UK 17:51 Saturday, 24 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Ocado (OCDO) has been the most shorted stock in the FTSE 100 over the past few years and the bears have been roasted. Is there still a bear case?
Regular readers will know that I am not the biggest Ocado (OCDO) shares fan. Yes, a couple of times a year we get one of the company’s electric vehicles to deliver its (and Marks & Spencer (MKS)) food and related products…but it is only a couple of times a year as the J Sainsbury (SBRY) equivalent is almost as good and certainly a lot cheaper. Why then, after a shocking share price performance in 2021 and 2022, are Ocado shares now slightly up year-to-date, with a current this morning 10%+ share price rise?
Just under a week ago, I concluded that “Ocado (OCDO) is not going to keep being a FTSE 100 company for much longer”. Given that the company’s shares - despite some general market volatility over recent days - rose 18% during the last week, what is going on? After all, I doubt if the UK population has suddenly found its personal finances can be starting a regular Ocado delivery visit…
No doubt many of you are focused on Juneteenth, an “annual observance on June 19 to remember when Union soldiers enforced the Emancipation Proclamation and freed all remaining slaves in Texas in 1865”. For me it is just another mid-June Monday, the sort of day historically when (boring) larger cap institutional investors like me would be all over the Paris Air Show and at the Ashes. Today, however, I am thinking again about Ocado (OCDO).
Five days ago, I wrote an article titled “What happens when Ocado falls out of the FTSE 100?”. As John Maynard Keynes, not somebody I frequently quote, said “in the long run we are all dead”, and my guess would be that Ocado (OCDO) will struggle to stay a FTSE 100 stock for the rest of this year, let alone beyond. And how did the now sub £3 billion market cap business survive in the FTSE 100 this time? Because the £3.2 billion market cap British Land (BLND) fell out instead.
I have got some bad news for Ocado (OCDO). Despite the company offering me a “summer offers on sunscreen and ice cream, a romantic Meal Deal for two and a barbecue feast”, via email the other day, I have just booked next week’s food shopping home delivery once again with J Sainsbury (SBRY). Don’t get me wrong, Ocado (and its M&S (MKS)) range of offerings is quite nice…but it is not really required by me and family in late May. It should probably contact me again nearer my birthday or maybe Christmas. And in the meantime, it should think a bit more about whether its share are going to be kicked out of the FTSE 100?
I have two disclosures to make today. The first is that I have just purchased a new computer. It won’t surprise to know that it is yet another ASUS Chromebook and, after a thorough review of all the potential sellers out there, I purchased from Currys (CURY) and not its competitor AO World (AO.), which I see offered the hope of a profits upgrade in its update today.
Whilst typically we are users of J Sainsbury (SBRY), now and again we organise a home food delivery from Ocado (OCDO). Whilst a few bags of food and related from the latter is not cheap, the quality is really good and having a delivery (or two) from it rather than a single restaurant meal is an easy call in my opinion. However, as an investor, I have avoided Ocado shares.
Apparently if I arrange a couple more deliveries by Ocado (OCDO) over the rest of the year, I will get a free box of chocolates. I guess that might be a nice Christmas present for someone, but it might be a slightly expensive one too. Ocado always offers a nice food delivery option, but it is an expensive one too. What happened in today’s Q3 trading statement then?
