Before getting news about Just Eat’s acquiring the Grubhub NYSE: GRUB had been falling. When little time left for market close the stock suddenly popped up 1.95% to $59.05 on Wednesday. Today in pre-market activity GRUB surges towards $70 mark. To strengthen the foundation in Americas Just Eat needs an experienced subsidiary in the ruthless competition with local giants.
The recent announcement of the Q1 2020 financial results had an impact on GRUB’s performance.
Q1 revenue rose by 1.9 million quarterly during the lockdown. However, the cost of revenue grew almost $26 million decreasing gross profit quarterly by $4.6 million. Additionally, net loss soared $5.8 million to $33,427,000.
As investors see potential in Grubhub the demand for GRUB does not shrink easily. Therefore, its market capitalization is overvalued while 12 months EPS stands at $-0.64.