Investors can't find the Postmates stock price because the company isn't public. But with shares of rival GrubHub Inc. (NYSE: GRUB) climbing 141% in the past year, investors are anxiously awaiting the Postmates public offering.
CEO Bastian Lehmann plans to take the company public in 2019, according to Forbes.
There won't be a Postmates stock symbol until then.
But investors are still anxious to get into the growing market for food delivery...
The value of the U.S. food home-delivery market is expected to climb 76.74% from $43 billion in 2017 to $76 billion by 2022, according to investment firm Cowen.
And the industry growth leaves investors wondering if the Postmates IPO date is worth the wait...
Should I Wait to Invest in Postmates?
Investors attracted to this growing market could buy GRUB now or wait for the Postmates IPO.
But it turns out, there's another option...
You see, we do believe the U.S. food home-delivery market is more than just a trend. The apps for GrubHub and Postmates make ordering food and having it delivered from your favorite restaurant as easy as just pressing a few buttons on your smartphone.
That's one of the reasons why the market is expected to grow from $43 billion this year to $76 billion by 2022.
Must See: This method may be the only way in history to turn a small sum of money into $100,000 without batting an eye. Read more...
This is creating a profit opportunity, but we aren't recommending waiting to buy Postmates stock.
We found a third option that's going to set you up to make a potential double-digit gain.
This investment allows you to own a $620 billion tech juggernaut that could dominate the online food-ordering industry.
And in the next three years, Money Morning Defense and Tech Specialist Michael A. Robinson projects this investment could climb nearly 100%...
Your Next Profit Opportunity in the Food Industry
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The next titan of the food delivery industry might actually be Facebook Inc. (Nasdaq: FB).
Yes, most analysts wouldn't consider Facebook a traditional "food delivery stock," like GrubHub or Postmates.
But on Oct. 13, the social media giant entered the home delivery market.
Through its "order food" option in the Facebook smartphone app, users can browse restaurants in the area that offer delivery and take-out options. Facebook is partnering with smaller delivery services like EatStreet, DoorDash, ChowNow, Olo, Zuppler, and Delivery.com, according to TechCrunch.
It's also working with restaurants directly for take-out options, and those restaurants include:
- Jack in the Box
- Five Guys
- Papa John's
- Wingstop
- TGI Friday's
- Denny's
- El Pollo Loco
- Chipotle
- Jimmy John's
- Panera
When a Facebook user decides what they want, they click "start order," and the food preparation begins.
Right now, FB CEO Mark Zuckerberg is not charging participating restaurants and delivery services fees or sharing in profits from the orders placed via Facebook.
That's because he's thinking bigger...
Zuckerberg doesn't need to take a cut of the $3.99 online delivery fee that services like Postmates charge. Instead, he's going after the U.S. digital advertising sector, which will account for 46% of all advertising by 2022, according to Forbes.
With Facebook offering food delivery, restaurants will want to increase their ad spending on FB to reach more customers. Five Guys, for example, could eventually pay to have an ad for a cheeseburger that takes users directly to Five Guys' "order food" section on Facebook when they click on the ad.
And with Facebook's 1.37 billion daily active users, restaurants have billions of customers they could reach each day.
Facebook partnering with smaller delivery services and restaurants directly is going to limit the amount of revenue Postmates can make. If you're holding out on the Postmates IPO in hopes of capturing 114% returns like Grubhub, the entrance of a $500 billion giant like Facebook in the online delivery market could dash your hopes.
It also means Facebook is primed to profit even more from the industry's growth.
While we see online food delivery as an additional catalyst for revenue growth, we don't have any hard numbers yet, since Facebook just rolled out its food service less than a month ago.
However, we do know online ad spending as a whole is increasing, which will continue to add to Facebook's revenue totals. Digital marketing spending is projected to climb from $72.09 billion in 2016 to $120 billion by 2021, according to Forbes.
That's a 66.45% increase in just five years. Because of forward-thinking moves like integrating food delivery into the Facebook app, Robinson projects the FB stock price will double in roughly three years.
After extensive research, Robinson's data suggests the FB stock price could double in as little as 18 months.
At the time of his prediction (May 8), FB was trading for $178.25. That means the Facebook stock price would trade for $356.50 per share if it hits Robinson's prediction:
"Over the past three years, Facebook has grown earnings on average more than 100%. That figure is likely to slow, but even if we cut that rate in half to 50%, we're still looking at a double in as little as 18 months."
However, a conservative estimate shows 100% gains in less than three years.
"That's not long to wait to double your money. And it makes Facebook the kind of market crusher that can really help you build your net worth," Robinson said.
If there are two things Zuckerberg knows, they're how to scale a business and how to make shareholders a ton of money along the way.
This Is How You Find the Next Big Thing
When looking for the next big winners, most investors turn to the "Google Search Method" of stock picking.
They'll spend endless hours doing Google search after Google search - compiling a list of potential candidates.
The problem with this method is most of the information comes from journalists reporting the news, not bona fide market analysts giving you expert research.
So you end up with a list of companies getting the most coverage - but not the best investments.
Instead, you should see this.