DoorDash Inc (NASDAQ:DASH) stock is pulling back Friday after the company this week reported strong second-quarter financial results that surpassed analyst expectations. Here’s what investors need to know.
What To Know: The company posted earnings of 65 cents per share, handily beating the consensus estimate of 43 cents. Quarterly revenue came in at $3.3 billion, a 25% increase year-over-year, which was also above the Street estimate of $3.16 billion.
The food delivery giant’s growth was evident across its key operational metrics for the quarter. Total Orders increased by 20% year-over-year to 761 million, and Marketplace Gross Order Volume saw a 23% year-over-year increase to $24.2 billion.
DoorDash reported a significant turnaround in profitability, with a GAAP net income of $285 million, compared to a loss of $157 million in the same quarter of the previous year. Adjusted EBITDA surged 52% year-over-year to $655 million.
Looking ahead to the third quarter, DoorDash forecasts Marketplace GOV to be between $24.2 billion and $24.7 billion. The company also anticipates adjusted EBITDA to be in the range of $680 million to $780 million.
In light of the results, Wedbush analyst Scott Devitt maintained a Neutral rating on the stock but raised the price target to $200 from $190.
The analyst highlighted that alongside the earnings, DoorDash announced agreements to acquire Deliveroo and SevenRooms, deals expected to close in the fourth quarter of 2025 and expand the company’s global product offerings.
Benzinga Edge Rankings: According to Benzinga Edge stock rankings, DoorDash shows a profile of a high-growth, high-momentum stock that currently lacks value appeal.
The company scores exceptionally high on Growth with a rating of 98.41 and demonstrates very strong Momentum with a score of 93.39. In contrast, its Value score is extremely low at 5.18, which suggests the stock is trading at a premium valuation.
DASH Price Action: According to data from Benzinga Pro, DoorDash shares are trading lower by 4.25% to $259.47 Friday at publication. The stock has a 52-week high of $278.15 and a 52-week low of $121.44.
Read Also: What’s Going On With Rocket Lab Stock Friday?
How To Buy DASH Stock
By now, you're likely curious about how to participate in the market for DoorDash — be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of DoorDash, which is trading at $259.86 as time of writing, $100 would buy you 0.38 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option or sell a call option at a strike price above where shares are currently trading — either way, it allows you to profit from the share price decline.
Image: Shutterstock
