economy
February 26, 2026
Why analysts see DoorDash as a 'core holding' for internet investors
For the most part, Wall Street analysts have retained their strong conviction on DoorDash following its fourth-quarter earnings miss last week.
TL;DR
- DoorDash shares dropped after a Q4 earnings miss and disappointing forecast but reversed losses as CEO Tony Xu reassured investors.
- Analysts believe opportunities in grocery and international markets will support demand and drive sustained revenue growth.
- Concerns about AI's impact on app loyalty emerged, but DoorDash views AI assistants as channel partners.
- Analysts anticipate significant upside for DoorDash, with average price targets suggesting a ~45% rise.
- Investments in Deliveroo are seen as a significant opportunity for international growth, particularly in Europe.
- The grocery business is identified as a trillion-dollar market opportunity for DoorDash.
- The acquisition of SevenRooms is expected to enhance the platform's ability to offer personalized recommendations and create cross-selling opportunities.
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