• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Ocado share price is soaring but major headwinds remain
Investing

Ocado share price is soaring but major headwinds remain

by January 9, 2023
by January 9, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Ocado (LON: OCDO) share price had a strong start of the year even as concerns about e-commerce stocks rise. The shares have risen by more than 16% in 2023, making it the top-performing stock in the FTSE 100. Other best-performing FTSE 100 constituents are companies like Carnival, EasyJet, IAG, and BT Group. 

E-commerce concerns remain

Ocado is a technology company in the retail sector. The firm, through its joint venture with Marks and Spencer, runs one of the most popular e-commerce platforms in the UK. This business is known as Ocado Retail. 

The company also operates a business-to-business business where it provides warehousing solutions to other retailers. Some of the top companies it serves are Kroger, Auchan Retail, and Groupe Casino. 

At its peak, Ocado was one of the fastest-growing companies in the UK. Its business peaked in 2020 during the Covid-19 pandemic when most people were ordering their products online. 

Recently, however, Ocado’s business has struggled as inflation has soared to the highest level in more than 40 years. The company has also been under intense pressure as its business solutions business waned. It has signed less than 3 new clients in the past 12 months. Those it signed were Auchan Retail and Lotte Shopping, a South Korean giant, as I wrote here.

The e-commerce sector is struggling globally since people are now shopping in stores. In the United States, Amazon announced that it will lay off 18,000 people mostly in its retail division. Jumia, the Africa-focused e-commerce firm, started retrenchments in 2022. Other companies like Shopify and BigCommerce have announced major layoffs as well.

The outlook for Ocado is still dark. For one, the company will need to add more clients in its warehousing business. With the UK sinking in a recession, we could also see Ocado Retail struggle.

Ocado share price forecast

OCDO stock chart by TradingView

The 4H chart shows that Ocado stock price has been in a slow recovery in the past few days. It has managed to move above the 25-day and 50-day moving averages while the Relative Strength Index has moved close to the overbought level. The shares have struggled moving above the important resistance point at 747p.

Therefore, I believe that these gains could be temporary since the company faces more headwinds than tailwinds in 2023. A move above the resistance point at 755p will invalidate the bearish view.

The post Ocado share price is soaring but major headwinds remain appeared first on Invezz.

You Might Also Like
  • CrowdStrike stock tanked 20% in extended trading: what happened?
  • Dow Jones, the S&P 500, and Nasdaq price forecast after the bad performance in 2022
  • Index Options vs. Stock Options: What’s The Difference?
  • Balfour Beatty stock: A good buy after guidance boost
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Top 4 US banks reporting quarterly earnings this week
next post
Should you buy or sell the Dax index amid German industrial production rebounding?

You may also like

Coinbase, Galaxy Digital shares rise sharply as stocks surge

December 29, 2022

Analyst: Lockheed shares could give up all of their gains...

January 16, 2023

Helium One share price has a bullish catalyst in 2023

December 27, 2022

Ready to Invest? Here’s How to Get Started with Online...

March 25, 2023

Is Supply@Me a good penny stock for 2023?

December 27, 2022

Unemployment rate falls to 3-month low in Japan; Monthly retail...

December 27, 2022

A scattered dot plot could see the FOMC square off...

December 14, 2022

Hang Seng: How high can Hong Kong stocks surge?

December 5, 2022

Should you buy Chinese tech stocks now that China is...

December 28, 2022

Coinbase halts NFT transfers for iOS users after Apple blocks...

December 2, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025
    • OpenAI to release web browser in challenge to Google Chrome

      July 10, 2025
    • Sports executive charged with bid-rigging in Texas arena project

      July 10, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,631 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,919 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,607 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,577 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,451 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • How to Find Compelling Charts in Every Sector

      July 10, 2025
    • White House accuses Powell of mismanaging Federal Reserve, citing headquarters...

      July 10, 2025
    • Italian chocolate giant Ferrero to buy Kellogg’s Froot Loops maker

      July 10, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,171)
    • Investing (538)
    • Stock (2,662)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Curry’s share price comes back to...

    December 19, 2022

    Options Trading Strategy: Bear Put Spread

    May 12, 2023

    7 Steps To Take Your Investments...

    January 20, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here