Dash Drops 17.83% in 24 Hours Amid Analyst Target Cuts and Heavy 2026 Spending Plans

On November 8, 2025, DoorDash (DASH) dropped 17.83% over the previous 24 hours, closing at $79.02. Over the past 7 days, the stock has fallen 29.99%, but it has gained 57.58% in the last 30 days and 119.89% over the past year. The sharp near-term drop is attributed to recent analyst target revisions and the company’s disclosed 2026 investment plans, which have raised concerns among investors.

Goldman Sachs lowered its price target for DASH from $315.00 to $279.00 while maintaining its "buy" rating. This move was part of a broader trend among analysts, as several firms also reduced their estimates: BTIG kept a buy rating but held the $315.00 target; B of A Securities cut its target from $325.00 to $305.00; Stifel slightly adjusted downward to $253.00; Wedbush reduced to $260.00; and Cantor Fitzgerald cut its target from $330.00 to $270.00. Analysts collectively project an average one-year target price of $286.55, implying a 41.83% upside from the current price.

The technical backdrop for DASH has seen mixed sentiment. While third-quarter revenue rose 27% to $3.4 billion, driven by higher total orders and gross order value, the company’s near-term profit fell short of expectations due to rising operational costs. CEO Tony Xu announced a strategic push toward new delivery technologies, including autonomous robots and AI-driven solutions, but these initiatives come with significant capital expenditures. The stock has seen a 22% quarterly drop, despite a 19% year-to-date gain.

DASH’s aggressive spending plans are expected to increase by several hundred million dollars in 2026, as the company aims to integrate newly acquired assets like Deliveroo into a unified global tech stack. These plans have overshadowed the strong revenue growth and solid EBITDA performance reported in the third quarter.

Backtest Hypothesis

Given the recent sharp 17.83% drop and the broader pattern of analyst target revisions and capital outlay, a backtest can assess the potential performance of a stock reacting to a 10% or greater daily price drop. Using DASH as a test subject, the backtest will examine how the stock has historically recovered after such an event. By identifying all dates on which DASH dropped by 10% or more and analyzing the 30-day post-event performance, investors can better understand whether these declines are typically short-lived or indicative of deeper concerns.

The backtest will rely on daily return data from January 1, 2022, to the present, capturing a range of market conditions, including bullish and bearish trends. This approach aims to determine whether DASH has historically rebounded from 10% or worse intraday declines and under what conditions such recoveries are more likely to occur. This strategy could help inform whether the current drop on November 6–7 is overdone or signals a shift in investor sentiment.