DoorDash, Inc. online food delivery platform (New York Stock Exchange: dash) recently revealed that it has completed the acquisition of another Finnish food delivery platform, Wolt.
DoorDash shares fell more than 6% to close at $72 in Wednesday’s extended trading session. The drop, however, can be attributed to broader market concerns.
Under the deal, which was announced in November last year, DoorDash paid consideration of 7 billion euros ($7.46 billion) in an all-stock transaction. The transaction valued DoorDash stock at $206.45 per share based on DoorDash’s 30-day VWAP (volume-weighted average price) to November 3, 2021.
With the closing of the deal, Wolt CEO Miki Kuusi will be in charge of the combined company’s operations outside of the United States. Kuusi will report to DoorDash CEO Tony Xu. Also, the Wolt app will continue to work separately.
Management’s point of view
DoorDash CEO Tony Xu said, “With Wolt, we believe we have the best team and platform to serve merchants, consumers and couriers in our existing and future markets. Our journey in building our international business has only just begun and we are confident in the incredible future we will build together.
Recently, Bernstein analyst Nikhil Devnani hedged the stock with a buy rating and a price target of $90, implying upside potential of 25.1% from current levels.
According to the analyst, the company should benefit from a strong management team and continued demand for online food delivery.
Overall, the street is cautiously bullish on the stock and has a Moderate Buy consensus rating based on 11 buys and six takes. DASH’s mid-price target of $122.76 implies the stock has 70.6% upside potential from current levels. Shares have fallen 52% over the past year.
TipRanks website traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s largest website usage monitoring service, provides insight into DoorDash’s performance this quarter.
According to the tool, the DoorDash website saw a 58.31% monthly increase in global visits in April, compared to the same period last year. In addition, traffic to the company’s website has increased by 102.90% year-to-date, compared to the previous year.
DoorDash is expected to further strengthen its position as a major player in online food delivery, as it will benefit from Wolt’s operational expertise and consumer loyalty.
Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.
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