DoorDash (DASH) Stock: Drops 10% Despite Revenue Beat As Reinvestment Plans Weigh

TLDR

• DoorDash stock fell nearly 10% in early trading after Q3 earnings beat revenue expectations ($3.45B vs $3.36B expected) but missed on earnings per share (55 cents vs 68 cents expected).
• The company processed 776 million orders generating $25 billion in marketplace gross order value during Q3, representing 25% growth year-over-year.
• DoorDash announced plans to invest “several hundred million dollars more” in new initiatives and platform development in 2026, contrary to market expectations for margin expansion.
• Wells Fargo cut its price target from $301 to $239, lowering its 2026 EBITDA forecast by 19% to $3.6 billion due to the company’s reinvestment plans.
• The company targets $100 billion in gross order value by 2026 as it completes its $3.9 billion acquisition of British food delivery company Deliveroo.

DoorDash shares dropped nearly 10% during Thursday’s early trading session. The food delivery platform delivered mixed third-quarter results that surprised investors.

DoorDash, Inc., DASH

The company’s revenue climbed more than 27% to $3.45 billion. That topped Wall Street’s consensus estimate of $3.36 billion.

However, earnings per share came in at 55 cents. Analysts had projected 68 cents per share.

The earnings miss triggered the sell-off. But the company’s forward guidance added more pressure to the stock price.

DoorDash processed 776 million orders during the quarter. That marked a 21% increase from the previous year.

The platform generated $25 billion in marketplace gross order value. This figure represents sales from delivery drivers, restaurants, convenience stores, and retailers using the platform.

The gross order value grew 25% compared to the same period last year. The company credited the growth to more consumers and higher engagement levels.

Heavy Investment Plans Spook Investors

DoorDash announced plans to commit “several hundred million dollars more” to new initiatives in 2026. The company said many of its experiments are ready for greater investment.

Wells Fargo analyst Ken Gawrelski cut the firm’s price target from $301 to $239. The reduction came in response to DoorDash’s reinvestment phase announcement.

The bank lowered its 2026 EBITDA forecast by 19% to $3.6 billion. This sits well below the consensus expectation of $4.2 billion.

Wells Fargo noted the reinvestment strategy contradicted market expectations. Many investors had anticipated positive revisions following the Deliveroo acquisition.

Deliveroo Acquisition and Growth Targets

DoorDash is acquiring British food delivery company Deliveroo for $3.9 billion. The deal is currently in process.

The company expects margins to go “up slightly” in the next fiscal year. DoorDash projects adjusted EBITDA between $710 million and $810 million for the current quarter.

The platform anticipates marketplace gross order value between $28.9 billion and $29.5 billion by quarter end. Wells Fargo revised its 2026 gross order value forecast upward to $131.6 billion from $126.8 billion.

DoorDash set a target of $100 billion in gross order value by 2026. The company stated it remains in its “early stages” of growth.

The platform expects 21% core DoorDash gross order value growth in 2026. This represents a 200 basis point deceleration from 2025 levels.

Wells Fargo’s analysis suggests core DoorDash 2026 EBITDA margins will be “flattish to slightly higher.” Multiple analysts adjusted their price targets downward following the earnings call.

UBS lowered its target to $241, while Stifel set its target at $253. BTIG maintained a Buy rating with a $315 price target.

The stock currently holds a Moderate Buy consensus rating from 31 analysts. Twenty-three analysts rate it a Buy, while eight assign Hold ratings.

The average price target of $311.86 suggests about 31% upside from current trading levels. Individual analyst targets range from $205 to $360.

DoorDash maintains more cash than debt on its balance sheet. The company’s current EBITDA stands at $834 million.

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