GrubHub Short Sellers Win Big as Value Gets Cut Nearly In Half
This article is for subscribers only.
An increase in GrubHub Inc. short selling this year paid off handsomely for bears on Tuesday after the food-delivery company downgraded its growth and profit expectations due to fierce competition.
About 20% of shares available to trade were on loan to short sellers on Monday or about $1 billion worth, according to data compiled by IHS Markit Ltd. While that was down from a high of 23% in August, it’s up from 11% at the start of the year. GrubHub tumbled 44% on Tuesday, shedding more than $2 billion in market value.