Watch Out for This Outperforming GRUB Rival

Unpacking UBER, LYFT, and GRUB's impressive IPOs

Dec 4, 2020 at 1:18 PM
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Throughout the majority of this year, the tech, online retail, and food delivery sectors saw an explosion in popularity as the pandemic ravaged the country. Online delivery stalwart GrubHub Inc (NYSE:GRUB) has been no exception, so far seeing a 42% surge for 2020 and a nearly two-year peak of $85.53 in mid-October. This technical outperformance came with continued support from the company’s market-cap level, last seen at $6.4 billion. GrubHub’s technical setup is better framed when bringing Uber (UBER) and Lyft (LYFT) into context, per the table below.

While the pair have yet to see notable long-term technical performance since the broader-market crash in March, they still sport impressive market caps of lofty $92 billion and $13.2 billion, respectively. From the wider scope of the chart, worth mentioning is the volatility in UBER’s IPO, versus the extremely stable IPO sported by GrubHub. This could mean many things, but is a good indication that DoorDash may have less volatility in the long-term than its ride-sharing counterparts.

Market Cap Chart Cotw

DoorDash is a name worth watching heading into 2021. The GRUB rival earlier this month filed for its initial public offering (IPO). Though they have yet to release a price or number of shares to be sold, the company plans to list under the ticker DASH on the New York Stock Exchange (NYSE). Per an interesting article out of Barron’s on Nov. 13, DoorDash is a fresh face to keep a close eye on as it launches onto the public trading sphere.

Not only did the GrubHub rival rake in an impressive pre-pandemic, 2019 revenue of $885 million, but this said revenue was a 204% increase from 2018. This year from January through Sept. 30, DoorDash gathered $1.9 billion, as many across the U.S. opt to stay in and order from their phones as opposed to going out to eat at restaurants. For perspective, GrubHub brought in $1.3 billion for the entirety of 2019. This is not to say its rival didn’t also pull in substantial pandemic revenue, but to better point out the potential DASH will have when moving through the public trading landscape. At the end of the day, DoorDash (DASH) will be a name to watch closely in the coming weeks, months, and most certainly 2021.

Subscribers to Bernie Schaeffer's Chart of the Week received this commentary on Sunday, November 29.


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