DoorDash (DASH) Still Citi's Top Pick in Internet Sector, Following Q4 Beat

DoorDash Inc. (NASDAQ:DASH) is one of the 14 Best Consumer Discretionary Stocks to Buy Right Now.

Citi analyst Ronald Josey, on February 20, trimmed his target price on DoorDash by 1.1% to $280 (from $283). Despite the slight adjustment in the target price, Ronald retained his Buy recommendation for the stock. He also reiterated that DoorDash remains the firm’s top pick in the internet sector, citing better-than-expected 4th-quarter performance that Ronald expects to improve throughout 2026.

This update comes on the heels of the release of DoorDash’s Q4 2025 earnings on February 18, which were headlined by rapid earnings growth across all profitability measures. GAAP attributable net income grew 51.1% YoY to $213 million (from $141 million). On a per diluted share basis, GAAP earnings grew 45.5% YoY to $0.48 (from $0.33). Adjusted EBITDA increased 37.8% YoY to $780 million (from $566 million).

The rapid earnings growth was driven primarily by 37.7% YoY revenue growth to $4.0 billion (from $2.9 billion), as a larger user base led to higher order volume and slightly larger average order sizes.

Total orders grew 31.8% YoY to 903 million (from 685 million), as monthly active users grew 33.3% to 56 million (from 42 million). Average basket size, meanwhile, saw a slight increase of 5.9% YoY to $32.9 per order (from $31.06 per order). Combined, these two factors led to a 39.5% YoY growth in marketplace gross order value to $29.7 billion (from $21.3 billion).

Management also provided its guidance for the 1^st quarter. They expect the marketplace gross order value to reach $31.0 billion to $31.8 billion, which would yield $675 million to $775 million in adjusted EBITDA.

DoorDash Inc. (NASDAQ:DASH) operates a food delivery and logistics platform, serving consumers in the US, Canada, and Australia. The company is based in San Francisco, California, and was founded in January 2013 by Andy Fang, Tony Xu, Stanley Tang, and Evan Moore.

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Disclosure: None. This article is originally published at Insider Monkey.