Dingdong (NYSE: DDL) shares plunge 7.09% pre-market on Dec. 31 2025 as investor caution returns amid operational and financial challenges

Dingdong (Cayman) (NYSE: DDL) shares plunged 7.0896% in pre-market trading on Dec. 31, 2025, signaling renewed investor caution amid ongoing operational and financial challenges.

The sharp decline followed a recent institutional sell-off, with Barclays PLC offloading 800,000 shares earlier in the month. This move, coupled with a 13% downward revision to revenue forecasts by analysts in May, highlights persistent concerns over the company’s ability to stabilize its top line. Q2 2023 results had already underscored struggles, as revenue fell short by $35.29 million despite a non-GAAP EPS of $0.00.

Short interest in the stock rose significantly in late July, reflecting bearish sentiment amid a broader 63% annual decline in share price. While Jefferies maintained a "Buy" rating in May, market participants remain skeptical, particularly after a 12% drop in CEO Liang Changlin’s holdings value in March. Analysts have trimmed price targets, with one cutting it by 13.09% to $5.75 in August.

Despite periodic optimism—such as a 21.2% surge in early January—Dingdong’s long-term trajectory remains uncertain. Recent operational expansions, including a new East China logistics base, have yet to translate into consistent profitability, leaving investors to weigh limited near-term catalysts against structural headwinds.