Grubhub's Stock Could Still Soar Higher Before It Gets Acquired

Four months ago, Grubhub (NYSE: GRUB) agreed to an all-stock merger with its European peer Just Eat Takeaway (OTC: TKAY.Y), which had recently been formed by a merger between two other food delivery platforms, Just Eat in the U.K. and Takeaway in the Netherlands.

At the time, I noted the merger could solve Grubhub's biggest problems: its dependence on the saturated U.S. market, its decelerating growth, and its rising expenses. I also told investors to hold on to their shares of Grubhub instead of selling the stock, since the deal pegged Grubhub's stock to Just Eat Takeaway's.

Grubhub's stock has rallied over 40% since the deal was announced, and I believe it still has room to run before Just Eat Takeaway closes the deal.

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Source Fool.com