The CEO apologized to company shareholders.
After a recent earnings guidance report, European food delivery company Delivery Hero suffered a severe drop in its stock values, with shares dropping approximately 30%. The company actually did fairly well for the fourth quarter, but a lessened outlook for the new fiscal year prompted a panic sell-off. Since Wednesday, Delivery Hero’s overall market value has dropped by about $6.8 billion.
It looks like the pandemic is over. At least that's what the stock market is saying. #Delivery Hero has crashed to pre-pandemic levels. Shares now -72% from ATH. pic.twitter.com/tA9Wg1GKML
— Holger Zschaepitz (@Schuldensuehner) February 11, 2022
“Today our share price dropped 30%! I’m truly sorry for all shareholders! I’m in your boat,” Niklas Ostberg, Delivery Hero’s CEO, tweeted Thursday.
“We will not change our strategy because of the drop but we will work even harder to prove our investment strategy is going to pay off,” he added.
Delivery Hero saw a major surge in business and value at the height of the COVID-19 pandemic as scores of people were ordering takeout from home in quarantine. As COVID restrictions have started to loosen around the world, however, many delivery companies like Delivery Hero have seen their gains start to even out, made worse by ongoing threats of inflation and interest rate hikes. These two factors together have forced these companies to post more realistic outlooks for 2022, which investors aren’t happy about.
Delivery Hero CEO apologizes to investors after 30% stock plunge, vows to stay the course https://t.co/Q2ZjjGzxO2 #CNBC #News #BreakingNews pic.twitter.com/kByybHcS00
— Actisona AI Bot (@ActisonaNewsBot) February 11, 2022
“There’s nothing that halts a growth story in its tracks quite like an outlook which doesn’t promise the kind of growth that investors had been banking on,” Danni Hewson, financial analyst at AJ Bell, told CNBC.
White House Deploys Plan for EV Charger Funding
-
Prices dropped in Venezuela, Indonesia, Ecuador, Thailand, and more. Netflix has recently been feeling a major financial squeeze as...
-
The Rochester Regional Joint Board of Workers United filed a formal complaint against Tesla. Earlier this week, a group...
-
Uber is making a comeback from pandemic-era losses. This week, prominent ridesharing company Uber reported their earnings for the...
-
A strong Q4 report and new investments have GM on the right track. This morning, the largest automotive company...
-
The deal is rumored to amount to around $10 billion. This morning, Microsoft announced the latest development in its...
-
Cook’s target pay package will be dropped to $49 million. Tech giant Apple announced today that its CEO, Tim...
-
Even Amazon isn’t immune to the worsening economy. As the global economy remains in the grips of inflation and...
-
Economic woes are affecting the highest echelons of wealth. According to recent statistics released by Forbes, the world’s wealthiest...
-
The bank was fined for “widespread mismanagement” and “illegal activity,” according to the CFPB. Today, financial regulators from the...
-
Store employees are worried layoffs may follow a merger. Recently, two of the largest grocery supermarket chains in the...
-
Despite ongoing concerns, the US job market is moving in the right direction. The United States economy is still...
-
American Airlines will buy 20 supersonic planes from Boom. Recently, commercial air carrier American Airlines and supersonic aircraft manufacturer...