DoorDash Inc. shares dropped sharply in extended trading on Wednesday after the delivery platform said it would significantly increase investments next year and that its recent acquisition of Deliveroo would contribute less to profits than previously expected.
The stock fell over 9% in after-hours trading but remains up about 42% so far this year.
The company’s latest forecast suggested that 2026 would be a period of heavy spending as DoorDash seeks to expand globally and improve its platform.
Company to boost investment in new technology and markets
DoorDash said it expects to invest several hundred million dollars more in 2026 than it did last year, targeting new technology, platform improvements, and international expansion.
The company noted that it aims to strengthen delivery precision and speed while competing with rivals offering similar services.
“We wish there was a way to grow a baby into an adult without investment, or to see the baby grow into an adult overnight, but we do not believe this is how life or business works,” the company said in a statement accompanying its third-quarter earnings report.
DoorDash has been pursuing a broad partnership strategy, teaming up with firms like Serve Robotics, Domino’s Pizza, and grocery chain Kroger to widen its reach in last-mile delivery.
These collaborations have bolstered revenue and helped the company exceed expectations for the quarter.
Strong revenue growth overshadowed by cautious profit guidance
In the third quarter, DoorDash reported revenue of $3.45 billion, up 27% from a year earlier and ahead of analyst forecasts of $3.36 billion.
Gross order value, or the total value of all orders placed on its platform, rose 25% to $25 billion, also beating Wall Street expectations.
For the fourth quarter, the company projected gross order value between $28.9 billion and $29.5 billion, above the consensus estimate of $26.55 billion.
Despite the strong top-line performance, DoorDash earned 55 cents per share, missing analyst expectations of 68 cents.
“DoorDash may have delivered strong results, but its big spending plans are stealing the spotlight,” said Zak Stambor, an analyst at eMarketer.
That’s a risky bet, but one that could pay strong returns.
Deliveroo deal expected to add less to profits
The company’s recent acquisition of London-based Deliveroo, which operates across Europe, Asia, and the Middle East, will contribute less to profits than previously forecast.
DoorDash said that differences in accounting treatment would reduce Deliveroo’s adjusted Ebitda contribution in 2026 by roughly $32 million to $40 million.
DoorDash continues to diversify its delivery network, expanding beyond restaurants to include groceries and retail goods.
The company’s recent innovations include an autonomous delivery robot called Dot and features such as restaurant reservations.
Ethan Feller, a strategist at Zacks Investment Research, said DoorDash’s expansion showed how online delivery had become part of everyday consumer expectations.
He said the expansion risked overlap with other companies – and a “commoditization” of those services – but noted that they could be discarded if they didn’t work.
With higher investment plans and a recalibrated profit outlook, DoorDash faces a delicate balance between growth ambitions and investor expectations heading into 2026.
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