Food delivery company GrubHub has seen its stock price slashed by over a third after it posted disappointing third-quarter earnings today, reports CNBC. The company disappointed investors in a one-two punch. First, GrubHub reported Q3 revenue of $322 million when the Street was expecting $330.5 million.
But the thing that spooked investors the most was when GrubHub issued projections for Q4 revenue. GrubHub said it expects between $315 million and $335 million in revenue for the next quarter, while Street forecasts were for the company to bring in $388 million in revenue.
As a result of the disappointing Q3 revenue and Q4 forecasts, the stock received five downgrades, causing GrubHub’s share price to plummet. As of the time of this writing, the stock is down 37% to roughly $36 per share. Yesterday, the stock closed at above $58 per share.
As CNBC reports, one of those downgrades came from Oppenheimer analyst Jason Helfstein, who said, “Competitive food delivery offerings (Uber, Doordash, and others) are eroding GRUB usage and expected to worsen in 4Q, suggesting historical [long-term value] is no longer reliable.”
GrubHub has now lost more than half its value this year. In February, the stock hit a YTD high of just over $86.