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
-
Shareholders have accused Musk of enriching himself to the company’s detriment. In the midst of his ongoing revamp of...
-
Without pandemic-era loan accommodation, borrowers are falling behind. During the height of the COVID-19 pandemic, numerous aid and accommodation...
-
As Twitter changes hands, policies change as well. As of last Friday, social platform Twitter is officially the property...
-
Remote workers have brought in a tidy sum for several major carriers. While the COVID-19 pandemic has reached a...
-
The CPI rose another 0.4% in September. For the past several months, the United States Federal Reserve has been...
-
Musk appears to be backing down from his legal threats. For the last several months, Tesla CEO Elon Musk...
-
Amazon is looking to start the holiday shopping season even earlier this year. Typically, online retail giant Amazon holds...
-
Home Depot still maintains a healthy customer base despite economic concerns. Ongoing concerns of inflation have done a number...
-
A railway strike would severely impact the US economy. This week, representatives of the National Railway Labor Conference and...
-
Customers have been tipping less generously as pandemic restrictions relax. At the height of the COVID-19 pandemic, when many...
-
After years of exclusivity, Peloton is finally allowing third-party sales. Since it first launched as a company, exercise device...
-
Uber was first on the chopping block as SoftBank recoups losses. Recently, Japanese conglomerate SoftBank suffered a major loss...