DASH +42.76% in 7 Days: Q3 Revenue Beats, EPS Misses, 2026 Investment Plans Trigger After-Hours Selloff

On Nov. 6, 2025, DASH rose by 0.9% within 24 hours to reach $102.47, DASH rose by 42.76% within 7 days, rose by 98.92% within 1 month, and rose by 177.58% within 1 year. This significant rally contrasts sharply with the stock's after-hours reaction following DoorDash’s third-quarter earnings report on Nov. 5, when it plummeted in response to a mixed performance and forward-looking guidance.

DoorDash reported Q3 revenue of $3.45 billion, beating estimates of $3.36 billion. Total Orders increased by 21% year-over-year to 776 million, and Marketplace Gross Order Value (GOV) reached $25.0 billion, up 25% year-over-year. Despite these strong top-line results, earnings per share (EPS) came in at $0.55, falling below the $0.68–$0.69 consensus. This earnings miss, combined with management’s guidance for increased 2026 spending, caused immediate market concern.

DASH dropped by approximately 16% in after-hours trading. The decline reflected investor concerns over the projected increase in 2026 spending on new initiatives and platform development. DoorDash’s management stated it expects to invest “several hundred million dollars” more in 2026 than in 2025, signaling a potential near-term hit to profitability. Additionally, the recent acquisition of Deliveroo is expected to reduce its 2026 EBITDA contribution by $32–$40 million due to accounting alignment, further clouding the company’s outlook.

Despite these challenges, DoorDash’s operational strengths remain evident. The company reported a net revenue margin of 13.8%, up from 13.5% a year ago, and generated $723 million in free cash flow for Q3. Deliveroo’s integration is expected to contribute $45 million to Q4 Adjusted EBITDA, with longer-term benefits anticipated in 2026. The firm also highlighted expanded partnerships and new verticals, including grocery and retail, as key drivers of future growth.

Analysts project that the market’s focus will remain on DoorDash’s capital allocation strategy and execution of 2026 investment plans. The company’s buyback authorization of $5 billion, as of February 2025, remains unused, and any activation could serve as a positive catalyst for the stock. However, given the current trajectory of DASH’s after-hours decline and the emphasis on reinvestment, near-term volatility is expected to persist.

Backtest Hypothesis

To evaluate how stocks like DASH react to earnings misses, a backtesting strategy can be designed using historical data from 2022 to the present. This approach assumes a fixed position size, a defined stop-loss, and a take-profit level to assess risk-adjusted returns. The primary objective is to simulate the performance of a portfolio that enters trades on the day of an earnings miss and exits after a set number of days, with adjustments for market conditions.

The backtest uses a set of price series—typically closing prices—to measure returns. A stop-loss is placed at a predetermined percentage below the entry price to limit downside risk, while a take-profit target is set based on historical volatility or a fixed percentage above the entry. Holding periods are generally short-term, ranging from 3 to 7 days, to capture immediate market reactions without overexposure to longer-term volatility.

For DASH, the earnings miss event on Nov. 5 could be used as a test case. If the strategy had entered the stock at the close on Nov. 5, a 16% stop-loss would have triggered an exit in line with the after-hours drop. Conversely, a take-profit set at 10% would not have been reached, illustrating the potential risks of trading in a high-volatility environment following earnings events.