DoorDash shares surge 15 percent on surprisingly strong sales

DoorDash shares surged more than 15 percent after the food delivery giant reported better-than-expected quarterly results, signaling that customers are still ordering in instead of going to restaurants despite the rise in vaccinations.

Sales swelled by 198 percent to $1.1 billion in the first quarter ended March 31, beating Wall Street’s expectations. But the company’s losses at $110 million were surprisingly steep as a shortage of drivers dragged down margins. “Stronger-than-expected consumer demand, along with extreme weather events and the impact of stimulus checks, resulted in a meaningful undersupply of Dashers in the latter part of Q1,” company executives told investors in a letter late Thursday.