DoorDash (DASH) Stock Forecast & Price Target

DoorDash has demonstrated robust growth metrics, with the core U.S. restaurant business continuing to expand in double digits while non-core offerings now represent approximately 25% of global gross order value (GOV), indicating strong diversification within its service portfolio. The company has also shown significant improvement in its financial performance, with an EBITDA margin increase of 394 basis points year-over-year to reach 19.7% of revenue, alongside a take rate growth to 13.5%. Furthermore, DoorDash has achieved a noteworthy year-over-year GOV growth of 20.6%, reflecting an acceleration in growth and strong demand, suggesting an optimistic outlook for its financial trajectory.

DoorDash is facing a challenging financial outlook as its fourth-quarter EBITDA and first-quarter EBITDA guidance fall short of expectations, indicating increased costs associated with sustaining premium growth. The company anticipates a deceleration in bookings of approximately 200 basis points at the midpoint for the first quarter of 2025, contributing to a compression in the stock's near-term multiple due to reduced growth prospects. Additionally, mounting investment risks are highlighted by ongoing cash burn, regulatory pressures, and competition, which collectively hinder DoorDash's path to achieving substantial profitability amidst an evolving market landscape.