DoorDash stock slipped back below its 50-day moving average Tuesday as major stock market indexes retreated. Concerns about the U.S. economy have weighed on DoorDash shares in recent weeks, but a Wall Street analyst said the firm's international momentum could help sustain the food-delivery company's growth.
A team of Jefferies analysts led by John Colantuoni reiterated a buy call with a price target of 250 on Tuesday after conducting an analysis of DoorDash's international growth.
"DoorDash has consistently gained share across international markets by adapting its playbook from the U.S., where it captures two-thirds of restaurant delivery," Colantuoni wrote to clients. "We found adoption rates are low but expanding quickly in most of DoorDash's markets, which we see combining with share gains for a roughly 35% international gross order value CAGR (compound annual growth rate)."
Further, DoorDash's 10 largest international markets still contribute just 10% of the company's overall orders. That underscores a "more nascent international opportunity" compared to Uber's larger share of revenue from outside the U.S., the note added.
Amid concerns about wavering American consumer sentiment, Jefferies believes "DoorDash's international momentum can help sustain overall growth if U.S. consumer discretionary spend slows," the note added.
On the stock market today, DoorDash stock is down more than 4% at 181.90 in recent action. The stock overtook its 50-day moving average with a 3.5% gain Monday before tumbling back below the closely-watched support level again Tuesday.
DoorDash Stock On IBD 50
Still, DoorDash stock is ahead 10% year-to-date, despite a broader slump for U.S. stocks. The S&P 500 down 3.5% in 2025. DASH stock is set to join the S&P 500 next Monday. Shares rallied more than 70% in 2024.
DoorDash's business closed 2024 strong. Last month, the company reported fourth-quarter results that showed a stronger-than-expected 25% increase in sales. Shares gained following the report.
Meanwhile, DoorDash stock has an IBD Composite Rating of 97 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
DoorDash was recently added back into the IBD 50 list, which highlights top growth stocks showing strong relative price strength and fundamentals. DoorDash is also on IBD's Tech Leaders list.
Meanwhile, DoorDash shares show a 21-day ATR of 4.97%.
The average true range is a metric on IBD MarketSurge charting tool. ATR gauges the characteristic breadth of a stock's movement. Stocks that tend to make large jumps or dives in daily action have a high ATR. Stocks that tend to make more gradual moves have lower ATRs. In a volatile market, IBD recommends stocks with ATRs of 3 or below.
