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.

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]

Core Points - DoorDash will pay a $16.75 million settlement to resolve a probe into its tipping practices, affecting approximately 60,000 delivery workers, known as "Dashers," with individual payouts ranging from $10,000 to $14,000 [1][5] - The investigation revealed that DoorDash used customer tips to offset the wages paid to Dashers, misleading both customers and workers about the true nature of the tipping system [2][3][5] - The settlement mandates that DoorDash must cease its tip-sharing practice and improve transparency regarding how tips are handled, with compliance reports required every six months for the next three years [4] Summary by Sections Settlement Details - The total settlement amount is $16.75 million, which will be distributed among around 60,000 Dashers, resulting in payouts between $10,000 and $14,000 per worker [1][5] Tipping Practices - DoorDash's practice involved using tips to reduce the company's financial responsibility for paying Dashers, which was not disclosed to either the Dashers or the customers [2][3] - An example highlighted by New York Attorney General Letitia James illustrated that if a Dasher was guaranteed $10 for a delivery and received a $3 tip, DoorDash would only pay $7, effectively using the tip to lower its own costs [2] Company Accountability - Communications among DoorDash executives indicated awareness of the deceptive nature of their tipping policy, with concerns that Dashers might eventually discover the truth [3][4] - The settlement requires DoorDash to establish a website for Dashers to claim their settlement funds and to report on compliance with the new transparency requirements [4]

Group 1 - DoorDash, Inc. (DASH) is currently ranked 6 in the Zacks Sector Rank within the Computer and Technology group, which consists of 607 companies [2] - The Zacks Rank system indicates that DoorDash has a Zacks Rank of 2 (Buy), with a 14.5% increase in the consensus earnings estimate for the full year over the past 90 days, reflecting improved analyst sentiment [3] - Year-to-date, DoorDash has returned approximately 19.2%, significantly outperforming the average loss of 0.7% in the Computer and Technology group [4] Group 2 - DoorDash belongs to the Internet - Services industry, which includes 34 stocks and is currently ranked 80 in the Zacks Industry Rank, while this industry has seen a loss of about 3.5% this year [5] - In comparison, Appian (APPN), another stock in the Computer and Technology sector, has a year-to-date return of 1.1% and belongs to the Internet - Software industry, which is ranked 83 and has moved -0.9% this year [4][6] - Investors should continue to monitor both DoorDash and Appian for their potential to maintain solid performance in the sector [6]

Core Viewpoint - DoorDash, Inc. (DASH) shows a significantly improving earnings outlook, making it a solid choice for investors as analysts continue to raise their earnings estimates for the company [1][2]. Current-Quarter Estimate Revisions - The earnings estimate for the current quarter is $0.39 per share, reflecting a remarkable change of +750% from the same period last year [4]. - Over the last 30 days, eight estimates have been revised upward while two have gone lower, resulting in a 5.66% increase in the Zacks Consensus Estimate [4]. Current-Year Estimate Revisions - For the full year, the earnings estimate stands at $2.22 per share, indicating a change of +665.52% from the previous year [5]. - The trend for the current year is also positive, with eight estimates moving higher compared to three negative revisions, leading to an 11.02% increase in the consensus estimate [5]. Favorable Zacks Rank - The positive estimate revisions have earned DoorDash a Zacks Rank 2 (Buy), indicating strong potential for outperformance [6]. - Research indicates that stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500 [6]. Bottom Line - Investors have shown confidence in DoorDash, evidenced by a 20% stock gain over the past four weeks, driven by solid estimate revisions and promising earnings growth prospects [7].