Street Calls of the Week
Investing.com -- Food delivery investments are entering a transformative phase in 2025, with industry leaders advancing technology, improving profitability metrics, and expanding global footprints. Using comprehensive data from InvestingPro’s Fair Value assessments, Pro Scores, analyst targets, and technical indicators, WarrenAI has ranked the top performers in this competitive space.
1. DoorDash (NASDAQ:DASH) claims the top position despite valuation concerns. The company has demonstrated impressive momentum with a 76.1% one-year return and 24.2% year-over-year revenue growth. Its DashPass subscription service has reached all-time highs, while strategic acquisitions like Deliveroo strengthen its international presence. However, investors should note DASH trades at a steep 50.6x forward P/E ratio and sits approximately 21.7% above InvestingPro’s fair value estimate of $205.06. While analyst targets hover around $301, the current price of $261.88 suggests limited upside potential.
In recent developments, DoorDash has advanced its autonomous delivery capabilities through new partnerships with both Waymo and Serve Robotics. The company also received a new Buy rating from Guggenheim, which cited DoorDash’s leadership position in delivery.
2. Uber Technologies (NYSE:UBER) secures the second spot as a diversified powerhouse. With food delivery representing just one segment of its global operations, Uber boasts a more reasonable 24.7x forward P/E ratio and an 8.0% EBITDA margin. The company’s current price of $91.98 aligns almost perfectly with InvestingPro’s fair value assessment of $92.20, while analyst targets suggest significant upside potential of 49.2%. Uber’s impressive 60.1% return on equity and expanding autonomous vehicle partnerships make it an attractive option for investors seeking growth at a reasonable price.
Uber Technologies recently acquired the Belgian startup Segments.ai to enhance its data-labeling business and announced a new option for U.S. drivers to earn extra income through data-related tasks. Additionally, Guggenheim initiated coverage on the company with a Buy rating.
3. Instacart/Maplebear (NASDAQ:CART) emerges as the value play in the sector. Despite an 8.7% decline in its one-year return, CART trades below InvestingPro’s fair value of $44.82, offering 16.3% potential upside from its current $38.53 price. The company leads the group with a robust 16.1% EBITDA margin and a relatively modest 11.0x forward P/E ratio. Instacart’s retail media initiatives and TikTok partnership could drive future growth, though competition from Amazon and DoorDash remains a concern.
Instacart has expanded its business features to retailer e-commerce sites and launched a new retail media solution integration with TikTok. Analyst ratings on the company have been mixed, with Piper Sandler downgrading the stock to Neutral, citing competitive pressures.
4. Grab Holdings (NASDAQ:GRAB) rounds out the list as the Southeast Asian super-app contender. The stock has delivered an impressive 57.7% one-year return and forecasts 21% revenue growth for 2025. However, its eye-watering 169.3x forward P/E ratio and negative EBITDA margin (-0.3%) highlight its speculative nature. Currently trading at $5.61 versus InvestingPro’s fair value of $4.97, Grab offers exposure to Southeast Asia’s digital economy boom but comes with substantial volatility risk.
Grab Holdings reported its Q2 2025 earnings, meeting analyst expectations for earnings per share and posting a slight beat on revenue. The company also saw mixed analyst actions, with Jefferies raising its price target while HSBC downgraded the stock to Hold, citing valuation.
Investors considering food delivery stocks should weigh growth potential against valuation metrics, recognizing that market leaders like DoorDash command premium prices while value opportunities may exist in less prominent names like Instacart.
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