DoorDash Shares Surge 16% After Third-Quarter Earnings Beat Expectations, Analysts Raise Forecasts

DoorDash's positive Q3 results include a 27% year-over-year increase in revenue to $2.2 billion and a smaller than expected loss of 19 cents per share, with the company also reporting a surge in total orders even as it faces criticism over worker conditions.

• DoorDash reported Q3 revenue of $2.2 billion, representing a 27% year-over-year increase, and a loss of 19 cents per share which was less than the anticipated 40 cents per share loss. This financial performance exceeded Wall Street analysts' forecasts and was followed by a 16% surge in the company's share price.
• The company received an influx of orders in the last quarter, with the total gross orders amounting to $16.8 billion, surpassing the Wall Street forecast of $16.1 billion.
• Analysts from both Wedbush and Barclays have raised their price targets on DoorDash following the announcement of these positive earnings, with Wedbush moving from $85 to $92 and Barclays from $90 to $95.
• Despite criticism over worker conditions and the company's 'gig economy' model, DoorDash holds a dominant position in the food delivery industry, with evidence that demand for food delivery services is on the rise.
• DoorDash also reported a year-over-year growth of 24% in total orders, rising from 439 million to 543 million orders. The company's fourth-quarter Marketplace GOV (the total value of orders) outlook is expected to grow between 18% to 20% year-over-year, reaching $17 billion to $17.4 billion.

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