DoorDash shares surge after it says it will buy international delivery platform Wolt

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  • Shares of DoorDash rose more than 16% on Wednesday after the company announced it would acquire Volt for $8.1 billion.
  • The company reported a broader than expected third-quarter loss per share, but it beat revenue estimates.
  • The deal with Vault is expected to close in the second half of 2022, and Vault founder and CEO Mickey Cousy will run DoorDash International.

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Shares of DoorDash rose more than 16% on Wednesday after the company announced it was acquiring international food delivery platform Volt in an $8.1 billion all-stock deal.

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The move, announced Tuesday evening, comes as DoorDash, which benefited from stay-at-home trends during the pandemic, reported a broader-than-expected third-quarter loss per share, but missed revenue estimates. defeated.

DoorDash reported a loss of 30 percent per share and revenue of $1.28 billion. Analysts expect a loss of 26 cents and $1.18 billion in revenue. The company also reported a net loss of $101 million, more than double the $43 million loss during the same quarter of 2020.

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Following the announcement, shares of DoorDash were up more than 24% in after-hours trading in an early drop. New customers acquired for the quarter fell to peak levels in 2020, but above 2019 levels.

The deal with Vault is expected to close in the second half of 2022, and Vault founder and CEO Mickey Cousy will run DoorDash International. The Finnish company has about 4,000 employees and operates in 23 countries. It crossed 10 million users in January.

Analysts at Gordon Haskett said the acquisition would help accelerate DoorDash’s expansion into international restaurant, retail and grocery for several years, but downgraded the stock from buy to hold and lowered the price target from $243 to $233. done.

“But, with almost zero insight into Vault’s financial position, it is not possible to support the valuation premium relative to DoorDash at this time following the roughly 20% share price jump on the news,” wrote analysts at Gordon Haskett.

Analysts at Wells Fargo raised their price target to $260 from $235. Analysts said adding the Vault team would allow DoorDash management to continue to focus on the US market. The analysts said Vault is a good partner, given its “performance/efficiency, poor culture, strong retention and frequency focus”.

— Businesshala’s Jessica Bursztynski / M>

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