Online food delivery platform DoorDash, Inc. (NYSE: DASH) recently revealed that it has concluded the acquisition of a fellow Finnish food delivery platform, Wolt.
Shares of DoorDash declined over 6% to close at $72 in Wednesday’s extended trading session. The fall, however, can be attributed to wider market concerns.
Details of the Deal
As per the deal, which was announced in November last year, DoorDash paid a consideration of €7 billion ($7.46 billion) in an all-stock transaction. The transaction valued the DoorDash stock at $206.45 per share based on DoorDash’s 30-day VWAP (Volume Weighted Average Price) as of November 3, 2021.
With the completion of the deal, Wolt’s CEO Miki Kuusi will be in charge of the combined company’s operations outside the United States. Kuusi will report to DoorDash’s CEO Tony Xu. Further, the Wolt app will continue to run separately.
The CEO of DoorDash, Tony Xu, said, “Together 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 is just beginning and we’re confident in the incredible future we will build together.”
Recently, Bernstein analyst Nikhil Devnani initiated coverage on the stock with a Buy rating and a price target of $90, which implies upside potential of 25.1% from current levels.
According to the analyst, the company stands to benefit from a solid management team and continued demand for online food delivery.
Overall, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 11 Buys and six Holds. DASH’s average price target of $122.76 implies that the stock has upside potential of 70.6% from current levels. Shares have declined 52% over the past year.
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into DoorDash’s performance this quarter.
According to the tool, the DoorDash website recorded a 58.31% monthly rise in global visits in April, compared to the same period last year. Further, the footfall on the company’s website has increased 102.90% year-to-date, compared to the previous year.
DoorDash is expected to further solidify its position as a primary player in the online food delivery space, as it stands to 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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