Why DoorDash Shares Are Rising Today

DoorDash Inc DASH is trading higher Wednesday after the company announced better-than-expected third-quarter revenue results and issued guidance.

DoorDash reported quarterly revenue of $1.27 billion, which beat the estimate of $1.18 billion. The company reported a quarterly earnings loss of 30 cents per share.

DoorDash expects fourth-quarter adjusted EBITDA to be in a range of $0 to $100 million. The company expects fourth-quarter gross order value to be in a range of $10.3 billion to $10.7 billion.

"We caution investors that significant uncertainty remains and consumer behavior could deviate from the expectations included in our guidance," DoorDash noted.

DoorDash said it had over 9 million DashPass members at the end of the third quarter.

"DoorDash's mission is to grow and empower local economies. We have invested heavily to drive economic growth and strengthen our marketplace through product improvements, added selection, and economic benefits for our key constituents," DoorDash said.

DoorDash also announced that it entered into a definitive agreement to acquire Wolt in an all-stock transaction.

Wolt is a technology company that makes it easy to discover local restaurants, grocery stores and other local shops.

Analyst Assessment: Multiple analyst firms weighed in on the stock following DoorDash's financial results:

• Gordon Haskett analyst Robert Mollins downgraded DoorDash from Buy to Hold.
• Needham analyst Bernie McTernan maintained DoorDash with a Buy rating and raised the price target from $240 to $270.
• Mizuho analyst James Lee maintained DoorDash with a Neutral rating and raised the price target from $175 to $205.
• RBC Capital analyst Brad Erickson maintained DoorDash with an Outperform rating and raised the price target from $210 to $260.

See Also: Analysts Bump Up DoorDash Price Target Post Q3 Result, Wolt Deal

DASH Price Action: DoorDash has traded as high as $256.09 and as low as $110.13 over a 52-week period.

The stock was up 16.50% at $223.70 at time of publication.

Photo: GoToVan from Flickr.