Is now the right time to buy Royal Mail shares?
Why is Royal Mail on the up?
The Covid-19 pandemic led to the closure of many high-street shops across the UK, and these are now only slowly beginning to re-open. Nevertheless, the appetite for products did not diminish, and consumers turned to online providers for their wares. These goods in turn need to be delivered, and this has led to the huge rise in revenue for the Royal Mail, the primary mail service in the UK. Their most recent earnings were very encouraging, but they did not provide a forecast for the remainder of the year, as it is difficult to predict how the parcel industry will continue as life slowly returns to normal.
Where can I buy Royal Mail shares?
Royal Mail shares are traded on the London Stock Exchange, and the Royal Mail is part of the FTSE100 index, the 100 listed companies with the largest market capitalisations.
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What is the Royal Mail, and why is there such interest in its shares?
The Royal Mail was created by King Henry VIII more than 500 years ago, and until 2011 was operated by the UK government. It was floated on the stock exchange in 2013, and the government sold the last part of its stake in the company in 2015. It is the primary mail service in the United Kingdom, and the oldest such service of its kind in the world. With access to 99.9% of all residences and businesses in the country, it has an unrivalled position when it comes to delivering mail and parcels, and has benefited greatly from the closure of shops and surge in online sales.