By Angela Palumbo

DoorDash stock was tumbling Tuesday after the food-delivery company reported mixed first-quarter financial results and announced two acquisitions.

DoorDash reported first-quarter adjusted earnings of 44 cents a share, while the consensus forecast among analysts tracked by FactSet was for 39 cents. The profit marked a turnaround from a loss of 6 cents a share in the same period last year.

But the food delivery company also posted revenue of $3.03 billion, falling short of Wall Street's expectations of $3.1 billion. The figure for the year-earlier quarter was $2.51 billion.

First-quarter orders totaled 732 million, up 18% from the year before.

DoorDash allows users to order food from different restaurants and grocery stores from the comfort of their home. Users pay fees that go toward the app, plus a tip for the driver, making it a convenience that is a little pricier than just picking up the food.

As a result, DoorDash is at risk of losing customers who may choose to cut back on nonessential spending as consumer confidence falters in response to uncertainty over how tariffs will affect the economy. But management assured investors that hasn't happened yet.

"Right now, we aren't seeing any effects," CEO Tony Xu said on a call to discuss the results on Tuesday morning. "Obviously, as you know, a lot of the tariffs have been paused and we haven't seen any changes in consumer behavior, even if there are changes in consumer sentiment."

Also potentially weighing on the stock is news from DoorDash that it is two companies: Deliveroo and SevenRooms.

It is acquiring Deliveroo, a British online food delivery company, for GBP2.9 billion ($3.9 billion). Xu said in the news release that the merger will lead to the companies covering more than 40 countries with a combined population of over a billion people.

DoorDash is paying $1.2 billion for SevenRooms, a provider of booking software for restaurants and hotels.

In late morning, shares of DoorDash were down 9.6% to $186.10, putting them on pace for their largest percentage decrease since May 2, 2024, according to Dow Jones Market Data. The stock has now gained 11% this year, compared with the 4.7% decrease of the S&P 500.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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May 06, 2025 11:28 ET (15:28 GMT)

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