What Happened?
Shares of on-demand food delivery service DoorDash (NYSE: DASH) jumped 2.6% in the afternoon session after an analyst at Wedbush raised the company's price target.
Wedbush analyst Scott Devitt maintained an "Outperform" rating on the stock while lifting the price target to $270 from $260. The positive sentiment also followed the company's announcement of a new feature that connected ChatGPT's suggestions with DoorDash's grocery network. This allowed customers to turn recipe and meal ideas directly into grocery orders. The move was seen as a strategic step in the tech and food delivery industry. Other analysts echoed this positive outlook, with firms like Jefferies and Argus Research also maintaining "Buy" ratings on the stock.
After the initial pop the shares cooled down to $237.60, up 2.9% from previous close.
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What Is The Market Telling Us
DoorDash’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 4.9% on the news that the latest Consumer Price Index (CPI) report showed inflation cooling more than anticipated, fueling optimism for potential Federal Reserve interest rate cuts.
The November report indicated that annual inflation fell to 2.7%, significantly below economists' expectations of 3.1% and its lowest level since July. The Consumer Price Index, or CPI, is a key measure of inflation. This encouraging data was welcomed by investors, as sustained lower inflation could give the U.S. Federal Reserve more justification to lower interest rates in the coming year. Wall Street favors lower interest rates because they reduce borrowing costs for companies and can stimulate economic activity, making stocks more attractive. The positive news helped major indexes, including the S&P 500 and the tech-heavy Nasdaq, snap a four-day losing streak.
DoorDash is up 39.2% since the beginning of the year, but at $237.60 per share, it is still trading 15.7% below its 52-week high of $281.74 from October 2025. Investors who bought $1,000 worth of DoorDash’s shares 5 years ago would now be looking at an investment worth $1,483.
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