Key insights
- DoorDash (DASH) is reportedly in late-stage talks to acquire Caviar (CART) for $17 billion. This news has caused CART's stock to surge approximately 23% over the last two trading days. While the acquisition price represents a significant gain for CART shareholders, some are disappointed by the potential sale, having expected long-term growth. For DASH, the acquisition could be a strategic move to bolster its grocery delivery capabilities, though the high valuation has raised questions, especially given DASH's recent stock decline.
CART is my 3rd largest position and I noticed it went up ~23% in the last two trading days. I heard the rumors on Friday that CART was seeking buyers, today near close it was reported DASH is in late stage talks to buy for $17B. Potentially closing the deal this week.
I’m surprised I haven’t seen any other posts here. As a shareholder of CART I’m a bit disappointed, I was pretty bullish and it was trading so cheap that I was expecting pretty huge returns over the next 5-10yrs. If $17B is correct I’ll still be up about 60% over 15 months ish, which is fine.
I also own DASH, albeit a much smaller position. I’m conflicted on my thoughts here, everyone thought DASH could just enter grocery delivery and eat CARTs lunch. I didn’t believe it would be that easy, which is why I had so much CART, but I’m still pretty surprised they’re buying CART for so much. I still think CART is cheap so I guess they’re getting a bargain while trading at a higher valuation, so potentially it’ll be a big value add. DASH is trading down -13% over the last couple trading days, which happens to be very close to a $17B decrease in market cap kinda sus.
What’re yalls thoughts?