DoorDash Stock Rallies 30% in One Year: Should You Buy, Hold, or Sell?

DoorDash DASH shares have gained 29.7% in the trailing 12 months, outperforming the Zacks Computer & Technology sector’s growth of 27.2%. 

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

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. This has boosted DoorDash’s total orders and marketplace GOV. 

In the third quarter of 2025, total orders increased 21% year over year to 776 million. Marketplace GOV increased 25% year over year to $25 billion, reflecting strong demand across platforms.

DASH Stock's Performance

DoorDash Benefits From Expanding Partner Network

DoorDash’s expanding partner base, which includes Old Navy, Family Dollar, Waymo, Kroger, McDonald’s MCD, and Ace Hardware, has acted as a catalyst for growth, significantly broadening DoorDash’s reach and enhancing its service offerings.

In November 2025, DoorDash announced a new partnership with Family Dollar to offer on-demand delivery from roughly 7,000 stores nationwide, with DashPass availability and a promo for new shoppers.

On Oct. 27, DoorDash announced a partnership with Waymo to test an autonomous delivery service in Metro Phoenix. They also introduced a limited-time $10 Waymo ride promotion for DashPass members in Los Angeles, San Francisco, and Phoenix. The service will begin with DashMart deliveries and will expand later this year as part of DoorDash’s Autonomous Delivery Platform initiative.

In August, DoorDash and McDonald’s launched a new U.S. online ordering experience via McDonald’s.com, enabling customers to order McDelivery directly via mobile web or desktop without needing an app or account. This integration enhances convenience and expands DASH and McDonald’s global collaboration across 29 countries.

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 the fourth quarter of 2025, DoorDash anticipates Marketplace GOV to be in the range of $28.9-$29.5 billion. 

For 2025, the Zacks Consensus Estimate for earnings is pegged at $2.23 per share, indicating an 8.23% decrease over the past 30 days. The figure implies a year-over-year increase of 668.97%.

The Zacks Consensus Estimate for 2025 revenues is pegged at $13.75 billion, suggesting a year-over-year increase of 28.28%.

DoorDash, Inc. Price and Consensus

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

DoorDash Faces Rising Competition

Despite strong order growth and expanding partnerships, 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 Amazon AMZN. As competition intensifies, companies are seeking new ways to differentiate themselves and expand their market presence.

Amazon’s Prime membership program is a cornerstone of its delivery ecosystem, offering unparalleled convenience and speed to millions of customers worldwide. Prime members benefit from fast and free delivery options, including same-day and next-day delivery, which have become increasingly faster over the years. In 2025, Amazon is on track to deliver at its fastest speeds ever for Prime members globally, with innovations like three-hour delivery rolling out in select U.S. cities.

Uber Technologies is benefiting from the boom in its Delivery business through its online delivery platform Uber Eats. In the third quarter of 2025, Uber Technologies’ Delivery segment increased 29% year over year on a reported basis and 27% on a constant currency basis to $4.47 billion. Gross bookings from the Delivery segment rose 25% year over year on a reported basis and 24% on a constant currency basis to $23.32 billion.

DASH Stock Is Overvalued

DoorDash shares are currently overvalued, as suggested by its Value Score of F. 

In terms of the trailing 12-month Price/Book ratio, DASH is trading at 10.23, higher than the Internet - Services industry’s 7.92X.

Price/Book

What Should Investors Do With DASH Stock?

DoorDash’s strong order growth, expanding partnerships, and portfolio support its bullish outlook. However, intense competition, along with a fragmented market, could pressure margins. Stretched valuation also remains a concern.

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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