DoorDash, Inc.

DoorDash delivered a mixed result with revenues above market expectations given its single-minded focus on building scale. It has increased its market share in most of its international areas. Its Wolt business in Europe expanded significantly faster than its competitors. U.S. convenience and grocery business rose 60% year on year in Q4, continually growing at significantly faster rates than restaurants. Its third-party grocery business in the United States increased by 100% yearly in the third and fourth quarters. However, all the revenue growth came for a price as the company’s losses were significantly wider than Wall Street expectations. Among key updates, the company launched its package pickup service largely catering to e-commerce shoppers where clients either attach a prepaid shipping label or email a QR code to the Dasher who will pick up their shipment. We give DoorDash a ‘Buy’ rating with a revised target price.