DoorDash, Inc. (DASH) Stock: Slides 8% Despite Record Q1 and Big Expansion Moves

TLDR

DoorDash stock fell 8.62% to $187.69 after Q1 2025 results Q1 revenue rose 21% to $3 billion; orders jumped 18% to 732 million Net income surged to $193 million from a loss a year ago DoorDash to acquire Deliveroo for $3.86 billion, SevenRooms for $1.2 billion Company expands into 40 countries, serving 50 million active users

DoorDash, Inc. (NASDAQ: DASH) stock dropped 8.62% to $187.69 in early trading on May 6, despite the company posting record first-quarter earnings and announcing two major acquisitions. The food delivery giant reported strong year-over-year gains in revenue and profit but the sharp stock decline reflects investor concerns around its aggressive global expansion plans.

DoorDash, Inc. (DASH) 

Record Q1 Results Boost Revenue and Profit

In the first quarter of 2025, DoorDash reported revenue of $3 billion, up 21% from the same period last year. Total orders grew 18% to 732 million, while Marketplace Gross Order Value (GOV) rose 20% to $23.1 billion. Net revenue margin held steady at 13.1%.

The company turned a significant profit, with GAAP net income reaching $193 million, compared to a $23 million loss in Q1 2024. Adjusted EBITDA also improved, rising to $590 million from $371 million a year earlier. DoorDash credited these gains to its focus on delivering better products for consumers, merchants, and delivery drivers.

Acquisitions Fuel International and B2B Expansion

Alongside its quarterly results, DoorDash announced two major deals aimed at expanding its reach. The company said it will acquire U.K.-based Deliveroo for about $3.86 billion, giving it access to nine European markets. Deliveroo has faced tough competition and exited several markets recently, but the deal is expected to boost DoorDash’s user base to 50 million across 40 countries.

US meal delivery firm DoorDash will buy British rival Deliveroo for $3.85 billion. The acquisition will help DoorDash grow its market share in Europe and compete against Just Eat and Uber Eats.
Read more: https://t.co/x4dSgRp8Fl pic.twitter.com/oeE44CjMYN

— Reuters Business (@ReutersBiz) May 6, 2025

DoorDash is also acquiring New York software firm SevenRooms for $1.2 billion in cash. SevenRooms provides customer relationship management (CRM), reservations, and guest management tools for hotels and restaurants, counting brands like Marriott, MGM, and Hyatt among its clients. The acquisition is expected to help DoorDash diversify beyond food delivery and expand its B2B commerce platform.

DoorDash is buying hospitality tech company SevenRooms for $1.2 billion https://t.co/XWHeIsSeS2

— Bloomberg (@business) May 6, 2025

The Deliveroo deal is slated to close in the fourth quarter of 2025, while the SevenRooms acquisition should wrap up in the second half of the year, pending regulatory approval.

Earnings Date and Market Outlook

DoorDash’s earnings date is today, May 6, 2025. Despite its strong operational performance, the stock’s sharp drop signals caution among investors about the costs and risks tied to the acquisitions. Shares remain below their 1-year target estimate of $218.84.

Deliveroo has faced challenges since its 2021 IPO, seeing its share price fall over 50% until DoorDash’s takeover offer, while SevenRooms has grown steadily, serving around 13,000 clients worldwide. With both acquisitions, DoorDash is betting on broader services and larger markets to sustain its long-term growth.

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