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Ocado has moved incredibly fast, and still do. They power the online capabilities of 8 of the world's grocery chains. One of which is America's largest supermarket by revenue - Kroger. Another, Aeon Japan, is part of the Aeon group which is the largest retailer in Asia.

An incredible transformation from being a small grocery retailer to now being the world leader in online grocery technology.

Regarding the recent share drop. Ocado has increased in value 1280% from flotation. It has increased regularly year on year. Being a tech share it is more volatile than most shares. The overall tech market has been hit lately. Inflation fears and overall profit taking driving that. There are many signs the market has stabilized now. Of course there are drops in Ocado's value periodically. These if you look historically have been followed by major rises.

Ocado's a great investment opportunity currently. If you still look at profits, dividends and Ocado retails market share you'll miss it though.

hedged,

If you look over recent Ocado retail trading statements you will see the EBITDA generated from retail. This has been significantly higher this year. These profits are reinvested into the Ocado Solutions side of the business.

Ocado is the fastest growing UK grocery retailer currently. It's not the market share now, it's where it will be in the future. There are rapid expansion plans occuring in the UK for the Ocado retail joint venture. The move by the consumer to online grocery shopping over store based has been sped up greatly by the pandemic. As Neil's recently article outlined "global grocery e-commerce will hit $250 billion by 2025, taking up 21.5 percent of total grocery sales."

Ocado retail UKs market share though isn't what drives the value of the Ocado group. It's the tech led solutions side, which comprises around 90% of the group's value, that drives growth in the market cap and share price. Consumers all around the world want an omnichannel structure for their grocery shopping. They may go to the store one week and online shop the next. Many grocers have had no online presence and have had to scale up rapidly online as Marks and Spencers have done using Ocado's solutions in the UK. For any grocers that are behind the curve Ocado offer a market leading solution to driving online grocery growth and gaining an advantage over their competition.

If grocers simply ignore online sales or run labour intensive store pick models then they will see their market share and margin eroded.

7 major grocers around the world have realised this and have chosen Ocado's market leading tech. The contracts give Ocado a slice of the sales generated which as we move forward in time will be very substantial.

Chilting,

Had Ocado remained solely as an online grocery retailer declaring large profits instead of reinvesting back into the business then the tech they would have developed would have been a shadow of what it is today. It is the relentless reinvestment that has sharpened their technology and allowed them to stay ahead of the competition.

Competitors are trying to catch up but Ocado are forging ahead. Accelerated investment into the business via fundraising and utilising Ocado retails increased profits. 2 x cutting edge robotics companies taken over in the last year. One of which has several multi billion dollar market cap clients in the clothing field. This marks another clear path for Ocado to further expand out of the grocery tech field.

Staying ahead of competitors is crucial. I see absolutely no let up in Ocado's desire to challenge itself in furthering their groundbreaking online grocery solutions. As edtheeuph recent posts have outlined Ocado remains significantly ahead of competitors such as takeoff technologies. The pandemic has thrown up many opportunities and challenges. Travel bans have led to an understandable delay in new overseas contracts being signed. Ocado have outlined they are currently in contact with many potential new customers. As the bans ease more customers will come.

Ocado could have taken the easy path in staying as an extremely successful online grocery retailer making good profits however they have grasped the opportunity to totally reinvent their business model and become the world's leading online grocery solutions provider. This new path has led to a huge increase in the companies value as they have regularly signed contracts with many of the world's leading grocers.

If you look through the traditional investing prism searching for profits and dividends you will dismiss this company and will have missed out on the 1280% investment return for investors since flotation.

There's a lot more growth to come for Ocado...

Excellent posts edtheeuph re the legal case and below re takeoff. Many thanks.

As the huge online grocery market exponentially expands grocers will be looking for the most efficient, profitable solution. Competing with an average offering means losing market share and margin as the market further expands. Ocado are tied into Kroger in the US so natural others are looking to smaller less efficient operators such as takeoff.

Ocado having the most efficient solutions will reap big benefits to its clients, cause more grocers to sign up to their solutions and continually drive their push into other very lucrative markets.

Your point Neil? Of course there are competitors in Ocado's field. As the article outlines "grocery e-commerce will hit $250 billion by 2025, taking up 21.5 percent of total grocery sales." There's space for many operators. The market is expanding exponentially, massive opportunities.

Stripper, Much better effort than Nuri, will get back to you later today re why it's worth its current share price.

Nuri123a has been consistently posting that Ocado shares are worth one tenth of their current value. It has been requested but he has not provided any calculations/methodology to allow us to understand his views. Rightly he has been derided on the board.

If someone repetitively posted that Ocado was worth £200 and provided no explanation then similarly their viewpoint would be roundly dismissed.

Noone needs to be an expert here but providing explanations to any predictions is a basic requirement in order for the group to discuss further.

https://www.cnbc.com/2021/03/31/kroger-expects-its-digital-sales-to-double-by-2023.html

You are seeing a rise in the price from here rockhard?

Strong support at the £20 mark. 4 directors have bought in the last 2 months. That can be interpreted different ways but to me it says the board is confident on future success and believe the share price currently to be very attractive.

Totally agree Hexam. Always good to hear informed researched comment from those negative (and positive) on Ocado. When there are one liners with no substantiation, such as - This will be 1600p in 6 months, strong sell. Then it's natural posts of that sort do not go down well. If anyone lays out their thoughts openly and in full as you have done them it's a good basis for an in-depth discussion.

Interesting Hexam,

I haven't heard anyone on this board predict a seismic shift to online. It was a subtle shopping channel shift before the pandemic that's been sped up now. Many grocers have simply underinvested or even totally ignored online. Marks and Spencers is an example. Until recently it was not selling any food online.

The pandemic has been a big wake up call to grocers around the world. Customers are demanding an omnichannel structure as sometimes they may shop online, sometimes in-store. Now that the grocers realise they have to offer that choice it's a question for them as to how they can offer it in an efficient and profitable way. This is where Ocado's market leading online grocery solutions with extensive Ai and robotics are extremely attractive.

It's a lull in news flow currently. The value of Ocado's solutions are highlighted in how others are trying to combat them via court cases. With new contract news this share price will fly.

Best of luck with the research

You wish.... lol

At the time today the stock was up so the statement was true.

Buying at 1972p was not madness. Unless making money is madness? My holding has increased by 5% in value.

You called buying OCDO shares at 1972p "madness". Here we are today 5% up. lol

There was no mention of revenue. 85% of Ocado's market capitalisation, (the companies value) is derived from its Ocado Solutions technology arm. The other 15% is derived from its Ocado retail operation.

Ocado is classified as a technology company.

Continued moves up today away from its recent bottom of 1970p. 4 board members buying mainly substantial share purchases of Ocado very recently.

So complex to be the best in online grocery with all the complexities of fragility, temperature, shape etc. There are very big profits lying ahead for Ocado. If anyone wants to wait til then though before investing they will have missed a superb investment opportunity.

Huge potential for Ocado to further branch out into other sectors.

Best to all.

Only roughly 15% of Ocado group is in the retail sector. The other 85% of the company is in the technology sector - providing online grocery solutions to other grocers around the world.

The growth of the world online grocery market is a huge factor in driving Ocado's share price growth.. As the market grows other grocers seek to adopt Ocados market leading online grocery solutions

The US online grocery market is expected to grow 500% over the next decade. There are similar trends occuring across the globe.

https://www.prnewswire.co.uk/news-releases/online-grocery-market-size-is-projected-to-reach-usd-129-540-billion-by-2025-valuates-reports-895082817.html