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DoorDash stock sinks as company misses earnings
11/6/2025, 4:28:40 PM
Economic Summary
- DoorDash (DASH) beat on revenue and orders with revenue growth accelerating to 27%, indicating resilient consumer demand, but it missed on earnings as investors focused on profitability.
- DASH plans to spend several hundred million in 2026 to overhaul its tech stack — investments in robotics, back-end upgrades, and integrating Deliveroo (ROO) — aiming to build a unified global platform and future-proof for AI; this reinvestment triggered the stock sell-off.
- Wall Street is split: Bank of America views the spending as constructive and mostly one-time, expecting margin improvement by 2027, while UBS cut its price target and warned that competition, including Amazon (AMZN), could pressure near-term earnings.
Bullish
- Revenue and orders beat, with revenue growth accelerating to 27%.
- Bank of America calls the spending constructive and largely one-time, helping margins by 2027.
- Deliveroo acquisition gives DoorDash a foothold in Europe and helps future-proof for AI.
Bearish
- DoorDash warned of rising investment costs and missed on profitability, spooking investors.
- Growing competition from Amazon (AMZN) in same-day grocery could pressure DoorDash margins.
- Large reinvestment and Deliveroo integration could cause ongoing margin pressure near term.
Bullish tickers
DASHROO
Bearish tickers
DASHAMZN
DASH
Bullish
Beat revenue and orders with 27% revenue growth; BofA calls spending constructive and mostly one-time, potentially enabling margin recovery by 2027; Deliveroo deal expands Europe footprint.
Bearish
Missed on earnings and warned of several-hundred-million dollar reinvestment, spooking investors and risking near-term margin pressure; UBS flagged competition concerns.
AMZN
Bearish
Growing push into same-day grocery and logistics could intensify competition and drag on peers' earnings.
ROO
Bullish
Acquisition provides DoorDash a European foothold and strategic long-term value as part of a unified global tech stack.
Bearish
Integration with DoorDash increases reinvestment needs and execution risk, potentially pressuring near-term margins.
BAC
Bullish
Bank of America views DoorDash's spending as constructive and expects concerns to fade quickly.
UBS
Bearish
Cut DoorDash price target and flagged rising competition and ongoing margin pressure as risks.
CHIME
Bullish
Referenced in discussion as evidence of continued consumer strength (Chime CEO comment).
People mentioned
Mackenzie SagalasDavid