Jim Cramer: Shorting DoorDash Over Uber Was a Mistake
Cramer flagged a bad short trade pitting DASH against Uber. Here's the tradeable takeaway for retail investors.
Jim Cramer called out a specific short trade that went sideways — betting against DoorDash while favoring Uber. According to Cramer, traders who leaned on that pairs trade got it wrong, and DoorDash proved the skeptics wrong with its market performance.
The DASH vs. Uber debate is one that delivery and ride-share investors have wrestled with for years. Both companies compete for consumer wallets, driver supply, and ad dollars. But shorting one leg of that trade while going long the other is a high-conviction, high-risk move — and in this case, the short side burned traders who underestimated DoorDash's staying power.
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Cramer's read here is straightforward: DoorDash has carved out a defensible position in food delivery and is expanding its footprint beyond restaurants. Betting against that momentum, even in a relative-value trade against Uber, was a losing thesis. The stock's resilience made the short painful to hold.
For retail traders, the lesson is classic: pairs trades look smart on paper but can unravel fast when one name outperforms expectations. DoorDash has shown it can grow into its valuation, and anyone still carrying a short thesis on DASH needs a very specific catalyst to justify the risk. Without one, you're fighting the tape.
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