• In September 2025, Ace Hardware announced a partnership with DoorDash to offer on-demand delivery of home improvement essentials from over 4,000 Ace locations across the US, bringing local store inventory directly to customers via the DoorDash platform.
• This collaboration marks DoorDash's entry into the home improvement sector at a national scale, expanding its non-food delivery offerings and tapping into new customer and professional segments seeking fast, flexible project supplies.
• We'll explore how DoorDash's expanded reach into home improvement retail with Ace could reshape its growth narrative and sector diversification.

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DoorDash Investment Narrative Recap

Belief in DoorDash as an investment centers on its ability to efficiently broaden its service offerings and capture demand across new customer segments. The recent Ace Hardware partnership expands DoorDash's addressable market and bolsters sector diversification, but its impact on the most important near-term catalysts, namely, improved unit economics and margin growth through efficient execution, appears limited, given that new vertical launches often take time to materially move the needle. The biggest risk remains DoorDash's need to maintain operating leverage as it scales into increasingly complex categories.

Another relevant announcement is DoorDash's January 2025 partnership with Home Depot, which also targets the home improvement vertical. By growing relationships with large retail partners, DoorDash continues to reinforce its ability to serve non-food categories, supporting its efforts to diversify revenue sources and respond to questions about US market saturation. Both moves underline the importance of execution in new verticals to sustain long-term platform utility and margin resilience.

Yet while new growth avenues are opening, pressure on operational efficiency remains a factor investors should be aware of, especially if...

DoorDash's outlook forecasts $20.4 billion in revenue and $3.2 billion in earnings by 2028. This is based on an annual revenue growth rate of 19.6% and an increase in earnings of $2.4 billion from the current $781 million.

Uncover how DoorDash's forecasts yield a $294.19 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Twelve Simply Wall St Community fair value estimates for DoorDash range from US$157.57 to US$365.69, reflecting substantial variation. With expansion into new sectors, your view on execution risk will likely shape how you interpret these numbers, consider broad perspectives before making a decision.

Explore 12 other fair value estimates on DoorDash - why the stock might be worth as much as 42% more than the current price!

Build Your Own DoorDash Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DoorDash research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free DoorDash research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DoorDash's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.