DoorDash - (DASH) $160 Buy: I believe the sell off is overdone and the valuation is very attractive:

I just published an article in Seeking Alpha, reiterating a buy for DoorDash.

These are the main reasons for adding more. 

• DoorDash benefits from a duopoly structure, strong network effects, and high barriers to entry that reinforce its competitive moat.
• Fears of high Capex for 2026 have created an opportunity to buy the market leader at a bargain price.
• Robust adjusted EPS growth of 27% and a PEG of 1.4 underscore attractive valuation for a dominant player in a growth industry.
• DASH is positioned to maintain market leadership regardless of delivery mode, leveraging deep customer and restaurant relationships.

With acquisitions, strong growth abroad and advertising revenue, I believe DoorDash should continue to grow revenues at a CAGR of 24%, which is solid for a market leader with $14Bn in sales. The food delivery industry has consolidated over the past decade with massive barriers to entry, and I believe that inorganic growth will continue across the globe with more smaller players getting engulfed by behemoths like DoorDash and Uber Eats. DoorDash has done a good job improving operating cash flow margins in the past three years to 21% in 2025 from a low of just 6% in 2022. I expect it to steadily increase from the low twenties to the mid twenties in the next 3 years.

My target for the next 3 years is about $309 - I believe DoorDash should sell for 30x2028 adjusted earnings of 10.30. That works out to an annualized return of 24%.