DoorDash shares surge after it says it will buy international delivery platform Wolt
Summary
DoorDash shares soared more than 16% on Wednesday after the company announced it is acquiring international food delivery platform Wolt in an $8.1 billion all-stock deal. The move, announced Tuesday evening, comes as DoorDash, which benefitted from stay-at-home trends during the pandemic, reported a wider than expected third-quarter loss per share but beat on revenue estimates. Analysts at Gordon Haskett said the acquisition will help accelerate DoorDashs expansion into international restaurants, retail and grocery by several years, but downgraded the stock from a buy to hold and lowered the price target from $243 to $233. "But, with near zero insight into Wolts financials, supporting DoorDashs relative valuation premium following a near 20% share price jump on the news is not feasible at this time," the Gordon Haskett analysts wrote. Wolt is a good partner given its "focus on execution/efficiency, scrappy culture, strong retention and frequency," the analysts added.