GRUB down over 40%

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  • GrubHub received five downgrades, including double downgrades from both Bank of America Merrill Lynch and Oppenheimer following its disappointing third-quarter results.
  • The food delivery company missed on revenue and posted a fourth-quarter forecast well below Wall Street’s expectations.
  • “Competitive food delivery offerings (Uber, Doordash and others) are eroding GRUB usage,” Oppenheimer analyst Jason Helfstein said in a note to clients.

Shares of food delivery company GrubHub tanked more than 40% after disappointing earnings and dismal guidance forced Wall Street to abandon the already struggling stock.

GrubHub received five downgrades, including double downgrades from both Bank of America Merrill Lynch and Oppenheimer, where the firms flipped from recommending buying the stock, to selling.

“Competitive food delivery offerings (Uber, Doordash and others) are eroding GRUB usage and expected to worsen in 4Q, suggesting historical [long tern value] is no longer reliable,” said Oppenheimer analyst Jason Helfstein, who slashed his price target on the stock to $34 from $91.

www.cnbc.com/2019/10/29/grubhub-down-30percent-after-a-terrible-earnings-cause-analysts-to-bail.html

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