Key Stats for DoorDash Stock
- Price change for DoorDash stock in last 6 months: 1%
- $DASH Stock Price as of Oct. 23: $179
- 52-Week High: $269
- $DASH Stock Price Target: $257
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What Happened?
Instacart is exploring a sale, according to multiple news reports. The Information reports it has held early talks with possible buyers, including Uber and DoorDash.
Instacart shares closed about 9% higher, Uber closed down about 3%, and DoorDash (DASH) fell 4%. Instacart was worth about $12 billion as of Thursday’s close.
The report says talks are ongoing, and there is no guarantee of a deal. A typical takeover premium of 30% to 40% would value Instacart at roughly $16 billion to $17 billion.
A deal could help a buyer in grocery delivery. It would pair Instacart’s marketplace and retailer ties with a bigger delivery network.
But it could also draw antitrust scrutiny. In July, Uber agreed to a nearly $15 billion deal for Delivery Hero.
DoorDash has been here before; in 2021, it held talks to buy Instacart at a value of $40 billion to $50 billion.
Antitrust worries under the Biden administration derailed those talks.
An Emarketer analyst says this deal is more plausible now. He says the Trump administration has shown “greater willingness” to approve deals.
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What the Market Is Telling Us About DoorDash Stock
Investors sold DoorDash stock on the news, which suggests they are wary of a big purchase. It also shows how much the market cares about grocery.
DoorDash’s own numbers show why it matters. On its Q2 call, management called grocery the fastest-growing part of its marketplace.
It said it became the order volume share leader in Q4 and also said new verticals, including grocery, should turn gross profit positive in the second half of the year.
Management also stressed discipline as the CFO said the company is focused on profit dollars and reinvesting efficiency gains.
DoorDash stock may look different to investors if a large deal changes that picture.
There are other pressures on the group. Amazon is expanding Amazon Now, which delivers in 30 minutes or less. Instacart also cut its free delivery minimum to $10 last year.
Several things could move DoorDash stock from here:
- Whether DoorDash makes an offer.
- Whether regulators would approve it.
- How the price compares with building grocery on its own.
For now, this is only a report of early talks. Anyone watching DoorDash stock should wait for more detail.
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So what is DoorDash stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
