Food delivery company DoorDash (DASH) is preparing to reveal its third-quarter 2025 results tomorrow. Heading into the results release, Wall Street remains upbeat about DASH stock.
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But what is expected from the company, which is seeking expansion through its $3.9 billion acquisition of British online food delivery company Deliveroo (GB:ROO)?
Wall Street Upbeat on DoorDash ahead of Q3
For its third quarter, Wall Street expects earnings per share to rise to 68 cents, an increase of nearly 80% from 38 cents seen last year. The online food delivery company is also expected to grow its revenue by 24% to $3.35 billion, up from $2.71 billion from a year ago.
Analysts’ recent assessments on DASH stock provide clues about what Wall Street expects from DoorDash. For instance, Goldman Sachs analyst Eric Sheridan expects DoorDash’s acquisition of Deliveroo to fuel its future growth — although the acquisition is also anticipated to result in a short-term impact on DoorDash’s EBITDA margins.
Moreover, Sheridan anticipates that the total dollar value of all orders placed on DoorDash’s app will continue to exceed analysts’ estimates, like it has done in previous quarters.
Chipping in, UBS analyst Stephen Ju believes that DoorDash can continue to count on the demand for online food delivery that has persisted since the post-COVID-19 period. Ju also sees consumer demand for convenience further driving growth in the medium term.
However, the UBS analyst believes that Amazon’s (AMZN) expansion into same-day grocery delivery will heat up competition in the industry.
DoorDash Dashes for Growth
It is important to note that DoorDash is not resting on its laurels. It is now testing driverless food delivery in partnership with Alphabet’s (GOOGL) Waymo, the U.S. tech giant’s autonomous driving subsidiary.
The American delivery company also entered a multi-year collaboration with robotics firm Serve Robotics (SERV) to deliver food using robots. Moreover, DoorDash expanded into the fulfillment market in late September with a new service for third-party sellers. This should serve as an additional source of revenue.
Is DoorDash Stock Worth Buying?
Across Wall Street, analysts are currently bullish on DoorDash’s shares, with 26 Buys and eight Holds issued over the last three months. Consequently, DASH holds a Strong Buy consensus rating.
In addition, the average DASH price target of $307.09 implies about a 27% upswing from its current trading level.
