Worst Fall in 11 Years Amid Downgrade and Pressure from M&S Chair

  • Ocado shares suffer worst fall in 11 years
  • 20% drop wiped £1.4bn off company’s overall value
  • BNP Paribas Exane analyst downgraded Ocado from neutral to underperforming
  • Stock trading at 678 pence at the time of writing
  • Ocado sales rose 7.2% in Q3 due to pressure from M&S chair Archie Norman

Online supermarket Ocado experienced its worst share drop in 11 years, losing nearly £1.4bn of its overall value after being downgraded by BNP Paribas Exane analyst Andrew Gwynn. The 20% plunge affected co-founder and CEO Tim Steiner’s stake as well. Ocado’s stock had reached a high of 2895p in September 2020 but fell to 343p in June this year. This comes after M&S chair Archie Norman expressed dissatisfaction with the company’s performance at its AGM in July.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Ocado’s stock performance, including specific numbers and details about the drop in share value, the reason for the downgrade by BNP Paribas Exane analyst Andrew Gwynn, and the company’s recent sales figures. It also mentions the context of the COVID-19 pandemic’s impact on Ocado’s stock price.
Noise Level: 3
Noise Justification: The article provides relevant information about Ocado’s stock performance and market changes, but it could benefit from more analysis or context on the reasons behind the downgrade and the potential long-term implications for the company.
Financial Relevance: Yes
Financial Markets Impacted: Ocado’s stock price and market value
Financial Rating Justification: The article discusses a significant drop in Ocado’s share price, the impact on its market value, and the influence of a city broker’s downgrade on the company’s performance.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crisis
Impact Rating Of The Extreme Event: Moderate
Extreme Rating Justification: The 20% drop in Ocado’s shares wiped nearly £1.4bn off of the company’s overall value and slashed £32m of value off of co-founder and chief executive Tim Steiner’s stake in the business, causing significant financial impact on the company and its shareholders.

Reported publicly: www.retailsector.co.uk