DoorDash stock squeezed out a slight gain Thursday as investors digested a third-quarter earnings report from late Wednesday that showed better-than-expected sales, plus the food delivery company's first quarterly profit as a public company.
DoorDash said that it earned 38 cents per share on sales of $2.7 billion for the September-ended quarter. Analysts polled by FactSet projected the San Francisco-based company would post earnings of 20 cents per share on sales of $2.66 billion.
Further, DoorDash projected gross order value of $20.8 billion for the current quarter, at the midpoint of its range. That was ahead of analyst estimates of $20.4 billion in GOV for the December period, according to FactSet.
On the stock market today, DoorDash stock gained 1% to close at $156.70. The stock traded slightly lower late Wednesday immediately following the results.
DoorDash Q3 By The Numbers
Total orders handled by DoorDash grew 18% to 643 million.
"Over the last year, we improved delivery quality, reduced average delivery times, and increased selection on our marketplaces," the company's news release said.
The quarter also marked DoorDash's first quarterly profit since it went public late in 2020.
Following the report, analysts with Oppenheimer raised their price target for DoorDash stock to 180, from 165, and reiterated an outperform rating.
"Delivery remains robust, while marketplace, international & grocery continue to drive stronger than expected order growth," Oppenheimer analyst Jason Helfstein wrote Thursday. "Results/guidance met significantly elevated investor
expectations."
DoorDash And Lyft Team Up
Along with its earnings release, DoorDash announced a partnership with Lyft to bolster its membership offering. Subscribers to DoorDash's $9.99-per-month DashPass membership will be eligible for discounted rides through Lyft, the company said. Lyft users will be eligible for a free trial of DashPass.
DashPass already includes fee-free delivery on some order for members and discounted service fees. DoorDash struck a deal this summer to include a Max streaming account with DashPass. But this arrangement could help put DoorDash on more even footing with Uber, which offers both discounted rides and fee-free delivery through its Uber One membership.
"Lyft is a service that's used by millions of riders, and many of those riders already are DoorDash customers," DoorDash Chief Executive Tony Xu told analysts late Wednesday. "Some of them are DashPass subscribers, but a lot of them are also not DashPass subscribers. So I think it's a great opportunity for us to continue to add engagement to the DashPass program as well as add new DashPass."
DoorDash Stock At 52-Week High
With Thursday's gain, DoorDash stock is continuing a steady climb. Shares have reached a new 52-week high in four consecutive trading days. The stock is ahead 58% year-to-date.
DoorDash's Relative Strength Rating has climbed to 94 out of a best-possible 99, according to IBD Stock Checkup. That means it has outperformed 94% of stocks tracked by Investor's Business Daily over the past 12 months.
Meanwhile, DoorDash stock has an IBD Composite Rating of 84 out of a best-possible 99. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
