DoorDash's recent performance has been bolstered by a surge in orders, particularly from its DashPass subscribers, as highlighted by Evercore ISI. The investment bank has maintained an 'outperform' rating on DoorDash and set a price target of $300, suggesting a potential 45% increase from its recent closing price.
Analysts, led by Mark Mahaney, noted that DoorDash added more DashPass members in the last quarter than in the previous two years combined, contributing to a nearly 28% year-over-year increase in total orders, reaching 970 million. Additionally, gross order value rose by 36% to $33.1 billion.
Despite a decline in earnings per share from 65 cents to 46 cents compared to the previous year, DoorDash's revenue of $4.45 billion exceeded analyst expectations of $4.34 billion. The stock reacted positively, rising about 3% following the earnings report.
Although DoorDash shares have gained 27% over the past three months, they are still down 6% year-to-date due to concerns over its investments in international expansion and new delivery services.
Overall, the strong order growth and subscriber retention are seen as pivotal for DoorDash's recovery and future profitability, aligning with the broader positive sentiment among analysts, where 36 out of 46 rate the stock as a buy or strong buy