DoorDash shares jump as delivery demand fuels growth forecast

Feb 19 (Reuters) - Food delivery firm ‌DoorDash's shares ​surged about ​11% premarket on Thursday following a strong forecast for first-quarter marketplace gross order value, betting on steady demand and aggressive ‌expansion across businesses.

Demand for online grocery and food delivery is rising ⁠as budget-conscious shoppers prioritize convenience, even for essentials, a trend DoorDash has capitalized on with ‌steady gains in recent quarters.

Its ‌fourth-quarter total orders were up 32%, after rising 19% a year ago.

"Beyond restaurants, the US grocery and retail categories showed strength, with DASH attracting ​more new consumers in 4Q25 than in any prior quarter and driving improved initial engagement among newer cohorts," RBC Capital Markets analysts said ⁠in a note.

DoorDash now expects marketplace GOV, or the total dollar value of orders placed through its ​platform, to be between $31 billion and $31.8 billion in the current quarter, beating estimates of $29.61 billion, according to data compiled by ​LSEG.

Fierce competition in the online food-delivery market is ‌pushing firms such as DoorDash, Instacart and UberEats to step up partnerships and promotions to capture more market share.

DoorDash ⁠also said it plans to rebuild its tech system in 2026 to bring brands such as DoorDash, Wolt and Deliveroo onto a single platform, supported by several hundred ⁠million dollars of investment in new products and technology spending.

These investments, however, are expected to ​weigh on its profitability, with the first-quarter adjusted EBITDA target between $675 million to $775 million falling short of the $798.22 million estimates.

"DASH has a long runway for growth; reinvestment is in ‌the company's DNA, and this is not the last time we will end up debating an investment cycle — but ‌there is merit to the strategy," said Nikhil Devnani, analyst with Bernstein.

DoorDash's forward ⁠price-to-earnings ratio for the next ‌12 months, a common benchmark ​for valuing stocks, was 50.87, compared with Instacart's 14.66 and Uber's 20.75.

(Reporting by Anuja Bharat Mistry in Bengaluru; Editing by ‌Vijay Kishore)

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