Delivery service company DoorDash (DASH) went on a shopping spree Tuesday after it announced an agreement to acquire hospitality technology company SevenRooms. The delivery company will spend $1.2 billion to enhance its DoorDash Commerce Platform with SevenRooms’ expertise.
The deal between DoorDash and SevenRooms is expected to close in the second half of 2025, pending customary and regulatory approvals. Once completed, SevenRooms’ tech knowhow will enable DoorDash to offer merchants with “new tools to grow in-store and delivery sales, build stronger customer relationships, and increase profitability.”
DoorDash Stock Movement Today
DoorDash stock isn’t doing so hot today. The company’s shares have fallen 7.18% as of this writing, cutting into its 13.65% year-to-date gain. While the SevenRooms acquisition may be weighing on DASH stock, it’s not the only factor to consider.
DoorDash announced another deal today to acquire UK-based Deliveroo, this one larger than the SevenRooms deal with a $3.9 billion value. This is part of the U.S. company’s international expansion plans. With over $5 billion in planned spending, investors appear somewhat rattled by the heavy price tags.
Additionally, DoorDash reported its Q1 earnings today. The delivery company’s results were mixed, with adjusted earnings per share of 44 cents alongside revenue of $3.03 billion. For comparison, Wall Street expected adjusted EPS of 43 cents on $3.1 billion in revenue.
Is DASH Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for DoorDash is Moderate Buy, based on 22 Buy and five Hold ratings over the past three months. With that comes an average price target of $218.24, representing a potential 14.63% upside for DASH stock. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.
