According to CNBC, DoorDash just reported third-quarter 2025 earnings that completely missed analyst expectations, sending the stock plummeting 20% in response. The delivery giant revealed it expects to spend “several hundred million dollars” on new initiatives and development throughout 2026. Company leadership used a bizarre analogy in their earnings release, stating “We wish there was a way to grow a baby into an adult without investment, or to see the baby grow into an adult overnight, but we do not believe this is how life or business works.” This came alongside disappointing financial results compared to LSEG estimates. The immediate market reaction was brutal, wiping out a massive chunk of shareholder value in a single trading session.
The Spending Reality Check
Here’s the thing about that “baby into adult” analogy – it sounds reasonable until you realize investors have been hearing versions of this story for years. DoorDash has always operated on a growth-at-all-costs model, burning through cash to capture market share. But at some point, the market expects to see actual profitability, not just promises. The company’s earnings release suggests they’re doubling down on spending rather than showing discipline. Several hundred million dollars is serious money, even for a company of DoorDash’s size.
The Delivery Wars Continue
So what’s really happening here? Basically, the food delivery space remains brutally competitive. Uber Eats, Grubhub, and regional players are all fighting for the same customers and restaurants. DoorDash seems to be signaling that they can’t ease up on spending without losing ground. But investors are clearly getting impatient. How many more “investment phases” can one company have before shareholders demand actual returns? The 20% drop suggests Wall Street’s patience is wearing thin. They’re tired of the “just one more year” narrative when it comes to profitability.
The Long Game Question
Now, you could argue DoorDash is playing the long game. They’re building a delivery empire that could eventually dominate multiple categories beyond just food. But there’s a fundamental tension here between growth and sustainability. When you’re telling investors to expect several hundred million in additional spending while missing current earnings targets, you’re asking for a lot of faith. The delivery model has always been capital-intensive, but at some point the math needs to work. Today’s reaction shows that faith might be running out. And that’s a problem for a company that still needs investor patience to execute its vision.
