Wedbush analysts on Thursday reduced their target price on DoorDash Inc (NYSE:DASH) to $260 per share from $280, while reiterating their ‘Neutral’ rating, after the food delivery platform’s third quarter 2025 earnings missed expectations.
The company generated earnings for the period of $0.55 per share, falling short of the Wall Street consensus forecast of $0.69.
Its revenue for the quarter, however, climbed 27% year over year to $3.45 billion, better than the $3.36 billion expected.
“While we hold a constructive view of DoorDash given management's track record of strong execution in recent periods and leading competitive position within the US food delivery market, we remain sidelined and will continue to watch for changes in the demand environment,” Wedbush analysts wrote in note to clients.
They also weighed in on DoorDash’s plan to spend several hundred million dollars on incremental strategic investments throughout 2026, believing the initiatives are justified, even as it weighs on the company’s margins short term, as it will expand DoorDash's addressable market on a global scale and support more durable long-term growth.
The analysts added that DoorDash’s acquisition of Deliveroo will negatively impact its earnings before interest, taxes, depreciation, and amortization (EBITDA) contribution in the coming quarters, due to certain differences in accounting treatments used by Deliveroo before the acquisition.
DoorDash shares fell 15% in late-morning trading on Thursday.