Core Insights - DoorDash has continued to experience robust growth post-pandemic, distinguishing itself as one of the few pandemic winners [1] - The company is profitable on a GAAP basis and is focusing on developing an integrated platform [1] Company Analysis - DoorDash is recognized for its strong financial performance and ongoing investments in technology and platform integration [1] - The company is led by a management team that emphasizes long-term growth and value creation [1] Investment Perspective - The investment strategy involves identifying undervalued companies with sustainable growth potential, particularly in sectors with long growth runways [1] - The approach combines growth-oriented principles with strict valuation criteria to enhance investment safety [1]

Core Insights - A study by the Groundwork Collaborative highlights the emergence of an "annoyance economy" where Americans face longer customer service wait times, significant junk fees, and healthcare-related hassles, costing them over $165 billion annually [1][4]. Group 1: Financial Impact - Junk fees for various services are costing Americans over $90 billion each year [1]. - Americans waste over $21.6 billion in time due to healthcare administrative issues [1]. - The total financial burden of the "annoyance economy" amounts to $165 billion annually, factoring in both direct financial losses and the value of wasted time [4]. Group 2: Customer Service Trends - The time spent by Americans on customer service calls has increased by 60% over the past 20 years, as companies reduce customer service quality to enhance revenue [2]. - Companies are intentionally complicating simple tasks to maximize profits, often by shifting from ownership models to subscription-based services [5]. Group 3: Subscription Economy - The economy is increasingly leaning towards subscription models, where consumers pay monthly fees for services rather than owning products outright [6]. - Difficult cancellation processes for subscriptions can lead to corporate revenue increases of over 200% [6].

Group 1 - DoorDash Inc (NASDAQ: DASH) stock increased by 2.8% to $178.28 despite missing both top and bottom line estimates for the fourth quarter, driven by a 32% year-over-year surge in orders and a 38% revenue increase [1] - The stock is on track for its third consecutive gain and experienced its best single-session increase since April, recovering from a pullback to $160, although it has not yet surpassed its descending 20-day moving average, which has acted as resistance since January [2] - Year-to-date, DoorDash stock has declined over 19%, with short-term options traders showing a predominantly bearish sentiment reflected in a put/call open interest ratio of 0.64, which is in the 87th percentile of the past year [2] Group 2 - Today's options activity shows significant trading volume with 18,000 calls and 19,000 puts, which is ten times the typical volume for this time, indicating heightened market interest [3] - The most actively traded options include the February 200 call and the 160 put, with new positions being opened in both contracts [3]

DoorDash - DoorDash reported earnings of 48 cents per share on revenue of $3.96 billion, which missed expectations, as the market was looking for 59 cents per share [2][3] - Total orders increased by 32% year-over-year, and gross order value surged by 39% [2][3] - The CEO emphasized strong momentum and a long-term investment strategy, including plans for autonomous delivery and technology upgrades [4] Wayfair - Wayfair experienced a significant drop in stock price, down 13%, despite beating adjusted earnings expectations with 85 cents per share against a forecast of 66 cents [6][7] - The company reported a larger-than-expected unadjusted loss of 89 cents per share, compared to an expected loss of just 1 cent, impacted by equity-based compensation and debt repurchases [7][8] - New customer growth continued for the third consecutive quarter, with orders per customer rising by 3.7%, although the total active customer base declined slightly [8][9] Deere - Deere's stock rose by 7% after reporting better-than-expected results, with earnings per share of $2.42 compared to an expected $2.06, and sales of $9.61 billion against a forecast of $7.69 billion [11][12] - The company provided a positive sales growth outlook, indicating that its segments are outperforming their respective industries [12] - Despite a slight year-over-year decline typical for the first quarter, the results exceeded expectations, suggesting stabilization in the industry [13]

Core Viewpoint - Doordash's stock experienced a rally despite disappointing fourth-quarter results, as Wall Street recognized early progress in the company's investment cycle [1][2]. Group 1: Financial Performance - The company reported earnings that fell short of Wall Street's expectations on both revenue and profit, leading to an initial drop of about 10% in shares during extended trading [1]. - Doordash anticipates a $20 million impact from recent U.S. winter storms and increased order costs due to investments in longer-distance deliveries and cost increases in regulated markets [2]. Group 2: Investment Strategy - The company is expected to continue investing in Deliveroo, the British delivery platform acquired last year, which is projected to negatively impact adjusted EBITDA in the first quarter [2]. - Analysts noted that Doordash's investments are beginning to show signs of early payoff, contributing to a positive outlook despite the subpar results [2]. Group 3: Analyst Insights - Morgan Stanley analyst Brian Nowak highlighted that Doordash's businesses are strong and accelerating, with improving unit economics that support durable growth and further investment [3].

Core Insights - DoorDash reported fourth quarter results that slightly missed Wall Street's expectations on both revenue and earnings per share, but total orders exceeded forecasts [1][2] Financial Performance - Earnings per share for the fourth quarter were $0.48, compared to the expected $0.55 [1] - Revenue grew 28% year over year to $3.96 billion, slightly below the nearly $4 billion forecasted by Wall Street [2] - Adjusted EBITDA reached $780 million, up 38% year over year and nearly $5 million above estimates [1] Order Metrics - Total orders increased by 32% to 903 million, surpassing the anticipated 888 million [2] - Marketplace Gross Order Value (GOV) was $29.7 billion, exceeding the expected $29.1 billion, driven by new customer growth and increased order rates in the US restaurant category [3] Future Guidance - For the first quarter of 2026, DoorDash expects marketplace GOV to be between $31.0 billion and $31.8 billion, above the Street's forecast of $30.75 billion [4] - Adjusted EBITDA for the first quarter is projected to be between $675 million and $775 million, which is below the Street's prediction of $800 million [4] Stock Performance - Following the results, DoorDash's stock fell as much as 8%, and shares had lost about 20% year-to-date through Wednesday's close [3]

Carvana (CVNA) - Carvana sold more cars than Wall Street expected in Q4, but concerns over profitability led to a 16% drop in premarket trading [5] - The company experienced a 58% surge in revenue, with retail vehicle sales up 43% and wholesale sales increasing by 66% [5] - However, gross profit per vehicle declined by $244, and adjusted EBITDA of $511 million missed estimates of $539 million [6] - Adjusted profits per share surged to $4.22 from $0.56, but this was attributed to one-time charges and is not comparable to the $1.12 estimates [6] - Carvana did not issue sales guidance for the full year but expects to sell 3 million cars between 2030 and 2035 [7] DoorDash (DASH) - DoorDash shares rose 13% in premarket trading due to strong order growth and upbeat guidance, despite a Q4 miss on both top and bottom lines [7] - Orders climbed 32% to 903 million, and gross order value (GOV) jumped 39% to $29.7 billion, both exceeding expectations [7] - The Q1 outlook for GOV is projected between $31 billion and $31.8 billion, with EBITDA expected to be between $675 million and $775 million [7] Moderna (MRNA) - Moderna shares closed 6% higher after the FDA accepted its marketing application for the mRNA-1010 flu shot, reversing a previous refusal to review [8] - The FDA has set August 5, 2026, as the target action date for the biologics license application (BLA) for mRNA-1010 [9] - Moderna plans to launch mRNA-1010 in the U.S. for adults aged 50 and older for the 2026/2027 flu season [10]

Group 1: Berkshire Hathaway and Warren Buffett's Legacy - Warren Buffett has stepped down as CEO of Berkshire Hathaway but remains chairman of the board, with his investment legacy continuing through the company's equities portfolio [1] - Berkshire Hathaway is known for its long-term investment strategy, suggesting that stocks chosen by Buffett will likely remain in the portfolio for many years [2] - In his final years as CEO, Buffett sold 29% of Berkshire's stake in Bank of America while increasing investments in Domino's Pizza for four consecutive quarters [2][4] Group 2: Bank of America and Market Performance - Despite selling a portion of its Bank of America holdings, the bank remains one of Berkshire's top positions, being the third-largest in the portfolio by the end of Q3 2025 [4] - Large bank stocks have recently performed well, but there are growing concerns about valuations, leading to a sell-off in this subsector as 2026 begins [5] Group 3: Domino's Pizza Investment - Berkshire Hathaway purchased approximately $1.3 billion worth of Domino's Pizza stock by the end of Q3 2025, despite the company's stock being down over 21% in the past year due to competition and inflation [6][8] - Domino's Pizza is recognized for its resilience, benefiting from the recession-proof nature of pizza and its ability to capture market share [9] - The company is tech-forward with a well-designed app and delivery system, and management plans to improve performance through value offerings, new menu items, and a focus on profitable growth [9]

Market Overview - Major U.S. indices closed higher, with the Dow Jones Industrial Average rising 0.26% to 49,662.66, the S&P 500 advancing 0.56% to 6,881.31, and the Nasdaq climbing 0.78% to 22,753.63 [1] Carvana Co. (NYSE:CVNA) - Carvana shares rose 3.02% to close at $361.53, with an intraday high of $366.26 and a low of $339.15; however, the stock crashed nearly 15% to $307.70 in after-hours trading [1] - Carvana reported strong fourth-quarter results, with revenue rising 58% year-over-year to $5.60 billion, exceeding the $5.26 billion consensus estimate, and sold 163,522 vehicles, up 43% from a year ago [2] - Adjusted EBITDA reached $511 million with a 9.1% margin, reflecting improved unit economics despite a sequential dip in profitability [2] Figma Inc. (NYSE:FIG) - Figma shares rallied in extended trading after delivering strong fourth-quarter results, reporting EPS of 8 cents, surpassing the 7-cent estimate, and revenue rose to $303.78 million from $216.95 million a year earlier, ahead of the $293.15 million consensus [3] - Looking ahead, Figma guided first-quarter revenue of $315 million to $317 million, well above estimates, and projected full-year fiscal 2026 revenue of $1.37 billion to $1.374 billion, reinforcing confidence in continued growth [4] DoorDash Inc. (NASDAQ:DASH) - DoorDash posted EPS of 48 cents, below the 60-cent consensus, while revenue of $3.96 billion came in just shy of the $3.99 billion estimate, though significantly up from $2.87 billion a year ago [5] - For the first quarter, DoorDash expects marketplace GOV between $31 billion and $31.8 billion and adjusted EBITDA of $675 million to $775 million, as investors weigh continued growth against the earnings miss [5] Occidental Petroleum Corporation (NYSE:OXY) - Occidental Petroleum shares rose 2.55% to $47.11, with an intraday high of $47.43 and a low of $46.26; in after-hours trading, the stock rose 2.95% to $48.50 [6] Rackspace Technology Inc (NASDAQ:RXT) - Rackspace announced a strategic partnership with Palantir Technologies, leading to a dramatic rally as the company aims to enhance its deployment of Palantir's Foundry and AI Platform [7]

Core Insights - DoorDash is positioning itself as a technology and infrastructure partner for local commerce, moving beyond meal delivery to own the software and logistics stack [1][2] - The company aims to maximize long-term free cash flow and sees its acquisition of Deliveroo as a key part of this strategy, with Deliveroo expected to contribute approximately $200 million in EBITDA this year [2][9] - DoorDash is evolving into a broader commerce platform that integrates software, advertising, fulfillment, and autonomy to empower local businesses against larger digital competitors [10] Financial Performance - In the fourth quarter, DoorDash reported a revenue increase of 38% year over year, reaching $3.955 billion, with a GAAP net income of $213 million and adjusted EBITDA of $780 million [9] - For the full year, the company achieved total revenue of $13.7 billion and net income attributable to common stockholders of $935 million [9] - Management anticipates a slight increase in adjusted EBITDA margin for 2026 compared to 2025, excluding Deliveroo [9] Strategic Initiatives - The company is investing in SevenRooms, a guest experience and customer relationship management platform, to enhance merchant relationships by combining software with consumer demand [3] - DoorDash is advancing its in-house advertising technology platform, Symbiosys, which allows restaurants and retailers to purchase sponsored placements, contributing to the scaling of its ads business alongside core order growth [4] - The logistics strategy includes a "mixed fleet" model where independent contractors (Dashers) will work alongside autonomous vehicles, optimizing delivery assignments based on complexity and distance [8]