Is DoorDash's Expanding Partner Base a Sign to Buy the Stock?

DoorDash’s DASH shares have rallied 31.5% in the trailing 12-month period, significantly outperforming the Zacks Internet - Services industry’s rise of 0.3% and the broader Zacks Computer & Technology sector’s increase of 3.5%.

The outperformance can be attributed to strong order growth and rising Marketplace GOV, along with enhanced logistics efficiency and a growing contribution from advertising.

DoorDash is also benefiting from an expanding clientele, which has enhanced its order volume and resulted in a year-over-year increase of 19% in the fourth quarter of 2024. The metric reached a total of 685 million orders. The marketplace GOV also experienced robust growth of 21%, amounting to $21.3 billion, reflecting strong demand across platforms.

Hence, investors should ask this question: Can DoorDash sustain its strong order growth and rising Marketplace GOV for the rest of 2025?

DoorDash, Inc. Price and Consensus

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

DASH’s Expands Reach With Key Partnerships

DoorDash’s expanding partner base has been a key driver of its success. It includes Dollar General DG, The Home Depot HD, Ibotta IBTA, 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.

In March, 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 also announced a partnership with The Home Depot, enabling on-demand delivery of home improvement essentials directly through the DoorDash app. 

The collaboration with Home Depot allows customers and professionals to have products delivered in as little as an hour, enhancing convenience for DIY projects and job sites. With more than 115,000 non-restaurant stores available, DoorDash continues to expand its marketplace, offering a variety of products beyond food.

In January, DASH entered a multi-year partnership with Ibotta, joining Ibotta’s Performance Network to offer personalized promotions and coupons to DoorDash customers across various categories.

DoorDash’s Offers Strong Q1 Guidance

DoorDash’s strength in total orders and Marketplace GOV is expected to benefit its top-line growth. It is also gaining momentum in new verticals, particularly in the grocery segment, further strengthening its growth potential.

For the first quarter of 2025, DoorDash anticipates Marketplace GOV of $22.6-$23 billion.

The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $3.09 billion, indicating 23.09% year-over-year growth.

The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 39 cents per share, which remained unchanged over the past 30 days. The figure indicates year-over-year growth of 750%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

What Should Investors Do With DASH Stock?

DoorDash’s strong portfolio and expanding partner base are contributing to its growth prospects continuously, driving top-line growth.

DASH stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. 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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