Dingdong shares plummet 7.09% as investor caution rises ahead of new year

Generated by AI AgentAinvest Pre-Market RadarReviewed byShunan Liu
Wednesday, Dec 31, 2025 5:04 am ET1min read
DDL
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Aime RobotAime Summary

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Dingdong
shares fell 7.09% pre-market on Dec 31, 2025, as investors grew cautious ahead of the new year.

- Analysts cut price targets by 13.09% to $5.75, citing Q2 revenue misses and 8.2% Q1 topline declines from weak demand.

- Short interest rose 28.7% in Feb 2023, while institutional sellers like Millennium Management offloaded 171,832 shares.

- CEO Liang's stake lost 12% value after a 6.6% weekly stock drop, deepening liquidity concerns and operational uncertainty.

- Analysts remain divided, with some forecasting medium-term breakeven potential amid persistent operational challenges.

Dingdong (Cayman) (NYSE: DDL) shares plummeted 7.0896% in pre-market trading on December 31, 2025, signaling heightened investor caution ahead of the new year.

The selloff aligns with recent bearish developments, including a 13.09% reduction in price targets by analysts, which now peg the stock at $5.75.

Earnings reports have also underscored challenges, with non-GAAP revenue missing estimates by $35.29 million in the second quarter of 2023 and a 8.2% topline decline in Q1 due to weak consumer demand. Short interest in the stock surged 28.7% in February 2023, reflecting growing bearish sentiment.

Institutional activity further weighed on the stock, as Millennium Management LLC sold 171,832 shares and ProShare Advisors trimmed its holdings. Meanwhile, CEO Liang Changlin’s stake lost 12% in value following a recent 6.6% weekly drop, exacerbating concerns about liquidity and long-term stability. Analysts remain divided, with some citing medium-term breakeven potential but others warning of persistent operational headwinds.

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