Doordash falls 8% on lackluster fourth-quarter results

DoorDash's shares experienced a significant decline of 10% following the release of its fourth-quarter earnings, which failed to meet expectations. The food delivery giant is currently increasing its investments in new technologies, leading to cautious forecasts for the upcoming quarter. In terms of performance, DoorDash anticipates adjusted EBITDA to fall between $675 million and $775 million, markedly lower than the Wall Street estimate of $802 million. In the wake of a disappointing third-quarter performance, analysts had already lowered their estimates. Despite the setback, the company reported a robust revenue growth of 38%, totaling approximately $2.87 billion compared to last year. Additionally, DoorDash noted a 32% year-over-year increase in total orders, reaching 903 million. The marketplace gross order value, which reflects the total dollar value of orders, surged by 39% to $29.7 billion. In a letter to shareholders, CEO Tony Xu emphasized that DoorDash is committed to developing innovative products and systems aimed at enhancing customer experiences. One ambitious project involves creating a unified platform that integrates DoorDash, Deliveroo, and Wolt, a venture Xu described as both significant and costly. He stated, "We could have made our codebase less malleable to incorporate AI. These changes would have taken less time and cost a lot less to build. But that could lead to disastrous results for customers." Investor sentiment has been tense regarding DoorDash's spending strategies, especially after the company revealed plans to invest "several hundred million dollars" into its global technology platform and initiatives like autonomous delivery. Following the news, the stock faced its steepest decline ever. Xu defended the company's investment decisions, citing a strong track record of business investments that foster future growth. In terms of net income, DoorDash reported $213 million, or 48 cents per share, an increase from $141 million, or 33 cents per share, from the previous year. However, the stock has already fallen over 20% in 2026.