DoorDash's Volatile Week: Analysts Remain Optimistic Amidst Challenges

DoorDash experienced significant stock volatility recently, particularly after its fourth-quarter earnings report on February 18, 2026, which fell short of expectations. Initially, shares dropped by as much as 12% in extended trading, compounded by a forecast that indicated investments in Deliveroo and its international operations would negatively impact future profits. Despite this setback, the stock rebounded, closing 2% higher the following trading session, as CEO Tony Xu reassured investors during a conference call about the long-term benefits of these investments. Analysts remain optimistic, with many viewing DoorDash as a "core holding" for internet investors, predicting a potential 45% increase in share value.

CNBC

Analysts highlight several avenues for DoorDash's growth, particularly through its investment in Deliveroo, a British food delivery service acquired in 2025. Citizens analyst Andrew Boone emphasized the potential for revenue growth from Deliveroo and advertising, noting that the product still has significant room for improvement. Mark Mahaney from Evercore pointed out that DoorDash's order growth of 20% is consistent and that the company's gross order value remains strong, suggesting a revenue growth rate of 20% could be sustainable. Jason Helfstein of Oppenheimer echoed this sentiment, indicating that DoorDash's margins are expected to improve in the second half of the year.

CNBC

While DoorDash faces competition from major players like Amazon and Walmart, analysts believe there is sufficient market space for multiple companies to thrive. During the earnings call, Xu addressed concerns regarding Amazon's grocery delivery services, asserting that DoorDash's diverse offerings from various independent grocers and retailers provide a competitive advantage. Helfstein also noted the strategic acquisition of the reservation platform SevenRooms, which could enhance DoorDash's understanding of customer preferences and facilitate personalized recommendations.

CNBC

Despite the optimism, some investors expressed concern over DoorDash's investment in Deliveroo, viewing it as a potential negative impact on profitability. However, analysts like Mahaney argue that these investments are made from a position of strength and are essential for long-term growth, particularly in international markets.

CNBC

• "I fundamentally think DoorDash is a 'core holding' for internet investors." — Andrew Boone, Citizens Analyst

CNBC

• "Those are the areas they're investing in, and I think the market is generally okay with those investments because they're viewed as coming from a position of strength." — Mark Mahaney, Evercore Analyst

CNBC

• "They now offer an almost complete front-of-house platform for restaurants." — Jason Helfstein, Oppenheimer Analyst

CNBC

Despite recent volatility and mixed investor sentiment, DoorDash's strategic investments and growth potential in both domestic and international markets position it favorably for future success. Analysts maintain a positive outlook, suggesting that the company can navigate challenges and capitalize on emerging opportunities in the food delivery sector.

CNBC