DoorDash Stock Tanks 10% Despite 38% Revenue Growth
DoorDash's Q4 revenue hit $3.96B but missed estimates, and weak Q1 guidance sent shares tumbling.
DoorDash posted Q4 revenue of $3.96 billion, up 38% year-over-year — and Wall Street still wasn't happy. The number fell just short of the $3.99 billion analyst estimate, and shares cratered 10%.
Total orders surged 32% to 903 million for the quarter, showing the delivery giant continues to grow at a serious clip. But growth alone wasn't enough to calm investors.
The real gut punch: DoorDash's Q1 adjusted EBITDA forecast came in below expectations. The company pointed to ramped-up investments in new technology as the reason margins are getting squeezed.
It's a familiar tech story. Spend big now, promise returns later. Investors clearly wanted more profit clarity before signing off on the investment thesis. For now, DoorDash is betting that pouring money into tech will pay off down the road. The market isn't so sure.