Ocado, an online technology-focused supermarket, shares opinions. This is the marmalade of businesses: investors either love it, trusting its potential to bring great rewards, or hate it because of this promise of “tomorrow’s jam”.

Shares of the company, founded 22 years ago and named after the avocado, after the first two letters, fell.

In the midst of the pandemic home delivery boom in September 2020, stocks reached 2,800 pence apiece. They are now 70 percent lower, at 810.8 points.

Ocado shares have fallen 52% this year, more than the rest of the UK’s largest grocers

Is this a reality test? Or just a failure on the way to fulfilling the forecast in 2020 that the price could reach £ 100 by 2030?

After all, as Hargreaves Lansdown says, “Ocado is the only global provider of end-to-end online product platform” – interesting for those who want to support British innovation.

Darius McDermott of FundCalibre says the stock may have gone up in the Covid era, but the deployment of AI and robotics makes Ocado different: “It’s so much more than a grocer.”

Reflecting this status, Ocado’s market capitalization of £ 5.8 billion exceeds Sainsbury’s capitalization of £ 5.4 billion. But critics say that, unlike Sainsbury’s, Ocado has only made three times its history and may be struggling with it in the future.

Huge costs are required to develop robot technology to collect products used by Ocado but also sold to other supermarkets such as Kroger, US chain, Spanish Alcampo and Casino based in France. Some, however, doubt how profitable these deals are.

Meanwhile, revenue growth from Ocado Retail is slowing due to rising electricity bills, the cost of living and cooling love relationships with online stores. This joint venture with Marks & Spencer is the business behind the vans you see on the streets.

Product delivery is also becoming more competitive. Sainsbury’s and Tesco have successfully expanded this part of their business.

These and other supermarkets work with programs such as Getir, Gorillas and Zapp, which provide fast delivery of avocados and other essentials.

Ocado has been forced to rebrand Zoom’s own Zoom app from Ocado. It was felt that the “Z” in the original logo resembled the “Z”, which became the insignia of Russia in the war in Ukraine.

Another apple of disagreement is the award of Tim Steiner, head of Ocado since 2000. Under the incentive scheme, he could earn £ 100 million in five years. The Royal London Asset Management (RLAM) was one of those who voted against the plan this month.

Believers in Ocado, pleased that he has won an important legal battle with Norwegian robot group Autostore for patents, think Steiner deserves such awards.

They point to the generosity that may emerge during this period if it wins robot wars.

Its Series 600 robot, made with 3-D printing, is projected to cut labor costs by a third. Bernstein brokers said such advances could turn Ocado or CFC (customer execution centers) warehouses into “banking machines”.

Huge costs are required to develop the robot product collection technology used by Ocado

Huge costs are required to develop the robot product collection technology used by Ocado

Indeed, the company expects EBITDA from CFCs to grow by 50 percent. Ocado defines EBITDA as profit before net financial expenses, taxation, depreciation, amortization, depreciation and exceptional items.

You may have never subscribed to the almost messianic faith that surrounds Okado. But you have a stake in it if you save in RLAM funds or in the Bailey Gifford Trusts at Edinburgh Worldwide and Global Discovery. If you’ve owned stocks for ten years, you’ve seen a 570 percent increase in their value, which could lead you to endure the current grief in hopes of recovery.

HSBC raised its share price from “sell” to “hold”, although it lowered its target price from 1,100 to 1,000 pence. Credit Suisse has also lowered its target price from 1650p to 1600p, but this broker expects Ocado to outperform.

David Coombs of Rethbon warns that the high prices of the Kovid era may not be achieved for the next five years.

He adds: “I’ve always wanted to buy an Ocado. But I could never force myself to do that because even though he has a great, wonderful story, she hasn’t achieved it. During the pandemic, he did not take full advantage of the client base. ”

While a longtime customer, I couldn’t get a shipping slot. The wider doubts caused by this irritation led me to decide not to buy the stock.

When prices have fallen, it’s hard to resist the urge to seize the deal. However, it is best to consider stocks whose prices have fallen rather than fallen.

Take this other company named after the fruit – Apple. Its shares have fallen 19 percent this year. There will be more pain ahead, but also more profits that are now more important than ever.

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