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

We came across a bullish thesis on DoorDash, Inc. on Nikhs’s Substack. In this article, we will summarize the bulls’ thesis on DASH. DoorDash, Inc.'s share was trading at $204.62 as of January 30th. DASH’s trailing and forward P/E were 104.89 and 56.18 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’s core innovation lies not in delivering food but in transforming logistics into a reliable utility, much like Frederic Tudor did with ice in the 1800s. Tudor became wealthy not by selling ice, but by building an integrated system—insulated ships, ice houses, and supply chain processes—that made ice dependable.

Similarly, DoorDash recognized that modular delivery models, where restaurants controlled fulfillment, limited scale. By integrating logistics into the platform, DoorDash unlocked supply from any restaurant, expanded into suburban markets underserved by competitors, and captured 67% of U.S. food delivery. This integration created a reliability moat that underpins high-margin monetization opportunities, including advertising, which reached over $1 billion in 2025.

DoorDash’s next phase focuses on extending reliability to complex verticals like grocery, where inventory uncertainty—“blind storefronts”—limits service quality. DashMart fulfillment centers partially solve this by controlling inventory, but scaling grocery and international operations carries structural challenges.

International acquisitions, including Wolt and Deliveroo, offer global reach but introduce multiple technology stacks and execution risk, prompting a multi-year platform consolidation to unify operations and accelerate development. While this investment delays margin expansion, it strengthens long-term operational efficiency.

The market currently prices DoorDash as a high-growth platform with near-perpetual advantages, implying advertising and logistics will compound indefinitely. Yet new verticals face margin ceilings, advertising growth may saturate, and European delivery profitability remains uncertain. Three scenarios for 2027 illustrate the range: a bull case values the company at $310 per share, a base case at $175, and a bear case at $105, depending on advertising scale, grocery reliability, international execution, and platform integration.

DoorDash’s infrastructure is durable, but as Tudor’s ice houses were eventually obsoleted by refrigeration, the true test is whether the company’s logistics advantage will endure or be circumvented by future innovations, making valuation today a bet on both execution and permanence.

Previously, we covered a bullish thesis on DoorDash, Inc. (DASH) by Sabar Capital in May 2025, which highlighted its 67% U.S. market share, suburban expansion, merchant-first approach, and growth into groceries and international markets. DASH’s stock price has been flat since our coverage. Nikhs shares a similar view but emphasizes logistics integration as a reliability moat and long-term infrastructure durability.

DoorDash, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 91 hedge fund portfolios held DASH at the end of the third quarter which was 100 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.