Why Grubhub Stock Lost 13% in July
Food delivery specialist Grubhub (NYSE: GRUB) trailed the market last month, shedding 13% compared to a 1% uptick in the S&P 500, according to S&P Global Market Intelligence. That drop left shares well behind the wider market so far in 2019, down about 10% compared to a 17% rise in the S&P 500.
Image source: Getty Images.
July's slump came following the company's second-quarter earnings report, which paired high growth with spiking costs. Grubhub notched a 36% sales increase as its active diner base passed 20 million users -- up from 15.6 million a year earlier. Yet spiking competition from rivals like Uber Eats and Postmates contributed to weaker profits.
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