Doordash's stock plummeted toward its worst session ever as investors rejected the company's aggressive spending strategy.The food delivery platform said it plans to shell out "several hundred million dollars" next year on new product initiatives like autonomous delivery and a new global tech stack. These plans will improve its product globally, but involve "direct and opportunity costs" in the short run, Doordash said.CEO Tony Xu defended the company's spending decisions during the earnings call with analy ...

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What Happened? Shares of on-demand food delivery service DoorDash (NYSE:DASH) fell 15.5% in the morning session after the company reported third-quarter results that missed profit expectations and provided a weaker-than-expected forecast for the upcoming quarter, raising concerns about future profitability. While the food delivery service's revenue of $3.45 billion for the third quarter surpassed analyst estimates, its GAAP earnings per share of $0.55 fell short of the consensus forecast of $0.68. More im ...

Core Insights - Uber Technologies Inc. reported strong third-quarter results, with earnings per share of $1.20, significantly exceeding analyst expectations of $0.69 [1] - Revenue increased by 19% to $13.47 billion, while gross bookings rose by 21% to $49.7 billion compared to the previous year [2] - Adjusted EBITDA saw a 33% increase, totaling $2.3 billion, and trip volume surged to 3.5 billion, driven by growth in active users and rider engagement [2] Financial Performance - The company’s revenue for Q3 was $13.47 billion, reflecting a 19% year-over-year growth [2] - Gross bookings reached $49.7 billion, marking a 21% increase from the previous year [2] - Adjusted EBITDA increased by 33% to $2.3 billion [2] Future Outlook - For Q4, Uber's guidance is conservative, expecting gross bookings between $52.25 billion and $53.75 billion, and adjusted EBITDA ranging from $2.41 billion to $2.51 billion, slightly below market expectations [3] - CEO Dara Khosrowshahi highlighted the importance of continued investment in customer relationships and AI-driven innovation for future growth [3]

Core Viewpoint - DoorDash reported mixed third-quarter results, with strong demand for food delivery but earnings falling short of analyst expectations, leading to a significant drop in stock price [1][12]. Financial Performance - DoorDash earned 55 cents per share for the September-ended quarter, a 44% increase year-over-year, but below the expected 68 cents per share [2]. - Sales rose 27% to $3.45 billion, surpassing analyst estimates of $3.36 billion [2]. - The total value of orders on DoorDash's platforms grew 25% year-over-year to $25 billion, exceeding the forecast of $24.5 billion [3]. Future Guidance - For the current quarter, DoorDash projected a gross order value of $29.2 billion, higher than the analyst projection of $26.55 billion [4]. - The adjusted EBITDA forecast for Q4 is $760 million, which is below the analyst estimate of $807 million [4]. Investment Strategy - DoorDash plans to invest "several hundred million dollars more" in new initiatives and platform development in 2026 compared to 2025 [5]. - The investments aim to create a global technology platform to unify DoorDash's app with those of Wolt and Deliveroo, enhancing efficiency in feature deployment [6]. Product Development - Recent product launches include a delivery robot named Dot and DashMart Fulfillment Services, which partners with retailers like CVS for rapid delivery [7]. Analyst Sentiment - Despite concerns over new investments impacting growth, some analysts maintain a positive outlook, citing DoorDash's strong execution and improving margins in its core business [9][11]. - Analysts have adjusted their price targets for DoorDash stock, with JPMorgan lowering it to 300 from 325 and Truist to 330 from 340 [10]. Stock Market Reaction - Following the earnings report, DoorDash stock fell over 14% to 203.64, marking a significant decline from its record high of 285 reached on October 16 [12].

Market Overview - Major U.S. index futures indicate a modestly higher open, with stocks expected to build on gains from the previous session [1] - Concerns about an AI bubble and potential corrections persist, but the current momentum appears to be upward [2] Employment and Layoffs - U.S.-based employers announced 153,074 job cuts in October, a 183% increase from September and a 175% rise from October of the previous year [3] - Year-to-date job cuts reached 1,099,500, the highest level since 2020, driven by AI adoption, reduced consumer spending, and rising costs [4] Individual Stock Movements - Snap (SNAP) shares surged by 19.5% in pre-market trading following a $500 million stock buyback announcement and strong revenue guidance for Q4 [5] - AppLovin (APP) also saw significant pre-market strength after better-than-expected Q3 results [5] - Conversely, DoorDash (DASH) shares fell by 10.6% after reporting Q3 earnings that missed analyst expectations [6] Economic Data - Private sector employment increased by 42,000 jobs in October, rebounding from a revised loss of 29,000 jobs in September, exceeding economists' expectations [9] - The ISM services PMI rose to 52.4 in October, indicating growth, after a reading of 50.0 in September [10] Sector Performance - Airline stocks showed substantial strength, with the NYSE Arca Airline Index rising by 5.8% [11] - Biotechnology stocks also performed well, reflected by a 3.1% increase in the NYSE Arca Biotechnology Index [11] - Computer hardware and semiconductor stocks saw gains, with the NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index increasing by 3.1% and 3.0%, respectively [12] Commodity and Currency Markets - Crude oil futures rose by $0.41 to $60.01 per barrel, while gold futures climbed by $31.70 to $4,024.60 per ounce [13] - The U.S. dollar traded at 153.47 yen and $1.1537 against the euro [13] International Markets - Asian markets rose, with Japan's Nikkei 225 Index increasing by 1.3% and China's Shanghai Composite Index jumping by 1.0% [17][16] - European stocks drifted lower despite a recovery in the U.S. market, with Germany's industrial production expanding by 1.3% in September [22]

Group 1 - Dow Jones, S&P 500, and Nasdaq futures showed little change early Thursday, indicating a mixed market sentiment [1] - Key earnings reports were released from companies including Robinhood Markets, AppLovin, ARM Holdings, DoorDash, and Qualcomm [1] - Tesla shareholders are set to vote on CEO Elon Musk's $1 trillion pay deal, with TSLA stock approaching a buy point [1] Group 2 - SiTime, a timing-chip maker, exceeded expectations for Q3 and raised guidance for Q4, resulting in a rise in its stock during extended trading [2] - AppLovin's stock increased due to better-than-expected earnings and guidance [4] - DoorDash's stock declined following an earnings miss, as the company is increasing its investments [4]

Core Viewpoint - DoorDash Inc. shares experienced a significant decline in extended trading following the announcement of substantial investment increases for the upcoming year and the recent acquisition of Deliveroo [1] Group 1: Company Developments - DoorDash plans to significantly increase its investments next year, indicating a strategic shift towards growth and expansion [1] - The recent acquisition of Deliveroo is a key factor in DoorDash's strategy, potentially impacting its market position and operational capabilities [1] Group 2: Market Reaction - The sharp drop in DoorDash's shares reflects investor concerns regarding the implications of increased spending and the integration of Deliveroo [1]

Core Insights - DoorDash plans to invest "several hundred million dollars more" in its platform and initiatives in 2026 compared to 2025 [1] - The company aims to accelerate the development of its global technology platform for product development and operations in 2026 [2] - DoorDash's stock price dropped by 9% following the announcement, as the company missed earnings estimates [3] Investment Strategy - DoorDash emphasizes a milestone-based investment approach, allocating time and resources appropriately at each development stage [3] - The investment in the technology platform is expected to enhance operational efficiency, while new product investments aim to address customer problems more effectively [4] Recent Developments - DoorDash's acquisition of Deliveroo, a local commerce platform, was completed on October 2 after receiving approval from a U.K. court [5] - The company expressed enthusiasm about the talent joining its team and the potential to improve the selection, quality, and affordability of Deliveroo's marketplace [6]

Market Overview - The market is thriving despite the ongoing government shutdown, which has entered Day 6 [1] - The S&P 500 increased by 0.4%, approaching its previous high record, while the Nasdaq Composite reached another record high, driven by AMD's 27% surge [4] - The small-cap Russell 2000 also hit a fresh high, up 0.6% at closing, while the Dow Jones Industrial Average closed lower by 0.1% [4] Company Performances - Advanced Micro Devices (AMD) saw a significant stock increase of 23.7%, attributed to a multiyear deal with OpenAI [2][5] - Tesla's stock rose by 5.4% following a new product launch, while Uber surged 3.6% due to positive news on driver unionization [2] - DoorDash's stock increased by 3.9% after confirming the acquisition of Deliveroo, marking a 68% year-to-date increase [6][7] - Verizon's stock declined by 5% after a CEO change did not yield positive results [3][5] Notable Stock Movements - The top-performing stocks included Advanced Micro Devices (+23.7%), Tesla (+5.4%), and Monolithic Power Systems (+5.4%) [5] - Conversely, the worst-performing stocks included Applovin Corp (-14%), Verizon Communications (-5.1%), and Starbucks Corp (-4.9%) [5] Strategic Developments - DoorDash's acquisition of Deliveroo positions it as a global leader in local commerce, enhancing its service capabilities for businesses, consumers, and couriers [6] - The introduction of new features like "Going Out" aims to improve user experience by providing a seamless way to discover and book dining options [8]