DoorDash hoards plans to buy Wolt for $ 8.1 billion

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On November 13, 2020, a door dash deliveryman rides a bicycle in the rain during a pandemic of coronavirus disease (COVID-19) in the Manhattan district of New York City, New York, USA.

Carlo Allegri | Reuters

Door dash Shares surged more than 10% in the afternoon trading after the company announced that it would acquire the international food delivery platform Wolt in a $ 8.1 billion all-stock deal.

Announced Tuesday night, the move came as a doordash benefiting from a stay-at-home order during a pandemic. Reported a wider third quarter than expected The loss per share is higher than the estimated earnings.

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

After the announcement, DoorDash’s share price surged more than 24% in after-hours trading following the first decline. The number of new customers acquired in the quarter was above the peak level in 2020, but above the level in 2019.

The deal with Wolt is expected to close in late 2022, with Wolt founder and CEO Miki Kuusi running Door Dash International. Based in Finland, the company employs approximately 4,000 people and operates in 23 countries. In January, it exceeded 10 million users.

Analysts at Gordon Haskett said the acquisition would accelerate DoorDash’s expansion into international restaurants, retailers and grocery stores for several years, but downgraded shares from buy to hold and set price targets from $ 243. Reduced to $ 233.

“But Walt’s financial insights are nearly zero, so it’s not feasible at this time to support DoorDash’s relative valuation premium after a nearly 20% rise in stock prices in the news,” said Gordon Haskett analyst. That’s it. “

Wells Fargo Analysts have raised their price target from $ 235 to $ 260. Analysts said the addition of the Wolt team would allow DoorDash’s management to continue to focus on the US market. Wolt is a great partner given that analysts “focus on execution / efficiency, fragmented culture, strong retention and frequency.”

–CNBC’s Jessica Bursztynsky contributed to this report

DoorDash hoards plans to buy Wolt for $ 8.1 billion

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The post DoorDash hoards plans to buy Wolt for $ 8.1 billion appeared first on Eminetra.

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