DoorDash (NASDAQ:DASH) Trading Down 4.2% – Here’s Why

Shares of DoorDash, Inc. (NASDAQ:DASH) dropped 4.2% during mid-day trading on Friday . The company traded as low as $212.51 and last traded at $214.7150. Approximately 2,168,048 shares were traded during trading, a decline of 41% from the average daily volume of 3,692,964 shares. The stock had previously closed at $224.10.

DoorDash News Roundup

Here are the key news stories impacting DoorDash this week:

• Positive Sentiment: Management publicly pushed back on a viral hoax about driver scoring, reducing short‑term regulatory/PR uncertainty and showing active reputation management. Article Title
• Positive Sentiment: DoorDash banned a driver alleged to have used AI images to fake deliveries — a sign the company is enforcing fraud controls that protect marketplace integrity and merchant trust. Article Title
• Positive Sentiment: Zacks Research nudged several longer‑term estimates higher (notably FY2027 / Q4 2027), suggesting some analyst expectation of stronger earnings further out. Zacks Research
• Neutral Sentiment: DoorDash set its Q4 and full‑year 2025 results release for Feb. 18 — this is the nearest company‑specific catalyst that could move the stock via results and guidance. Article Title
• Neutral Sentiment: Coverage and marketing highlights (CES/commerce media stories) reinforce growth initiatives — positive for longer‑term TAM expansion but not an immediate earnings driver. Article Title
• Negative Sentiment: Zacks Research maintained a “Strong Sell” and issued several near‑term EPS downgrades (Q1/Q2/Q3 2026 and parts of 2027), creating an analyst headwind that can pressure the stock. Zacks Research
• Negative Sentiment: Significant insider selling: multiple directors and CEO Tony Xu disclosed multi‑million dollar sales in early January — large insider dispositions often prompt investor caution about near‑term outlook. Director Sale Article Director Sale Article 2 CEO Form 4
• Negative Sentiment: Serious safety/PR risk: reports that a DoorDash driver allegedly assaulted a 75‑year‑old veteran (leaving him in a coma) increase potential liability, regulatory scrutiny, and reputational damage. Article Title

Analysts Set New Price Targets

DASH has been the topic of a number of recent research reports. Wolfe Research set a $270.00 target price on DoorDash in a report on Monday, January 5th. Citigroup restated a “market outperform” rating on shares of DoorDash in a research note on Monday, November 24th. Cantor Fitzgerald upped their target price on shares of DoorDash from $270.00 to $285.00 and gave the stock an “overweight” rating in a research note on Thursday. BTIG Research reissued a “buy” rating and set a $315.00 price target on shares of DoorDash in a research report on Thursday, November 6th. Finally, Wall Street Zen downgraded shares of DoorDash from a “buy” rating to a “hold” rating in a research report on Saturday, November 1st. One research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $277.94.

DoorDash Price Performance

The firm has a market cap of $92.91 billion, a PE ratio of 109.42 and a beta of 1.70. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.04 and a quick ratio of 2.04. The business’s fifty day moving average is $217.70 and its 200-day moving average is $241.34.

DoorDash (NASDAQ:DASH) last released its earnings results on Wednesday, November 5th. The company reported $0.55 earnings per share for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.13). The company had revenue of $3.45 billion for the quarter, compared to the consensus estimate of $3.35 billion. DoorDash had a net margin of 6.83% and a return on equity of 9.97%. The firm’s revenue was up 27.3% on a year-over-year basis. During the same period in the prior year, the company earned $0.38 earnings per share. On average, research analysts predict that DoorDash, Inc. will post 2.22 earnings per share for the current fiscal year.

Insider Transactions at DoorDash

In related news, CFO Ravi Inukonda sold 1,425 shares of DoorDash stock in a transaction dated Friday, December 19th. The stock was sold at an average price of $231.97, for a total value of $330,557.25. Following the completion of the sale, the chief financial officer owned 184,037 shares of the company’s stock, valued at approximately $42,691,062.89. This trade represents a 0.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Andy Fang sold 30,000 shares of the company’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $222.52, for a total transaction of $6,675,600.00. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 642,011 shares of company stock valued at $136,832,543. 5.83% of the stock is currently owned by insiders.

Institutional Trading of DoorDash

Several hedge funds and other institutional investors have recently modified their holdings of DASH. Physician Wealth Advisors Inc. grew its stake in DoorDash by 284.0% in the 3rd quarter. Physician Wealth Advisors Inc. now owns 96 shares of the company’s stock valued at $26,000 after buying an additional 71 shares in the last quarter. Sunbelt Securities Inc. grew its position in shares of DoorDash by 124.1% in the third quarter. Sunbelt Securities Inc. now owns 121 shares of the company’s stock valued at $33,000 after purchasing an additional 67 shares in the last quarter. GFG Capital LLC bought a new stake in shares of DoorDash during the 2nd quarter valued at $30,000. Morse Asset Management Inc purchased a new stake in DoorDash during the 3rd quarter worth about $36,000. Finally, Sound Income Strategies LLC lifted its holdings in DoorDash by 2,760.0% during the 3rd quarter. Sound Income Strategies LLC now owns 143 shares of the company’s stock worth $39,000 after purchasing an additional 138 shares in the last quarter. Institutional investors own 90.64% of the company’s stock.

DoorDash Company Profile

DoorDash, Inc operates a technology-driven logistics and food-delivery marketplace that connects consumers, merchants and independent delivery contractors. The company’s core service enables customers to order from local restaurants and retailers through its app and website while DoorDash handles last-mile fulfillment via its network of drivers, known as “Dashers.” Over time the platform has broadened beyond restaurant deliveries to include groceries, convenience items and retail deliveries, positioning DoorDash as a broader on-demand logistics provider for consumer goods.

In addition to its marketplace, DoorDash offers a suite of products and services for consumers and businesses.