DoorDash Inc

DoorDash operates a technology-driven local commerce marketplace. Recent results exceeded expectations, with orders growing 27% and strength across its core restaurant business and newer verticals. Improving unit economics also supported stronger profitability and raised guidance. While investments in areas such as grocery, restaurant software and autonomous delivery may temper near-term margin expansion, we expect they can meaningfully extend the company’s growth runway and strengthen its competitive advantage. We continue to believe the market underestimates the durability of DoorDash’s network and long-term monetization opportunity.

We initiated a position in DoorDash during the first half of 2026, after its shares had fallen roughly 45% from their October 2025 high. The market is underestimating both the durability of its competitive advantages and the size of its long-term opportunity. Despite concerns about AI disintermediation, we believe DoorDash's three-sided network is its primary competitive advantage. The company has a strong core business with Marketplace gross order value growing 25%, revenue 27%, and adjusted EBITDA 41%. We see significant room for growth as consumer behavior shifts towards delivery, and DoorDash is expanding into various categories beyond food delivery.

DoorDash is the clear leader in U.S. food delivery and is expanding beyond restaurants into grocery, convenience, retail, and international markets, increasing its opportunity set over time. While investors have recently focused on near-term spending and profitability pressures, we believe these investments can strengthen the company’s competitive position and support future earnings growth. In our view, DoorDash’s market leadership, growing network scale, and multiple avenues for monetization provide an attractive risk/reward opportunity for long-term investors.

DoorDash delivered solid results, supported by healthy underlying demand and record membership sign-ups. The company has demonstrated strong demand and pricing power, contributing meaningfully to our portfolio's performance in the consumer discretionary sector. We believe that DoorDash's unique position in the market and its ability to capitalize on ongoing trends in food delivery will continue to drive growth and profitability.

DoorDash, along with other quality internet businesses, is currently trading at attractive valuations of approximately 10-12x P/E on a 3-year forward basis, which is typically reserved for cyclical, slow-growing businesses rather than category leaders growing at 20-50% year-over-year. The market's current valuation multiples have dropped significantly, creating a favorable setup for long-term investors. If DoorDash can demonstrate its earnings growth over the next few years, there is potential for a 2-3x re-rating in its stock price, making it difficult to lose money from these levels as long as near-term estimates hold.

We believe DoorDash, Inc. is well-positioned to capitalize on the growing demand for food delivery services, leveraging its technology and network effects to maintain a competitive edge. The company's strong market presence and innovative approach to logistics enhance its moat, making it a compelling investment opportunity. As we continue to see growth in the sector, we are confident in DoorDash's ability to deliver value to shareholders.

We believe DoorDash, Inc. is well-positioned in the consumer discretionary sector, benefiting from its strong market presence and growth potential. The company has shown resilience and adaptability in a competitive landscape, which supports our decision to increase our position. With a free cash yield to market cap of 7.9%, it presents an attractive value proposition for investors looking for growth at a reasonable price.

DoorDash operates a technology-driven local commerce marketplace. While the stock declined alongside the broader market, underlying results remained strong, with organic gross order volume up 25% and EBITDA up 29%. We increased our position on the pullback during the quarter, as results reinforced our view that DoorDash is gaining share across restaurant, retail and grocery delivery.

Doordash represents a compelling investment opportunity within our portfolio, trading at an attractive valuation based on our assessment of its medium-term earnings power. The company is positioned in a high-cyclicality sector, yet we believe it has significant appreciation potential as it demonstrates the strengths of its business model. Our algorithm for generating returns focuses on competitively advantaged companies like Doordash that can grow over the medium- to long-term with a high degree of confidence, supported by strong operating leverage and a solid balance sheet.

DoorDash is the overwhelming US leader in online food ordering and delivery. The company has numerous vectors for long-term growth, including a strong user base that attracts merchants and drivers, creating a flywheel effect that enhances its competitive advantages. With the highest driver density, DoorDash provides timely and reliable delivery services, improving user experience and retention. The company is layering on new verticals like grocery and packages, and its loyalty program encourages repeat usage. While its current earnings power is a fraction of future potential, the incremental revenues are expected to come in at significantly higher profit margins.