We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DASH Benefits From Expanding Clientele: Buy, Hold, or Sell the Stock?
Read MoreHide Full Article
Key Takeaways
DoorDash orders rose 20% in Q2 2025 to 761M, with Marketplace GOV up 23% to $24.2B.
New deals with McDonald's, Dollar General, and others broaden DASH's reach and services.
Advertising revenue topped $1B run rate after major platform updates and an ad tech acquisition.
DoorDash (DASH - Free Report) is benefiting from an expanding clientele, which has enhanced its order volume and resulted in a year-over-year increase of 20% in the second quarter of 2025. The metric reached a total of 761 million orders.
The marketplace GOV also experienced robust growth of 23%, totaling $24.2 billion, reflecting strong demand across platforms.
DoorDash’s shares have rallied 51.6% in the year-to-date period, significantly outperforming the Zacks Internet - Services industry’s rise of 9% and the broader Zacks Computer & Technology sector’s growth of 14.6%.
The outperformance can be attributed to strong order growth and rising Marketplace GOV, along with enhanced logistics efficiency and a growing contribution from advertising.
DASH Stock's Performance
Image Source: Zacks Investment Research
DoorDash Benefits From Expanding Partner Network
DoorDash’s expanding partner base has been noteworthy. It includes Dollar General (DG - Free Report) , MC Donald’s (MCD - Free Report) , Walmart’s 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.
DoorDash recently partnered with McDonald’s USA to launch a new U.S. online ordering experience, allowing customers to get McDelivery via mobile web or desktop without the need for an app or account. Orders are fulfilled by Dashers, ensuring fast and reliable service. This expansion strengthens McDonald’s and DoorDash’s global partnership, which now supports delivery in 29 countries.
In March 2025, DoorDash partnered with Dollar General to bring SNAP/EBT payment capabilities to more than 16,000 Dollar General stores on the DoorDash Marketplace, expanding access to grocery delivery for SNAP recipients across 48 states and offering a discounted DashPass plan for eligible consumers.
DASH Benefits From Strong Growth in Advertising
DoorDash’s robust growth in advertising has been a major growth driver for its success. In the second quarter of 2025, DoorDash’s advertising business exceeded $1 billion in annualized revenue run rate, driven by its focus on delivering high merchant ROAS (Return on Ad Spend) and consumer conversion rates.
Building on this momentum, in June 2025, DoorDash launched its largest-ever advertising platform update, introducing AI-powered campaign tools, advanced targeting, and enhanced reporting for restaurants and brands.
The company also acquired ad tech platform Symbiosys for $175 million to expand off-site advertising across search, social, and display with integrated closed-loop measurement.
Earnings Estimate Revisions Show Upward Trend for DASH
DoorDash’s strength in total orders and Marketplace GOV is expected to benefit its top-line growth.
For 2025, the Zacks Consensus Estimate for earnings is pegged at $2.39 per share, indicating a 9.6% increase over the past 30 days. The figure implies a year-over-year increase of 724.14%.
The Zacks Consensus Estimate for 2025 revenues is pegged at $13.15 billion, suggesting a year-over-year increase of 22.62%.
DoorDash Faces Rising Competition as Grubhub Expands Reach
DoorDash’s strong portfolio and expanding partner base continuously contribute to its growth prospects, driving top-line growth. However, this growth is challenged by the highly competitive environment in its largest segment, local food delivery logistics.
The market is extremely fragmented, and DoorDash is constantly battling for market share with other local food delivery logistics platforms such as Uber Eats and Grubhub (JTKWY - Free Report) . As competition intensifies, companies are seeking new ways to differentiate themselves and expand their market presence.
In July 2025, Grubhub partnered with Wyndham Hotels & Resorts to offer guests and team members $0 delivery fees and other perks. The program, available at nearly 6,000 U.S. hotels, lets users scan a QR code or open the Grubhub app to order. Participants can activate a free six-month Grubhub+ membership with benefits like reduced service fees and 5% credit back on pickup orders.
DASH Stock is Overvalued
DoorDash shares are currently overvalued, as suggested by its Value Score of F.
In terms of the forward 12-month Price/Sales ratio, DASH is trading at 7.30, higher than its median of 5.86 and the industry’s 5.51.
Price/Sales (F12M)
Image Source: Zacks Investment Research
Conclusion: Hold DASH Stock For Now
While DoorDash’s strong order growth, expanding partnerships, and booming ad business support its bullish outlook, its stretched valuation and intense competition pose risks.
Image: Bigstock
DASH Benefits From Expanding Clientele: Buy, Hold, or Sell the Stock?
Key Takeaways
DoorDash (DASH - Free Report) is benefiting from an expanding clientele, which has enhanced its order volume and resulted in a year-over-year increase of 20% in the second quarter of 2025. The metric reached a total of 761 million orders.
The marketplace GOV also experienced robust growth of 23%, totaling $24.2 billion, reflecting strong demand across platforms.
DoorDash’s shares have rallied 51.6% in the year-to-date period, significantly outperforming the Zacks Internet - Services industry’s rise of 9% and the broader Zacks Computer & Technology sector’s growth of 14.6%.
The outperformance can be attributed to strong order growth and rising Marketplace GOV, along with enhanced logistics efficiency and a growing contribution from advertising.
DASH Stock's Performance
Image Source: Zacks Investment Research
DoorDash Benefits From Expanding Partner Network
DoorDash’s expanding partner base has been noteworthy. It includes Dollar General (DG - Free Report) , MC Donald’s (MCD - Free Report) , Walmart’s 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.
DoorDash recently partnered with McDonald’s USA to launch a new U.S. online ordering experience, allowing customers to get McDelivery via mobile web or desktop without the need for an app or account. Orders are fulfilled by Dashers, ensuring fast and reliable service. This expansion strengthens McDonald’s and DoorDash’s global partnership, which now supports delivery in 29 countries.
In March 2025, DoorDash partnered with Dollar General to bring SNAP/EBT payment capabilities to more than 16,000 Dollar General stores on the DoorDash Marketplace, expanding access to grocery delivery for SNAP recipients across 48 states and offering a discounted DashPass plan for eligible consumers.
DASH Benefits From Strong Growth in Advertising
DoorDash’s robust growth in advertising has been a major growth driver for its success. In the second quarter of 2025, DoorDash’s advertising business exceeded $1 billion in annualized revenue run rate, driven by its focus on delivering high merchant ROAS (Return on Ad Spend) and consumer conversion rates.
Building on this momentum, in June 2025, DoorDash launched its largest-ever advertising platform update, introducing AI-powered campaign tools, advanced targeting, and enhanced reporting for restaurants and brands.
The company also acquired ad tech platform Symbiosys for $175 million to expand off-site advertising across search, social, and display with integrated closed-loop measurement.
Earnings Estimate Revisions Show Upward Trend for DASH
DoorDash’s strength in total orders and Marketplace GOV is expected to benefit its top-line growth.
For 2025, the Zacks Consensus Estimate for earnings is pegged at $2.39 per share, indicating a 9.6% increase over the past 30 days. The figure implies a year-over-year increase of 724.14%.
The Zacks Consensus Estimate for 2025 revenues is pegged at $13.15 billion, suggesting a year-over-year increase of 22.62%.
DoorDash, Inc. Price and Consensus
DoorDash, Inc. price-consensus-chart | DoorDash, Inc. Quote
DoorDash Faces Rising Competition as Grubhub Expands Reach
DoorDash’s strong portfolio and expanding partner base continuously contribute to its growth prospects, driving top-line growth. However, this growth is challenged by the highly competitive environment in its largest segment, local food delivery logistics.
The market is extremely fragmented, and DoorDash is constantly battling for market share with other local food delivery logistics platforms such as Uber Eats and Grubhub (JTKWY - Free Report) . As competition intensifies, companies are seeking new ways to differentiate themselves and expand their market presence.
In July 2025, Grubhub partnered with Wyndham Hotels & Resorts to offer guests and team members $0 delivery fees and other perks. The program, available at nearly 6,000 U.S. hotels, lets users scan a QR code or open the Grubhub app to order. Participants can activate a free six-month Grubhub+ membership with benefits like reduced service fees and 5% credit back on pickup orders.
DASH Stock is Overvalued
DoorDash shares are currently overvalued, as suggested by its Value Score of F.
In terms of the forward 12-month Price/Sales ratio, DASH is trading at 7.30, higher than its median of 5.86 and the industry’s 5.51.
Price/Sales (F12M)
Image Source: Zacks Investment Research
Conclusion: Hold DASH Stock For Now
While DoorDash’s strong order growth, expanding partnerships, and booming ad business support its bullish outlook, its stretched valuation and intense competition pose risks.
DoorDash currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.