DASH Gains From Robust Marketplace GOV: A Sign for More Upside?

DoorDash DASH is benefiting from the robust growth in its Marketplace GOV, driven by strong demand across platforms. In the second quarter of 2025, Marketplace GOV increased 23% year over year to $24.2 billion. The figure beat the Zacks Consensus mark by 2.67%.

In the second quarter of 2025, revenues increased 24.9% year over year to $3.28 billion. The net revenue margin rose to 13.5% in the second quarter of 2025 from 13.3% in the year-ago quarter. Growth was driven by the year-over-year increase in Marketplace GOV.

DoorDash’s expanding partner base has been noteworthy. It includes Dollar General, McDonald’s, 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.

The company is consistently investing in expanding its partner base to provide express grocery delivery for consumers, a new offering that cements its position further among other on-demand delivery platforms. It partnered with retailers like CUB, Eataly, El Super, Fiesta Mart, Lowe’s Markets, Pruett’s Food, Stater Bros. Markets, and Strack & Van Til to broaden its reach and offerings for consumers in various regions on the DoorDash Marketplace. These partnerships boost DoorDash’s total orders and marketplace GOV.

For the third quarter of 2025, DoorDash anticipates Marketplace GOV to be in the range of $24.2-$24.7 billion.

DASH Faces Stiff Competition

DoorDash is constantly battling for market share with other local food delivery logistics platforms such as Uber Technologies UBER, online delivery platform Uber Eats, and Maplebear CART, which is doing business as Instacart. As competition intensifies, companies are seeking new ways to differentiate themselves and expand their market presence.

Uber Technologies is benefiting from the boom in its Delivery business. Uber Technologies’ delivery business performed well in the second quarter of 2025, with segmental revenues growing 23% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the June quarter rose 20% year over year on a constant-currency basis to $21.7 billion.

In the second quarter of 2025, Maplebear, doing business as Instacart, reported a Gross Transaction Value of $9.081 billion, reflecting 11% growth compared with $8.194 billion in the second quarter of 2024.  Maplebear’s growth was fueled by a 17% increase in orders, reaching 82.7 million.  This highlights Maplebear’s strong presence and competitive edge in the online delivery market.

DASH’s Share Price Performance, Valuation, and Estimates

DoorDash’s shares have rallied 48.3% in the year-to-date period, significantly outperforming the Zacks Internet - Services industry’s rise of 10.8% and the broader Zacks Computer & Technology sector’s growth of 13%.

DASH Performance

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 11.90, higher than its median of 9.73 and the industry’s 5.41.

DASH Valuation

For 2025, the Zacks Consensus Estimate for earnings is pegged at $2.39 per share, indicating a 10.6% increase over the past 30 days. The figure implies a year-over-year increase of 724.14%.

DoorDash, Inc. Price and Consensus

DoorDash, Inc. price-consensus-chart | DoorDash, Inc. Quote

DoorDash currently has a Zacks Rank #3 (Hold). 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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