectory.
Income Statement
85
Very Positive
DoorDash's income statement shows strong revenue growth and improving profitability. The TTM revenue growth rate is impressive, and the company has transitioned from negative EBIT and net income to positive figures. The gross profit margin remains robust, reflecting efficient cost management.
Balance Sheet
78
Positive
The balance sheet reflects a solid equity base with a manageable debt-to-equity ratio. The equity ratio indicates a strong asset base supported by equity. However, the company remains reliant on equity financing, which could pose a risk if market conditions change.
Cash Flow
80
Positive
The cash flow statement shows positive trends with a strong operating cash flow and substantial free cash flow. The free cash flow growth rate is noteworthy, indicating efficient capital management. The operating cash flow to net income ratio suggests healthy cash generation relative to reported profits.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
11.24B10.72B8.63B6.58B4.89B2.89B
Gross Profit
5.39B5.18B4.05B3.00B2.55B1.52B
EBIT
180.00M-38.00M-579.00M-1.03B-452.00M-436.00M
EBITDA
793.00M523.00M-68.00M-663.00M-293.00M-306.00M
Net Income Common Stockholders
339.00M123.00M-558.00M-1.37B-468.00M-461.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
5.82B5.34B4.08B3.52B3.76B4.86B
Total Assets
13.57B12.85B10.84B9.79B6.81B6.35B
Total Debt
527.00M536.00M522.00M511.00M399.00M617.00M
Net Debt
-3.97B-3.48B-2.13B-1.47B-2.10B-3.73B
Total Liabilities
5.18B5.04B4.03B3.02B2.14B1.65B
Stockholders Equity
8.39B7.80B6.81B6.75B4.67B4.70B
Cash FlowFree Cash Flow
1.88B2.03B1.35B21.00M455.00M93.00M
Operating Cash Flow
2.21B2.13B1.67B367.00M692.00M252.00M
Investing Cash Flow
-532.00M-444.00M-342.00M-300.00M-2.05B-192.00M
Financing Cash Flow
-208.00M-204.00M-752.00M-375.00M-483.00M4.00B

DoorDash Technical Analysis

Technical Analysis Sentiment
Positive
Last Price217.80
Price Trends
50DMA
193.81
Positive
100DMA
192.60
Positive
200DMA
174.61
Positive
Market Momentum
MACD
6.72
Negative
RSI
63.39
Neutral
STOCH
77.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DASH, the sentiment is Positive. The current price of 217.8 is above the 20-day moving average (MA) of 208.55, above the 50-day MA of 193.81, and above the 200-day MA of 174.61, indicating a bullish trend. The MACD of 6.72 indicates Negative momentum. The RSI at 63.39 is Neutral, neither overbought nor oversold. The STOCH value of 77.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DASH.

DoorDash Risk Analysis

DoorDash disclosed 69 risk factors in its most recent earnings report. DoorDash reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

DoorDash Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$91.09B281.084.41%23.35%
71
Outperform
$2.37B17.5619.74%5.93%29.17%
ZZ
66
Neutral
$17.21B-1.72%14.96%49.24%
ZGZG
64
Neutral
$17.21B-1.72%14.96%49.24%
61
Neutral
$14.79B5.90-3.99%6.20%2.67%-30.30%
51
Neutral
$375.05M25.25-1.00%0.82%-102.72%
51
Neutral
$627.45M-18.77%12.01%35.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DASH
DoorDash
217.80
104.03
91.44%
YELP
Yelp
36.51
-0.18
-0.49%
Z
Zillow Group Class C
71.12
22.62
46.64%
ZG
Zillow Group Class A
70.05
22.98
48.82%
SEAT
Vivid Seats
1.79
-3.46
-65.90%
KIND
Nextdoor Holdings
1.59
-0.91
-36.40%

DoorDash Corporate Events

Private Placements and FinancingStock BuybackBusiness Operations and Strategy
DoorDash Closes $2.75 Billion Convertible Notes Offering
Neutral
Jun 2, 2025

On May 30, 2025, DoorDash announced the closing of its $2.75 billion private offering of 0% convertible senior notes due 2030, sold to qualified institutional buyers. The proceeds, approximately $2.72 billion after fees, will enhance strategic flexibility, fund a convertible note hedge to mitigate share dilution, and support general corporate purposes, including potential acquisitions and stock repurchases.

The most recent analyst rating on (DASH) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on DoorDash stock, see the DASH Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
DoorDash Increases Convertible Notes Offering to $2.5 Billion
Neutral
May 28, 2025

On May 27, 2025, DoorDash announced the pricing of its $2.5 billion convertible senior notes due 2030, an increase from the initially planned $2.0 billion. This strategic capital raise aims to enhance DoorDash’s financial flexibility, with part of the proceeds allocated to hedge transactions to mitigate share dilution. The offering is expected to settle on May 30, 2025, and includes an option for initial purchasers to buy additional notes. This move is likely to impact DoorDash’s market positioning by providing resources for potential acquisitions and share repurchases, while also influencing the market price of its Class A common stock.

The most recent analyst rating on (DASH) stock is a Hold with a $120.00 price target. To see the full list of analyst forecasts on DoorDash stock, see the DASH Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
DoorDash Announces Acquisition of Deliveroo for £2.9 Billion
Positive
May 6, 2025

On May 6, 2025, DoorDash announced a final cash offer to acquire Deliveroo, valuing the company at approximately £2.9 billion. The acquisition, expected to close in Q4 2025, will be executed via a court-sanctioned scheme of arrangement under the UK Companies Act. Deliveroo shareholders will receive 180 pence per share, representing a significant premium over recent share prices. The transaction aims to enhance DoorDash’s position as a leading global platform in local commerce, expanding its reach to over 40 countries and serving approximately 50 million monthly active users. The combined entity will leverage complementary geographic operations and shared strategic visions to invest in innovation and improve offerings for stakeholders, including businesses, consumers, and couriers.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
DoorDash Reports Record Q1 2025 Financial Results
Positive
May 6, 2025

On May 6, 2025, DoorDash announced its financial results for the first quarter of 2025, reporting record highs in Total Orders, Marketplace GOV, revenue, and GAAP net income. The company highlighted its strategic focus on product development and operational improvements, which contributed to its financial success. Additionally, DoorDash revealed plans to acquire SevenRooms Inc. and Deliveroo plc, aiming to enhance its service offerings and support its growth in local commerce. The first quarter saw an 18% year-over-year increase in Total Orders and a 21% rise in revenue, with significant progress in expanding its U.S. Marketplace and grocery category.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.