- Grubhub Inc. (NASDAQ:GRUB) rises with the flow in a dull trading session.
- The US reported over 170K new coronavirus contagions as the death toll surpassed 250,000.
- The Grub stock chart shows that the near-term trend is on the downside after it peaked at 71.24.
Grubhub Inc. (NASDAQ:GRUB) trades 0.65% higher at $70.83 mid-US afternoon, following the flow instead of critical news related to the industry. The American company that connects diners with local restaurants has recently agreed to be acquired by Just Eat Takeaway.com (OTC: TKAY.Y) in an all-stock deal valued at $7.3 billion, and the transaction is expected to be completed in the first half of 2021.
This year, the COVID-19 pandemic has boosted demand for this type of online platform, as customers are more willing to stay at home to protect themself from coronavirus exposure. The US government has avoided total lockdowns, leaving restrictive measures in the hands of the different governors.
The pandemic is taking its toll on the country as winter approaches, with the US reporting over 170K new contagions on Wednesday. The death toll in the country has surpassed 250,000. Such a scenario has resulted in restrictive measures, which include the mandatory use of masks, curfews and punctual lockdowns, all of them favoring additional gains for Grubhub Inc.
Vaccine news have been the main bullish catalyst for equities, although as time goes by, the impact decreases. US Indexes trade today on a weak note, as concerns overshadow hope. Vaccine hopes should have a negative impact in this particular share in the mid-term.
Grub stock chart
The Grub stock chart shows that the near-term trend is on the downside after it peaked at 71.24 for the day, as the price approaches its opening level at 70.51. The daily low was set at 69.96. Bigger time-frames also offer increased bearish potential. Early November, Grubhub Inc. (NASDAQ:GRUB) settled at 80.28, a level that seems too far away given the current market’s sentiment. October’s best settlement took place at $84.34.
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