Door Dash vs Uber

$DASH $UBER

The post-earnings reactions for UBER 0.00%↑ and DASH 0.00%↑ have been opposite -

Their market cap differential in 2024 is as wide as ever. I personally think this is warranted, but that doesn’t matter.

The outperformance of DASH 0.00%↑ on a relative basis to UBER 0.00%↑ has been about a 50% retracement of the differential UBER 0.00%↑ achieved from the period beginning in 2022. We can see they’ve more or less moved in tandem prior to this bout of outperformance we’ve witnessed since July of this year.

I’m looking for signs of a roll-over, wherein I’d be putting on a pair trade that involved shorting DASH 0.00%↑ while taking an UBER 0.00%↑ long position. DASH 0.00%↑ looks extended, but it’s looked that way since September. There are no signs that it’s time to fade the rally yet. As for UBER 0.00%↑ , it’s holding $70 fairly well so far, but given how strong the tape has been, it could just be a case of when does it break. There’s price memory at $65, which is where I’d look for support on weakness.