DoorDash Swings to a Profit and Plans to Buy SevenRooms For $1.2 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 06 2025
0mins
Should l Buy DASH?
Source: WSJ
Financial Performance: DoorDash reported a profit of $193 million in the first quarter, a significant turnaround from a loss of $23 million the previous year.
Business Expansion: The company also announced a $1.2 billion acquisition of a reservation software maker, indicating growth in its service offerings.
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Analyst Views on DASH
Wall Street analysts forecast DASH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DASH is 282.32 USD with a low forecast of 205.00 USD and a high forecast of 360.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 182.470
Low
205.00
Averages
282.32
High
360.00
Current: 182.470
Low
205.00
Averages
282.32
High
360.00
About DASH
DoorDash, Inc. is engaged in providing services that reduce friction in local commerce and help merchants connect with consumers in their communities. The Company's primary offerings include the DoorDash Marketplace and the Wolt Marketplace (together, the Marketplaces), and its Commerce Platform. The Company's Marketplaces operate in over 30 countries across the globe and provide an integrated suite of services that help merchants establish an online presence, connect with consumers in their communities, and solve mission-critical challenges, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers advertising as a value-added service through its Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement. The Company also has offsite advertising capabilities. Its white-label delivery fulfillment services include DoorDash Drive On-Demand and Wolt Drive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Provident Investment Management Fully Exits Maplebear Stake
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- Significant Price Decline: As of February 3, 2026, Maplebear's stock was priced at $36.08, down 25% over the past year, significantly lagging the S&P 500 by 40.4 percentage points, highlighting the pressure it faces in a competitive market.
- Slowing Revenue Growth: The company's revenue growth rate has decreased from 19% in 2023 to 11% in 2024, further slowing to 10% in the first three quarters of 2025, indicating a diminished market appeal amid competition from Amazon and Kroger.
- Cautious Investor Sentiment: While Maplebear's net income grew by 18% over the trailing twelve months and it trades at a P/E ratio of 20 with a forward P/E around 9, investors may prefer more competitive delivery stocks like Kroger, Uber, and DoorDash, making Provident's decision to sell more understandable.
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- Put Option Appeal: The current bid for the $180.00 put option is $13.60, and if an investor sells this option, they commit to buying the stock at $180.00, effectively lowering their cost basis to $166.40, which is approximately a 1% discount from the current price of $182.18, making it attractive for those interested in DASH.
- Yield Potential: Should the put option expire worthless, it would yield a 7.56% return on the cash commitment, equating to an annualized yield of 60.01%, highlighting the strategy's potential appeal in the current market context.
- Call Option Returns: The $185.00 call option has a current bid of $12.65, and if an investor buys DASH shares at $182.18 and sells this call option, they could achieve an 8.49% total return if the stock is called away at expiration, showcasing the profit potential of this strategy.
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- Membership Model Advantage: With a high proportion of sales from everyday essentials and a membership model, Costco has attracted consumers even amid market volatility, as evidenced by a 15% year-to-date stock price increase, reflecting investor confidence in its stable business model.
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- Accelerated Digital Sales: Excluding gasoline prices and foreign exchange impacts, Costco's digital sales surged 33.1% year-over-year, significantly up from 18.3% in December, indicating the effectiveness of the company's digital engagement initiatives in driving overall revenue growth.
- Membership Model Advantage: Costco's membership model and high sales of everyday essentials enhance its competitiveness amid market volatility, with a 15% stock price increase in 2026 reflecting investor recognition of its stable business model, despite market risks.
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- Complete Exit: On February 4, 2026, Provident Investment Management liquidated its entire stake in Maplebear by selling 489,560 shares for approximately $18 million, indicating a complete exit and reflecting a pessimistic outlook on the company's future prospects.
- Significant Price Decline: As of February 3, 2026, Maplebear's stock was priced at $36.08, down 25% over the past year, significantly lagging the S&P 500 by 40.4 percentage points, highlighting the pressure it faces in a competitive market.
- Slowing Revenue Growth: The company's revenue growth rate has decreased from 19% in 2023 to 11% in 2024, further slowing to 10% in the first three quarters of 2025, indicating a diminished market appeal amid competition from Amazon and Kroger.
- Cautious Investor Sentiment: While Maplebear's net income grew by 18% over the trailing twelve months and it trades at a P/E ratio of 20 with a forward P/E around 9, investors may prefer more competitive delivery stocks like Kroger, Uber, and DoorDash, making Provident's decision to sell more understandable.
See More
Walmart Is Allowing Major Tech Companies to Cover AI Costs. Who Else Stands to Benefit?
- Walmart's AI Strategy: Walmart is not investing heavily in artificial intelligence but is prepared to utilize AI tools developed by major tech companies.
- Collaboration with Big Tech: The retail giant is waiting to implement AI advancements that come from the significant research and development efforts of Big Tech firms.
See More
DoorDash Options Trading Analysis
- Put Option Appeal: The current bid for the $180.00 put option is $13.60, and if an investor sells this option, they commit to buying the stock at $180.00, effectively lowering their cost basis to $166.40, which is approximately a 1% discount from the current price of $182.18, making it attractive for those interested in DASH.
- Yield Potential: Should the put option expire worthless, it would yield a 7.56% return on the cash commitment, equating to an annualized yield of 60.01%, highlighting the strategy's potential appeal in the current market context.
- Call Option Returns: The $185.00 call option has a current bid of $12.65, and if an investor buys DASH shares at $182.18 and sells this call option, they could achieve an 8.49% total return if the stock is called away at expiration, showcasing the profit potential of this strategy.
- Risk Assessment: The $185.00 call option has a 48% chance of expiring worthless, allowing investors to retain both their shares and the premium collected, which further enhances their return potential.
See More
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- Significant Sales Growth: Costco's January sales rose 9.3% year-over-year, with same-store sales increasing by 7.1%, demonstrating the company's strong resilience in an uncertain market environment and further solidifying its leadership position in retail.
- Accelerated Digital Sales: Costco's digitally enabled sales surged 33.1% year-over-year in January, significantly up from 18.3% in December, indicating that the company's efforts to enhance digital engagement are yielding impressive results and improving the online shopping experience for customers.
- Membership Model Advantage: With a high proportion of sales from everyday essentials and a membership model, Costco has attracted consumers even amid market volatility, as evidenced by a 15% year-to-date stock price increase, reflecting investor confidence in its stable business model.
- Valuation Risk Warning: Despite Costco's strong business performance, its current price-to-earnings ratio of 53 may already price in expectations for robust earnings growth of 15%, prompting investors to be cautious of valuation risks that could lead to potential losses due to overvaluation.
See More
Costco's Steady Sales Growth Faces Significant Valuation Risks
- Strong Sales Growth: Costco's retail sales in January 2026 rose 9.3% year-over-year, with same-store sales increasing by 7.1%, demonstrating the company's ability to sustain growth in uncertain environments, which boosts investor confidence.
- Accelerated Digital Sales: Excluding gasoline prices and foreign exchange impacts, Costco's digital sales surged 33.1% year-over-year, significantly up from 18.3% in December, indicating the effectiveness of the company's digital engagement initiatives in driving overall revenue growth.
- Membership Model Advantage: Costco's membership model and high sales of everyday essentials enhance its competitiveness amid market volatility, with a 15% stock price increase in 2026 reflecting investor recognition of its stable business model, despite market risks.
- Valuation Risk Warning: Despite Costco's strong business performance, its current price-to-earnings ratio of 53 suggests a need for sustained 15% earnings growth, while actual growth in fiscal 2025 was only 10%, prompting investors to carefully assess valuation risks.
See More
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- Significant Investment: Nvidia's announcement of a $2 billion investment in CoreWeave, purchasing shares at approximately $87 each, represents a 6.5% discount from last Friday's closing price, resulting in a more than 10% surge in CoreWeave's stock, indicating strong market demand for AI infrastructure.
- Deepening Strategic Partnership: The collaboration between Nvidia and CoreWeave aims to meet the extraordinary demand for Nvidia's AI factories, with plans to build 5 gigawatts of AI factories by 2030, and this investment will accelerate that process, further solidifying Nvidia's leadership in the AI sector.
- Liquidity Crisis Concerns: While Nvidia's investment is seen as support for CoreWeave, critics note that CoreWeave may be facing cash flow shortages and debt burdens, suggesting that Nvidia's investment could be a move to mitigate the risk of its partner's potential bankruptcy.
- Market Outlook Analysis: As AI technology rapidly evolves, Nvidia's investment is not only a lifeline for CoreWeave but also a strategic positioning within the entire AI ecosystem, reflecting the company's forward-thinking approach in future market competition.
See More
