A daily stock analysis based on stock market today
  • Daily Roll
  • YouTube
  • Podcast
  • Investor Hubs
    • Starter Investors Hub
    • Dividend Seekers Hub
    • The Risk Hub
    • COVID-19 Investing Hub
  • Sign Up
  • Boot Camp

Grubhub (GRUB) stock: Why it dropped

6/15/2021

 

KEY POINTS

  • Producer Price Index Supports Inflation Fears as The Market Closes in the Red
  • One Day After a 19% Drop, Lordstown Motors (RIDE) Stock Price Jump Was Short-Lived
  • Just Eat Takeaway.com (TKAYF) Creates a Global Food Delivery Giant with the Acquisition of GrubHub (GRUB)

OVERALL MARKET

Producer Price Index Supports Inflation Fears as The Market Closes in the Red
Picture
​Although the S&P 500 index nearly topped its all-time high at one point today, the three main indices finished in the red.

Reports are giving investors mixed signals. Inflation is still showing its face, while officials continue to claim that it is transitionary. The Producer Price Index shows the greatest increase we have ever seen since it began to be tracked in 2010. This is being mirrored by an increase in prices across the economy.

At the same time, things are looking up with the re-opening of the economy. Many are waiting to hear the Fed’s monetary policy statement for June. Fed's reaction to the economic indicators could be one of the main events that move the market in the next few days and weeks. 

NEW FEATURE

​Portfolio Update
As I logged in to my Stock Card account, I noticed a portfolio update by Think Tank Trading portfolio. Not sure if you have seen that feature yet. We added it recently, giving you a quick update whenever any of the portfolios you are following take action. For example, today Think Tank Trading sold half of its Airbnb (ABNB) shares, and you can see his note as to why he did that. 

Make sure to visit the Stock Picks page, and follow your favorite portfolios. 

WHAT'S UP?

One Day After a 19% Drop, Lordstown Motors (RIDE) Stock Price Jump Was Short-Lived
Yesterday’s market recap covered the alarming 19% plunge in price for the automotive company Lordstown Motors (RIDE). This came off the back of dual CFO and CEO resignations. Today, the stock reversed its direction, up by 11% during the trading day and ultimately by 7% in the after-hours session. 

The business saved face today as Angela Strand, the new chairwoman, reassured shareholders that the company is expecting to meet its electric truck production deadline. Previously, the start-up EV business had warned that it was not sure if it could stay afloat and fulfill the orders by September.
Although the announcement calmed investors, Lordstown confirmed it would have a limited pickup production, leaving more uncertainties for the future. No wonder why the 11% stock price jump during the normal trading hours gradually faded down to 7% in the after-hours trading.

WHAT'S DOWN?

Just Eat Takeaway.com (TKAYF) Creates a Global Food Delivery Giant with the Acquisition of GrubHub (GRUB)
If you recall the beginning of the food-delivery gig economy, Grubhub (GRUB) was among the leaders. Fast forward to today, the company caught my eye at the top of today's biggest losers on the winners and losers page. Shares were down more than 68%. However, this price drop doesn’t mean Grubhub is out of the game quite yet.

Across the pond, Grubhub's counterpart in Europe, Takeaway.com (TKAYF), has decided to creator a global food delivery giant by acquiring it. This expansion to a global giant started from the Netherlands, continued into a merger with Britain’s Just Eat service, and is now completed by the acquisition of GrubHub today. 

With the combined forces of existing customer bases and great growth due to the pandemic, the new company is poised to become a serious contender for the top spot in the US food delivery market. Generally speaking, the food industry is a low-margin business. There is not much profit left to be made in the delivery side of the market. Therefore, operations scaling and sharing technology infrastructure are the main ways food delivery companies can grow their profits. It seems that's what the new merger is all about. 

One last question before we wrap up is: What happens to the investors who were holding Gubhub shares? Shareholders were issued ADSs (foreign stock tradeable on US exchanges) for Takeaway Just Eat based on their holdings. Takeaway stock will begin trading under GRUB (which has been suspended) as of tomorrow. Don't be alarmed by the price drop. You still own shares of the combined company that is now one of the largest food delivery companies worldwide. They have a great shot at profitability and growth.

WANT TO RECIEVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?

Sign up for a free account on Stock Card's website to get the daily market recap reports in your inbox:
Give Stock Card A Try!

Comments are closed.

    RSS Feed


    Archives

    December 2022
    September 2022
    July 2022
    February 2022
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    February 2021
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    January 2020
    October 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017

    Categories

    All
    Battle
    Education
    ETF Investing
    How To Invest
    New Podcast Episode
    New Portfolio
    Portfolio Update
    Starter 2020
    Stock Card VIP Pick
    Stock Lists
    The Daily Hype
    Update
    Watchlist Worthy
    Winners And Losers

© 2023 StockCard.io. All Rights Reserved.
​​
Disclaimer: StockCard.io is not, neither operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on StockCard.io and Stock Card Weekly represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The Stock Card team may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall StockCard.io be liable to any subscriber, visitor, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on StockCard.io, or relating to the use of, or inability to use, StockCard.io or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way.
  • Daily Roll
  • YouTube
  • Podcast
  • Investor Hubs
    • Starter Investors Hub
    • Dividend Seekers Hub
    • The Risk Hub
    • COVID-19 Investing Hub
  • Sign Up
  • Boot Camp