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DoorDash Stock Gets A Costco Boost

Simply Wall St · 2d ago
  • DoorDash has recently expanded its ecosystem through a nationwide Costco rollout on its marketplace, a multiyear North American partnership with the NHL, and the launch of Brand Center, a data platform for advertisers and consumer brands.
  • Together with the acquisition of Grubhub Campus Dining from Wonder and a new global media agency relationship with WPP, DoorDash is pushing deeper into higher value revenue streams such as advertising, institutional food service, and premium brand partnerships.
  • We will now look at how DoorDash's Costco marketplace launch could reshape the investment narrative around its scale and category reach.

Scan beyond DoorDash and see how other listed delivery and ecommerce platforms stack up against a curated set of 16 high quality undiscovered gems in similar demand driven niches.

DoorDash Investment Narrative Recap

To own DoorDash, you need to believe it can keep extending beyond core restaurant delivery into grocery, retail, and higher margin services like advertising while managing rising complexity and cost. The key short term swing factor is how efficiently it can translate this broader reach into higher quality earnings without eroding its 5.3% net margin.

Recent moves, including Costco on Marketplace, the NHL partnership, Brand Center, and Grubhub Campus Dining, all support that thesis of more use cases and richer revenue per order. They also highlight the main risk right now: execution stretch, regulatory pressure, and labor costs could keep profitability uneven.

The Costco rollout is the clearest link to the current catalyst. DoorDash is now plugged into one of the largest big box retailers in the U.S., with access to more than 4,000 items per warehouse and direct membership linking. That widens the order pool, deepens grocery and general merchandise exposure, and reinforces the idea that the platform can reach well beyond restaurant occasions.

This expansion is also where the operational risk sharpens. Serving Costco nationwide, alongside other large grocers and retailers, raises the bar on fulfillment reliability, assortment quality, and Dasher cost control. If DoorDash can keep service levels high while containing unit costs, the Costco relationship can support the push into more durable, diversified revenue streams without overwhelming the current cost structure.

DoorDash Costco Catalyst Through The Lens Of Street Forecasts

DoorDash's narrative projects US$27.9b revenue and US$3.8b earnings by 2029. This implies 20.7% yearly revenue growth and an earnings increase of about US$3.0b from current earnings of US$841.0m.

Uncover how DoorDash's fair value indicates a 43% potential upside to its current price before that discount narrows.

NasdaqGS:DASH 1-Year Stock Price Chart
NasdaqGS:DASH 1-Year Stock Price Chart

Exploring Other Perspectives

One bullish twist on DoorDash focuses on Brand Center and advertising. The most optimistic analysts were already modeling yearly revenue growth of 27% and earnings of US$4.6b by 2029, well above consensus. Those forecasts were set before Costco and Brand Center news. You can judge whether this richer ad story justifies such aggressive assumptions.

Explore 8 other DoorDash fair value estimates, including one that suggests up to 159% upside from the current price.

Form Your Own Verdict

Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

Looking For More Ideas Beyond DoorDash?

Once you are clear on where DoorDash fits in your portfolio, it can help to scan for other businesses with different risk and return profiles so you are not relying on a single story.

  • If capital preservation sits near the top of your priorities, start with a focus on resilience and balance around 30 resilient stocks with low risk scores in case you want a calmer ride.
  • If you are hunting for value with quality fundamentals, scan for mispriced opportunities through the 33 high quality undervalued stocks and see which companies match your return hurdles.
  • If income is a key part of your plan, concentrate on reliability and cash distribution by screening for 6 dividend fortresses that might complement a growth oriented position like DoorDash.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.