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Doordash
’s stock rallied on Thursday as Wall Street shook off disappointing fourth-quarter results and commended early progress in the food delivery platform’s investment cycle.
Shares initially fell about 10% in extended trading after earnings fell short of Wall Street’s expectations on the top and bottom lines and the company issued disappointing profit guidance.
In the first quarter, the company expects continued investments in Deliveroo, the British delivery platform it bought last year, to weigh on adjusted EBITDA. Doordash also anticipates a $20 million impact from recent U.S. winter storms and higher order costs driven by investments in longer-distance deliveries and cost increases in regulated markets.
