DoorDash Stock Soars After Earnings Report

DoorDash (DASH) reported fourth-quarter results late Wednesday that missed earnings estimates but beat on revenue, and it came with a first-quarter outlook above expectations. DoorDash stock soared on the news.




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The company reported an adjusted loss of 45 cents a share on revenue of $1.3 billion. Analysts expected DoorDash to report a loss of 25 cents on revenue of $1.28 billion.

However, for its first quarter, DoorDash expects gross order value to be in the range of $11.4 billion to $11.8 billion. The midpoint of $11.6 billion is above the consensus estimate of $11.4 billion, according to FactSet.

DoorDash stock rocketed 27% higher to 120.80 during after-hours trading on the stock market today. In February, DoorDash stock hit an all-time low of 91.96.

“Demand on our Marketplace grew substantially in 2021, exceeding our expectations and the expectations of many who questioned the sustainability of demand as restaurants reopened,” the company said in its letter to shareholders.

Revenue jumped 34% from the year-ago period. Total orders grew 35% to 369 million.

DoorDash Stock: In A Competitive Market

The stock went public in December 2020 at $102 a share and only recently slipped below that level. It’s the largest food-delivery company in the US

The meal delivery market is consolidating and highly competitive. In November, DoorDash announced it would acquire Wolt Enterprises, a European provider of food delivery services, in an all-stock deal valued at $8.1 billion. DoorDash stock surged 11.6% on the announcement.

In 2020, European food delivery company Just Eat Takeaway (GRUB) acquired GrubHub in an all-stock deal valued at $7.3 billion. In addition, Uber Technologies (UBER) acquired Postmates for $2.65 billion.

Last week, DoorDash unveiled a new program that could give DoorDash stock a lift. Called DoorDash Capital, it will offer cash advances to eligible restaurants. Restaurants can use the money to buy equipment, pay rent or cover other costs like hiring and marketing. Restaurants will repay the advance via deductions from their DoorDash earnings.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

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