Why DoorDash (DASH) Is Up 5.5% After WWE UFC and Family Dollar Partnership Announcements

• In recent announcements, TKO Group Holdings revealed a new partnership making DoorDash the official on-demand delivery partner for WWE and UFC, while DoorDash joined forces with Family Dollar to offer on-demand delivery from approximately 7,000 stores across the U.S. in time for the holiday shopping season.
• These collaborations aim to boost DoorDash’s reach through high-profile sports entertainment integration and expanded access to value-oriented retail customers nationwide.
• We’ll examine how DoorDash’s expanded partnerships, particularly with WWE and UFC, may reshape its long-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

DoorDash Investment Narrative Recap

To be a shareholder in DoorDash, you need to believe in its ability to leverage platform scale, brand partnerships, and technology to drive long-term growth and maintain profitability in a crowded market. The recent WWE and UFC deals may boost brand visibility and user engagement but do not materially affect the key near-term catalyst: DoorDash’s progress in diversifying revenue streams outside core restaurant delivery, nor do they reduce the largest present risk of rising fulfillment and labor costs.

Among the latest announcements, DoorDash’s expanded partnership with Family Dollar stands out as especially relevant. This move grows the company’s presence in value-focused retail, aligning with efforts to extend beyond restaurant delivery and capture more frequent, everyday orders, a critical catalyst as DoorDash looks to defend and expand its market position amid increasing operational complexity.

However, investors should also keep in mind that, despite these headline partnerships, there is still the concern around DoorDash’s exposure to regulatory changes and rising labor costs in the gig economy that could impact profit margins over time...

Read the full narrative on DoorDash (it's free!)

DoorDash's narrative projects $20.4 billion revenue and $3.2 billion earnings by 2028. This requires 19.6% yearly revenue growth and a $2.4 billion increase in earnings from $781.0 million.

Uncover how DoorDash's forecasts yield a $276.17 fair value, a 39% upside to its current price.

Exploring Other Perspectives

Twelve recent fair value estimates from the Simply Wall St Community ranged from US$194.09 to US$357.11 per share. With opinions diverging significantly, you should also consider ongoing pressures from labor cost increases and regulatory shifts as you explore other viewpoints on DoorDash’s future.

Explore 12 other fair value estimates on DoorDash - why the stock might be worth just $194.09!

Build Your Own DoorDash Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DoorDash research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free DoorDash research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DoorDash's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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