DoorDash's (DASH) robust Q2 results reflect re-accelerating core growth and profitability inflecting earlier-than-expected, but margin upside won't translate into H2 as management anticipates higher platform and autonomy investments, Wedbush said in a note Thursday.
With full platform rollout expected in H1 2027, grocery and retail are expected to reach gross profit positive in H2 2026, according to the note.
For Q3, Wedbush said it expects EPS of $0.81 on revenue of $4.6 billion. For 2026, it expects EPS of $2.54 on revenue of $17.9 billion.
While the company's autonomous delivery robot Dot aimed for a high-single-digit share of orders in its largest test market by year-end, which could advance progress, durable margin timing remains less visible as investments play out, the analysts wrote.
Wedbush its reiterated its neutral rating on the stock and boosted its price target to $220 per share from $205.
Price: $218.81, Change: $-1.41, Percent Change: -0.64%