DASH Up 2.84% on Jefferies Buy Rating and Strategic AI-Driven Growth

DoorDash Receives Bullish Upgrade from Jefferies
On November 19, 2025, Jefferies analyst John Colantuoni upgraded DoorDash (DASH) to a 'Buy' from 'Hold', raising its price target to $260 from $220. The move reflects the firm's belief that DoorDash’s revised 2026 outlook, which is lower than previously expected, provides the company with greater flexibility for long-term investments. This strategic leeway is seen as a catalyst for future upside in earnings and revenue estimates. Jefferies anticipates DoorDash will post full-year 2026 revenue of approximately $17.87 billion and earnings per share (EPS) of $6.32.

Q3 2025 Outperforms Expectations
In its recent Q3 2025 report, DoorDash delivered net sales of $3.45 billion, a 27.35% year-over-year increase and $89.10 million above estimates. The company also reported EPS of $1.28, exceeding its guidance by $0.03. This strong performance underscores the company's momentum in a competitive on-demand delivery sector.

AI-Native Tech Platform to Fuel Long-Term Efficiency
A core component of DoorDash’s strategic focus is a multi-million-dollar investment in a new global tech platform set to launch in 2026. The platform is designed to unify the company’s technology stack across all markets and be AI-native, enabling faster global feature rollouts and improved operational efficiency. The AI-driven architecture aims to streamline processes, accelerate product development, and generate long-term cost savings.

Order Growth and Strategic Partnerships Strengthen Market Position
DoorDash’s Q3 2025 total orders grew 21% year over year to 776 million. This growth is attributed to strong customer acquisition, an expanding base of monthly active users (MAUs), and the success of membership programs like DashPass and Wolt+. The company continues to expand its merchant partnerships, including major grocers like Kroger and local retailers, while also testing autonomous delivery through a partnership with Waymo in Phoenix. These initiatives are expected to drive further order growth and solidify DoorDash’s leadership in the on-demand delivery space.

Commitment to Worker Conditions in Australia
In a notable move, DoorDash and Uber Eats have agreed to a 25% pay increase for Australian delivery workers, raising hourly wages to $20.19. The deal, subject to approval by the Fair Work Commission, also includes accident insurance and transparency in delivery job details. This initiative aligns with the company’s commitment to improving working conditions and maintaining compliance with evolving labor standards.

Analysts See AI and Operational Flexibility as Key Growth Drivers
With a robust financial position—including a three-year revenue growth rate of 19.8%, a 50.49% gross margin, and a manageable debt-to-equity ratio of 0.34—DoorDash is well-positioned to execute on its long-term strategy. Analysts highlight the company’s AI-centric platform, strategic investments, and ability to attract new customers as key differentiators in a rapidly evolving market. The Jefferies upgrade and recent operational results signal growing confidence in the company’s ability to deliver value in the coming years.