Is Grubhub Stock a Buy?
Grubhub (NYSE: GRUB) took investors on a roller-coaster ride after its IPO in April 2014. The food delivery company went public at $26 per share, and its stock had surged to nearly $150 by late 2018. However, intense competition, surging expenses, and the COVID-19 crisis caused Grubhub to drop back to the low $30s earlier this year.
But Grubhub's stock rebounded to the high $60s last month after the company agreed to an all-stock merger with its European peer Just Eat Takeaway (OTC: TKAY.Y), which itself was only recently formed by a merger between the UK's Just Eat and Netherlands-based Takeaway.
For many investors, the $7.3 billion deal represented an opportunity to sell Grubhub. However, Grubhub's stock is currently trading at a slight discount to Just Eat's offer, and Grubhub's shares will be converted to Just Eat's after the deal closes in the first quarter of 2021. Does this gap suggest Grubhub's stock still has upside potential for new buyers?
Source Fool.com
