Just Eat Takeaway soars, DoorDash slides after Amazon takes stake in Grubhub
MicroStockHub

Analysts weighed in on the news that Amazon (AMZN) is taking a stake in Just Eat Takeaway.com's (OTCPK:TKAYF) Grubhub.
Under the agreement, Amazon (AMZN) will acquire warrants that work out to a 2% stake in Grubhub and can acquire warrants representing an additional 13% stake if certain performance obligations pertaining to customer acquisitions are met.
Bank of America analyst Michael McGovern said that the offer should lead to elevated competition for DoorDash (DASH) with its DashPass subscription offering, which competes with Grubhub+ and could see headwinds to customer acquisition and retention.
"Ultimately, we expect the Amazon/Grubhub incentive program will have little impact on DoorDashâs near-term growth or margins, with DoorDash already at nearly 60% US market share (while Grubhub is at just 13%, per Second Measure), but we anticipate some overhang for the stock due to the long-term potential for Amazon to re-enter the food delivery industry."
BofA lowered its price objective on Buy-rated DASH to $85 following the development.
Jefferies analyst Giles Thorne thinks the Amazon-Grubhub partnership makes strategic sense. "Grubhub has secured not just a very powerful partner, but also a very efficient acquisition channel. For a hitherto stranded asset and dead-weight to the JET equity, this is positive news," he noted.
Just Eat Takeaway.com's (OTCPK:TKAYF) shares soared 19.55% in Amsterdam trading following the Grubhub news. Shares of DoorDash (DASH) fell 8.00% in premarket action in the U.S. Amazon (AMZN) peeled off 0.55%.