DoorDash (DASH – Free Report) shares have gained 3.9% since it reported fourth-quarter 2024 results on Tuesday. The upside was driven by higher Marketplace Gross Order Value (GOV) and growth in advertising revenues.
Click here to check the details of DASH’s fourth-quarter 2024 results.
DASH shares have surged 70.1% over the trailing 12-month period, significantly outperforming the Zacks Internet – Services industry’s return of 25.7% and the broader Zacks Computer & Technology sector’s appreciation of 23.6%.
DASH Beats Sector, Industry
Image Source: Zacks Investment Research
The outperformance can be attributed to strong revenue growth, strong performance in total orders and Marketplace GOV.
DoorDash is benefiting from an expanding clientele that enhanced its order volume and registered a year-over-year increase of 19% in the fourth quarter of 2024. The metric reached a total of 685 million orders. The marketplace GOV also experienced robust growth of 21%, totaling $21.3 billion, reflecting strong demand across platforms.
DASH Grows With Home Depot Partnership for Quick Delivery
DoorDash has expanded its offerings beyond restaurants, such as launching its commerce platform and growing its presence in grocery delivery and other local commerce categories. The success in expanding to new verticals has contributed positively to revenue and market shares.
Building on this success in January, DASH announced a partnership with The Home Depot (HD – Free Report) , enabling on-demand delivery of home improvement essentials directly through the DoorDash app.
The collaboration with Home Depot allows customers and professionals to have products delivered in as little as an hour, enhancing convenience for DIY projects and job sites. With more than 115,000 non-restaurant stores available, DoorDash continues to expand its marketplace, offering a variety of products beyond food.
DoorDash Expands Partners to Boost Grocery Delivery Reach
DoorDash’s expanding partner base has been noteworthy. It includes The Home Depot, Ibotta (IBTA – Free Report) , Walmart’s (WMT – Free Report) Canadian division Walmart Canada, Wegmans Food Markets, Lyft, Warner Bros. Discovery’s streaming service, Max, and JPMorgan Chase & Co.’s U.S. consumer and commercial banking division, Chase, which have acted as catalysts for growth, significantly broadening DoorDash’s reach and enhancing its service offerings.
In January, DASH partnered with Ibotta to integrate the latter’s extensive catalog of digital promotions into DoorDash’s platform. This offers customers personalized savings across various categories while providing CPG brands with enhanced opportunities to reach consumers across DoorDash’s 115,000+ non-restaurant stores through the Ibotta Performance Network’s AI-driven pay-per-sale promotions.
Through DoorDash Canada and Walmart Canada’s nationwide collaboration, Canadians now have access to grocery and general merchandise from over 300 Walmart Supercenters through DoorDash’s app and website. This initiative strengthens DoorDash’s grocery delivery presence and underscores its ability to facilitate seamless shopping experiences beyond traditional restaurant partnerships.
Further reinforcing its commitment to diversified offerings, DoorDash and Lyft announced a partnership to provide benefits on rides and local delivery. DashPass members can avail monthly benefits on ride-sharing at no additional cost, and eligible Lyft riders would receive a free trial of DashPass.
DoorDash has entered into an expanded partnership with Wegmans Food Markets. The partnership enables grocery delivery from all Maryland locations and soon from stores in Virginia, North Carolina, New Jersey, Delaware, and upstate New York. The partnership also includes a promotional offer for customers.
Earnings Estimate Revisions Show Upward Trend for DASH
For 2025, the Zacks Consensus Estimate for earnings is pegged at $1.94 per share, which declined 2% over the past 30 days. The figure implies a year-over-year increase of 568.97%.
DoorDash, Inc. Price and Consensus
DoorDash, Inc. price-consensus-chart | DoorDash, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The Zacks Consensus Estimate for 2025 revenues is pegged at $12.73 billion, suggesting an increase of 18.74% from 2024’s estimated figure of $10.72 billion.
DASH Stock is Currently Overvalued
We point out that DoorDash stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
In terms of the Price/Book ratio, DASH is trading at 11.03, higher than the Zacks Internet – Services industry’s 5.96.
Price/Book
Image Source: Zacks Investment Research
Conclusion
DoorDash’s strong portfolio and expanding partner base continuously contribute to its growth prospects, driving top-line growth. These factors justify the company’s premium valuation.
DASH stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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