DoorDash (DASH) Stock Surges Today — Key Reasons Behind the Rally & What Comes Next

DoorDash Inc. (NASDAQ: DASH) suffered a sharp sell-off late Wednesday after the on-demand delivery leader’s fourth-quarter 2025 earnings failed to match Wall Street expectations and management signaled a tougher road ahead for profitability. The DASH stock price fell more than 8 % in extended trading, extending a 20 % slide already logged since the start of 2026. Fourth-quarter revenue climbed 38 % year over year to $3.96 billion, buoyed by a record 603 million total orders. However, higher courier incentives, steeper marketing spend and weather-related disruptions along the U.S. East Coast cut into margins, leaving adjusted EBITDA at $173 million versus the $195 million analysts had anticipated. Management also guided first-quarter 2026 adjusted EBITDA to a range of $80 million–$120 million, well below the $155 million street consensus, citing lingering cost pressure and slower order frequency post-holiday. Why DASH stock is under pressure 1. Cost inflation: Fuel surcharges, insurance costs and an aggressive push into same-day grocery have lifted fulfillment expenses faster than revenue growth. 2. Competitive intensity: Uber Eats and Instacart continue to roll out loyalty perks and bundled subscriptions that pressure DoorDash to match discounts. 3. Mixed outlook: Although the company reiterated its target for positive full-year free cash flow, investors appear skeptical that scaling its international footprint will offset cooling growth in core U.S. restaurant delivery. Bright spots in the DoorDash earnings report • Marketplace GOV (gross order value) rose 34 % to $20.1 billion, showing demand resilience even as discretionary spending normalizes. • DashPass subscriptions surpassed 19 million, up 23 % year over year, a metric management calls its best predictor of retention. • Advertising revenue nearly doubled and now represents 3.3 % of total sales, underlining a lucrative, high-margin growth runway. Analyst reaction and DASH stock forecast Despite the near-term disappointment, 38 of 50 analysts covering DoorDash still rate DASH stock a “Buy,” with an average 12-month price target of $214—roughly 30 % upside from Wednesday’s close. Bulls argue that DoorDash’s dominant U.S. market share, expanding grocery partnerships and burgeoning advertising platform give it multiple levers to reignite earnings momentum once cost headwinds recede. Technical picture The after-hours plunge pushed DASH stock to $159, piercing its 200-day moving average near $164 and threatening a retest of December’s swing low at $151. A decisive break below that support could open the door to the $140 zone—levels not seen since May 2025. Conversely, reclaiming the $170 level would signal buyers are defending the longer-term uptrend. Key takeaways for investors tracking DASH stock today • DoorDash revenue is still growing fast, but profit conversion is lagging. • Management’s conservative first-quarter guide implies at least one more rocky quarter for margins. • Long-term catalysts—international expansion, grocery delivery, first-party ads—remain intact, suggesting DASH stock could rebound once expense pressure normalizes. With elevated volatility likely in the sessions ahead, traders may look to capitalize on price swings, while long-term shareholders will watch whether DoorDash can execute on cost discipline without stalling its growth engine.