DoorDash Stock Drops; Datadog emerges as AI tools help drive growth

The food delivery giant came under pressure after it missed quarterly earnings estimates and warned that investments in new technologies could eat into profits, while better-than-expected results helped lift shares of a cloud-based security company.

Major US stock indexes fell on Thursday, led by technology stocks after a series of earnings reports, and as a report showed that job cuts by US employers in October reached their highest level for that month since 2003. The Dow Jones fell 0.8%, the S&P 500 fell 1.1%, and the tech-heavy Nasdaq fell 1.9%. See here for more reports from Investopedia In today’s market news.

DoorDash (DASH) shares fell more than 17%, falling more than any other stock in the S&P 500 on Thursday. The food delivery giant missed third-quarter earnings estimates and lower than expectations for its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the current quarter. DoorDash warned that it expects its spending to rise as it invests in expanding its business and new initiatives like self-delivery.

Robinhood Markets (HOOD) stock fell nearly 11% following the online brokerage operator’s quarterly earnings report. Although sales and profits exceeded expectations, its operating expenses were higher than expected, while its cryptocurrency revenue was below estimates. The price of Bitcoin (BTCUSD) and other major cryptocurrencies continued their recent losing streak on Thursday, adding to the pressure. Robinhood also announced that CFO Jason Warnick will step down in 2026, replacing him with Shiv Verma, who has been Robinhood’s treasurer and head of finance and strategy.

Paycom Software (PAYC) reported lower-than-expected quarterly earnings, and shares of the human capital management software company fell nearly 11%. Interest on funds held from clients is lower than it was a year ago. The company also noted spending on investments in technology, with about $100 million in AI-focused capital expenditures primarily aimed at enhancing its data center capacity.

Shares of fashion holding company Tapestry (TPR) fell 9.6%. Although the parent company of luxury brands such as Coach, Kate Spade and Stuart Weitzman beat sales and earnings expectations for the fiscal first quarter, buoyed by strong demand for Coach’s Tabby handbags, guidance for the holiday quarter was disappointing. The company said tariff-related headwinds contributed to the weak outlook.

Cloud-based security platform Datadog (DDOG) reported better-than-expected quarterly earnings and an upbeat outlook, thanks in part to a growing number of large customers and strong demand from AI customers. The company has launched several AI-enabled tools over the past year, including a suite of generative AI agents that it says can respond to incidents and craft status updates. Datadog shares rose nearly 23% to record the highest daily performance for the S&P 500.

Shares of Texas Pacific Land (TPL), owner of a large acreage in the oil-rich Permian Basin, jumped 10% after the real estate operator reported third-quarter results. Although its sales and profits were below expectations for the period, the company achieved record quarterly revenues, supported by strong oil and gas production revenues and water sales. The company’s board of directors also authorized a 3-for-1 stock split, which is expected to be completed by December 2025.

Air Products and Chemicals (APD), a supplier of industrial gases such as oxygen, nitrogen and hydrogen, reported mixed results for its fiscal fourth quarter, beating EPS estimates but missing revenue expectations. The company also announced a strategic renewal that includes significant cost-cutting measures and increased focus on core industrial gases and large-scale projects. Shares of Air Products and Chemicals rose 8.9% on Thursday.