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Doordash is starting to look like more than just a food delivery app. The company’s fundamentals and technicals are lining up to set the stage for a break to new all-time highs, as the company is dashing into artificial intelligence and autonomous vehicle delivery. These new vehicles, pictured as inset on the monthly chart below could expand the company’s total addressable market and improve operating leverage over time. We increased our holdings in DASH in our Tactical Alpha Growth (TAG) portfolio from 2% to 3% last week. In our “fast money” account Active Opps, we hold a 3.6% allocation but with confirmation of a breakout described above, I plan to increase to a 5%-plus allocation. Technicals The monthly chart shows a five-year battle to get a monthly close above $260. With about 4 hours to go in the month (and quarter) and a $7.83 cushion, I’m feeling confident we’ll get that monthly candle close that will attract additional breakout buyers and investors. The DASH/ SPY ratio below is pointed higher indicating relative out-performance of DASH vs the broader market. Turning to the daily chart, we see a classic cup and handle breakout pattern forming just above that afore-mentioned $260 monthly resistance level. If we can see DASH break above $280, this would further confirm a breakout is upon us. Monday saw solid volume around the 50-day average of 3.30 million shares. Halfway through today’s session, we’re seeing signs of an outside reversal day, but with broader market weakness of a looming government shutdown, the ‘growthy’ names are showing signs of weakness. If the politicians can get their act together and keep the government open and DASH has lighter volume day, say less than 2 million shares traded, I think the upside is still in play. Fundamentals KeyBanc presented its Q3 Mobility & Delivery Survey and came away “more confident” in DoorDash’s growth prospects, especially in its core delivery verticals and emerging adjacent categories. The survey shows that 39% of respondents named DoorDash as their most-used food-delivery services, more than double that of UBER’s share. Revenue growth for 2025 is expected to be 23% for $13.19B and GAAP EPS is expected to grow a whopping 765% to $2.47 share. This is GAAP earnings. Non-GAAP is expected to grow 86.9% and come in at $5.02 this year compared to $2.69 in non-GAAP earnings for 2024. That’s significant growth. -Todd Gordon, Founder of Inside Edge Capital, LLC We offer active stock alerts, portfolio management, as well as regular market updates like the idea presented above . DISCLOSURES: Gordon owns DASH personally and in his wealth management company Inside Edge Capital. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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