Since its IPO in March 2021, Deliveroo share price has been in a constant downtrend. Many analysts dubbed it one of the worst IPOs in the London Stock Exchange’s history. The shares were listed at their initial price of 390 GBX per share. However, the price collapsed immediately after the IPO, and the LON: ROO was seen trading at 225 GBX just a few weeks after the IPO.
Deliveroo is an online food delivery business based in the United Kingdom. It provides its services not just in the UK but in other parts of Europe as well as in the middle east. The current market capitalization of the company is 1.55 billion GBP.
Latest Deliveroo News Today
According to the most recent Deliveroo news, the company has planned to lay off 9% of its employees. As per this plan the company’s headcount would be reduced by 350. This move comes as the firm struggles with its profitability in a higher interest rates environment.
Deliveroo has also reported a decrease in its number of orders during the last quarter of the year. Nevertheless, the total cost of all orders increased due to a hike in menu items from the restaurants. In other news, Deliveroo will be giving away free starters and desserts this Valentine’s day. The company has partnered with big food chains to provide free desserts to its customers from 10 to 14th February.
Deliveroo Share Price Chart
LON: ROO price chart is depicting a prolonged sideways accumulation since May 2022. At the time of writing, the price is trading at 87.98 GBX. The price appears to be range bound with a high at 100 GBX and a low at around 78 GBX. During the last few months, the price has retested the range of high and low multiple times but fell back within the range every time.
Considering the current volatility in the global equity markets, I expect a breakout in Deliveroo share price soon. The price has recently broken below the 200-day moving average after briefly breaking above it. This shows that the bears are still in control and bulls need to generate more upwards thrust for a potential bullish reversal.
