Tuesday's Market Minute: Previewing DoorDash Earnings

DoorDash DASH is scheduled to report earnings after the bell today; Zacks expects a loss per share of $0.27 and revenue of $1.18 billion dollars. The company has never reported a positive EPS. Investors will likely be looking for strong delivery growth: Uber’s earnings on November 4 showed UberEats UBER delivery gross bookings reaching $12.8 billion, up 50% over the quarter last year. This shows that despite some return to normalcy, delivery is staying popular, and has maybe become more habitual for consumers – which could be a good sign as the weather gets colder. DoorDash also offers annual or monthly memberships to see recurring revenue and encourage consumers to spend more on the app, but are the benefits outweighed by the discount expenses for the company? If DoorDash posts guidance that expects delivery to slow as the reopening continues, or doesn’t have a path to profitability, we could see shares fall.