By Delivery Hero, the German food-delivery company, saw its shares continue to plummet on Monday following rumors that talks regarding the potential sale of its Foodpanda business in selected Southeast Asian markets had fallen through. Despite the company’s denial of these rumors, stating that discussions were still ongoing, investors were not reassured, and the stock price dropped by more than 22% on Friday.
Even with the group reporting higher fourth-quarter revenue, shares experienced a further 3.8% decline on Monday morning, now valued at EUR16.03. Analysts anticipate that M&A activity, or the lack thereof, will continue to play a crucial role in dictating market movement in the near term. Marcus Diebel from J.P. Morgan emphasized the likelihood of persisting volatility.
Despite expectations of a positive share-price response on Monday following Delivery Hero’s release of aligned 2023 results and 2024 adjusted earnings guidance surpassing market consensus, the decline endured. The group projects adjusted earnings before interest, taxes, depreciation, and amortization to range between 725 million and 775 million euros ($782.1 million-$836 million) this year.
On February 14, Delivery Hero plans to provide a trading update.
By Nina Kienle
Comments