DoorDash's Uptrend Is Gaining Momentum in 2025

Core Insights - DoorDash's stock price is currently facing challenges due to high analyst expectations and increased short interest, yet it is on an upward trend and gaining momentum [1] - The company's Q1 results showed a revenue increase of nearly 21% year-over-year, although they fell short of MarketBeat's consensus for FQ1 2025 [2][12] - Management reported strong demand and no changes in consumer habits, indicating resilience against macroeconomic headwinds [3] Financial Performance - DoorDash reported net revenue of $3.03 billion in Q1, which is up 20.7% compared to the previous year, driven by an 18% increase in orders and a 20% rise in Marketplace Gross Order Value (GOV) [12] - The company achieved a net income of $192 million, a significant improvement from a loss in the previous year, with adjusted EPS of $0.44, exceeding forecasts [13] Acquisitions and Growth Strategy - Recent acquisitions, including Deliveroo and SevenRooms, are seen as catalysts for growth but raise concerns about near-term profitability due to integration challenges [4][6] - Deliveroo adds 7 million unique active members and expands DoorDash's reach in the UK and EU, contributing to the company's growth trajectory [7] Analyst Sentiment and Price Targets - Analysts have raised price targets for DoorDash, with a 12-month forecast of $209.97, indicating a potential upside of 14.51% [5][9] - Despite some analysts reducing their targets, the overall consensus has increased, suggesting a modest 16% upside potential for the stock [9] Share Buyback Program - DoorDash has been actively buying back shares, with an additional $5 billion authorization announced earlier this year, contributing to a nearly 7% reduction in share count by the end of Q1 [14]