Core Viewpoint - Uber Technologies and DoorDash are the leading players in the U.S. food delivery market, with DoorDash holding a significant market share, but Uber's diversified revenue streams and growth potential in ridesharing and autonomous driving present compelling investment opportunities [1][2]. Company Analysis Uber Technologies - Uber's revenue in 2024 reached $44 billion, growing by 18% year-over-year, with ridesharing accounting for 57% of its revenue and holding a 76% market share compared to Lyft's 24% [5][3]. - The company is exploring autonomous driving through partnerships with Waymo and GM's Cruise, which could enhance its value proposition [4]. - Uber's operating income increased from $1.1 billion in 2023 to $2.8 billion in 2024, and its forward P/E ratio of 22 suggests it is undervalued, making it an attractive buy [5][10]. DoorDash - DoorDash commands 67% of the food delivery market, significantly ahead of Uber Eats at 25%, and has expanded its services to include deliveries from retailers [6]. - The company's revenue grew by 24% to $10.7 billion in 2024, and it achieved a net income of $123 million, recovering from a $558 million loss in 2023 [7]. - Despite a modest operating loss in 2024, DoorDash's forward P/E ratio of 39 reflects its rapid growth and recent profitability, which may attract investors [8]. Investment Considerations - Both Uber and DoorDash are expected to outperform the market, but Uber may have a growth edge due to its leadership in mobility and potential in autonomous driving [9]. - Uber's lower forward P/E ratio of 23 compared to DoorDash's 39 presents a more attractive valuation for investors [10].

Core Viewpoint - The proposed legislation aims to eliminate taxes on workers' tips, with support from Republican lawmakers and companies like Uber and DoorDash, who seek to include independent contractors in this tax relief initiative [1][2]. Group 1: Legislative Proposal - The legislation, introduced by Sen. Ted Cruz and Rep. Vern Buchanan, primarily targets restaurant and casino workers, but does not initially cover independent contractors working for companies like Uber [2]. - The proposal includes a $25,000 income-tax deduction limit for tips, excluding individuals earning over $160,000 annually, and requires employers to report tips and wages for eligibility [3]. Group 2: Company Perspectives - Uber's head of federal affairs emphasized the importance of including Uber drivers in the legislation, arguing that they play a significant role in the tipping economy [3]. - DoorDash's global head of public policy also advocated for the inclusion of Dashers, asserting that tips should be treated equally regardless of the worker's employment status [3]. Group 3: Economic Implications - Tax experts have raised concerns that the no-tax-on-tips proposal could create inequality among lower-wage workers who do not receive tips [4]. - The shift towards digital payouts may accelerate as a result of the proposed tax changes, potentially easing the burdens associated with cash payments and income reporting [5][6].

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 ...

Core Viewpoint - The rise of AI agents, such as OpenAI's Operator, poses potential risks to consumer-facing applications like DoorDash, as these agents could automate tasks traditionally performed by users, potentially bypassing the platforms altogether [3][4][10]. Group 1: Impact on Consumer Applications - OpenAI's Operator, in collaboration with DoorDash, aims to automate consumer tasks, which could lead to a decline in direct user engagement with DoorDash's website [1][3]. - If AI agents become proficient, they may act as intermediaries, reducing the value of advertising on platforms like DoorDash, which relies on restaurant ads as a growing revenue source [3][4]. - Concerns have been raised by DoorDash executives about the potential negative impact of AI agents on their business model, particularly regarding advertising revenue [2][5]. Group 2: Retailers' Response Strategies - Retailers, including Walmart, are considering building their own agents to interact with consumers, thereby maintaining control over product recommendations and information [7][12]. - The potential for AI agents to disrupt traditional advertising strategies has led to discussions among retailers about adapting their approaches to consumer engagement [12][10]. - OpenAI has indicated that AI agents could serve as valuable traffic sources for retailers, suggesting a collaborative rather than purely competitive relationship [5][6]. Group 3: Current Trends and Data - A recent Adobe report highlighted that 39% of surveyed consumers have utilized generative AI for online shopping tasks, indicating a growing trend in AI-assisted consumer behavior [9]. - Despite the rapid growth of AI applications, the current traffic generated by these tools to retail websites remains moderate compared to traditional methods [9]. - OpenAI's ChatGPT is becoming an increasingly important source of referral traffic for retailers, complicating their relationship with AI technologies [10][8].

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 from the Conference Call Industry Overview - The conference call discusses the global online food delivery industry, focusing on Just Eat Takeaway (TKWY) and its potential acquisition by Prosus for €4.1 billion (€20.3 per share) [1][11]. Company-Specific Insights Just Eat Takeaway (TKWY) - TKWY processed 92 million orders in 2023 and operates in approximately 20 countries, holding leadership positions in several key markets [25]. - The company sold its US business, GrubHub, in January 2025, indicating a strategic shift [25]. - A Buy rating is assigned to TKWY, with a target price of €21 based on a DCF valuation [28][26]. - Risks include integration and execution challenges from M&A, competitive market pressures, and potential profit volatility from expansion efforts [29]. Prosus N.V. - Prosus is positioned as a significant player in the online food delivery sector, with a portfolio that includes Tencent and Delivery Hero [30]. - A Buy rating is assigned to Prosus, with a target price of €48 based on a sum-of-the-parts (SOTP) valuation [32]. - Risks include performance of listed assets, currency fluctuations, and regulatory challenges [34]. Delivery Hero (DHER) - Delivery Hero is noted as the largest global player in online food ordering, processing 3 billion orders in FY21 [16]. - A Sell rating is assigned to DHER due to concerns over competitive pressures in the MENA region and potential margin constraints [17]. - Target price for DHER is set at €26, based on a blend of DCF and SOTP valuations [18]. DoorDash (DASH) - DoorDash holds a 65% share of the US food delivery market and has a Buy rating with a target price of $240 [22][23]. - The company is focused on expanding into new verticals like grocery and convenience, leveraging its existing user base [22]. - Risks include competition, regulatory challenges regarding gig worker classifications, and execution risks related to growth investments [24]. Uber Technologies, Inc. - Uber is rated as a Buy, with a target price of $92, benefiting from a recovery in mobility and strong demand in delivery services [36][37]. - The company is expanding its service offerings beyond food delivery to include grocery and convenience items [36]. - Risks include macroeconomic factors, competition, and regulatory challenges [38]. Competitive Landscape - The call highlights potential bidders for TKWY, including DoorDash, Uber, and Meituan, but suggests that regulatory risks and strategic focuses may limit their interest [1][3][4][5]. - Significant geographic and shareholder overlaps among competitors could pose regulatory challenges for potential mergers [11][12]. Conclusion - The conference call provides a comprehensive overview of the competitive dynamics within the online food delivery industry, focusing on key players like Just Eat Takeaway, Prosus, Delivery Hero, DoorDash, and Uber. The insights into company strategies, valuations, and risks present a nuanced understanding of the market landscape and potential investment opportunities.