The likes of UBER, DASH,and LYFT ride the gig economy boom, offering investors flexible plays in a $2.15T market by 2033.
Shares of DoorDash Inc (NASDAQ:DASH) are on the move this morning, last seen 2.3% higher ahead of the open, after Raymond James upgraded the food delivery stock to "strong buy" from "outperform.
Buying stocks on a technical breakout isn't always the formula for a swift gain.
DoorDash (DASH) reported earnings 30 days ago. What's next for the stock?
The new DoorDash partnership, alongside Uber Eats, should drive significant incremental delivery sales, expanding Domino's reach and supporting a bullish outlook. Domino's offers robust dividend growth and currently trades at a fair valuation, with slight upside potential versus industry peers and historical averages. Local ingredient sourcing shields Domino's from tariff risks, and management's guidance and store expansion plans reinforce a buy rating at current levels.
DoorDash enjoys tremendous scale and faces limited competition. As a high-margin layer to local commerce and delivery, we're bullish on the company's outlook. Revenues have grown like clockwork, and we expect that net incomes should follow suit, as the firm unlocks more operating leverage. Trading somewhere between 17x - 22x FY '28 earnings, we think the stock appears cheap for the growth potential.
Despite a Q1 revenue miss, DoorDash set records in total orders, marketplace GOV, and posted its first GAAP net income. Aggressive expansion, including acquisitions of Deliveroo and SevenRooms, is building its customer base and strengthening market leadership. Valuation metrics like PE ratios are not yet relevant as DASH is still in its growth phase.
DoorDash plans to offer and sell $2 billion of convertible senior notes to “enhance strategic flexibility.
DoorDash, Inc. has continued to grow, reaching a significant market share in U.S. meal delivery. The Q1 report still showed solid 21% revenue growth. Future growth potential is uncertain. Meal delivery market growth is slowing down significantly, and DoorDash's positioning in faster-growing grocery delivery is uncertain. DoorDash is eyeing international markets more with the Deliveroo acquisition, but the transaction doesn't refuel organic growth potential.
Summary ⚈ DoorDash and Expand Energy were recently added to the S&P 500, joining TKO Group Holdings and Williams-Sonoma during the Q1 rebalancing. ⚈ DoorDash is expanding beyond food delivery with new partnerships, while Expand Energy is scaling natural gas production and improving efficiency.
DoorDash's NASDAQ: DASH stock price faces hurdles and headwinds, including high expectations among analysts and a spike in short interest, but it is in an uptrend and gaining momentum.
DASH's first-quarter 2025 results reflect strong top-line growth, total orders and robust Marketplace GOV.