What Happened?
Shares of on-demand food delivery service DoorDash (NYSE: DASH) jumped 4.3% in the afternoon session after the company announced a new multi-year partnership with advertising firm Criteo to enhance its retail media offerings.
This deal aimed to boost advertising opportunities on DoorDash's platform, specifically within its grocery, convenience, and other non-restaurant retail areas. Under the agreement, Criteo acted as an extension of DoorDash's U.S. ad sales team, working directly with brands and agencies to scale media placements. This collaboration was designed to provide advertisers more effective ways to connect with consumers at the point of purchase. The two companies also planned to explore deeper integrations of their advertising technologies over time.
The shares closed the day at $281.71, up 3.8% from previous close.
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What Is The Market 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 6 months ago when the stock dropped 9.6% on the news that President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10% or more.
Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures.
Wedbush analyst Dan Ives captured the prevailing market anxiety, stating, "We would characterize this slate of tariffs as 'worse than the worst case scenario' the Street was fearing." His comment highlighted how the scope and severity of the tariffs far exceeded Wall Street's expectations, adding a new layer of uncertainty for businesses and investors.
DoorDash is up 65.1% since the beginning of the year, and at $281.74 per share, has set a new 52-week high. Investors who bought $1,000 worth of DoorDash’s shares at the IPO in December 2020 would now be looking at an investment worth $1,487.
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