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door dashThe company’s stock fell 10% after the food delivery platform reported disappointing fourth-quarter results and guidance as it ramped up investment in new technology.
Here’s how the company performed against LSEG’s estimates:
Earnings per share: 48 cents vs. expected 59 cents Estimate $0.59 Earnings: $3.96 billion expected vs. $3.96 billion
The company also expects a lackluster outlook for the first quarter. Doordash expects adjusted EBITDA to be between $675 million and $775 million. Meanwhile, StreetAccount’s forecast is $802 million.
Expectations had been significantly lowered after the company’s third-quarter results were disappointing.
Sales for the same period increased 38% from approximately $2.87 billion in the same period last year. The company said total order value increased 32% year-over-year to $903 million, while total marketplace order value, which tracks total order value, increased 39% to $29.7 billion.
CEO Tony Xu said in a letter to shareholders that Doordash is actively building new products and systems to improve the user experience. One of those projects involves creating a single platform that unifies Doordash, Deliveroo, and Wolt, which he calls a “large and expensive undertaking.”
“The codebase could have been made less flexible to incorporate AI,” he wrote. “These changes could have significantly reduced construction time and costs, but they could have dire consequences for customers.”
Investors have been nervous about DoorDash’s spending goals in recent months.
Last quarter, the company said it planned to spend “hundreds of millions of dollars” on initiatives such as a global technology platform and self-driving delivery. Stock prices had their worst day ever.
At the time, Xu defended DoorDash’s spending, saying the company has a strong track record of making business investments that support future growth.
Net income was $213 million, or 48 cents per share, compared to $141 million, or 33 cents per share, in the year-ago period.
Stock prices have already plummeted more than 20% in 2026.
