The notion that summer is almost over in the Northern Hemisphere is likely going to hit hard. But it almost is, and that brings with it thoughts of changing leaf colors, pumpkin spice everything, and hiding from the weather. However, DoorDash (DASH) is looking to make the colder season a little easier thanks to a new cross-promotion that sent shares up over 3% in Tuesday afternoon’s trading.
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DoorDash got together with Warner Bros Discovery (WBD) to bring its Max service to DoorDash customers. Those customers who buy into DoorDash on the annual plan will also be able to get the “Max With Ads” tier at no extra charge. Those who want to get rid of the ads, meanwhile, will get access to special pricing of $10.99 a month.
The savings are bigger at the lower tier, as Max With Ads normally runs $9.99 a month by itself. But there’s still a clear savings without ads, as that normally runs $16.99 per month. Meanwhile, the annual plan for DoorDash service runs $96 annually, so it makes a surprisingly smart package deal. No more going out in the cold and gray; rather, order in and stream videos, a recipe for a pretty nice winter.
Delivering Politics Door-to-Door
In a separate development, DoorDash also found a clever way to fight back in Nebraska, as lawmakers considered a new tax on deliveries. Rather, DoorDash’s advocacy group, DashRoots, delivered over 31,000 letters from small business owners throughout Nebraska saying that such a tax would harm their businesses.
Interestingly, the proposal came about as part of a package of initiatives designed to provide relief on property taxes. So, rather than economize or tighten belts, Nebraska lawmakers apparently looked for a new stone to draw blood from. Indeed, as DoorDash’s head of government relations in Nebraska, Clark Kaericher, noted, such a move would only increase consumer costs as the costs to cover the tax would be passed on to those consumers.
Is DoorDash a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DASH stock based on 18 Buys and 11 Holds assigned in the past three months, as indicated by the graphic below. After a 59.77% rally in its share price over the past year, the average DASH price target of $144.25 per share implies 13.14% upside potential.
