DoorDash: The food delivery service experienced a 4% increase in its stock following positive earnings reports.
Strong Fourth-Quarter Performance: DoorDash reported a 25% year-over-year revenue increase in Q4, reaching $2.87 billion, slightly surpassing analyst expectations. The company also achieved a profit of $141 million, a significant turnaround from the previous year’s loss of $154 million.
Growth in Orders and Gross Order Value: The total number of orders rose by 19% to 685 million, exceeding forecasts by 11 million. The total value of orders completed (Marketplace GOV) grew 21% to $21.28 billion, ahead of the predicted $20.93 billion.
Positive Market Reaction: Following the earnings report, DoorDash’s stock surged, reaching a 52-week high of $199.80. The company’s market capitalization now stands at approximately $82.6 billion.
Analyst Upgrades: Several financial firms have raised their price targets for DoorDash:
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Piper Sandler increased the target to $210 from $160, citing strong bookings and a $5 billion stock buyback program
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Wells Fargo raised its target to $198 from $166, noting the company’s impressive gross order value and margin progression
Strategic Initiatives: DoorDash announced a $5 billion share buyback plan for fiscal 2025 and plans to expand into new categories such as beauty and convenience, as well as invest in international markets.