I like GrubHub Inc (NASDAQ:GRUB). I’ve used it several times. The user interface is smart, and drivers hit the delivery windows.
But, I’m not going there every day. No matter how fast a driver may be, the food is always going to taste a little stale. It’s not like eating at a restaurant. It’s a lazy night in.
As a result, the GrubHub bubble perplexes me and, make no mistake, it’s a bubble. The market cap is near $9.8 billion with trailing year revenue under $700 million. GRUB stock opened for trade June 1 at about $108 per share, but Canaccord Genuity analyst Maria Ripps just began coverage with a price target of $130.