So, DoorDash DoorDash Inc. (DASH) is doing a bit of global housekeeping. The company announced it's winding down its operations in four countries—Qatar, Singapore, Japan, and Uzbekistan—after a multi-month review. The stock was up slightly in premarket trading on the news, which, in the grand scheme of things, is a pretty mild reaction to what amounts to a strategic retreat.
Think of it this way: running a food delivery app is hard. Running one across the entire planet is even harder. DoorDash seems to have decided that in some places, the fight just isn't worth it right now. The company says it will conduct "orderly exits" in those markets and is making some operational tweaks elsewhere, like investing in engineering in the U.K. Importantly, it says this whole reshuffle won't change its financial outlook.
Miki Kuusi, the head of DoorDash International, put it diplomatically: "We've made the difficult decision to wind down operations in Qatar, Singapore, Japan, and Uzbekistan. Our priority is supporting our teams and partners through an orderly transition as we focus on the geographies where we can offer the best products and build for long-term success." In other words, they're cutting their losses to double down on the battles they think they can win.
The Bull vs. The Bear
This strategic pivot comes at a fascinating time for DoorDash, because the investment world can't seem to agree on what its future looks like. On one side, you have Cathie Wood of Ark Invest, who has emerged as a big believer in the contrarian case for the stock. Her firm recently put its money where its mouth is, buying about $5.4 million worth of DoorDash shares. That's a pretty clear signal that she thinks the recent struggles are a buying opportunity, not a death knell.
On the other side, you have the skeptics. Citrini Research has been waving a red flag, warning that the rise of AI agents could eventually destroy DoorDash's economic moats. The argument goes that if AI gets good enough to handle ordering and logistics directly, it might bypass the middleman—that's DoorDash—entirely. It's a classic tech disruption fear: what if the very technology that enables your business today ends up making it obsolete tomorrow? This clash between Wood's bullish bet and Citrini's caution highlights the fundamental uncertainty hanging over the company.
What's Next? The Numbers Game
All eyes now turn to the next big milestone: the earnings report due on May 5, 2026. Yes, that's a ways off, but here's what the street is expecting:
- Earnings Per Share (EPS) Estimate: 39 cents. That's down from 44 cents a year ago.
- Revenue Estimate: $4.15 billion. That's up significantly from $3.03 billion a year ago.
- Valuation: A price-to-earnings (P/E) ratio of 83.0x. That's a sky-high number, indicating investors are paying a huge premium for expected future growth.
The analyst community is somewhat divided but leans positive. The stock carries a consensus Buy rating with an average price target of $266.96. However, recent actions show a trend of target cuts:
- Citigroup (C): Maintained a Buy rating but lowered its target to $280.00 (Feb. 20).
- Citizens: Maintained a Market Outperform rating but lowered its target to $250.00 (Feb. 20).
- UBS (UBS): Maintained a Neutral rating but lowered its target to $240.00 (Feb. 19).
So, the message seems to be: "We still like it, but maybe not as much as we did last month."
