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On Tuesday, Stifel analysts initiated coverage on DoorDash Inc. (NASDAQ:DASH) with a Hold rating and set a price target of $198. Trading near its 52-week high of $220.88, DoorDash’s market capitalization now stands at approximately $91 billion. The analysts expressed confidence in DoorDash’s ability to perform well amidst strong competition, highlighting the company’s strategic expansion beyond the U.S., which includes the integration of Deliveroo (OTC:DROOF) and the prior acquisition of Wolt.
The analysts emphasized their optimism about DoorDash’s potential in the advertising sector. They noted that this area might exceed their current estimates if their assumptions prove accurate. With impressive revenue growth of 23.35% and strong financial health according to InvestingPro analysis, DoorDash has demonstrated robust execution. Despite these promising aspects, the analysts believe that DoorDash shares are currently fairly valued, trading at elevated valuation multiples.
Stifel’s assessment suggests that while DoorDash has shown strong execution capabilities, the current stock price reflects its market position and growth prospects. The analysts indicated a willingness to adopt a more positive stance if there is a pullback in the company’s stock price.
DoorDash’s recent activities, including its international expansion and advertising initiatives, were key factors in Stifel’s evaluation. The Hold rating reflects a balanced view of the company’s current valuation and future potential.
In other recent news, DoorDash Inc. has reported significant developments that may interest investors. The company has successfully upsized its convertible notes offering to $2.5 billion, an increase from the initially announced $2 billion. These notes, which are due in 2030, will be used for general corporate purposes, including potential acquisitions and share repurchases. Additionally, DoorDash’s recent acquisitions of Deliveroo and SevenRooms highlight its strategic expansion efforts, which are expected to contribute to its growth beyond 2026.
Truist Securities has maintained a Buy rating on DoorDash, setting a price target of $230, citing the company’s impressive growth in gross spend and weekly active users surpassing market expectations. Meanwhile, DoorDash has discontinued its voice-ordering product pilot after a year, as confirmed by a company spokesperson. The decision aligns with DoorDash’s approach to scaling or winding down initiatives based on product-market fit and customer demand.
Moreover, DoorDash introduced the Preferred Integrations Partner Program, aimed at enhancing restaurant technology integrations. Otter, a provider of delivery performance tools, has been named a partner in this initiative, which seeks to improve restaurant operations and revenue growth. These developments reflect DoorDash’s ongoing efforts to solidify its market position and expand its service offerings.
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