DoorDash Stock Volatility Highlights Growth Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 hours ago
0mins
Source: CNBC
- Earnings Miss: DoorDash's fourth-quarter earnings fell short of expectations, causing shares to drop 12% in after-hours trading; however, CEO Tony Xu's optimistic outlook led to a 2% recovery in the following session, reflecting market confidence in the company's long-term growth.
- Analyst Optimism: Analysts predict a 45% upside for DoorDash's stock, with 36 analysts rating it as either a strong buy or buy, indicating a positive outlook on its international business and grocery delivery growth potential.
- Strategic Importance of Deliveroo Investment: While the investment in Deliveroo is seen as a short-term burden, analysts believe it opens significant opportunities for DoorDash's international expansion in Europe, particularly in automation and new product development.
- Competitive Advantage: Xu emphasized DoorDash's edge in offering diverse choices, arguing that even with Amazon's competition, the ability to provide options from multiple independent retailers will sustain growth, and analysts are optimistic about its potential in restaurant reservations and personalized recommendations.
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Analyst Views on OPY
About OPY
Oppenheimer Holdings Inc., through its subsidiaries, is a middle market investment bank and full-service broker-dealer. The Company is engaged in a broad range of activities in the financial services industry, including retail securities brokerage, institutional sales and trading, investment banking (corporate and public finance), equity and fixed income research, market-making, trust services, and investment advisory and asset management services. The Company’s Wealth Management segment provides a comprehensive array of financial services through a network of financial advisors. Its wealth management services include full-service brokerage, wealth planning, and margin lending. Its Capital Markets segment includes investment banking, institutional equities sales, trading, and research, taxable fixed income sales, trading, and research, public finance and municipal trading, as well as the Company's operations in the United Kingdom, Hong Kong and Israel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DoorDash Stock Volatility Highlights Growth Potential
- Earnings Miss: DoorDash's fourth-quarter earnings fell short of expectations, causing shares to drop 12% in after-hours trading; however, CEO Tony Xu's optimistic outlook led to a 2% recovery in the following session, reflecting market confidence in the company's long-term growth.
- Analyst Optimism: Analysts predict a 45% upside for DoorDash's stock, with 36 analysts rating it as either a strong buy or buy, indicating a positive outlook on its international business and grocery delivery growth potential.
- Strategic Importance of Deliveroo Investment: While the investment in Deliveroo is seen as a short-term burden, analysts believe it opens significant opportunities for DoorDash's international expansion in Europe, particularly in automation and new product development.
- Competitive Advantage: Xu emphasized DoorDash's edge in offering diverse choices, arguing that even with Amazon's competition, the ability to provide options from multiple independent retailers will sustain growth, and analysts are optimistic about its potential in restaurant reservations and personalized recommendations.
See More
Latest Wall Street Rating Updates
- Nvidia Rating Reaffirmed: Bank of America raised its price target on Nvidia to $300 from $275, highlighting its transformation from a traditional PC graphics chip vendor to a supplier for high-end gaming, enterprise graphics, and cloud markets, indicating strong market potential.
- Snowflake Rating Maintained: Morgan Stanley lowered its price target on Snowflake to $245 but maintained an overweight rating, reflecting confidence in a healthy demand environment, particularly following the company's fourth-quarter performance.
- Salesforce Price Target Cut: JPMorgan reduced its price target on Salesforce from $365 to $320, emphasizing its leading position in cloud computing and multi-product success story, despite facing market challenges.
- Alcon Upgraded to Overweight: Wells Fargo upgraded Alcon from equal weight to overweight, anticipating growth driven by a new product cycle, raising its price target to $97, which reflects an optimistic outlook on future performance.
See More
Analyst Upgrades Oracle Rating, Stock Bounces Modestly
- Rating Upgrade Impact: Oppenheimer analyst Brian Schwartz upgraded Oracle's stock rating from 'Hold' to 'Outperform', setting a price target of $185 per share, which contributed to a more than 1% rise in Oracle's stock, surpassing the S&P 500's 0.8% increase.
- Positive Market Reaction: Despite Oracle's stock having declined approximately 25% this year, the analyst believes the current price has entered buy territory, reflecting market recognition of its future potential, particularly in AI and cloud infrastructure investments.
- Customer Acquisition Success: Schwartz highlighted Oracle's achievement in securing high-profile clients like top AI developer OpenAI, which not only strengthens the company's market position but also lays a foundation for future revenue growth, further boosting investor confidence.
- Optimistic Future Outlook: The analyst anticipates that Oracle's per-share net income could double by fiscal 2030, and despite the pressure from the sell-off of tech companies, the management's proactive embrace of the latest technologies demonstrates strong business adaptability.
See More
Market Watch: AI Impact and Stock Volatility
- Workday Stock Decline: Workday shares fell 9% this morning after issuing disappointing guidance, indicating an AI disruption threat that could lead to a secular slowdown as fewer products are billed per seat.
- HP Memory Crisis: HP Inc. anticipates double-digit unit declines in its personal computer division this year, with memory and storage costs rising from 15%-18% to 35%, resulting in a stock drop of over 5% this morning.
- Diageo Stock Plunge: Diageo shares plummeted 10% this morning after cutting its 2026 sales outlook and slashing its dividend to fund a turnaround plan under new CEO Dave Lewis, highlighting ongoing pressure in the alcohol sector.
- TJX Companies Earnings Beat: TJX Companies reported a fourth-quarter earnings beat with same-store sales up 5%, although its guidance for the future fell short of expectations, leading to only a slight premarket decline, as the management is known for underpromising and overdelivering.
See More
Latest Rating Changes on Wall Street
- Eli Lilly Upgrade: RBC has upgraded Eli Lilly to 'Outperform' with a price target of $1,250, citing its strong GLP-1 drug franchise and the launch of orforglipron, positioning the company favorably in the obesity treatment market, which is expected to drive revenue growth.
- Molson Coors Downgrade: Bank of America downgraded Molson Coors from 'Neutral' to 'Underperform' with a revised price target of $42, as the brewer's FY26 outlook was weaker than anticipated, indicating limited visibility into stabilizing volumes, which could dampen investor sentiment.
- Apple Price Target Increase: MoffettNathanson reiterated a 'Neutral' rating on Apple, raising its price target from $241 to $270, as positive earnings revisions following a strong December quarter make the valuation more attractive, potentially drawing increased investor interest.
- Amazon Buy Rating Maintained: Bank of America reiterated its 'Buy' rating on Amazon, suggesting that sentiment will improve as AWS revenues accelerate and new AI deals are signed, despite a 6% decline in Amazon shares since the Q4 earnings report, indicating a potential recovery ahead.
See More
Oppenheimer Upgrades Oracle to Outperform Amid Attractive Risk-Reward Balance
- Rating Upgrade: Oppenheimer has upgraded Oracle from 'Perform' to 'Outperform' with a price target of $185, indicating a 27% upside, reflecting an attractive opportunity for investors.
- Stock Pullback: Oracle's shares have declined by 13% over the past year and 25% this year alone, creating an appealing entry point, as the analyst believes the current risk-reward balance is favorable.
- Earnings Outlook: The analyst projects that Oracle's earnings per share could triple and double by fiscal year 2030 in bullish and base cases respectively, indicating strong future profitability potential for the company.
- Risk Mitigation: Oracle is successfully reducing its risk profile, particularly concerning counterparty risks tied to OpenAI, with the analyst noting that these risks are easing amid major funding plans and renewed momentum.
See More
DoorDash Stock Volatility Highlights Growth Potential
- Earnings Miss: DoorDash's fourth-quarter earnings fell short of expectations, causing shares to drop 12% in after-hours trading; however, CEO Tony Xu's optimistic outlook led to a 2% recovery in the following session, reflecting market confidence in the company's long-term growth.
- Analyst Optimism: Analysts predict a 45% upside for DoorDash's stock, with 36 analysts rating it as either a strong buy or buy, indicating a positive outlook on its international business and grocery delivery growth potential.
- Strategic Importance of Deliveroo Investment: While the investment in Deliveroo is seen as a short-term burden, analysts believe it opens significant opportunities for DoorDash's international expansion in Europe, particularly in automation and new product development.
- Competitive Advantage: Xu emphasized DoorDash's edge in offering diverse choices, arguing that even with Amazon's competition, the ability to provide options from multiple independent retailers will sustain growth, and analysts are optimistic about its potential in restaurant reservations and personalized recommendations.
See More
Latest Wall Street Rating Updates
- Nvidia Rating Reaffirmed: Bank of America raised its price target on Nvidia to $300 from $275, highlighting its transformation from a traditional PC graphics chip vendor to a supplier for high-end gaming, enterprise graphics, and cloud markets, indicating strong market potential.
- Snowflake Rating Maintained: Morgan Stanley lowered its price target on Snowflake to $245 but maintained an overweight rating, reflecting confidence in a healthy demand environment, particularly following the company's fourth-quarter performance.
- Salesforce Price Target Cut: JPMorgan reduced its price target on Salesforce from $365 to $320, emphasizing its leading position in cloud computing and multi-product success story, despite facing market challenges.
- Alcon Upgraded to Overweight: Wells Fargo upgraded Alcon from equal weight to overweight, anticipating growth driven by a new product cycle, raising its price target to $97, which reflects an optimistic outlook on future performance.
See More
Analyst Upgrades Oracle Rating, Stock Bounces Modestly
- Rating Upgrade Impact: Oppenheimer analyst Brian Schwartz upgraded Oracle's stock rating from 'Hold' to 'Outperform', setting a price target of $185 per share, which contributed to a more than 1% rise in Oracle's stock, surpassing the S&P 500's 0.8% increase.
- Positive Market Reaction: Despite Oracle's stock having declined approximately 25% this year, the analyst believes the current price has entered buy territory, reflecting market recognition of its future potential, particularly in AI and cloud infrastructure investments.
- Customer Acquisition Success: Schwartz highlighted Oracle's achievement in securing high-profile clients like top AI developer OpenAI, which not only strengthens the company's market position but also lays a foundation for future revenue growth, further boosting investor confidence.
- Optimistic Future Outlook: The analyst anticipates that Oracle's per-share net income could double by fiscal 2030, and despite the pressure from the sell-off of tech companies, the management's proactive embrace of the latest technologies demonstrates strong business adaptability.
See More
Market Watch: AI Impact and Stock Volatility
- Workday Stock Decline: Workday shares fell 9% this morning after issuing disappointing guidance, indicating an AI disruption threat that could lead to a secular slowdown as fewer products are billed per seat.
- HP Memory Crisis: HP Inc. anticipates double-digit unit declines in its personal computer division this year, with memory and storage costs rising from 15%-18% to 35%, resulting in a stock drop of over 5% this morning.
- Diageo Stock Plunge: Diageo shares plummeted 10% this morning after cutting its 2026 sales outlook and slashing its dividend to fund a turnaround plan under new CEO Dave Lewis, highlighting ongoing pressure in the alcohol sector.
- TJX Companies Earnings Beat: TJX Companies reported a fourth-quarter earnings beat with same-store sales up 5%, although its guidance for the future fell short of expectations, leading to only a slight premarket decline, as the management is known for underpromising and overdelivering.
See More
Latest Rating Changes on Wall Street
- Eli Lilly Upgrade: RBC has upgraded Eli Lilly to 'Outperform' with a price target of $1,250, citing its strong GLP-1 drug franchise and the launch of orforglipron, positioning the company favorably in the obesity treatment market, which is expected to drive revenue growth.
- Molson Coors Downgrade: Bank of America downgraded Molson Coors from 'Neutral' to 'Underperform' with a revised price target of $42, as the brewer's FY26 outlook was weaker than anticipated, indicating limited visibility into stabilizing volumes, which could dampen investor sentiment.
- Apple Price Target Increase: MoffettNathanson reiterated a 'Neutral' rating on Apple, raising its price target from $241 to $270, as positive earnings revisions following a strong December quarter make the valuation more attractive, potentially drawing increased investor interest.
- Amazon Buy Rating Maintained: Bank of America reiterated its 'Buy' rating on Amazon, suggesting that sentiment will improve as AWS revenues accelerate and new AI deals are signed, despite a 6% decline in Amazon shares since the Q4 earnings report, indicating a potential recovery ahead.
See More
Oppenheimer Upgrades Oracle to Outperform Amid Attractive Risk-Reward Balance
- Rating Upgrade: Oppenheimer has upgraded Oracle from 'Perform' to 'Outperform' with a price target of $185, indicating a 27% upside, reflecting an attractive opportunity for investors.
- Stock Pullback: Oracle's shares have declined by 13% over the past year and 25% this year alone, creating an appealing entry point, as the analyst believes the current risk-reward balance is favorable.
- Earnings Outlook: The analyst projects that Oracle's earnings per share could triple and double by fiscal year 2030 in bullish and base cases respectively, indicating strong future profitability potential for the company.
- Risk Mitigation: Oracle is successfully reducing its risk profile, particularly concerning counterparty risks tied to OpenAI, with the analyst noting that these risks are easing amid major funding plans and renewed momentum.
See More
