DoorDash Inc (NYSE:DASH) shares were up 9% ahead of the opening bell on Thursday, reversing a sharp sell-off triggered by disappointing fourth-quarter results from the food delivery platform.
The stock initially plunged 10% after the company missed analyst expectations on both earnings and revenue, reporting earnings per share of $0.48 against forecasts of $0.59, with revenue of $3.96 billion falling short of the $3.99 billion expected.
Despite the misses, revenue grew 38% year on year, total orders rose 32% to $903 million, and marketplace gross order value, which tracks the total dollar value of orders placed through its platform, jumped 39% to $29.7 billion.
Investors were rattled by guidance for the first quarter, with DoorDash forecasting adjusted earnings before interest, tax, depreciation and amortization of between $675 million and $775 million, against analyst estimates of $802 million.
Chief executive Tony Xu acknowledged that integrating DoorDash, Deliveroo and Wolt into a single platform was a "massive and expensive undertaking" but defended the company's investment strategy.
DoorDash shares are down 21% year-to-date.