DoorDash Inc (NASDAQ:DASH) stock plunges 15.07% (As on November 6, 11:14:20 AM UTC-4, Source: Google Finance) after the company reported third-quarter profit that missed Wall Street estimates as the delivery firm grapples with rising expenses and said that it would invest several hundred million dollars more in 2026 on new initiatives. DoorDash has been investing heavily in building partnerships, including with robotics firm Serve Robotics, and companies like Domino’s Pizza and Kroger, as it looks to expand its services to cater a broader range of customers seeking last-mile delivery services. These partnerships helped DoorDash beat quarterly revenue estimates and forecast fourth-quarter gross merchandise value above Wall Street expectations. The company’s total costs and expenses for the third quarter rose about 23% to $3.19 billion from $2.60 billion a year ago. GAAP net income attributable to DoorDash, Inc. common stockholders increased 51% Y/Y to $244 million. Adjusted EBITDA increased 41% Y/Y to $754 million.
Moreover, on October 2, the company closed the acquisition of Deliveroo plc for an equity value of £2.8 billion, including estimated cash and short-term investments acquired of £690 million. Including Deliveroo, the company now serve over 50 million MAUs, over 30 million consumers through the membership programs, partner with more than 1 million merchants, and generate over $100 billion in annualized Marketplace GOV across more than 40 countries.
DASH in the third quarter of FY25 has reported the adjusted earnings per share of 55 cents, missing the analysts’ estimates for the adjusted earnings per share of 69 cents. The company had reported the adjusted revenue growth of 27 percent to $3.45 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $3.36 billion. Gross merchandise value rose 25% to $25.02 billion in the third quarter ended September 30, beating estimates of $24.09 billion, with total orders climbing 21% year-over-year to 776 million. Y/Y growth in Marketplace GOV in Q3 2025 was driven primarily by strong growth in monthly active users (MAUs), with contributions from Y/Y growth in average order frequency and average order values on the marketplaces. In the U.S. restaurant category, Y/Y growth in Marketplace GOV accelerated in Q3 2025 and reached the highest Y/Y growth rate in more than three years.
The company expects gross merchandise value, the total dollar value of orders placed through its platform, in the fourth quarter to range between $28.9 billion and $29.5 billion, surpassing estimates of $25.36 billion, according to data compiled by LSEG.