The Deliveroo (LSE: ROO) share price has been having a rough time of late. It’s down almost 30% over three months, and has fallen 20% at the start of December alone.
The company listed on the London Stock Exchange via an initial public offering (IPO) back in March. However, the first trading day was one to forget as the shares plunged over 26%. It’s safe to say the share price has been rather volatile ever since.
Has the recent price fall created a buying opportunity for me? Let’s take a look at the potential investment.
The bull case
The first thing I like about Deliveroo is its network of partner restaurants and users on its online food delivery platform. This is operated through its 150,000 riders who deliver the food. Network effects can be a very powerful economic moat for a business as it stops competitors from taking market share. … Read more