Why have traders been buying Deliveroo shares recently?

Trader on video call from his home office

We all know that anxious feeling, checking our phones repeatedly to see when a food delivery will finally arrive. But some investors have been checking out Deliveroo for other reasons, mainly to trade their shares.

Here’s why traders have been buying Deliveroo shares, and a look at the other stocks that have been attracting a lot of action recently.

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What’s happening with Deliveroo shares?

This food delivery giant made a big splash with its initial public offering (IPO) earlier this year.

There was a lot of excitement about the listing. This was mainly because people were hungry to see an innovative tech company from the UK going public.

However, the initial performance of Deliveroo shares was understandably spicy and volatile. But the stock did eventually begin creeping up, peaking towards the end of August. And it looked like solid returns were back on the menu for lots of investors.

After a bit of a roller coaster, things have come full circle. Deliveroo’s share price is pretty much right where it began when the company went public back in March!

Why have traders been buying Deliveroo shares?

The recent price decline has created a buying opportunity for many eagle-eyed traders. According to data from Fineco, 73% of investors have been scooping up these shares for their portfolios.

Part of this renewed interest in the online company is also down to its partnership with Amazon Prime. This tasty two-course relationship kicked off back in September and has since led to a boost in orders and registrations on the platform.

Some investors think that this piece of solid business isn’t fully priced into the shares yet. So they’re buying stock, hoping Deliveroo will reach all-time highs.

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What other stocks are traders buying and selling?

Deliveroo shares aren’t the only ones that have been changing hands on the FinecoBank platform lately. Here are some of the other most-traded stocks.

Darktrace (DARK)

Once again, these shares have attracted a lot of interest. Just over half (54%) of traders were buying them and 46% were selling.

Just days before the cybersecurity firm was due to join the FTSE 100, analysts took it down a peg by saying it was massively overvalued. This is why there are such mixed opinions from investors.

Meten Holding Group (METX)

This Chinese teaching business was the top mover globally with 51% of traders buying and 49% selling.

Meten is looking to diversify its business, announcing a strategic partnership with tech company AGM Group to purchase millions worth of Bitcoin mining machines. Some view this as an exciting move, but others see it as an act of desperation.

PayPal Holdings (PYPL)

PayPal is another global top-mover. The payment services company has hit the headlines recently following rumours it is in talks to buy Pinterest.

The rumour mill has created a lot of buzz with 58% of traders buying this stock. However, the remaining 42% of investors chose to dismiss the hype, deciding to sell their shares.

How can I start picking up or dropping off orders for Deliveroo shares?

Deliveroo may have plenty of room left to grow over the coming years, or it could end up facing fierce competition from rivals.

Whichever way you choose to invest, if you’re trading frequently, it’s really worthwhile using a cheap share dealing account in order to keep your costs down. Making use of a top-rated account like the FinecoBank stocks and shares ISA will also mean paying no tax on any gains you make.

Keep in mind that markets can be quite unpredictable in the short term. You may get out less than you put in, so always invest sensibly and consider all of your options.

The post Why have traders been buying Deliveroo shares recently? appeared first on The Motley Fool UK.

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