DoorDash Stock Drops; Datadog Pops as AI Tools Help Drive Growth

A food delivery giant came under pressure after it missed quarterly profit estimates and warned investments in new technologies could squeeze profits, while better-than-expected results helped send shares of a cloud-based security company higher.

Major U.S. equities indexes dropped Thursday, led by tech stocks after a slew of earnings reports and as a report showed that job cuts by U.S. employers in October reached their highest level for that month since 2003. The Dow slid 0.8%, the S&P 500 fell 1.1%, and the tech-heavy Nasdaq dropped 1.9%. See here for more reporting from Investopedia on the day’s markets news.

DoorDash (DASH) shares plunged over 17%, falling the furthest of any stock in the S&P 500 Thursday. The food delivery giant missed third-quarter profit estimates and guided below expectations for its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the current quarter. DoorDash warned it expects its spending to rise as it invests in expanding its business and new initiatives like autonomous delivery.

Robinhood Markets (HOOD) stock fell close to 11% following the online brokerage operator’s quarterly earnings report. Although sales and profits topped forecasts, operating expenses were higher than expected, while its cryptocurrency revenue fell short of estimates. The price of Bitcoin (BTCUSD) and other major cryptocurrencies extended their recent string of losses Thursday, adding to the pressure. Robinhood also announced that CFO Jason Warnick will step down in 2026, to be replaced by Shiv Verma, who has been serving as 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 also dropped nearly 11%. Interest on funds held from clients was down from a year ago. The firm also pointed to spending on investments in technology, with around $100 million in AI-focused capital expenditure primarily aimed at boosting its data center capacity.

Shares of fashion holding company Tapestry (TPR) fell 9.6%. Although the parent company of luxury lifestyle brands Coach, Kate Spade, and Stuart Weitzman surpassed sales and profit forecasts for its fiscal first quarter, boosted by strong demand for Coach’s Tabby handbags, guidance for the holiday quarter disappointed. The company said tariff-related headwinds contributed to the soft forecast.

Cloud-based security platform Datadog (DDOG) posted better-than-expected quarterly earnings and an upbeat outlook, thanks in part to a growing number of large clients, 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 draft status updates. Datadog shares soared about 23% to log the S&P 500’s top daily performance.

Shares of Texas Pacific Land (TPL), owner of significant acreage in the oil-rich Permian Basin, jumped 10% after the real estate operating company reported its third-quarter results. Although its sales and profit fell short of expectations for the period, the firm achieved a record in quarterly revenue, boosted by strong oil and gas royalty production revenue and water sales. The company’s board also authorized a 3-for-1 stock split, which it expects to be completed by December 2025.

Air Products and Chemicals (APD), a supplier of industrial gases like oxygen, nitrogen, and hydrogen, reported mixed results for its fiscal fourth quarter, edging out earnings per share estimates but missing revenue forecasts. The company also announced a strategic revamp that includes major cost-cutting measures and an increased focus on core industrial gases and large-scale projects. Air Products and Chemicals shares gained 8.9% Thursday.