DoorDash shares plunged 8% in after-hours trading Wednesday after the delivery platform reported disappointing fourth-quarter results, triggering fresh investor anxiety over the company's ambitious push into artificial intelligence and autonomous delivery technology. The selloff marks a sharp reversal for a stock that had rallied on delivery growth expectations, but now faces mounting pressure to justify heavy tech investments against profitability concerns.
DoorDash just handed investors a reality check on the true cost of its AI ambitions. The delivery platform's shares tumbled 8% in extended trading Wednesday after fourth-quarter results fell short of expectations, with executives facing tough questions about ballooning investments in artificial intelligence and autonomous delivery systems.
The selloff reflects a broader reckoning happening across tech as investors grow increasingly skeptical of AI spending without clear near-term returns. While DoorDash has been positioning itself as a tech-forward logistics company rather than just a food delivery app, Wall Street is now demanding proof that these expensive bets will actually move the profitability needle.
According to CNBC, investor concerns centered specifically on the company's "ambitious investing plans" as it ramps up AI and autonomous technology capabilities. The timing couldn't be worse - competitors like Uber Eats are already deploying their own AI-powered routing systems, while Instacart has been quietly testing autonomous grocery deliveries in select markets.
The fourth-quarter miss comes as DoorDash has been pouring resources into machine learning models designed to optimize delivery routes, predict demand surges, and automate customer service interactions. The company has also been expanding partnerships with autonomous vehicle makers, betting that robot deliveries will eventually slash labor costs and unlock new profit margins.
But investors aren't buying the long-term vision right now. The 8% after-hours drop erased roughly $3 billion in market value within minutes of the earnings release, signaling deep skepticism about whether AI investments can offset slowing order growth and persistent margin pressure in the core delivery business.
