Copyright Investor's Business Daily
DoorDash (DASH) stock tumbled Wednesday after the food-delivery company reported mixed third-quarter results. Demand for food-delivery remains strong but DoorDash's earnings missed estimates as the company pledged to ramp up investments in its products. DoorDash said that it earned 55 cents per share for the September-ended quarter, up 44% from a year earlier. But that was well below the 68 cents per share earnings that analysts polled by FactSet were forecasting. Sales increased 27% to $3.45 billion, ahead of analyst estimates of $3.36 billion. The total value of orders on DoorDash's platforms grew 25% year-over-year to $25 billion. Analysts were forecasting $24.53 billion for DoorDash's gross order value. For the current quarter, DoorDash guided for gross order value of $29.2 billion at the midpoint of its range. Prior to the company posting its results, analysts were projecting DoorDash's GOV would reach $26.55 billion for the December-ending quarter. DoorDash also guided for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $760 million in the fourth quarter, compared to previous estimates of $807 million. The company said in a news release that it expects to invest "several hundred million dollars more in new initiatives and platform development in 2026 than we did in 2025." Investments include a new global technology platform for product development and operations, the company. "We wish there was a way to grow a baby into an adult without investment, or to see the baby grow into an adult overnight, but we do not believe this is how life or business works," the DoorDash news release said. "Instead, we attempt to invest in a way that manages to milestones, allocating the appropriate amount of time and resources at the right stage of development." On the stock market today, DoorDash stock is down around 17% at 198.09 in recent after-hours trades. More earnings coverage to come. DoorDash Stock Up 42% This Year Prior to earnings, DoorDash stock fell by a fraction in regular trading. As of Wednesday's close, DASH stock is ahead around 42% year to date and more than 50% from 12 months ago. Further, DoorDash's shares have racked up a more than 380% gain since the start of 2023, as the company's strong sales growth and improved profitability eased investor concerns about the sustainability of on-demand food delivery. But shares have pulled back in recent weeks from a high of 285 reached on Oct. 16. Coming into the report, DoorDash stock had an IBD Composite Rating of 95 out a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better. YOU MAY ALSO LIKE: Pinterest Stock Dives As Earnings Miss, Tariffs Challenge Ad Sales Top Growth Stocks To Buy And Watch Learn How To Time The Market With IBD's ETF Market Strategy Find The Best Long-Term Investments With IBD Long-Term Leaders
