door dashThe company’s stock rose on Thursday as Wall Street shook off disappointing fourth-quarter results and praised the food delivery platform’s early progress in its investment cycle.
Shares initially fell about 10% in after-hours trading after the company reported disappointing earnings guidance, with top and bottom lines of earnings below Wall Street expectations.
The company expects its adjusted EBITDA to be weighed down by continued investment in Deliveroo, the UK delivery platform it acquired last year, in the first quarter. DoorDash also expects a $20 million impact from the recent U.S. winter storms and higher order costs due to investments in long-haul delivery and increased costs in regulated markets.
But Wall Street managed to overlook DoorDash’s below-average performance, as the company’s investment started showing early signs of profit.
“DASH’s business is strong and accelerating, with improving unit economics and the ability to deliver more sustainable growth and investment,” Morgan Stanley analyst Brian Nowak said in a note to clients.
Nowak reiterated his confidence in the company’s core U.S. restaurant business, highlighting improved unit economics and growth in new areas such as retail, grocery and international.
Bank of America analyst Justin Post said the company is “doing well” and that the Deliveroo acquisition will double the company’s total global addressable U.S. market.
Investors had previously warned about the company’s excessive investment cycle.
DoorDash’s stock fell to its worst day in history last quarter after the company announced plans to invest more in new technology platforms and innovations such as self-driving delivery.
Ravi Inukonda, DoorDash’s finance chief, said on an earnings call Wednesday that the company’s technology stack overhaul is on track and he expects the bulk of the spending to occur in 2026.
“We are very disciplined,” Inukonda told analysts. “We are investing in areas that will improve our product to ultimately increase both scale and profitability.”
Some of these investments include building warehouses and fulfillment services to bring inventory closer to customers.
DoorDash also said it had record subscriber numbers in the fourth quarter and in 2025.
DoorDash 5-day stock price chart.
