DoorDash, Inc. (DASH): A Bull Case Theory

Core Thesis - DoorDash, Inc. is transitioning from a cash-burning delivery platform to a profitable, cash-generating powerhouse, with significant growth in revenue and net income [2][5] Financial Performance - In Q3 2025, DoorDash reported $3.4 billion in revenue, a 27% increase year-over-year, and $244 million in GAAP net income, marking a 51% increase and the third consecutive profitable quarter [2] - The trailing and forward P/E ratios for DoorDash are 100.19 and 49.75 respectively [1] Market Position - DoorDash controls approximately 68% of the U.S. food delivery market and has a growing subscription base of 26 million DashPass and Wolt+ members [3] - The company's advertising business is high-margin and is scaling faster than marketplace gross order value, leading to net revenue margins of 13.8% [3] Strategic Initiatives - The stock's sell-off post-earnings call is attributed to concerns over a $1.2 billion spending plan for 2026, which includes integrating Wolt and Deliveroo, expanding into new high-margin verticals, and investing in autonomous delivery [4] - Management views these expenditures as strategic investments aimed at achieving global scale and long-term competitive advantage [4] Regulatory Environment - Regulatory risks regarding gig worker classification have eased at the federal level, with Proposition 22 upheld and the Department of Labor pausing enforcement of previous rules, although municipal challenges persist [5] Investment Opportunity - The market's 20% pullback is seen as undervaluing DoorDash's proven profitability and growth strategy, presenting a compelling opportunity for long-term investors to acquire a market leader [5]