Watch List Potential in DoorDash
"Next we get to a stock that has sold off recently: DoorDash. Year-to-date it's up 22%, but in the past month, it's down 25%. With strong revenue growth of 25% and a growing ad segment, DoorDash offers potential upside with a projected return above 10% even under conservative assumptions."
Commentary on DoorDash's recent volatility, noting its strong underlying revenue and ad growth that could provide attractive returns despite near-term sell-off.
Mark Mahaney Sees a Clearing Event for DoorDash Amid Investment Cycle Concerns
"You know, I I I'd spin it another way or similar to what you just did, John. Investors don't like investment cycles. So I think that's the case with Meta, Dash, Duelingo, Uber. I think there's a few other names in there too. Maybe Pinterest, you know, all those companies that went into and out of this earning cycle and sort of surprise negatively surprised the market by saying we really want to lean into investments first. And I think Door Dash's, you know, to me it's kind of like you just can't be that surprised. They just closed the deal with Deliveroo, they bought the asset to invest in to regrow it and yet the market didn't like it and sold off the stock aggressively. The good news though is that if you believe that it's a good investment cycle, this is your clearing event. This is your chance to get in on a stock. Door Dash hasn't been one of my top longs, but it's something I got to seriously consider now."
Mark Mahaney discusses the current investment cycle, noting that while several stocks are being punished for aggressive future investments, DoorDash presents a buying opportunity as the market has overreacted. He suggests that with the investment cycle now behind, it could be a clearing event to get into the stock at a more attractive price.
Negative outlook on DoorDash
"Door Dash, the worst performer in the S&P 500 right now. Down 16%. Ticker DSH. Uh worst day since it went public in late 2020. This comes after their IBIDA forecast disappointed expectations. The company saying that they plan to spend hundreds of millions of dollars more in 2026 than they did in 2025, which kind of steps away from the company, which had long been seen as a prudent company when it comes to allocating capital. I will say though I think I'm like in that straddling age in my lower 30s. So maybe I'm not the target audience but... Anti-dash."
The speaker criticizes DoorDash for its recent performance, highlighting a steep 16% drop and disappointing forecasts. Concerns include a drastic increase in capital expenditure forecasts and margin pressures, prompting a notably negative sentiment toward the stock.
DoorDash's Heavy Spending Triggers Sharp Decline
"Yeah, DASH is your ticker. Shares are spiraling lower, down about 11% this morning, trading at $212 a share and change. They are doing a meta, which is a verb now. I'm making it a verb. They're doing a meta where they're doing bigger investments, higher capbacks. They're trying to innovate. They're trying to invest in some of their platforms. Door Dash, for example, has recently acquired Deliveroo, which is a UK uh food delivery business. So, they're really trying to invest in a big way that they keep saying is going to help them in the long term. The Street is looking at that and saying, "This is way too much spend, and we don't see how this is going to show the same returns that you're promising." And they're getting punished for it. Door Dash shares down uh some 11% as we speak."
The discussion around DoorDash (DASH) emphasizes that despite heavy investments aimed at long-term innovation, the market penalized the stock with an 11% drop due to concerns over excessive spending and uncertain returns.
DoorDash Faces Capex Concerns Despite Strong Order Growth
"Uh, so the next one I'm looking at is Door Dash. So, ticker D A SH. Uh shares also down here. They're down about 19% right now. Um and you know, we talk a lot about AI and the other thing I think we talk about is capex. So, Dash shares looking like they're down right now after the company said it's going to invest several hundred million more into new products next year 2026 than it did this year. Um, this actually will also include AI tools to improve developer productivity and the spending forecast overshadowed this pretty strong results actually from Door Dash. They saw a gross order value grow ahead of the estimate and that was one of the strongest gains in that metric since 2023."
DoorDash is down about 19% after announcing a significant increase in capex for new product development and AI-enhanced tools, which has spooked investors despite strong growth in gross order value. The elevated spending forecast appears to be weighing on sentiment in the short term.
DoorDash Benefits from Expanded Kroger Partnership
"That is Door Dash, uh, we are seeing shares of Door Dash rising. Of course, this is after it's expanding its relationship with the grocery store chain operator Kroger. Uh so we are seeing Kroger just up a touch here. Uh but essentially we're looking at Instacart of course in focus. That is a competitor here to Door Dash. But I mean Kroger should be launching almost 2700 of its stores on the Door Dash platform starting October 1st."
DoorDash (DASH) is seeing rising shares following the expansion of its relationship with Kroger, which will integrate nearly 2700 stores onto its platform starting October 1st. This strategic partnership positions DoorDash favorably against competitors like Instacart.