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⚡️ DoorDash's Billion Dollar Acquisition(s)

+ Rivian and Lucid Are Still Bleeding Cash, Now Have To Deal With Tariffs

May 06, 2025

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Good afternoon! Skype officially logged off for the last time on Monday, ending a two-decade run that helped define the early era of internet calling. The platform, once a tech titan with 405 million users in 2009, lost its edge to rivals like Zoom and—ironically—Microsoft Teams, the very app Microsoft now urges users to switch to.

Originally launched in 2003, Skype changed how people connected online and was scooped up by Microsoft in 2011 for $8.5 billion. Despite its trailblazing status, usage steadily declined over the years, prompting Microsoft to sunset the service and migrate users to Teams. For many, the farewell feels like the end of an internet era—goodbye video chats, hello nostalgia.

MARKETS

*Stock data as of market close*

  • Stocks lost their footing Tuesday as President Trump’s vague trade comments and looming tariff uncertainty rattled investors. While Europe and India struck their own deal to dodge U.S. tariffs, Wall Street saw little movement on the American front, stoking anxiety ahead of Wednesday’s Fed rate decision.

  • The Dow fell nearly 400 points, while the S&P 500 and Nasdaq each dropped close to 1%. With the FOMC huddled behind closed doors, markets are holding their breath to see how geopolitics and inflation fears shape the Fed’s next move.

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STOCKS
Winners & Losers

What’s up 📈

  • WeRide exploded 31.68% after expanding its robotaxi partnership with Uber to 15 new cities. ($WRD)

  • Pony AI soared 47.63% as it took on a bigger role in Uber’s Middle East expansion. ($PONY)

  • Hims & Hers Health jumped 18.12% after a strong earnings beat, despite softer guidance. ($HIMS)

  • Upwork climbed 18.02% on strong Q1 results and boosted full-year guidance. ($UPWK)

  • SolarEdge Technologies surged 11.22% after posting a smaller-than-expected loss and easing tariff concerns. ($SEDG)

  • Constellation Energy rose 10.29% after topping revenue estimates and sharing upbeat guidance. ($CEG)

  • Neurocrine Biosciences gained 8.36% thanks to strong Ingrezza sales. ($NBIX)

  • Celsius Holdings rose 4.81% despite missing earnings estimates. ($CELH)

  • Mattel added 2.78% even after pausing fiscal guidance and warning of U.S. price hikes. ($MAT)

  • Ford Motor climbed 2.45% after beating Q1 expectations, despite suspending 2025 guidance. ($F)

What’s down 📉

  • Palantir dropped 12.05% despite a revenue beat, as EPS only matched expectations. ($PLTR)

  • Vertex Pharmaceuticals fell 10.03% after missing both earnings and revenue estimates. ($VRTX)

  • Lattice Semiconductor lost 9.28% on weak forward guidance despite meeting Q1 estimates. ($LSCC)

  • DoorDash slid 7.44% after missing revenue estimates and announcing a $1.2B acquisition. ($DASH)

  • Clorox dipped 2.41% following a miss on both top and bottom lines. ($CLX)

  • Tesla slipped 1.75% as European sales declined sharply in April. ($TSLA)

ACQUISITION
DoorDash Acquires Deliveroo And SevenRooms In $5 Billion Dollar Buying Spree

The food delivery giant unveiled not one but two major acquisitions totaling $5.1 billion Tuesday—snagging UK-based Deliveroo for $3.86 billion and hospitality software company SevenRooms for $1.2 billion. The goal? To extend its delivery dominance into 40+ countries and lock in more of the restaurant experience beyond just takeout.

Expanding the Menu (and the Map)

Deliveroo brings in 50 million monthly users across Europe, the Middle East, and Asia, adding some serious international spice to DoorDash’s mostly U.S.-based recipe. Meanwhile, SevenRooms gives DoorDash tech muscle in restaurant reservations and customer data—think OpenTable meets CRM. CEO Tony Xu says the acquisitions keep DoorDash focused on building for “consumers, merchants, and dashers” globally.

The moves come as food delivery continues consolidating. Grubhub, Just Eat Takeaway, and Uber Eats have all made similar plays in recent months, as rising costs and slowing growth squeeze smaller competitors out of the kitchen. In that context, DoorDash's global land grab starts to look more like strategy than splurge.

Strong Demand, But Street Still Starved

Despite all the ambition, investors weren’t thrilled. DoorDash shares sank over 7% after Q1 revenue of $3 billion missed estimates (barely), even though profits hit a surprising $193 million. The company posted record highs in total orders and gross order value, boosted by strength in non-restaurant categories like grocery delivery, where consumer spend is up.

But the Street was hungry for more. Earnings guidance fell short of expectations, with adjusted EBITDA projected at $600–$650 million. Analysts also flagged that DoorDash is taking on a $2.85 billion bridge loan to fund the Deliveroo deal—even though it already has $4.5 billion in cash on hand.

Serving Up Scale: DoorDash isn’t just delivering dinner anymore—it’s delivering dominance. With Deliveroo and SevenRooms under its belt, the company is going from food courier to full-fledged global dining platform. Reservations? Check. Delivery? Covered. A growing empire across 40+ countries? On the way.

TL;DR: DoorDash is building the Amazon of eating out (and staying in). Now it just needs to prove all this scale comes with a profit margin.

NEWS
Market Movements

EV
Rivian and Lucid Are Still Bleeding Cash, Now Have To Deal With Tariffs

Running a luxury EV startup is already a high-wire act. Now Rivian and Lucid are doing it with tariffs on their backs.

Both electric vehicle makers posted earnings Tuesday evening, and the results were familiar: heavy losses, soft guidance, and even softer demand. Rivian lost $541 million and slashed its full-year delivery forecast to as low as 40,000 vehicles, blaming macro uncertainty and a “more cautious” consumer mood. Tariffs imposed by President Trump’s administration could cost Rivian an extra $3,000 per car and raise expenses by up to $1.9 billion this year.

Lucid didn’t fare much better. The company reported a $366 million net loss and revenue that came in below estimates. But unlike Rivian, Lucid kept its full-year production target intact, betting on the success of its upcoming $50K midsize EV and the recently launched Gravity SUV to spark a turnaround. For now, it’s cutting prices and dangling financing deals to move its $70K Air sedans.

Not Built for Tough Terrain

Neither company is profitable, and both remain dependent on big-name backers—Amazon and VW for Rivian, Saudi Arabia’s PIF for Lucid. Even with slightly better-than-expected per-share losses, Wall Street wasn’t impressed: both stocks dipped in after-hours trading.

These aren’t isolated struggles. EV demand across the U.S. has cooled as high interest rates and economic jitters send consumers toward cheaper hybrids. The new tariffs could slow things further, disrupting supply chains and raising input costs for an industry that’s still trying to scale.

TL;DR: Rivian and Lucid were already in a cash-burning marathon. Now they’ve got a tariff sprint to survive, too—and investors are wondering if either has the stamina to last the race.

Calendar
On The Horizon

Tomorrow

Americans’ borrowing habits are under the microscope this week as the latest consumer credit report drops. The data will reveal whether shoppers are still leaning on credit cards or pulling back as economic clouds—like rising tariffs—darken the outlook. A slowdown in credit use could be an early signal that consumers are starting to tighten their belts.

Over at the Federal Reserve, Jerome Powell will take center stage on Wednesday with an update on interest rates. Wall Street expects no changes for now, but Powell’s remarks could hint at what’s next if tariffs start dragging down growth. And if that wasn’t enough, it’s a monster earnings day with reports due from Disney, Uber, ARM, MercadoLibre, and a dozen other market movers.

Earnings:

  • Novo Nordisk is still chasing Eli Lilly in the blockbuster weight-loss drug battle, but the Danish pharma firm is banking on cost competitiveness to stay in the fight. The catch? Undercutting your rival might win market share, but it eats into profits. With its stock down sharply over the past year, this report gives Novo a chance to reset expectations and show investors it has a long-term game plan—not just a pricing strategy. ($NVO)

  • Gold has been on a tear, but Barrick Gold still feels stuck in second gear. Investors are hoping the miner’s earnings will finally catch up to the metal’s rally, but high operating costs and political risks in regions like Africa and the Middle East could dull the shine. Barrick’s margins have long lagged behind its commodity’s glittering headlines, and this report is less about the numbers and more about how leadership plans to turn gold into growth. ($GOLD)

NEWS
The Daily Rundown

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