Story Stocks^®

DoorDash (DASH -15%) is tumbling despite posting strong Q3 results that topped expectations. Revenue rose 27.3% yr/yr to $3.45 bln, its fastest growth since 2Q23. Total orders climbed 21% yr/yr to 776 mln, while Marketplace GOV increased 25% yr/yr to $25.0 bln, exceeding guidance of $24.2--24.7 bln.

• Adjusted EBITDA grew 42% yr/yr to $754 mln, near the high end of guidance but short of a Q2-style beat. Q4 adjusted EBITDA guidance of $710--810 mln implies stable margins.
• US restaurant GOV growth accelerated to its best pace in over three years, supported by execution and reinvestment.
• New Verticals (grocery, retail) saw rising engagement and new partnerships.
• International operations hit record unit economics, though order growth moderated slightly. DASH closed its £2.8 bln Deliveroo acquisition on October 2, which should lift Q4 results.
• The company plans hundreds of millions in new tech investments for 2026 to unify DoorDash, Deliveroo, and Wolt into a single AI-native global platform, adding long-term efficiency but near-term cost pressure.

Briefing.com Analyst Insight:

DoorDash's Q3 report paints a picture of strong growth and operational progress, yet the stock's decline reflects investor unease about future profitability. The upside in GOV and order trends shows that the core business remains healthy, but the lack of a Q3 EBITDA beat and rising 2026 tech spend cloud the near-term margin outlook. The Deliveroo integration should bring meaningful scale benefits, though execution risk is nontrivial. With shares trading at a premium EV/revenue multiple, investors appear reluctant to look past elevated investment spending and international deceleration. Overall, we view DASH as a solid growth story with long-term promise—but margins could see some pressure in 2026 on the new tech spend.