Jim Cramer Said DoorDash, Inc. (NASDAQ:DASH) Was Shorted On Uber Which Was A Bad Trade

Jim Cramer, CNBC TV host, discussed DoorDash, Inc. (NASDAQ:DASH) and Uber during his earnings season commentary. He noted that DoorDash was the only stock that didn't perform poorly in the day, contrasting it with Uber. Cramer suggested that some investors may have bet against DoorDash due to the significant overlap between the two companies, which turned out to be an ill-advised strategy.

DoorDash's second quarter results showed impressive growth with 87% increase in operating cash flow, 109% increase in free cash flow to $944 million and $742 million, respectively. The firm's orders rose by 36% to $970 million, and revenue increased by 36% to $4.45 billion. Market gross order value (GOV) expanded by 36% to $33 billion, suggesting the company is gaining market share.

On the downside, DoorDash's second quarter GAAP net income fell by 30% to $200 million, while R&D expenses surged by 52% to $535 million. Additionally, the company might face challenges from regulatory action on gig worker minimum wages and inflation impacting discretionary spending. These factors could hinder DoorDash's growth if they occur during its heavy investment in automated delivery platforms.

In contrast, Uber Technologies (NYSE:UBER) also experienced a decline, with shares down by 17.9% over the past year and 8.3% year-to-date. Their closing price on August 5th was 5% lower, despite the company reporting a TTM free cash flow surpassing $10 billion for the first time. Uber's bookings grew by 24% annually to $58 billion, and trips increased by 18% to $3.87 billion. However, the firm's revenue missed analyst estimates, while earnings beat them. The mixed results signal both bullish and bearish outlooks for Uber.