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DoorDash Stock Brushes Off Beat-and-Raise

DoorDash posted strong first-quarter results after the close yesterday

Deputy Editor
May 5, 2023 at 12:02 PM
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DoorDash Inc (NYSE:DASH) posted better-than-expected first-quarter results and raised its full-year gross order value (GOV) and adjusted EBITDA forecasts after the close yesterday. No fewer than seven analysts lifted their price targets in turn, with the highest from Oppenheimer to $85 from $80. 

DoorDash stock is reversing its early-morning gains, however, currently down 3.7% to trade at $60.51. DASH was up as high as $65.31 earlier, though the $65 level appears to be keeping a cap on gains, as it did in late March and early April. Year-to-date, the equity is up 23.9%. 

In the options pits so far today, 18,000 calls and 16,000 puts have been exchanged. The weekly 5/5 65-strike call and the weekly 6/9 49-strike put are the most active contracts, with new positions being sold to open at both. 

Leading up to the event, options bears took the stage. DASH's 50-day put/call volume ratio of 2.87 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than all but 1% of readings from the past year. Echoing this, the stock's Schaeffer's open interest ratio (SOIR) of 2.22 sits in the 97th percentile of its annual range. 

It's also worth noting that short interest represents 5.4% of the stock's available float. It would take over four days to buy back these bearish bets, at DoorDash stock's average pace of trading. 

 
 

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