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)
