This article was last updated on July 7, 2022
Amazon’s stock soars after it buys a stake in its subsidiary Just Eat-Takeaway.
In response to Amazon’s interest in Grubhub, the parent firm of Thuisbezorgd has seen its share price soar on the Amsterdam stock exchange. It has been months since investors complained about how things are going at the Dutch delivery company.
As a result, Amazon’s entry into the market is considered a positive development. This afternoon, the stock price rose by 20%.
Grubhub will begin with a 2% shareholding from the American tech titan. Depending on how many new consumers Grubhub gains as a result of the deal, it may grow to 15%. Amazon Prime subscribers, among other things, get a year of free unlimited delivery from Grubhub as part of their membership.
It’s been a rough few months for Just Eat-Takeaway. A year ago, the stock’s value was over 80 percent lower than it is now. In April, the corporation had to announce a contraction for the first time in 20 years. Two years ago, for 6.5 billion euros, the business acquired the American Grubhub. As a result, we should have seen increased development. Then again, it didn’t happen either. In addition, the market for home delivery is quite competitive.
A stock analyst for the company, 1Asset Management, claims that Grubhub’s leadership has no clue how to proceed with the company and its overall plan. “The profitability of the company as a whole has suffered, as have other parts of it. It was disappointing on every level. Adding insult to injury, the management isn’t doing anything.
Investors’ confidence in the stock market has risen, according to Tehupuring. At this point, the company’s outlook is bleak. Today’s statement is the first indication that an acquisition may be in the works. Amazon or another party, perhaps? Only Grubhub, iFoods, or the entire group may be the culprit. ” In addition, the sale of Grubhub (partial or otherwise) is still being examined, according to Just Eat-Takeaway.
A rise of 20% compared to an 88% decline is nothing, according to the stock expert.