DoorDash stock sinks as company misses earnings

Core Insights - Door Dash shares fell sharply by nearly 15% after missing earnings expectations and warning of rising investment costs leading into 2026 [1][3] - Despite the earnings miss, Door Dash reported revenue growth and increased orders, indicating no signs of consumer weakness [1][3] Financial Performance - Door Dash plans to invest several hundred million dollars next year to upgrade its core tech infrastructure, including robotics and back-end upgrades, as well as integrating Deliveroo, a $3.9 billion acquisition [3] - The company aims to create a unified global tech stack across its brands and futureproof its platform for artificial intelligence [3] Market Reaction - The market reaction to Door Dash's earnings call was significant, with shares dropping as much as 20% during the call [3] - Bank of America views the spending as constructive and anticipates that concerns will dissipate quickly, suggesting that many investments are one-time and could lead to better margin growth by 2027 [4] - UBS has a more cautious outlook, cutting its price target and highlighting risks such as rising competition, ongoing margin pressure, and Amazon's increasing focus on same-day grocery delivery [5]