Ocado’s share price may be set for a rebound this week. The question is – can it retain investor interest if poor earnings continue?
Ocado’s share price fell by nearly 40% in July, but its recent surge reached an almost 10% increase this week and about 11% this month. Is this an opportunity for investors to buy the dip?
In the next sections, you will find an overview of the company’s signs of recovery and where you can buy Ocado stock online right now. Let’s start with the latter.
How & Where to Buy Ocado Stock Online
Ocado (LSE: OCDO) is a British retailer available on many brokerage platforms. If you want to invest right now, we’ve picked two of the best online brokers that offer this stock and many other assets:
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What Is Ocado?
Ocado is a British tech-focused grocer that benefited considerably from the shift towards online shopping during the pandemic. Its online shopping platform, known as Ocado Retail Limited, is the largest of its kind in the world.
Should I Buy Ocado Today?
As the buying trends normalised after the pandemic, Ocado’s financials followed the trend with a massive drop in revenues while the basket size dropped by 23%. Consequently, the company’s share price fell approximately 40% from its all-time highs in January. But, could the company rebound and reach the previous levels?
Ocado’s management board remains highly optimistic about its ability to retain the same consumer base – although the lack of restrictions means that people can now eat at restaurants or shop in-store. Despite this, Ocado remains confident, especially as it heavily invests in technology to optimise its robotic warehouses. But, will this be enough to retain investor confidence amid dropping revenues and fierce competition from Tesco and Sainsbury’s?
Ocado Price Prediction 2021
For the next 12 months, the high estimate for Ocado is an increase of more than 68% in share price, reaching 3,460 GBX, while the lowest estimate is 870 GBX.