DoorDash Shares Plunge 14% After Q3 Earnings Miss and $3.9B Deliveroo Stake Reveal
DoorDash's stock tumbled 14% in after-hours trading following a disappointing Q3 earnings report and the unexpected disclosure of a $3.9 billion investment in UK-based Deliveroo. The delivery giant's shares slid to $216.52, marking a $21.48 drop from its closing price of $238.00.
While revenue grew 27% year-over-year to $3.4 billion and total orders increased 21% to 776 million, weaker-than-expected profitability metrics spooked investors. The company's Q4 adjusted EBITDA guidance of $710-810 million fell short of Wall Street's $806.8 million expectation.
Analysts expressed particular concern about the Deliveroo acquisition and aggressive spending plans through 2026. "When you look at the underlying cohorts, the demand continues to be very strong," the CFO stated, highlighting growth in monthly active users and order frequency despite the market's negative reaction.
