DoorDash Stock Jumps 14% on Strong Order Growth Predictions

Food delivery giant DoorDash saw its stock price surge nearly 14% after predicting stronger-than-expected order volumes for the first quarter. The company's optimistic forecast comes as consumers continue embracing the convenience of food delivery despite rising living costs.

Food delivery giant DoorDash sent its stock soaring nearly 14% in after-hours trading Wednesday after the company projected first-quarter order volumes that exceeded Wall Street expectations.

The California-based delivery service anticipates its marketplace gross order value — the total dollar amount of orders processed through its platform — will reach between $31 billion and $31.8 billion during the current quarter. This projection surpasses analyst predictions of $29.61 billion, according to LSEG data.

DoorDash continues to capitalize on Americans’ growing preference for convenience, with order volume climbing 32% compared to the same period last year. This mirrors similar growth patterns seen at competitor Uber, which reported strong delivery booking increases earlier this month.

“DoorDash’s ability to continue drawing in new customers and encourage existing customers to order more frequently shows that the platform’s convenience proposition is resonating strongly with consumers, even with growing cost-of-living pressures,” said eMarketer analyst Rachel Wolff.

The company is currently investing heavily in a comprehensive technology overhaul designed to merge its various brands — including DoorDash, Wolt and Deliveroo — into one unified platform. Company leadership announced in November plans to spend several hundred million dollars by 2026 on new products and technological improvements.

These substantial investments are impacting the company’s bottom line, with DoorDash projecting first-quarter adjusted earnings before interest, taxes, depreciation and amortization between $675 million and $775 million. This falls short of the $798.22 million average analyst forecast.

The online food delivery sector remains fiercely competitive, with companies like Instacart and Uber Eats continuously launching new partnerships and promotional campaigns to capture market share.

For the quarter ending December 31, DoorDash’s marketplace gross order value increased 39% to $29.68 billion year-over-year, beating analyst estimates of $27.65 billion. However, the company reported earnings of 48 cents per share, falling below the expected 59 cents.