One stock that might be an intriguing choice for investors right now is DoorDash, Inc. (DASH) . This is because this security in the Internet - Services space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective. This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Interne ...

Core Insights - DoorDash's shares have surged 61% over the past six months, significantly outperforming the Zacks Internet - Services industry's return of 2.9% and the broader Zacks Computer & Technology sector's appreciation of 0.2% [1] - The company has outperformed major competitors like Amazon and Alphabet, which gained 13.4% and 2.5% respectively during the same period [1] Growth Drivers - The share price momentum of DoorDash is attributed to strong growth in total orders and Marketplace Gross Order Value (GOV), enhanced logistics efficiency, and increased advertising contribution [2] - DoorDash registered a year-over-year increase of 18% in order volume, reaching a total of 643 million orders in Q3 2024, while the marketplace GOV grew by 19% to $20 billion [5] Strategic Partnerships - DoorDash has partnered with Ibotta to offer personalized digital promotions and coupons across various categories, enhancing its marketplace beyond restaurant delivery [6] - The collaboration with Ibotta allows DoorDash's 115,000+ non-restaurant stores in North America to provide added savings and engage consumers through AI-driven optimization [7] - DoorDash's expanding partner base includes Walmart Canada, Wegmans Food Markets, Lyft, Warner Bros. Discovery's streaming service Max, and JPMorgan Chase, broadening its reach and service offerings [8] Market Expansion - Through collaboration with Walmart Canada, DoorDash provides access to grocery and general merchandise from over 300 Walmart Supercenters [9] - An expanded partnership with Wegmans Food Markets enables grocery delivery from all Maryland locations and soon from stores in Virginia, North Carolina, New Jersey, Delaware, and upstate New York [10] - DoorDash offers DashPass Annual Plan members a complimentary Max With Ads subscription, providing significant value [11] Financial Performance - The Zacks Consensus Estimate for DoorDash's earnings in 2025 is $1.94 per share, indicating a year-over-year increase of 646.24% [12] - The revenue estimate for 2025 is pegged at $12.72 billion, suggesting a 19.16% increase from the estimated figure of $10.68 billion for 2024 [13] Valuation Insights - DoorDash's stock is considered not cheap, with a Value Score of D indicating a stretched valuation, trading at a Price/Book ratio of 9.24 compared to the industry's 6.31 [14] - Despite the high valuation, DoorDash's strong portfolio and expanding partner base contribute to its growth prospects, justifying the premium valuation [16]

DoorDash Expansion - DoorDash's online marketplace facilitates merchant-customer interactions and order fulfillment through "dashers" [3] - The company's Zacks Internet-Services Industry ranks in the top 15% of nearly 250 Zacks industries [3] - DoorDash acquired Finnish food delivery company Wolt in 2021, expanding its presence to over 20 European markets and beyond the US to Australia, Canada, Japan, and New Zealand [4] - Total sales are expected to increase 23% in FY24 and another 19% in FY25 to $12.72 billion, representing a 340% increase from 2020 sales of $2.89 billion [5] Sea Limited Expansion - Sea Limited operates as a consumer internet company providing e-commerce, digital entertainment, and digital financial services across Southeast Asia and Taiwan [7] - The company's Zacks Internet-Software Industry ranks in the top 10% of all Zacks industries [8] - Revenue is projected to grow 28% in FY24 and another 17% in FY25 to $19.62 billion, reflecting an 800% increase from 2020 sales of $2.17 billion [8] Earnings Growth - DoorDash's annual earnings are expected to reach $0.26 per share in FY24, a significant improvement from the adjusted EPS loss of -$1.42 in 2023, with FY25 EPS projected to soar 646% to $1.94 [9] - Sea Limited's EPS is expected to grow 55% in FY24 and another 91% in FY25 to $4.03 per share, with FY25 EPS estimates up 93% over the last 60 days [10][12] - Both companies have seen upward revisions in their EPS estimates over the last quarter, with Sea Limited's FY25 EPS estimates increasing by 92.82% over the last 60 days [13] Growth Trajectory - DoorDash and Sea Limited are among the fastest-growing companies of the decade, with compelling growth trajectories that could sustain their stock rallies [13] - Both companies are positioned as viable long-term investments for 2025 and beyond [13]

This year has been a remarkable one for stock market investors. The S&P 500 Index has soared almost 27% this year in a resilient macroeconomic environment amid robust corporate earnings. So, it might become difficult for retail investors to choose stocks independently and generate solid returns in 2025. To do this, one needs to understand the company fundamentals and try to place them against the current economic background to figure out how the stock may fare as an investment. One way to cut short this tas ...

Core Insights - DoorDash, Inc. (DASH) has shown a year-to-date return of approximately 73.7%, significantly outperforming the average gain of 36.2% in the Computer and Technology sector [3][6] - The Zacks Rank system indicates that DoorDash currently holds a Zacks Rank of 2 (Buy), suggesting a positive earnings outlook [2] - The consensus estimate for DoorDash's full-year earnings has increased by 1119.5% over the past quarter, reflecting improved analyst sentiment [7] Company Performance - DoorDash is part of the Computer and Technology sector, which includes 618 stocks and currently holds a Zacks Sector Rank of 1 [6] - Within the Internet - Services industry, DoorDash ranks among 35 stocks, with the industry itself positioned at 37 in the Zacks Industry Rank [9] - The average return for stocks in the Internet - Services industry is 36.4% year-to-date, indicating that DoorDash is performing better than its industry peers [9] Comparative Analysis - Innovid Corp. has also shown strong performance, with a year-to-date return of 106.7%, indicating that both DoorDash and Innovid are leading in their respective sectors [8][10] - The Computer and Technology sector has an average gain of 36.2%, while DoorDash's performance significantly exceeds this benchmark [3][10]

DoorDash’s (DASH) shares have surged 53.4% over the trailing six-month period compared with the Zacks Internet - Services industry’s return of 7.7% and the broader Zacks Computer & Technology sector’s appreciation of 7.9%.The company has outperformed its major competitors, such as Amazon (AMZN) and Alphabet (GOOGL) , who are actively expanding their presence in the delivery and logistics sector. Amazon and Alphabet have gained 21% and 8.5%, respectively, over the trailing six-month period.DASH’s robust pric ...

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: A food delivery rider waits for the traffic light to change Monday, March 30, 2020, in Lone Tree, Colo. Credit: AP Photo/David Zalubowski, File DoorDash will require its drivers to verify their identity more often as part of a larger effort to crack down on unauthorized account sharing. DoorDash has been under pressure to ensu ...

Core Viewpoint - DoorDash has shown strong operating results with significant revenue growth and improved profitability, but caution is advised due to high valuation metrics [2][13]. Group 1: Revenue Growth - DoorDash's stock has increased by 309% from its 2022 low, driven by steady revenue growth and expansion into new markets [2]. - The company's Marketplace Gross Order Value (GOV) reached $20 billion in Q3 2024, resulting in a record revenue of $2.7 billion [4]. - GOV grew by 19% year-over-year, marking the slowest quarterly growth in 2024, while revenue grew by 25%, the fastest quarterly growth this year [5]. - The net revenue margin improved to 13.5%, up from 12.9% year-over-year, due to enhanced efficiency in logistics and increased advertising revenue [5][6]. - DoorDash is expanding beyond food delivery into groceries and retail, with over 100,000 retailers now on its platform, indicating potential for significant future growth [7]. Group 2: Profitability - DoorDash has adopted a more prudent spending strategy, increasing operating expenses by only 14% year-over-year to $2.6 billion [9]. - The company achieved a net income of $162 million in Q3, marking its first quarterly GAAP profit in history [10]. - Adjusted EBITDA reached a record $533 million, reflecting a 55% increase from the previous year, showcasing the company's ability to grow sustainably [11][12]. Group 3: Valuation Concerns - DoorDash's stock trades at a price-to-sales (P/S) ratio of 7.1, significantly higher than its three-year average of 4.8, indicating potential overvaluation [14]. - The P/S ratio is nearly double that of Uber Technologies, which has a more diversified business model and generated $11.2 billion in revenue across all segments [14][15]. - Investors may consider DoorDash a long-term hold, but shorter-term investors might find better opportunities in competitors like Uber [15].

Core Viewpoint - DoorDash reported strong third-quarter earnings, with significant year-over-year growth in revenue and orders, indicating positive momentum ahead of its next earnings release [2][3][4]. Financial Performance - Earnings per share for Q3 2024 were 38 cents, compared to a loss of 19 cents in the same quarter last year, exceeding the Zacks Consensus Estimate by 80.95% [2]. - Revenues increased by 25% year-over-year to $2.16 billion, surpassing the consensus estimate by 1.59% [3]. - Total orders rose 18% year-over-year to 643 million, beating the Zacks Consensus Estimate by 0.62% [4]. - Marketplace Gross Order Value (GOV) increased by 19% year-over-year to $20 billion, exceeding the consensus estimate by 1.43% [4]. - Adjusted gross margin improved to 50.9% from 48.7% in the previous year [5]. - Adjusted EBITDA was $533 million, up from $344 million in the year-ago quarter [10]. Expenses - Adjusted sales and marketing expenses rose by 8.2% year-over-year to $447 million [7]. - Adjusted research and development expenses increased by 23.8% year-over-year to $156 million [8]. - Adjusted general and administrative expenses surged by 41.8% year-over-year to $241 million [9]. Balance Sheet and Cash Flow - As of September 30, 2024, DoorDash had $4.96 billion in cash and cash equivalents, up from $4.85 billion as of June 30, 2024 [11]. - Cash flow from operations was $531 million in Q3, slightly higher than the previous quarter [11]. - Free cash flow was $444 million, down from $451 million in the second quarter [12]. Guidance - For Q4, DoorDash anticipates Marketplace GOV to be in the range of $20.6 billion to $21 billion [13]. - Adjusted EBITDA is expected to be between $525 million and $575 million [14]. Market Sentiment - Estimates for DoorDash have trended upward, with a consensus estimate shift of 52.12% [15][16]. - The company holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [18].

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