N※N

DoorDash Shares Plunge Amid Autonomous Vehicle Investment

  //stocks-investing.news-articles.net/content/202 .. s-plunge-amid-autonomous-vehicle-investment.html
  Published in Stocks and Investing on Friday, February 20th 2026 at 7:57 GMT by reuters.com
      Locales: California, UNITED STATES

By Anya Sharma, Financial Correspondent

San Francisco, CA - February 20th, 2026 - DoorDash Inc. (DASH.N) continues to experience market volatility following the announcement of its ambitious, multi-billion dollar investment in autonomous vehicle technology and robotics. Shares closed down 12.7% on Thursday, and the downward trend has persisted into today, currently trading at $85.42 as of 12:56 PST - a significant drop from its year-high of $108. This comes after the company revealed plans to inject over $1 billion into automated delivery systems over the next three years, a move that, while potentially transformative, has triggered anxieties amongst investors regarding short-term profitability and long-term financial stability.

The company's rationale, articulated by CFO Prabir Sinha during an investor call earlier this week, centers on streamlining the notoriously expensive "last-mile" delivery process. Currently, this final leg of getting food from the restaurant (or grocery store) to the consumer's doorstep accounts for a substantial portion of DoorDash's operational costs. By deploying autonomous vehicles and robotic solutions, DoorDash hopes to dramatically reduce these expenses, ultimately improving profit margins and achieving a sustainable competitive advantage.

However, the sheer scale of the investment - and the explicit acknowledgement that more funding may be required down the line - has understandably raised eyebrows. "It's a classic case of balancing future potential with present-day realities," explains Dr. Evelyn Hayes, a robotics and AI analyst at the Institute for Future Technologies. "DoorDash is essentially stating they're willing to sacrifice near-term profits for the promise of significant long-term gains. The market is reacting negatively because investors are understandably risk-averse, especially in the current economic climate."

The move is particularly noteworthy given the pressure DoorDash has already been facing to demonstrate profitability and return capital to shareholders. The company's stock has already experienced a nearly 15% decline this year, fueled by concerns over increased competition and a slowing growth rate in the saturated food delivery market. The added financial burden of a massive tech investment is exacerbating these anxieties.

DoorDash isn't alone in exploring autonomous delivery. Uber (UBER.N) and other industry players are also making strides in this area. However, DoorDash's commitment stands out due to its size, particularly when juxtaposed with the company's current financial performance. Industry insiders suggest DoorDash may be attempting to leapfrog the competition by investing more aggressively, but the gamble is a significant one.

This investment isn't solely focused on self-driving cars navigating city streets. DoorDash is reportedly exploring a variety of robotic solutions, including sidewalk delivery robots, automated sorting systems in fulfillment centers, and even drone delivery in select areas. Early trials, initiated in partnership with Starship Technologies in several university towns, have yielded promising - albeit limited - results.

The success of this initiative hinges on several factors. Regulatory hurdles surrounding autonomous vehicle operation remain a significant challenge. Public acceptance of robotic delivery is also far from guaranteed, with concerns about safety, job displacement, and potential sidewalk congestion needing to be addressed. Furthermore, the technology itself is still evolving, and there's no guarantee that DoorDash will be able to overcome the complex engineering challenges associated with reliable and cost-effective autonomous delivery.

Analysts at Goldman Sachs, as previously reported, have expressed concern over the dilutive effect of the capital commitment. Other firms, like Morgan Stanley, have downgraded their rating on DoorDash stock, citing the increased risk profile. "We believe this investment introduces considerable uncertainty into DoorDash's financial outlook," noted a Morgan Stanley research report released this morning. "While the long-term potential is there, the short-to-medium term risks outweigh the rewards."

The coming months will be crucial for DoorDash. Investors will be closely monitoring the company's progress in implementing its automation strategy, as well as its ability to maintain profitability amidst this significant capital expenditure. The company's next earnings call, scheduled for March 15th, is expected to provide further details on the investment plan and its anticipated impact on the company's bottom line.