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DoorDash shares surge on revenue beat, stand out among pandemic darlings -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO A DoorDash sign can be seen on a New York City restaurant located in Manhattan, New York. This was taken December 9, 2020. REUTERS/Carlo Allegri/File Photo

(Reuters] – DoorDash Inc shares surged 26% premarket trade Thursday, after beating estimates for quarterly revenues. The news is a welcome relief to stay-at-home darlings who’ve seen stocks plummet post results.

Although the company saw a slower rise in revenue than the year before, it still showed that customers continue to order meals online. This helped ease some of the pressure on shares which fell close to a record on Wednesday.

DoorDash will have the best day in nine month if it holds on to premarket gains. Deliveroo Plc Europe rose 1%, and Delivery Hero rose 2%, respective.

Another pandemic winner, Roblox, a gaming firm, and Shopify (NYSE.) Inc took a blow this week, as more people have returned to normal pre-pandemic habits.

Video game companies Activision Blizzard Inc (NASDAQ:) and Electronic Arts Inc Peloton Interactive (NASDAQ) also released disappointing earnings forecasts for this earnings season. Meanwhile, shares in streaming service Netflix (NASDAQ) and exercise company Peloton Interactive(NASDAQ:) Inc fell after the results.

Solactive’s index provider has retraced almost all of its gains since COVID-19, which was declared a pandemic in 2019, and it is now down about 30% from its peak.

DoorDash has continued to enjoy the same popularity as its European counterparts Deliveroo and Delivery Hero, while restaurants are reopening.

Ipek Ozkardeskaya, Swissquote’s senior analyst, stated that the food delivery market is going to be around for the foreseeable future.

But, the focus of food delivery companies on revenue growth via aggressive expansion comes at a significant cost. They struggle to make a profit.

DoorDash posted a greater than anticipated loss. Analysts were forced to reduce their price targets.

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