Tag: 上海后花园FHS

Is the Deliveroo share price dip a buying opportunity?

first_img Image: Deliveroo Rupert Hargreaves | Thursday, 27th May, 2021 | More on: ROO Simply click below to discover how you can take advantage of this. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas?Grab this FREE report now.Inside, you discover one FTSE company with a runaway snowball of profits.From 2015-2019…Revenues increased 38.6%.Its net income went up 19.7 times!Since 2012, revenues from regular users have almost DOUBLEDThe opportunity here really is astounding.In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer?You could have the full details on this company right now. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. The Deliveroo (LSE: ROO) share price has been a consistent underperformer since the company’s IPO at the end of March. Indeed, the company has the unfortunate label of being one of the most unsuccessful tech IPOs in recent memory. It’s even been referred to as the “worst IPO in London’s history“. The company was launched with a market capitalisation of £7.6bn. But it’s worth just £4.7bn today. I think these figures say a lot about what the market thinks of the Deliveroo share price.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But is this an opportunity? If the company continues to grow, as it has done over the past five years, I think it could be. Growth potentialThere’s no denying Deliveroo is a growth champion. Over the past five years, the company has grown from almost nothing into a multi-billion-pound business. Sales have surged over the past few years, thanks to an influx of new customers. The trend only accelerated last year. According to the company’s first-quarter trading update, the number of orders placed on its platform in the three months to the end of March increased 114% year-on-year. In addition, the monthly active user base on the platform increased 91% year-on-year to 7.1m users. The problem is, the company has struggled to turn this growth into cold, hard cash. The group is unprofitable and is relying on its cash reserves to fund losses. At the end of the first quarter, the Deliveroo had £1.5bn in cash, and cash equivalents, as well as access to a £150m revolving credit facility.It’s difficult to say how long this cash balance will last. In 2020, a record year for the group in terms of order value, it lost £226m. Based on that level of losses, the company has enough funding for at least five years, possibly longer. Deliveroo share price risks I think Deliveroo’s growing losses have spooked investors into selling their shares in the company.Unfortunately, the firm may continue to haemorrhage cash. The food delivery sector is incredibly competitive, and Deliveroo has to fight off better-funded competitors such as Just Eat and Uber. The longer it takes for the company to reduce its losses, the higher the chances are it will run out of cash. With that being the case, I plan to avoid the Deliveroo share price for the time being. However, I’m going to be keeping an eye on the enterprise over the next few months.As the UK moves on from the coronavirus pandemic, I think it’ll be interesting to see if the company keeps its new customers. If it does, it may be a sign these customers are here to stay. That would give management more flexibility to increase prices and reduce marketing spend, which would help margins and profitability. Therefore, while I’m not a buyer of the stock today, I could be in the future if the firm’s figures improve.  Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Just Eat Takeaway.com N.V. and Uber Technologies. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Grab your free report – while it’s online. Our 6 ‘Best Buys Now’ Shares Is the Deliveroo share price dip a buying opportunity? I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address See all posts by Rupert Hargreaveslast_img read more

Read More Is the Deliveroo share price dip a buying opportunity?