January 6th 2025 – The share price of London listed food delivery company Deliveroo Plc exhibits a negative short-term trend reports Trend Intelligence, as its current price of around £1.40 sits some 15% lower than its September 2024 highs of £1.65.
Trend’s Analysis (click chart to expand): In our Deliveroo PLC chart, Trend Intelligence uses its M* Momentum Indicator to report a negative trending M* line (red), trading below both yellow and blue signal lines. This is, and has shown over time to be, a negative trend signal.
In addition to our M* indicator, Deliveroo PLC’s price currently trades below Trend’s medium-term (yellow) moving average and below our Japanese Cloud indicator, shaded in blue.
The combination of all signals corroborates Trend’s negative short-term trend rating on Deliveroo PLC, as we project continued downward moves in its share price until the trend shows signs of reversing.
Downside Sentiment: Gig workers including Deliveroo, Uber Eats and Just Eat drivers, are independent contractors which are not covered by minimum wage protection. Collectively these contractors have seen a pay fall in real terms by about 25 per cent since 2021, according to the Financial Times. In its document titled ‘Labour’s Plan to Make Work Pay’, the newly elected Labour Party has set out new ideas for the UK labour market, which includes several proposals that will have significant consequences for the gig economy, reports Shoosmiths.
Upside Sentiment: Back in August 2024, Deliveroo had reached a major milestone by achieving its first ever profit. The company earned £1.3m in the first half of 2024 – a sharp turnaround from the £82.9m loss it made during the same period last year. Deliveroo continues to branch out from takeaway food to focus on grocery and retail deliveries as well, reported Sky News.
Authored by Trend Intelligence, London
