Copyright The Street
DoorDash’s stock slipped more than 17% on Nov. 6, extending pre-market losses of about 20%, as investors reacted to the company’s plans reported in its Q3 2025 earnings report, released after market close on November 5. Here is a quick look at DoorDash Q3 earnings: Revenue reported at $3.4 billion, representing a 21% year-over-year increase. The Marketplace GOV (Gross Order Value) increased to $25.0 billion, up 25% YoY. GAAP Net Income increased 51% YoY to $244 million. Total orders increased 21% YoY to 776 million. DoorDash’s Q3 performance showed growth, but the stock tumbled over management’s announcement of aggressive investment plans for 2026. The volatility led to a quarterly stock decline of 22% for DoorDash, which did not impact its 19% year-to-date gain. The stock was already trading up after hours on Nov. 6. DoorDash shows healthy growth Company revenue, which jumped 27% to $3.4 billion, was primarily driven by accelerating growth in orders and gross order value. Its adjusted EBITDA of $754, up 41%, beat expectations; however, margins expanded only slightly. The U.S restaurant category achieved its fastest growth rate in more than three years, buoyed by sustained reinvestment in customer experience. “This approach is foundational to how we operate and, more than 10 years after launching our U.S. restaurant category, it continues to generate benefits for our stakeholders and drive profit growth for our business,” read the company statement. Internationally, DoorDash’s operating reach has reached record-high unit economics, with the company completing its €2.8 billion acquisition of Deliveroo, a UK-based food delivery company. Optimistic over the acquisition to increase revenue, the company stated, The company also launched Dashmart Fulfillment Services for “higher-quality consumer experiences,” which is currently operating at a loss but has shown improvement quarter over quarter. And more recently, on September 30, DoorDash launched its customized autonomous delivery robot, Dot, for local delivery. However, what is getting investor and analyst attention is DoorDash’s announcement to boost investment by “several hundred million dollars” in 2026, which overshadowed its upbeat results. Analyst reactions to DoorDash Q3 earnings Following the release, several analysts lowered their price target for the delivery company, but remained bullish on its future growth. Oppenheimer analyst Jason Helfstein lowered the firm’s target to $280 from $350, maintaining an outperform rating. He cited dramatically high investments in 2026 as a driver, also noting that in the past, DoorDash has exceeded margins dramatically. Deepak Mathivanan of Cantor Fitzgerald lowered the price target to $270 from $330, maintaining an overweight rating, citing the “several hundreds of millions” in tech and product initiatives that will weigh on the near-term margin trajectory. More Retail Stocks: Bank of America revamps Amazon stock price after earnings Children’s retailer closing 150 stores, slashes jobs Dollar Tree CEO offers customers a pricing promise Amazon just cracked the last mile: what it means for global retail JPMorgan cited similar factors, including incremental investments that would bring near-term margin pressure, as it lowered its price target from $325 to $300 while maintaining an overweight rating, TheFly noted. Goldman Sachs called out DoorDash’s steady execution of its local strategy in Q3, but lowered its price target to $279 from $315, while maintaining a buy rating. Sachs noted that growing user engagement, stronger platform economics, and accelerating momentum in grocery and retail were key positives.
