- GrubHub (GRUB +1.4%) has been in for volatile trading today -- down as much as 2.2% before recovering -- amid a bearish take from Barron's (but some positivity from Raymond James).
- The company has strong market share in the online-ordering space now, but that can change in a flash, Barron's argues -- particularly with ramp-ups from rivals with better delivery capability, including Amazon.com (which can offer free delivery to Prime members) and Uber.
- GrubHub's also already moved into areas with lower-hanging fruit from an infrastructure perspective: New York and Chicago account for 70-75% of the company's orders. It could have a tougher time in areas where residents aren't so used to takeout eating.
- Meanwhile, that leading share will serve it well in a market still in its infancy, says Raymond James' Aaron Kessler. Online ordering still accounts for just 10% of takeout orders, he argues, and GrubHub could ride that to a $46 share price (32% upside).