Doordash Drops 8% After Weak Q4 Results

• Q1 2026 adjusted EBITDA guidance of $675-775 million fell significantly short of the $802 million Street estimate, continuing disappointment from Q3 results
• Despite the miss, operational metrics remained strong with total orders up 32% to 903 million and gross order value jumping 39% to $29.7 billion year-over-year
• The company is investing 'several hundred million dollars' in global tech platforms and AI integration, with the stock down over 20% in 2026 as investors question the aggressive spending strategy

Doordash Q4 Earnings Summary

Stock Performance: Doordash shares fell 8-10% following disappointing fourth-quarter results and weak forward guidance. The stock has declined over 20% year-to-date in 2026.

Q4 Financial Results

• Revenue: $3.96 billion vs. $3.99 billion estimated (miss)
• Earnings per share: Not disclosed in detail
• Net income: $213 million ($0.48 per share)
• Revenue increased 39% year-over-year from $2.88 billion
• Total orders: 903 million (up 32% YoY)
• Gross order value: $29.7 billion (up 39% YoY)

Q1 Guidance: Adjusted EBITDA projected at $675-$775 million versus Street estimate of $802 million, representing a significant shortfall.

Strategic Initiatives: CEO Tony Xu outlined major technology investments, including building a unified platform integrating Doordash, Deliveroo, and Wolt—described as a "massive and expensive undertaking." The company is also investing "several hundred million dollars" in AI integration, global tech infrastructure, and autonomous delivery initiatives.

Investor Concerns: The market reaction reflects growing unease about Doordash's aggressive spending strategy. While management defends these investments as necessary for long-term growth and customer experience, the near-term financial impact has disappointed investors expecting stronger profitability. This marks the second consecutive quarter of disappointing results.

Market Implications: The significant stock decline signals investor skepticism about whether heavy technology investments will yield adequate returns, particularly as the company prioritizes innovation over short-term margins in an increasingly competitive food delivery market.