You know that friend who shows up late to dinner but somehow still charms everyone at the table? That’s basically what DoorDash did with their Q4 earnings this week.
Here’s the setup: DASH missed both their revenue target ($3.96B vs $3.99B expected) and earnings per share ($0.48 vs $0.59 expected). In normal world logic, missing your targets = bad news. But this is Wall Street, where sometimes 2+2 equals “actually, let’s talk about the bigger picture.”
The stock initially did what you’d expect – it tanked in after-hours trading. Investors saw those headline numbers and hit the sell button faster than you can say “contactless delivery.” But then something interesting happened: people actually read the details.
The Plot Twist Nobody Saw Coming
Turns out, DoorDash’s “disappointing” quarter was actually pretty impressive when you zoom out. They delivered 903 million orders (up 32%), their gross order value hit $29.7 billion (up 39%), and revenue still grew 38% year-over-year. Sure, they missed the exact number Wall Street wanted, but they’re clearly not struggling to find customers.
The real kicker? They made $935 million in actual profit for the full year. Remember when everyone thought food delivery companies were just fancy money-burning machines? Those days are apparently over.
Why Investors Changed Their Minds
The turnaround happened when DoorDash started talking about their future plans, and honestly, they sound pretty solid. Their international expansion is actually working – shocking, I know. The Deliveroo acquisition they made last year is already contributing $45 million in quarterly profits and should add around $200 million in 2026.
Plus, they’re not just about food anymore. They’re pushing into grocery and retail delivery, which is smart because apparently we’ve all decided walking to stores is so 2019. These new verticals are expected to turn profitable in the second half of 2026.
And here’s the membership angle: DashPass now has over 35 million subscribers. That’s recurring revenue, which Wall Street loves more than a good earnings beat.
The Reality Check
Before you start throwing money at DASH stock, let’s pump the brakes. The company is trading at about 81 times their trailing earnings, which is basically saying “we think this company will grow like crazy forever.” That’s a pretty expensive bet.
Wall Street analysts are predicting 49% annual earnings growth over the next five years, which would justify the high price tag. But that’s a lot of pressure to perform perfectly, and we all know how that usually goes.
The smart play? Maybe wait for the stock to come back down to earth a bit before jumping in. DoorDash clearly has momentum, but paying premium prices for growth stocks is like ordering delivery during surge pricing – sometimes it’s worth it, but you better be really sure you want that meal.