Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 21 Mar, 25 | DASH | Buy | USD 192.93 | USD 203.0 | USD 210.0 | 13 days | 8.8% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. The company operates DoorDash Marketplace and Wolt Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers membership products, including DashPass and Wolt+; DoorDash Drive and Wolt Drive, which are white-label delivery fulfillment services that enable merchants that have generated consumer demand through their channels to fulfill demand using its platform; 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. In addition, the company enables merchants to advertise and promote on its platform to acquire consumers. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.
Revenue Growth – The company achieved a 25% Y/Y revenue increase in Q4 2024, amounting to $2.9 billion, demonstrating strong business expansion
Profitability Improvement – DoorDash reported its first full year of GAAP net income at $123 million in 2024, transitioning from a net loss of $558 million in 2023
High Stock-Based Compensation Costs – The company incurred $1.1 billion in stock-based compensation expenses in 2024, which could impact profitability and shareholder dilution
Rising Operational Expenses – Sales and marketing expenses increased by 18% Y/Y in Q4 2024, reaching $541 million, reflecting growing costs associated with customer acquisition and brand positioning
DoorDash's expansion into international markets and new verticals exposes the company to heightened geopolitical risks, regulatory challenges, and fluctuations in foreign exchange rates, which could impact its financial performance and operational stability
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 192.93 | 177.5 | 203.0 | 210.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financial Performance Overview
DoorDash, Inc. reported its financial results for the fourth quarter and full fiscal year 2024, highlighting significant revenue growth and operational achievements. The company experienced a 24% year-over-year (Y/Y) increase in revenue, achieving its first full year of positive GAAP net income. Additionally, it facilitated nearly $60 billion in sales for local merchants across more than 30 countries and contributed over $18 billion in earnings for its delivery personnel, known as Dashers. This growth underscores DoorDash’s long-term commitment to expanding its business operations while enhancing economic opportunities within local communities.
Key Financial Metrics and Profitability
In the fourth quarter of 2024, DoorDash recorded a total of 685 million orders, reflecting a 19% Y/Y growth. The company’s marketplace gross order value (GOV) increased by 21% Y/Y, reaching $21.3 billion. Revenue rose by 25% Y/Y to $2.9 billion, and net revenue margin improved to 13.5% from 13.1% in the previous year. Furthermore, the company reported a GAAP net income of $141 million, a substantial improvement from a net loss of $154 million in Q4 2023. Adjusted EBITDA also surged, reaching $566 million compared to $363 million in the same quarter of the prior year.
Operational Enhancements and Market Expansion
Throughout 2024, DoorDash prioritized improving efficiency at the order level, which allowed for reinvestment into product development and service expansion. The company enhanced unit economics in its U.S. restaurant segment, new verticals, and international markets, contributing to revenue growth. Merchant selection improved, and new product categories were introduced, which helped monthly active users (MAUs) reach an all-time high of over 42 million in December 2024, compared to 37 million in December 2023. Similarly, membership programs such as DashPass and Wolt+ expanded to over 22 million members, reflecting increased user engagement.
International Growth and Consumer Adoption
In its international operations, DoorDash expanded merchant selections by more than 25% Y/Y, leading to record-high new customer acquisition. The increased adoption of subscription services and product improvements drove higher order frequencies in international markets. As a result, total international orders outpaced the growth rate of its U.S. operations, positioning the company for further global expansion. The company also introduced thousands of new grocery stores to its U.S. marketplace while improving service quality in emerging verticals, thereby increasing consumer engagement and transaction sizes.
Cash Flow and Shareholder Returns
DoorDash generated $518 million in operating cash flow and $420 million in free cash flow in Q4 2024. For the full year, operating cash flow reached $2.1 billion, while free cash flow totaled $1.8 billion. The company’s board of directors authorized a share repurchase program of up to $5 billion, which includes the remaining $876 million from a previous authorization. These financial measures indicate a strong cash position and a strategic focus on long-term shareholder value creation.
Investment Strategy and Outlook
Looking ahead to 2025, DoorDash aims to continue enhancing operational efficiency while reinvesting in expansion initiatives. The company expects its adjusted EBITDA as a percentage of marketplace GOV to increase sequentially throughout the year. Additionally, significant investments in international markets and new verticals remain a priority. While the company anticipates stable foreign currency conditions, potential fluctuations in consumer spending and geopolitical factors could impact financial performance. The company remains committed to long-term value creation through innovation, strategic acquisitions, and product enhancements
Considering recent key business, financial updates, current trading levels, and key business risks, a ‘Buy’ recommendation has been given on DoorDash Inc (NASDAQ: DASH) at the closing market price of USD 192.93, as on March 20, 2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Communication Services Industry: Internet Content & Information
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| DASH DoorDash, Inc. Class A Common Stock |
7.30 4.13% | 183.91 | - | 294.12 | 6.47 | 8.21 | 6.06 | -769.8545 |
| GOOGL Alphabet Inc Class A |
3.58 2.36% | 155.05 | 26.81 | 23.20 | 6.41 | 6.92 | 6.14 | 19.27 |
| GOOG Alphabet Inc Class C |
4.00 2.60% | 157.90 | 27.01 | 23.42 | 6.41 | 6.99 | 6.14 | 19.27 |
| META Meta Platforms Inc. |
21.79 4.35% | 522.07 | 27.55 | 25.32 | 9.67 | 8.52 | 9.46 | 21.61 |
| TCTZF Tencent Holdings Ltd |
2.50 4.20% | 62.00 | 13.50 | 14.64 | 0.64 | 3.44 | 0.64 | 1.54 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 20,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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