DoorDash’s Recent Stock Dip Equals 60% Upside

Key Points

• DoorDash has been selling off since missing on earnings and announcing plans for increased spending.
• Shares are currently holding key support near $198 after a 30% drop.
• Analysts see the selloff as overdone, with up to 60% upside going forward.

Shares of DoorDash Inc. NASDAQ: DASH were trading just under $200 on Thursday, down more than 30% from October highs but still holding firm near support around $198.

The sharp pullback followed the company’s earnings earlier this month, which missed expectations on earnings per share (EPS) and unveiled heavy FY26 spending plans across robotics, fulfillment, and Deliveroo expansion—a move that investors worried would dent near-term profits.

They were quick to signal their skepticism, and shares sank as fears around the company’s short-term profitability grew. 

But with the selloff having wiped out several months of gains, many analysts see it as an opportunity.

After weeks of heavy selling, the stock is starting to show signs of rebounding, jumping more than 10% earlier this week as buyers stepped back in. As we enter the final weeks of 2025, could DoorDash offer one of the strongest comeback plays for Q4? Let’s take a closer look. 

Fundamentals Still Support the Story

As stated above, the company missed expectations on its earnings—but its latest revenue figures were ahead of the consensus, with the core business in solid shape. DoorDash orders and revenue are still growing at decent rates, and the company continues to dominate the U.S. delivery market while expanding into new categories like grocery and retail. Even amid a tougher consumer environment, user engagement remains strong, and the platform’s scale supports operational efficiency. 

Importantly, management's new investment push seems more proactive than reactive. The focus on automation, logistics, and international expansion through Deliveroo should help the company extend its lead and reinforce profitability once the initial spend is absorbed. In other words, these are strategic investments to sustain growth, not signs of weakness.

Analysts See the Selloff as an Opportunity

The pullback has created what several analysts are calling a textbook buying setup. The team at Needham, for example, reiterated its Buy rating last week, viewing the 30% decline as excessive given DoorDash’s consistent execution.

They note the company has more than doubled its gross order value in just four years, clear evidence that its model is working.

Needham expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to keep growing at a strong clip, with organic sales and Deliveroo’s contribution easily offsetting near-term cost pressures.

Their view is that these investments are necessary to maintain DoorDash’s trajectory, even if they temporarily weigh on results.

Mizuho Securities also reaffirmed its bullish stance, keeping an Outperform rating and a $320 price target, implying roughly 60% upside from current levels.

Their argument was similar to Needham—this is a company whose long-term strategy remains intact, and its shares are trading at a deep discount right now. 

Together, these views suggest that the recent drop was more about sentiment than substance, and it appears to be a short-term correction rather than the start of a downtrend.

Technicals Point to Early Accumulation

The chart is already starting to tell this story. Shares have been showing signs of support around $198, and the stock’s relative strength index (RSI) has been pushed down to extremely oversold territory.

This week’s bounce suggests buyers are already stepping back in, and the bears could soon be getting tired. If the stock continues to consolidate into next week, it would confirm that the worst of the selling is likely behind it.

Risks to Watch

DoorDash is not out of the woods yet, though, and the bears will argue that its spending plans are poorly timed. A shaky risk appetite among equity investors and a missed EPS number make for a poor combination right now, especially given existing valuation concerns. Competition from Uber Eats and emerging grocery delivery rivals could also keep pricing pressure high.

Still, it’s difficult to ignore the company’s market-leading position and its ability to scale profitably over time. The issue isn’t whether DoorDash will continue to grow, but how quickly it can convert that growth into cash flow. For investors willing to look past short-term noise, this dip looks like it could be an opportunity worth taking seriously.