DoorDash stock: technicals point to a dive as it exits key markets

DoorDash stock price remains in a technical bear market after falling by over 40% from its highest level in October last year.

DASH was trading at $173, with its market capitalisation falling from over $121 billion to the current $75 billion. So, will the stock rebound or continue the downward trend?

DoorDash stock price falls as turnaround continues

The DASH stock price has remained under pressure in the past few months as concerns about its growth and margin trajectory remained.

As a result, the management has taken several measures to ensure consistent and profitable growth in the future.

For example, the company acquired Deliveroo, a top delivery company listed in London, a move intended to expand its business.

And this week, the company said that it would exit some of the international markets like Qatar, Singapore, Japan, and Uzbekistan as part of its operational restructuring.

DoorDash exited these markets because it does not see a clearer path to sustainable scale and long-term leadership. Also, it wants to cut costs and focus on the most profitable markets.

The new restructuring happened after the company published its financial results last month.

These numbers showed that the company's business continued to do well in the final quarter of last year. 

Its orders increased by 32% to 903 million, while the marketplace GOV jumped to $29.3 billion. This translated to a revenue of $4 billion, up by 38% YoY. 

The revenue growth helped the company to continue boosting its profits even as margins dropped.

Its EBITDA moved to $780 million, up from $566 million in the same period in 2024. Some of the revenue and profitability growth was because of the Deliveroo acquisition.

Analysts believe that DoorDash’s business will continue doing well as demand for delivery services continues rising in the United States and other markets.

Also, there is a possibility that the company will cut costs using AI agents in the future and autonomous vehicles in the future.

The average estimate among analysts is that this quarter’s revenue will be $4.15 billion, up by 36% YoY.

This growth will be followed by $4.37 billion in the second quarter, with the annual revenue being $17.8 billion, a 30% surge. This year’s revenue growth will have a contribution from Deliveroo.

Most analysts tracking DoorDash have a bullish rating because of its market share in the US and the fact that the industry is maturing.

However, many of them recently lowered their guidance, citing the ongoing margin pressures.

For example, Citigroup slashed the rating from $283 to $280, while Citizens cut from $285 to $250.

DASH stock price technical analysis 

The daily timeframe chart shows that the DASH stock price has retreated in the past few months, moving from last year's high of $286 to the current $173.

The stock formed a death cross pattern on January 26 as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. A death cross is one of the riskiest patterns in technical analysis.

The stock has moved below the key support level at $182, its lowest level on November 24 last year.

Moving below that level invalidated the double-bottom pattern and was a sign that bears have prevailed.

The stock is now forming a bearish flag pattern, which is made up of a vertical line and a channel.

Therefore, the most likely DoorDash stock forecast is bearish, with the next key target being the year-to-date low of $160.

A move below that price will point to more downside, potentially to $150.