Doordash stock tanks 20% as company misses earnings, says it expects further spending

DoorDash recently released its third-quarter earnings report, revealing results that fell short of analyst predictions. The company announced plans to allocate 'several hundred million dollars' toward new initiatives and development by 2026, prompting a significant 20% drop in its stock price following the announcement. In its earnings release, DoorDash expressed its awareness of the challenges that come with growth, stating, "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." This statement highlights the company's commitment to investment in future innovations. The food delivery service is currently working on a new global tech platform, which it indicates has made strides in 2025 but is expected to gain momentum in 2026. The company cautioned that these investments will have both direct costs and opportunity costs in the short term. In addition to its financial updates, DoorDash introduced its Dot autonomous delivery robot in September. The company did report a 27% year-over-year increase in revenue, with net income rising to $244 million, or 55 cents per share, compared to $162 million, or 38 cents per share, from the previous year. Total orders reached 776 million, a 21% increase from last year, slightly surpassing FactSet's expectation of 770.13 million. Looking ahead, DoorDash anticipates its Adjusted EBITDA for the fourth quarter will range between $710 million and $810 million, with a midpoint forecast of $760 million. This projection contrasts with analysts' expectations, which had suggested a midpoint of $806.8 million for the same period.