DoorDash stock soared Thursday in reaction to the company's fourth-quarter results that missed earnings estimates but beat on revenue and came with a first-quarter outlook above expectations. The results were posted late Wednesday.
DoorDash reported an adjusted loss of 45 cents a share on revenue of $1.3 billion. Analysts expected DoorDash to report a loss of 25 cents on revenue of $1.28 billion. the results were reported late Wednesday.
However, for its first quarter, DoorDash expects gross order value to be in the range of $11.4 billion to $11.8 billion. The midpoint of $11.6 billion is above analyst estimates for $11.4 billion, according to FactSet. It also showed a record number of orders were placed in the fourth quarter, topping estimates.
DoorDash, which rocketed more than 17% in morning trading, later fell 1.6%, closing at 183.61 on the stock market today. In February, DoorDash stock hit an all-time low of 91.96. The stock had its initial public offering in December 2020 with an IPO price of 102.
"Demand on our Marketplace grew substantially in 2021, exceeding our expectations and the expectations of many who questioned the sustainability of demand as restaurants reopened," the company said in its letter to shareholders.
Revenue jumped 34% from the year-ago period. Total orders grew 35% to 369 million, both topping expectations.
DoorDash Stock: In A Competitive Market
DoorDash is the largest food-delivery company in the U.S.
The meal delivery market is consolidating and highly competitive. In November, DoorDash announced it would acquire Wolt Enterprises, a European provider of food delivery services, in an all-stock deal valued at $8.1 billion. DoorDash stock surged 11.6% on the announcement.
In 2020, European food delivery company Just Eat Take-away acquired GrubHub in an all-stock deal valued at $7.3 billion. In addition, Uber Technologies acquired Postmates for $2.65 billion.
Last week, DoorDash unveiled a new program that could give DoorDash stock a lift. Called DoorDash Capital, it will offer cash advances to eligible restaurants. Restaurants can use the money to buy equipment, pay rent or cover other costs like hiring and marketing. Restaurants will repay the advance via deductions from their DoorDash earnings.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
