This food delivery giant is expanding into other segments, which could be even more lucrative than its core business. DoorDash (DASH -0.76%) is the dominant food delivery company in America with a 67% market share. It expanded into other segments like grocery and retail over the past few years, which could lay the groundwork for significant growth over the long term. DoorDash stock is up 31% in 2024 so far, so it's comfortably beating the S&P 500, which is up 18%. Here are two reasons why I think it's about ...

Group 1 - DoorDash announced a new grocery partnership with H Mart, the largest US-based Asian supermarket chain, indicating continued growth and expansion in the grocery delivery sector [1] - The partnership is seen as a confirmation of positive market trends and potential investment opportunities within the grocery delivery space [1] - The analyst emphasizes a focus on momentum in the technology sector, particularly in relation to risk management and identifying growth opportunities [1] Group 2 - The analyst has extensive experience in the market, particularly in technology, media, and telecommunications (TMT), and aims to provide data-driven insights for investors [1] - The investment strategy includes diversifying within the tech sector and focusing on companies with strong fundamentals and innovative products [1] - There is a belief that the current technological growth presents a prime window for investment opportunities, driven by increasing consumer demand for innovation [1]

DoorDash (DASH) shares have rallied 26.4% year to date compared with the Zacks Computer & Technology sector's rise of 20.7%. DASH's robust stock price performance has been driven by its better-than-expected financial results and impressive growth profile. DoorDash reported second-quarter 2024 revenues of $2.63 billion, which increased 23.3% year over year. The upside was driven by strong performance in total orders and Marketplace Gross Order Value ("GOV"), alongside enhanced logistics efficiency and an inc ...

DoorDash Inc. NASDAQ: DASH is the largest food delivery platform in the United States, with over 550,000 restaurants and grocery stores in its network. Like Uber Technologies Inc. NYSE: UBER, DoorDash plays the role of the middleman connecting local restaurants with customers and Dashers (delivery drivers) to deliver the food. DoorDash has also expanded its deliveries to include groceries, clothing, make-up, mattresses, and more than two million products. DoorDash Today | --- | --- | |---------------------- ...

DoorDash's DashPass membership program now includes offers from Warner Bros. Discovery's Max streaming service. A DashPass Annual Plan membership in the United States now includes Max With Ads at no additional cost and an offer to upgrade to a Max Ad-Free subscription for a discounted rate of $10.99 per month, the companies said in a Tuesday (Aug. 13) press release. "Since launching DashPass six years ago, our goal has always been to deliver increasing value and savings to members," Prabir Adarkar, presiden ...

Core Viewpoint - DoorDash, Inc. reported strong 2Q24 earnings, indicating a positive growth trajectory supported by international expansion and grocery offerings, despite challenges in the tech sector [1][2] Financial Performance - Revenue for 2Q24 reached $2.63 billion, a 23% increase year-over-year, with Marketplace GOV at $19.7 billion, up 20% year-over-year, surpassing guidance [1][2] - Total orders increased to 635 million, reflecting a 19% year-over-year growth [2] - GAAP net loss narrowed to $158 million from $172 million in 2Q23, with adjusted EBITDA at an all-time high of $430 million [2][4] - Free cash flow improved to $451 million, up from $331 million in the previous year [2] Growth Catalysts - The grocery segment is showing strong momentum, with a notable partnership with Chase enhancing Dash's market position [3] - DashPass subscriber base reached an all-time high, indicating successful affordability efforts [3] - Management is focused on improving order frequency and service quality, leading to better engagement from new customer cohorts [3] Valuation Insights - The EV/Sales ratio for 2024 is 4.3, higher than the peer average of 2.6, reflecting its growth stock status [4] - Analyst sentiment is positive, with 20% rating it a strong buy and no analysts recommending a sell [4] - The median price target has increased from $136 in May to $142.5, supporting a bullish outlook [4] Future Outlook - The company is expected to continue its growth trajectory in 3Q24, particularly in international markets, leveraging past partnerships for share gains [7] - Management's strategy focuses on driving scale and efficiency, which is anticipated to yield long-term benefits [7]

Investment Rating - The investment rating for DoorDash is not explicitly stated in the report, but it suggests a reasonable valuation with potential for profit improvement in the future [4]. Core Insights - DoorDash's Q2 performance exceeded expectations, with a 23% year-over-year increase in total revenue to $2.63 billion, and a 20% increase in gross order value (GOV) to $19.7 billion [2][7]. - The company expects a 16-18% year-over-year increase in GOV for Q3, driven by continuous cost optimization [2]. - The adjusted EBITDA for Q2 was $430 million, which is 9% higher than market expectations, indicating strong operational efficiency [2][12]. Summary by Sections Financial Performance - Q2 total revenue reached $2.63 billion, a 23% increase year-over-year and a 5% increase quarter-over-quarter, slightly above market expectations [2][7]. - The adjusted EBITDA was $430 million, corresponding to a profit margin of 16.3%, which is a 3 percentage point increase year-over-year [2][12]. - Contribution profit for Q2 was $830 million, reflecting a 33% year-over-year increase [3][12]. User Growth and Market Position - DoorDash's order volume in Q2 was 635 million, with a daily average of 7 million orders, marking a 19% year-over-year increase [2][11]. - The company captured 6.7% of the U.S. food and beverage market, up from 5.9% in Q2 2023, indicating improved market penetration [2][12]. Cost Management and Profitability - Administrative expenses increased by 45% year-over-year, influenced by property lease impairment losses and penalty provisions [2]. - The average revenue per order was $4.0, with an adjusted gross profit of $2.0 per order, showing continuous improvement in profitability metrics [3][12]. Future Guidance - For Q3, DoorDash anticipates GOV between $19.4 billion and $19.8 billion, with adjusted EBITDA expected to be between $470 million and $540 million [3][14]. - The market consensus expects a 20.5% year-over-year revenue growth for the full year 2024, with adjusted EBITDA projected at $1.7 billion [3][14].

DoorDash (DASH) reported a GAAP loss of 38 cents per share in second-quarter 2024, narrower than the yearago quarter's loss of 44 cents per share. The figure missed the Zacks Consensus Estimate of a loss of 10 cents. Revenues increased 23.3% year over year to $2.63 billion and surpassed the consensus mark by 3.7%. The upside was driven by strong performance in total orders and Marketplace GOV, alongside enhanced logistics efficiency and an increased contribution from advertising. Quarter in Details In the s ...

Kenneth Cheung For several quarters now, DoorDash (NASDAQ:DASH) has disappointed sorely after earnings. It's refreshing, that after posting incredible Q2 results, the delivery company experienced a welcome jolt upward, owing to incredibly strong order performance plus higher order contribution margins. Yet even after rallying more than 10% in after-hours trading following DoorDash's Q2 earnings print, the stock is still up only ~20% for the year: in line with the S&P 500, but underperforming many other tech ...

Core Viewpoint - DoorDash achieved record orders and revenue in the second quarter of 2024, despite a decline in U.S. restaurant traffic, indicating strong performance in the delivery sector [1][2]. Company Performance - Total orders increased by 19% to 635 million, surpassing Wall Street's expectation of 625 million [2]. - Revenue rose by 23% to $2.6 billion, exceeding the forecast of $2.5 billion [2]. - The company's stock price jumped 11% in after-hours trading following the earnings report [2]. Industry Context - U.S. restaurant demand has weakened, with a reported 2.6% decline in restaurant traffic in the first half of the year [3]. - Major competitors like McDonald's and Starbucks have also reported declines in same-store sales and quarterly revenue, respectively [3]. Management Insights - DoorDash's CEO, Tony Xu, noted that the company is not experiencing the same slowdown as traditional restaurants, with growth in digital and delivery sales [4]. - The company continues to enhance customer experience through lower delivery fees and improved app personalization [5]. Expansion and Diversification - DoorDash is expanding its service offerings beyond restaurant food, partnering with retailers like Ulta Beauty and Lowe's, and delivering a variety of products [6]. - The company aims to represent every city digitally by including a wide range of merchants [7]. Financial Outlook - DoorDash narrowed its net loss to $158 million, or 38 cents per share, which was worse than analysts' expectations of a 9 cents per share loss [7]. - Analysts are forecasting a potential net profit for the third quarter, with expected per-share earnings of 9 cents [8].