DoorDash, Inc. (DASH): A Bull Case Theory

We came across a bullish thesis on DoorDash, Inc. on Darius Dark Investing’s Substack. In this article, we will summarize the bulls’ thesis on DASH. DoorDash, Inc.'s share was trading at $198.37 as of November 28th. DASH’s trailing and forward P/E were 100.19 and 49.75 respectively according to Yahoo Finance.

DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and independent contractors in the United States and internationally. DASH has reached a pivotal moment in its evolution, transforming from a cash-burning delivery platform into a profitable, cash-generating powerhouse. Its Q3 2025 results demonstrated $3.4 billion in revenue, up 27% year-over-year, alongside $244 million in GAAP net income, marking a 51% increase and the third consecutive profitable quarter.

This performance confirms that DoorDash’s U.S. food delivery model is not only viable but dominant, controlling roughly 68% of the market and benefiting from a growing subscription base of 26 million DashPass and Wolt+ members. The company’s profitability is further boosted by its high-margin advertising business, which is scaling faster than marketplace gross order value, expanding net revenue margins to 13.8% and layering sustainable earnings on top of logistics operations.

The stock’s sharp sell-off following the earnings call reflects investor concerns over an aggressive 2026 spending plan, including the integration of Wolt and Deliveroo into a single global tech platform, expansion into new high-margin verticals with Kroger and other retail partnerships, the $1.2 billion SevenRooms acquisition, and investment in autonomous delivery via Google’s Waymo and DoorDash’s proprietary “Dot” robot. While these initiatives create short-term cost pressures, management frames them as strategic investments to secure global scale, operational efficiency, and long-term competitive advantage.

Regulatory risks, particularly around gig worker classification, have largely eased at the federal level, with Proposition 22 upheld and the Department of Labor pausing enforcement of prior rules, though municipal-level challenges remain. The market’s 20% pullback undervalues DoorDash’s proven profitability, dominant U.S. presence, and reinvestment-driven growth strategy. For long-term investors, DASH represents a rare opportunity to acquire a market leader using current profits to build a global, multi-vertical empire, offering a compelling risk/reward proposition.

Previously we covered a bullish thesis on DoorDash, Inc. (DASH) by Sabar Capital in May 2025, which highlighted its dominant U.S. market share, expanding non-food verticals, and strong platform ecosystem. The company's stock price has depreciated approximately by 3.27% since our coverage. The thesis still stands as DoorDash remains profitable and cash-generating. Darius Dark Investing shares a similar view but emphasizes GAAP profitability, 2026 strategic investments, and global expansion through acquisitions like Deliveroo and SevenRooms.

DoorDash, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 100 hedge fund portfolios held DASH at the end of the second quarter which was 81 in the previous quarter. While we acknowledge the potential of DASH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.