DoorDash Plunges 4.4% Amid Amazon's Grocery Expansion and Sector Turbulence

Summary
• DoorDash (DASH) trades at $219.795, down 4.43% intraday
• Intraday range: $219.11 to $229.05
• 52-week high/low: $285.50 / $155.40
• Tradr 2X Long DASH Daily ETF (DASX) down 7.46%

DoorDash’s sharp selloff on December 10, 2025, reflects a confluence of sector-specific pressures and broader market sentiment. Amazon’s aggressive expansion into same-day grocery delivery has rattled online food delivery peers, while technical indicators and options activity suggest heightened bearish momentum. The stock’s 4.4% drop—its largest intraday decline since October—has drawn attention to its 52-week range and institutional positioning.

Amazon's Grocery Expansion Undermines Food Delivery Rivals
The primary catalyst for DASH’s selloff is Amazon’s announcement of same-day grocery delivery in 2,300 U.S. cities, directly threatening DoorDash’s food delivery ecosystem. Amazon’s expansion, coupled with its $1.39% intraday gain, has triggered a sector-wide reevaluation of competitive positioning. DoorDash’s business model, reliant on third-party delivery drivers and merchant partnerships, faces existential risks from Amazon’s vertically integrated logistics network. Analysts at Goldman Sachs and Guggenheim have already adjusted price targets downward in recent weeks, with the latter cutting DASH’s target to $270 from $300. The stock’s 4.4% drop aligns with its 98.4x dynamic P/E ratio, which now appears stretched against peers.

Food Distribution Sector Volatility as Amazon Leads Disruption
The Food Distribution sector, led by Amazon’s 1.39% gain, is experiencing divergent momentum. While Amazon’s grocery expansion drives optimism in its logistics arm, DoorDash and Instacart (CART) face existential challenges. DoorDash’s 4.4% decline contrasts with Amazon’s resilience, highlighting the sector’s bifurcation between scale players and niche delivery platforms. The USDA’s new SNAP waivers, which restrict purchases of processed foods, could further pressure DoorDash’s merchant network by reducing demand for convenience-based deliveries. This regulatory shift, combined with Amazon’s pricing power, creates a dual headwind for DASH’s growth narrative.

Bearish Options and ETFs Signal Short-Term Volatility Play
• 200-day average: $224.04 (below current price)
• RSI: 62.39 (neutral)
• MACD: -2.07 (bearish divergence)
• Bollinger Bands: $179.42–$233.21 (current price near lower band)

DoorDash’s technical profile suggests a continuation of bearish momentum. The stock is trading below its 200-day MA and within the lower Bollinger Band, indicating oversold conditions. The Tradr 2X Long DASH Daily ETF (DASX) has amplified the move, down 7.46%—a leveraged reflection of DASH’s volatility. For options traders, two contracts stand out:

• DASH20251219P210 (Put):
- Strike: $210, Expiry: 12/19
- IV: 42.17% (moderate)
- Delta: -0.2437 (moderate sensitivity)
- Theta: -0.0070 (low time decay)
- Gamma: 0.0204 (high sensitivity to price swings)
- Turnover: $17,813
- Leverage Ratio: 95.91%
- Payoff (5% downside): $9.795 (max profit if DASH drops to $208.80)
- This put option offers asymmetric risk/reward for a 5% decline, with high gamma amplifying gains if the selloff accelerates.

• DASH20251219C220 (Call):
- Strike: $220, Expiry: 12/19
- IV: 42.20% (moderate)
- Delta: 0.5113 (moderate bullish exposure)
- Theta: -0.7499 (high time decay)
- Gamma: 0.02599 (high sensitivity)
- Turnover: $52,802
- Leverage Ratio: 36.19%
- Payoff (5% downside): $0 (out of the money)
- This call is a high-gamma, high-liquidity play for a potential rebound above $220. However, its theta decay makes it a short-term bet.

Trading Insight: Aggressive bears should prioritize DASH20251219P210 for a 5% downside scenario, while bulls may consider DASH20251219C220 if DASH breaks above $220. The 200-day MA at $224.04 remains a critical resistance level.

Backtest Doordash Stock Performance
The DASH ETF has demonstrated resilience following a -4% intraday plunge from 2022 to the present. The backtest reveals a 3-day win rate of 62.30%, a 10-day win rate of 61.89%, and a 30-day win rate of 70.90%. While the average returns over these short-term periods are positive, the maximum return during the backtest was 12.81%, indicating that while DASH tends to recover from dips, its performance is capped by the relatively modest maximum return observed.

DoorDash’s 4.4% Drop: A Warning Shot for Food Delivery Peers
DoorDash’s 4.4% intraday decline underscores the fragility of its business model in the face of Amazon’s grocery expansion and regulatory shifts. While the stock’s technicals suggest further downside risk—particularly below the 200-day MA at $224.04—options activity and ETF performance highlight short-term volatility. Investors should monitor Amazon’s stock (up 1.39%) as a sector barometer and watch for DASH’s reaction to the $210 support level. For now, bearish options like DASH20251219P210 offer a high-gamma, leveraged play on continued weakness.