DoorDash (DASH) will acquire SevenRooms in a $1.2 billion deal, while the delivery app also announced its purchase of Deliveroo (ROO.L).

Constellation Energy (CEG) fell shy of first quarter profit estimates. The energy company is maintaining its full-year outlook.

Marriott International (MAR) lowers its full-year guidance, the latest hotel operator to report uncertainties tied to global trade wars and tariffs.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

Video Transcript

00:00 Speaker A

We're taking a closer look at some trending tickers this morning, and we're looking at DoorDash, Constellation Energy, and Marriott. First up, DoorDash announcing it's buying hospitality platform seven rooms for $1.2 billion, just hours after confirming plans to acquire the London-based food delivery company Deliveroo. The acquisition of seven rooms is expected to close in the second half of 2025. Seven rooms competes with the likes of Resy and OpenTable, and along with the acquisitions, DoorDash posted its quarterly earnings showing a beat on marketplace gross order value in Q1, as well as a strong outlook in that category in the second quarter. I know that I did, at least my fair share, to add to those numbers in the financial performance.

01:04 Speaker B

Oh, didn't we all? I mean, listen, the recession may be here, may not be coming, but we're still delivering our food. No, having said that, for DoorDash, it's really interesting, right? First-quarter revenue up $3.03 billion. That was up 21% from a year ago. Having said that, though, that clearly was not enough in terms of the amount of cash that the street was looking for for DoorDash to be pursuing some of those deals. When you have the seven rooms deal for $1.2 billion, also the announcement of that Deliveroo deal, perhaps there's a question about the amount of cash that DoorDash has available to be pursuing deals like that. It's also interesting in the company's outlook. They did not mention any impact on tariffs, but they did note that an international presence could leave it open to geopolitical and currency risks, obviously, with an expansion abroad with that Deliveroo deal here for DoorDash here. So I think it's interesting that they didn't mention any kind of slowdown that could be attached to the macroeconomic environment, given that we've heard about that a lot on the other calls here.

02:39 Speaker B

And plus, Constellation Energy falling to the downside after reporting adjusted operating profit and EBITDA up for the first quarter that did miss expectations. The company also maintaining its full year outlook with adjusted operating earnings per share of $8.90 to $9.60, with the midpoint missing the street's estimate. Taking a look at why you are seeing the stock moving to the upside, because it's really interesting is that the stock actually fell sharply pre-market this morning here, and now you are seeing a little bit of a rebound here. So why is that? Perhaps it's the reaffirming of the company's full-year outlook here earlier this year. The company had entered into an agreement to acquire another company, the nation's largest clean energy provider, Calpine. That transaction is expected to close in the fourth quarter of this year. So perhaps some excitement related to that. And also hearing the company talk a bit about policy as well.

04:04 Speaker A

Yeah, I think that there is certainly some runway that the company has when talking about clean, reliable power. Uh the company and their CEO, the executive team, the Chief Financial Officer, Dan Eggers, saying that they're uniquely positioned to provide durable value in this evolving landscape. And think about where that landscape is evolving. There is more demand that is going to come forward for data from data centers for solar and renewable energy as well. And perhaps Constellation sees a major opportunity within that. They also talked about what is vital for national security as well and their economy, and in this AI race, and Constellation views themselves as a core cog within that broader engine as well. Lastly here, let's go to the stays, the accommodations. Marriott is the latest hotel company to lower its full-year guidance. The company expects revenue per available room in 2025 to increase by 1.5 to 3.5%. That is down from prior projections of 2% to 4%. It comes as hotels contend with economic uncertainty. Hilton, Hyatt, and Wyndham have all lowered their guidance for the year. CEO, Anthony Capuano, says, despite the uncertainty around the economy, Marriott is confident in its portfolio, loyalty program, and business model in terms of long-term growth. Shares are up right now, 1.4%.

05:58 Speaker B

Yeah, it's interesting to see that share price action moving to the upside here after they trimmed their 2025 room revenue forecast and projected second-quarter profit coming in below expectations here. The company, also the latest to signal a slowdown in travel demand moving forward, as there are questions about the health of the consumer.  Related Videos

03:17

Palantir can still grow in 'impressive fashion' despite stock drop

Yahoo Finance Video • 18 minutes ago 01:06

Ford warns on tariffs, Palantir slides, Fed meeting: 3 Things

Yahoo Finance Video • 1 hour ago 01:01

US March Trade Gap Widens to Record $140.5 Billion

Bloomberg • 1 hour ago 02:50

There are 3 scenarios investors must prepare for, strategist says

Yahoo Finance Video • 3 hours ago

View Comments