DASH Benefits From Expanding Clientele: Buy, Hold, or Sell the Stock?

DoorDash DASH 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

DoorDash Benefits From Expanding Partner Network

DoorDash’s expanding partner base has been noteworthy. It includes Dollar General DG, MC Donald’s MCD, 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. 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)

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.

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This article originally published on Zacks Investment Research (zacks.com).

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