What Happened?
Shares of on-demand food delivery service DoorDash (NYSE: DASH) fell 8.4% in the afternoon session after the company reported weak first-quarter 2025 results, as revenue narrowly missed expectations and guidance for second-quarter EBITDA and earnings came in below Wall Street's forecasts. On the other hand, it was great to see DoorDash increase its number of requests this quarter. Still, this was a softer quarter.
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What The Market Is Telling Us
DoorDash’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 16.4% on the news that the company reported second-quarter earnings results. DoorDash increased its number of requests this quarter, as the business recorded stronger than-expected consumer demand. As a result, revenue outperformed Wall Street's estimates.
The icing on the cake was adjusted EBITDA that crushed expectations and guidance for next quarter's adjusted EBITDA that did the same. Overall, this quarter was great, and shareholders should feel optimistic.
DoorDash is up 10.9% since the beginning of the year, but at $189.27 per share, it is still trading 11.3% below its 52-week high of $213.38 from February 2025. Investors who bought $1,000 worth of DoorDash’s shares at the IPO in December 2020 would now be looking at an investment worth $998.73.
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