GrubHub's IPO doesn't disappoint

GrubHub (GRUB) opened at $40 and is currently at $37.19, up 43% from a $26 IPO price.

The online food-ordering platform has a market cap of $2.92B, or a whopping 21x trailing sales.

Prospectus, IPO analysis

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Comments (6)
  • Coalfan
    , contributor
    Comments (119) | Send Message
    Stupid question....why do they price these stocks so low on the IPO? If it can jump to $40 why would they not price the IPO at $32 and get more money for themselves?
    4 Apr 2014, 04:02 PM Reply Like
  • Bouchart
    , contributor
    Comments (1159) | Send Message
    $KING crashed about 11% the day of its IPO.
    4 Apr 2014, 06:57 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13549) | Send Message
    Good point. The brokerages purposely underprice to make headlines and then agree to pump it to their clients who are encouraged to overprice it. The level of coordination to make money getting IPO shares artificially cheap and then move the stock so they can unload by hedging at artificially high prices is as marvelous as it is malevolent. Both the issuer and the investor get burned.
    4 Apr 2014, 11:39 PM Reply Like
  • Coalfan
    , contributor
    Comments (119) | Send Message
    Thank you
    5 Apr 2014, 09:11 AM Reply Like
  • 0xfc
    , contributor
    Comments (41) | Send Message
    I went to grubhub and typed in my zip code. One restaurant showed up. They have their work cut out for them in southern NH?
    4 Apr 2014, 07:16 PM Reply Like
  • Chris L Clingensmith
    , contributor
    Comment (1) | Send Message
    Novel idea, no moat.
    5 Apr 2014, 03:47 AM Reply Like
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