The S&P 500 (^GSPC -0.33%) is considered the single best benchmark for the overall U.S. stock market because of its scope. It tracks the performance of 500 large companies that account for about 80% of domestic equities by market value.DoorDash (DASH 0.63%) was added to the S&P 500 on March 24 during the quarterly rebalancing. The stock has returned 295% since January 2023, and still has a consensus rating of "buy" among Wall Street analysts. Also, the median target price of $226 per share implies 18% upsid ...

Buy now, pay later firms like Klarna and Block's Afterpay could be about to face tougher rules in the U.K.Klarna, the buy now, pay later lender that's headed for an initial public offering, said on Thursday that it's signed on DoorDash as a partner, another sign of momentum for public market investors.It's DoorDash's first BNPL alliance and gives users of the restaurant delivery service a new way to pay for meals. Klarna said in a press release that DoorDash customers will be able to pay in full at checkout ...

Company Overview - DoorDash (DASH) shares are currently considered overvalued with a Value Score of F, trading at a forward 12-month Price/Sales ratio of 5.94, above its median of 5.12 and the industry's 4.75 [1] - Despite this, DoorDash's shares have increased by 13.2% year-to-date, outperforming the Zacks Internet - Services industry's decline of 11.3% and the broader Zacks Computer & Technology sector's decline of 8.2% [1] Growth Drivers - The company's outperformance is attributed to strong order growth, with a year-over-year increase of 19% in Q4 2024, totaling 685 million orders, and a 21% increase in Marketplace Gross Order Value (GOV), reaching $21.3 billion [3][4] - DoorDash's expanding partner base, including collaborations with Ibotta, Walmart Canada, Wegmans, Lyft, Warner Bros. Discovery's Max, and JPMorgan Chase, has significantly broadened its reach and service offerings [4][5] Strategic Partnerships - The partnership with Ibotta integrates digital promotions into DoorDash's platform, providing personalized savings and enhancing opportunities for consumer packaged goods (CPG) brands [5] - Collaboration with Walmart Canada allows access to grocery and general merchandise from over 300 Walmart Supercenters, strengthening DoorDash's grocery delivery presence [7] - The partnership with Home Depot enables on-demand delivery of home improvement essentials, enhancing convenience for customers and professionals [9] Financial Outlook - The Zacks Consensus Estimate for DoorDash's earnings in 2025 is $2.23 per share, reflecting a 2.2% increase over the past 30 days and a year-over-year increase of 668.97% [10] - Revenue estimates for 2025 are pegged at $12.95 billion, indicating a 20.79% increase from the estimated $10.72 billion in 2024 [11] Competitive Landscape - DoorDash faces rising competition in the local food delivery logistics segment, particularly from platforms like Uber Eats and Grubhub [12][13] - Grubhub's recent partnership with Walgreens to add on-demand delivery of 15,000 items enhances its competitive edge, highlighting the fragmented nature of the market [14]

Two and a half years ago, I initiated coverage on DoorDash (NASDAQ: DASH ) with a "Strong Sell" rating. At that time, DoorDash was writing losses, with a weak outlook for profits amidst aggressive price competition in the online food delivery market. Since then, however, the competitiveExperience as an investment analyst for a major BB-Bank, as well as private equity consultant for MBB. Currently working towards the CFA charter, having completed I&II. Passion for risk-assets (Growth, Contrarian, Emerging Ma ...

Core Insights - DoorDash has achieved record user numbers, revenue, and profits in 2024, solidifying its position as the leading food delivery platform in the U.S. [1][2] Company Performance - DoorDash's stock has increased by 77% from its 52-week low but remains 27% below its all-time high [2] - The company holds a 67% market share in the U.S. food delivery sector, significantly ahead of Uber Eats at 23% [3] - Monthly active users reached approximately 42 million, with 25% utilizing the platform for grocery and retail shopping in December [4] - DoorDash processes over 7 million deliveries daily, indicating strong user engagement and order frequency growth [5] Financial Metrics - In Q4 2024, DoorDash processed a gross order value (GOV) of $21.2 billion, a 21% increase from Q4 2023 [6][7] - Revenue for the same quarter reached $2.8 billion, marking a 25% growth year-over-year [7] - Total costs and expenses for 2024 were $10.7 billion, a 16.7% increase from the previous year, which is slower than the 19.5% increase in 2023 [10] - DoorDash reduced its operating loss by 93% in 2024 to $38 million, while achieving a GAAP profit of $123 million, a significant turnaround from a $558 million net loss in 2023 [11][10] - Adjusted EBITDA for 2024 was a record $1.9 billion, reflecting a nearly 60% increase compared to 2023 [12] Market Outlook - Analysts are optimistic about DoorDash, with 27 out of 46 assigning the highest buy rating, and a consensus price target of $225.38, suggesting a potential upside of 26% [13][14] - The stock currently trades at a price-to-sales (P/S) ratio of 7.2, which is a 53% premium to its three-year average of 4.7 [15] - Comparatively, Uber's P/S ratio stands at 3.7, indicating a higher valuation for DoorDash [15][16] - Investors are advised to adopt a long-term view of five years or more to align with DoorDash's growth potential in new verticals [17]

The S&P 500 is getting a shake-up, and investors are taking notice. DoorDash (DASH) , Williams-Sonoma (WSM) , Expand Energy (EXE) and TKO Group (TKO) are set to join the prestigious index before trading begins on March 24. These stocks will replace BorgWarner, Teleflex, Celanese and FMC Corp.Following the announcement, all four new entrants saw their stock prices rise in extended trading on Friday — DASH rose roughly 6%, WSM and EXE were up around 2% each, and TKO Group gained 2.6%. This isn’t surprising, a ...

Summary of Key Points Core Perspective - DoorDash has agreed to pay $16.75 million to settle a lawsuit alleging that it improperly used customer tips to cover workers' wages, misleading customers about the benefits of their tips to delivery workers [1]. Group 1: Legal Settlement - The settlement amount is $16.75 million, which will benefit approximately 63,000 DoorDash delivery workers in New York [2]. - The lawsuit claimed that from May 2017 to September 2019, DoorDash used customer tips to offset guaranteed base pay instead of providing the full tips to workers [1]. Group 2: Company Response - DoorDash stated its commitment to ensuring fair and transparent earnings for delivery workers, noting that the allegations pertained to an outdated pay model that was retired in 2019 [2].

At the end of February, Lululemon NASDAQ: LULU, DoorDash NASDAQ: DASH, and Ulta Beauty NASDAQ: ULTA were among the Most Upgraded Stocks tracked by MarketBeat. Investors should pay attention to this because the sentiment trends drive these markets and lead them to fresh highs likely set early this year. The critical takeaway is that these quality consumer-focused businesses are growing, have momentum at the start of the calendar year, and their share prices are on track to rise by 25% or more before the year ...

Core Points - DoorDash will pay a $16.7 million settlement due to misleading tipping practices between 2017 and 2019 [1][2] - The New York Attorney General's office found that DoorDash used customer tips to subsidize the wages of delivery workers, known as "Dashers," rather than providing them with the full tips earned [1][3][4] - The settlement aims to return millions to Dashers and ensure transparency in DoorDash's payment practices moving forward [2] Company Practices - Between May 2017 and September 2019, DoorDash employed a guaranteed pay model that allowed Dashers to see their pay before accepting deliveries [3] - Under this model, tips were used to offset the base pay promised to Dashers, meaning they only saw tips if they exceeded the guaranteed amount [4] - DoorDash guaranteed a minimum payment of $1 to Dashers, using customer tips to cover the rest of the guaranteed pay [4] Industry Context - Research indicates that consumers are becoming more cautious about tipping, with 29% feeling that tipping has become excessive [5][6] - The settlement follows a lawsuit from Uber, which accuses DoorDash of coercing restaurants into exclusive partnerships, a claim DoorDash denies [6]

Core Points - DoorDash will pay nearly $17 million in a settlement for using customer tips to subsidize delivery workers' wages instead of allowing them to keep the full tips [1][5] - The New York Attorney General criticized DoorDash's practices as fundamentally unfair, stating that customers were misled about how their tips were used [1][7] - The settlement includes $16.75 million in restitution for eligible DoorDash workers who made deliveries between May 2017 and September 2019 in New York [5][7] Payment Model - Under the previous pay model, DoorDash guaranteed a minimum payment to delivery workers but used customer tips to offset this guaranteed amount [2][4] - For example, if a customer tipped $11 on an order with a guaranteed amount of $10, the Dasher would only receive $12 instead of the full tip [4] - This model has since been discontinued, and DoorDash is now required to ensure that tips are paid in full to Dashers without affecting the company's guaranteed pay contributions [8][7] Settlement Details - The settlement will distribute restitution to affected workers, and DoorDash will also cover up to $1 million in settlement administration costs [5][7] - DoorDash must disclose its pay policy details to both Dashers and customers moving forward to ensure transparency [7]