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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
