DoorDash Stock Rises as Booming Holiday Orders Boost Revenue
Key Takeaways
DoorDash (
DASH
) shares rose Wednesday, a day after the food delivery service posted strong sales and guidance as customers flocked to its platform during the holiday season.
The company reported fourth-quarter revenue jumped 25% year-over-year to $2.87 billion, beating the $2.84 billion estimate by analysts surveyed by Visible Alpha.
Total orders were up 19% to 685 million, 11 million more than expected. Adjusted
EBITDA
soared 56% to $566 million, also better than anticipated.
For the current quarter, DoorDash sees Marketplace Gross Order Value (GOV), which measures the total value of all app orders and subscription fees, of $22.6 billion to $23.0 billion. The Visible Alpha prediction was for $22.4 billion.
Following the report, JPMorgan boosted its price target to $205 from $155, and Deutsche Bank raised it to $246 from $224.
Shares of DoorDash rose 2.5% to their highest level since November 2021.
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