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DoorDash (DASH) stock has outperformed considerably in 2025, up nearly 47% on a year-to-date basis - and surging more than 126% over the past 52 weeks. DASH closed out the final session of the second quarter today by rising to a new multi-year high of $247 intraday, marking its highest price since November 2021.

Today, Oppenheimer raised its price target on DASH stock to $280, projecting that the delivery company could reach $4.5 billion in EBITDA by 2027. One week ago, Raymond James upgraded the stock to "Strong Buy" with a $260 price target, calling DoorDash’s valuation “underappreciated.” These positive analyst assessments are largely driven by the pending Deliveroo acquisition, which is expected to generate mid-teens EBITDA accretion by 2026 and high teens by 2027.

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With DASH now up nearly 12% since that week-ago note from Raymond James, though, the stock looks short-term overbought. Shares closed today above their upper Bollinger Band, and the 14-day Relative Strength Index (RSI) of 76.90 is firmly planted in overbought territory, as well. This means the stock could be vulnerable to a pullback in the days and weeks ahead.www.barchart.com

What’s the Forecast for DASH Stock?

DoorDash's core business continues to show robust growth, with orders increasing 21% annually and revenue rising 20.7% year-over-year to a record $3.03 billion in Q1 2025. The company maintains its dominant position in the U.S. food delivery market with more than 65% market share, and recently achieved a significant milestone by reporting back-to-back profitable quarters for the first time in its history.

Plus, the advertising business has reached an impressive $1 billion run rate, demonstrating successful monetization beyond delivery fees. Recent strategic acquisitions, including Deliveroo ($3.9B) and SevenRooms ($1.2B), position DoorDash for international expansion and enhanced merchant services.

DoorDash's commitment to innovation is evident through various initiatives, including the launch of drone delivery service in Dallas-Fort Worth through a partnership with Flytrex, which is reaching over 30,000 households. The company's Summer of DashPass promotion has returned for its sixth year, offering significant savings across multiple categories and potentially driving increased user engagement.

Story Continues

The company's technological advancement should continue, highlighted by the introduction of new AI-powered advertising solutions and platform improvements. The global gig economy market's projected expansion to $2.15 trillion by 2033 provides a strong secular tailwind for DoorDash's continued growth. And looking ahead, management expects continued growth in marketplace Gross Order Value (GOV) of $23.3-23.7 billion and adjusted EBITDA of $600-650 million for Q2 2025.

Is DoorDash Stock a Good Buy Right Now?

Wall Street sentiment remains broadly positive, with 26 out of 37 analysts rating DASH stock a "Buy" or "Strong Buy" as the company executes on multiple growth initiatives.

However, some analysts suggest caution due to the stock's significant rally this year already, as well as potential order deceleration, as evidenced by restaurants' comp sales trends. Competition remains intense, especially from Uber Eats and regional players, though DoorDash's scale advantages and network effects continue to strengthen its competitive moat.

Given these broader concerns and the stock’s current overbought status, DASH bulls may want to wait for a more attractive entry point before picking up shares.

This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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