10 Best TaaS Stocks to Invest in According to Hedge Funds

2) DoorDash, Inc. (NASDAQ:DASH)

Number of Hedge Fund Holders: 73

DoorDash, Inc. (NASDAQ:DASH) is a food delivery and logistics platform that connects customers with local restaurants, grocery stores, and other businesses. The company connects consumers with local restaurants and delivery personnel through its digital marketplace. The company’s business model allows consumers to order food from a wide selection of restaurants via the DoorDash app or website, with deliveries fulfilled by Dashers (delivery drivers) using their personal vehicles.

The company generates revenue from commissions charged to merchants, delivery fees, advertising and promotions, logistics-as-a-service, etc.  Moving forward, DoorDash, Inc. (NASDAQ:DASH) plans to deliver food and almost everything such as alcohol, beauty products, and sports goods, among others. This will help expand its total addressable market, which remains critical for long-term growth and should drive revenue growth substantially. As per Wall Street analysts, as and when its non-food categories gain traction and the transformation matures, DoorDash, Inc. (NASDAQ:DASH) should be able to improve its margins.

As per Fortune Business Insights, the US foodservice market size was valued at US$824.61 billion in 2022 and should grow from US$905.13 billion in 2023 to US$1,767.54 billion by 2030, demonstrating a largely untapped opportunity. DoorDash, Inc. (NASDAQ:DASH)’s strong user engagement indicates a potential for continued growth through increased penetration and order volume.

Apart from the growth prospects of the US food service market, the company should benefit from international expansion. The recent acquisition of Wolt has provided DoorDash, Inc. (NASDAQ:DASH) with a foothold in international markets, offering significant growth potential. Wolt is known for its user-friendly app and advanced logistics technology. DoorDash, Inc. (NASDAQ:DASH) can leverage this technology to optimize its operations, improve delivery efficiency, and enhance the customer experience.

TimesSquare Capital Management, an equity investment management company, released its third-quarter investor letter. Here is what the fund said:

“Our preferences in the Consumer-oriented sectors lean toward value-oriented or specialty retailers, franchise models, or premium brands. DoorDash, Inc. (NASDAQ:DASH), an online food delivery platform and logistics provider, climbed 31%. We had begun building our initial position in DoorDash in May-June timeframe and ramped up the position size prior to the second quarter earnings report that was released in August. DoorDash delivered broad-based positive results versus street expectations.”