At the end of March, Deliveroo [LSE:ROO] delivered one of the worst IPOs in history, with initial investors losing almost 30% on the first day of trading. Now the tide might be turning.
Initial investors in food delivery company Deliveroo must be breathing a sigh of relief now that its shares are in what appears to be an uptrend (high highs and higher lows) since the low point the share price reached immediately upon its initial public offering on the last day of March this year. Initial investors could soon get back to break-even and today’s investors could make a nice profit if the upward momentum continues.
How & Where to Buy Deliveroo Stock Today?
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What is Deliveroo?
Deliveroo plc connects restaurants and grocers with local customers via its army of delivery riders. The company’s food-ordering platform operates in 12 markets — Australia, Belgium, France, Hong Kong, Italy, Ireland, the Netherlands, Singapore, Spain, the United Arab Emirates, Kuwait, and the United Kingdom — although it is looking to pull out of Spain at the time of writing due to a restrictive “rider law”. Founded in the UK in 2013, half of Deliveroo’s revenues still come from the UK and Ireland.
Should I Buy Deliveroo Stock Right Now?
Although history tells us that you shouldn’t have bought Delveroo shares at the time of its initial public offering, now might be a better time to bet on its rising share price. As every investor knows — or should know — it’s a brave person who bets against the prevailing trend, and the trend is currently upwards. And in the worst-case scenario, you can’t do any worse than the initial investors. As ever, however, you do your own due diligence before deciding to buy.
Deliveroo Price Target 2021
The most obvious price target for Deliveroo is the 390p-per-share floatation price, which would take initial investors back to their baseline and would give today’s investors a 20% profit. Beyond that point, who knows how much more value Deliveroo could deliver to shareholders?