Doordash Shares Tumble As Investors Reject Costly Expansion Plans

Benzinga

DoorDash shares fell 17% after the company signaled it will spend heavily on autonomous delivery and platform upgrades, pushing near-term costs higher. Q3 EPS missed expectations, though revenue rose 27%. CEO Tony Xu defended the long-term growth strategy despite investor pushback.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02DoorDash shares plunged 17%, marking their worst session on record after investors rejected its

00:07aggressive spending plans, according to CNBC. Food Delivery app plans to spend several hundred

00:11million dollars next year on initiatives like autonomous delivery and a new global tech stack,

00:16acknowledging short-term costs for long-term gains. CEO Tony Zhu invented the strategy,

00:21saying the company has a proven track record of investing for growth.

00:24The Replatform's Q3 earnings came in at 55 cents per share, below estimates of 69 cents.

00:29Revenue rose 27% to $3.45 billion, topping expectations.

00:34Wells Fargo analysts and long-term investors may stay supportive,

00:38but more than inconsistent disclosure may test patience.

00:41For all things money, visit Benzinga.com.

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