How I Made $5000 in the Stock Market

DoorDash Stock Gets an Upgrade, and a Little Love. The Pain Will Be Worth the Gain.

Nov 14, 2025 12:55:00 -0500 by Nate Wolf | #Transportation #Street Notes

DoorDash beat third-quarter earnings estimates, but the delivery stock has had a rough autumn. (Eric Baradat/AFP via Getty Images)

Key Points

DoorDash’s big spending push is easy to hate, but investors decided to show the stock a little love Friday after some nice words from Wall Street.

Shares were up 6.1% to $207.06 in late trading, on track for their largest single-day gain since April, according to Dow Jones Market Data. DoorDash was the top performer in the S&P 500 on the day.

The stock desperately needed a jolt after the delivery company’s third-quarter report last week. Earnings and revenue crushed estimates, but DoorDash’s plans to invest “several hundred million dollars” next year in technology and new initiatives fell like a ton of bricks.

Fears of compressed margins drove down shares 17%, extending an ugly six-week slump. Since the beginning of October, shares are down 28%.

For Wedbush Securities, the dip makes now the time to buy. The firm upgraded the stock to Outperform from Neutral and maintained a price target of $260.

Wall Street is right that DoorDash’s heavy investments will weigh on next year’s margins, Wedbush said—but the company’s plans to build new products and verticals, and develop a new global technology platform are all positives in the long run.

“We believe these initiatives are justified, as they will expand DoorDash’s addressable market and bolster the company’s product offerings on a global scale,” Wedbush analysts wrote Thursday.

DoorDash’s investments also come from a position of strength. The company remains a leading player in the U.S. food-delivery market and has executed well on its existing strategic initiatives, the Wedbush team said. The pullback has “created a favorable risk/reward,” they added.

Wedbush’s $260 price target would represent a 25% gain over the next 12 months, and even that would be below the stock’s 52-week high of $285.50.

Analysts remain broadly bullish on DoorDash shares. Of the 50 firms polled by FactSet, 36 have a Buy or equivalent rating, and the average target price is just over $278. Many analysts, however, slashed their price targets after the company’s earnings.

Wedbush kept its valuation. So did D.A. Davidson, which reiterated a Neutral rating and a $260 price target last week. D.A. Davidson said execution in the company’s core U.S. business is impressive and its “newer verticals are progressing nicely.”

The Neutral rating balances the strong execution and large global addressable market with the near-term margin crunch and the risk of integrating DoorDash’s new acquisition, Deliveroo, D.A. Davidson said.

Write to Nate Wolf at nate.wolf@barrons.com