Should You Hold on to DASH Stock Despite Its 32% Plunge in Six Months?

DoorDash DASH shares have plummeted 32.2% in the trailing six months, underperforming the Zacks Computer & Technology sector’s increase of 3.2% and the Zacks Internet - Services industry’s surge of 22.9%.

The company’s shares have also underperformed its peers, which include Amazon AMZN and Uber Technologies UBER. Both Amazon and Uber Technologies are also expanding their footprints in the local food delivery logistics platforms. Uber Technologies and Amazon shares have lost 22% and 7.2%, respectively, in the trailing six-month period.

The underperformance can be attributed to the company’s extensive competition in its largest segment, local food delivery logistics. The market is extremely fragmented, and the company is constantly struggling for market share with other local food delivery logistics platforms.

DASH Stock's Performance

Image Source: Zacks Investment Research

However, DASH is benefiting from strong order growth and rising Marketplace GOV, along with enhanced logistics efficiency and a growing contribution from advertising.

DoorDash Benefits From Expanding Partner Network

DoorDash is consistently investing in expanding its partner base to provide express grocery delivery for consumers, a new offering that cements its position further among other on-demand delivery platforms. This has boosted DoorDash’s total orders and marketplace GOV. In the fourth quarter of 2025, total orders increased 32% year over year to 903 million. Marketplace GOV increased 39% year over year to $29.7 billion.

The company’s expanding partner base, which includes OpenAI, Old Navy, Family Dollar, Waymo, Kroger, McDonald’s MCD, and Ace Hardware, has acted as a catalyst for growth, significantly broadening DoorDash’s reach and enhancing its service offerings.

DASH’s partnership with McDonalds has been noteworthy. In collaboration with McDonald’s, DoorDash launched a new U.S. online ordering experience via McDonald’s.com, enabling customers to order McDelivery directly via mobile web or desktop without needing an app or account. This integration enhances convenience and expands DASH and McDonald’s global collaboration across 29 countries.

In December 2025, DoorDash announced a partnership with OpenAI to launch a DoorDash app in ChatGPT that lets users turn recipes and meal ideas into shoppable grocery orders delivered from local stores in as little as an hour.

Earnings Estimate Revisions Show Mixed Trend for DASH

DoorDash’s strength in total orders and Marketplace GOV is expected to benefit its top-line growth. For the first quarter of 2026, DoorDash anticipates Marketplace GOV to be in the range of $31.0-$31.8 billion.

For the first quarter of 2026, the Zacks Consensus Estimate for earnings is pegged at 42 cents per share, indicating an 34.37% decrease over the past 30 days. The figure implies a year-over-year decrease of 4.55%.

The Zacks Consensus Estimate for the first quarter of 2026 revenues is pegged at $4.13 billion, suggesting a year-over-year increase of 36.18%.

DoorDash Faces Rising Competition

Despite strong order growth and expanding partnerships, DoorDash is constantly battling for market share with other local food delivery logistics platforms such as Uber Technologies, online delivery platform Uber Eats and Amazon. As competition intensifies, companies are seeking new ways to differentiate themselves and expand their market presence.

Amazon’s Prime membership program is a cornerstone of its delivery ecosystem, offering unparalleled convenience and speed to millions of customers worldwide. Prime members benefit from fast and free delivery options, including same-day and next-day delivery, which have become increasingly faster over the years. Amazon has achieved record-fast delivery speeds for Prime members globally, with nearly 70% more items delivered same-day in the United States in 2025 compared to the previous year. This includes expanding same-day delivery to rural areas, doubling the number of customers receiving same-day delivery in these regions. 
 
Uber Technologies is benefiting from the boom in its Delivery business through its online delivery platform Uber Eats. In the fourth quarter of 2025, Uber Technologies’ Delivery segment revenues increased 30% year over year on a reported basis and 29% on a constant currency basis to $4.89 billion. Gross bookings from the Delivery segment rose 26% year over year on both a reported and constant currency basis to $25.43 billion.

DASH Stock Is Overvalued

DoorDash shares are currently overvalued, as suggested by its Value Score of F. 

In terms of the trailing 12-month Price/Book ratio, DASH is trading at 7.64, higher than the Internet - Services industry’s 7.55X.

DASH's Valuation

Image Source: Zacks Investment Research

What Should Investors Do With DASH Stock?

DoorDash’s strong order growth, expanding partnerships, and portfolio support its bullish outlook. However, intense competition, along with a fragmented market, could pressure margins. Stretched valuation also remains a concern.

DoorDash currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable entry point to accumulate the stock. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.