Ocado shares surge after South Korean deal
Ocado has just signed one of its biggest deals which helps it move further afield outside of its current orbit of Europe and the US. It’s struck a deal with the South Korean retail giant, Lotte.
As of the first two hours of trading, there are few sellers of the stock.
(Video Transcript)
The online logistics and shopping specialist Ocado has seen its shares rise more than a third this morning as a result of a deal it's hammered out between its logistics division and Lotte Shopping to develop Lotte Shopping's online business in South Korea with the Ocado smart platform.
Ocado share price
Let's take a look at the share price chart because the journey that we've seen since the Covid lows back at the left hand side of this chart here, when we were trading all the way down at 9.86. We then saw 192% rise as people went more and more online.
Since then, there've been some problems at Ocado, profit warnings and concerns about the outlook and the fact it's not sealing any more of these deals. And we've seen an 86.9% drop from the record highs we had back in September 2022, the lows at £3.80.
Since then we've seen this rise come through and in today's session this is what a 35% now looks like, 35% rise in the stock and it's a candle which indicates that at the moment at least there are no sellers at £637p a share.
This is a marubozu candle indicating there are no wicks either end. So it starts at the bottom. We're trading at the top after 2-hours or an hour and a half's worth of the trading day, so far today.
So a good result for Ocado. Under the deal, Ocado and Lotte will develop a network of customer fulfillment centers across South Korea and there is a total annual revenue in this deal of £45 billion.
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