- Wall Street is closely watching competition in the food delivery sector between the grocery delivery platforms Instacart and DoorDash.
- Goldman Sachs said that it believes DoorDash's revenue growth should be sustained by a healthy consumer base.
- Wall Street has a consensus ‘Strong Buy’ rating on DoorDash, according to Koyfin, with 34 out of the 44 analysts covering the stock rating it ‘Buy’ or higher.
DoorDash shares are on track to snap a three-week losing streak, having gained 1.3% until Tuesday, if momentum holds ahead of the company’s quarterly earnings on Wednesday. Investors are looking for updates on advertising revenue and recent expansion efforts.
Wall Street is also closely monitoring competition in the food delivery space, particularly between DoorDash and Instacart. Both companies are positioning advertising as a key growth driver, as more consumer brands turn to delivery platforms for targeted marketing.
DASH Earnings Snapshot
Wall Street expects DoorDash to post revenue of $3.99 billion, a 39% jump from a year earlier, and earnings per share are estimated to be $1.27, compared to $0.89 from a year ago, according to data from Fiscal AI.
In early February, Goldman Sachs added DoorDash to the firm's U.S. Conviction List as part of its monthly update. The company is well-positioned cyclically and secularly through 2026, Goldman Sachs said. The firm said it believes DoorDash's revenue growth should be sustained by a healthy consumer base.
Bank of America said that the first-quarter guidance cuts have been sold so far in the sector in 2026. The firm believes the first-quarter outlook could be a clearing event if the top line is strong and the full-year margin outlook is relatively unchanged.
Wall Street has a consensus ‘Strong Buy’ rating on DoorDash, according to Koyfin, with 34 out of the 44 analysts covering the stock rating it ‘Buy’ or higher and 10 rating it ‘Hold.’ The average price target was $272.07, implying a 68% upside from Tuesday’s closing price of $272.07.
How Are Stocktwits Users Reacting?
Retail sentiment on DoorDash jumped to ‘bullish’ from ‘neutral’ territory three months ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
A user on Stocktwits said the stock could drop to the $100 mark soon.
Shares of DoorDash have declined nearly 24% in the last 12 months.
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