Meal delivery firm Deliveroo recently reported a significant loss of £31.8 million ($40.7 million) in its full-year results, which indicates progress towards profitability compared to the previous year’s £294.1 million loss. The company’s adjusted earnings, which strip out the impact of one-off costs from its exit from some markets, stood at £85.4 million, surpassing the company’s prior guidance and showing a substantial improvement from a £45 million loss in 2022. Deliveroo attributed this positive performance to efficiencies in its delivery network, the optimization of marketing spend, overhead savings, and higher advertising contributions. As a result, the company forecasts adjusted earnings of £110-130 million for 2024, along with positive cash flow.
European stock markets have been experiencing a remarkable upward trend, surpassing a key psychological barrier this month with the STOXX Europe 600 hitting 500 points for the first time and setting a series of all-time highs. This positive momentum has been accompanied by seven consecutive weeks of positive returns, signaling optimism among investors. Despite concerns about market euphoria, historical data suggests that stocks could potentially deliver even greater gains in the future. CNBC Pro’s analysis of stock market data dating back to 1987 indicates the possibility of significant growth ahead, offering reassurance to investors amidst the current market conditions.
Insights on Chinese Stocks from Asset Manager Jason Hsu
Jason Hsu, an asset manager, shared his insights on Chinese stocks and highlighted both short and longer-term investment opportunities in the market. According to Hsu, Chinese stocks are currently trading at historically low valuations, presenting attractive investment prospects for portfolio diversification. While acknowledging the risks associated with the Chinese economy, Hsu emphasized that the discounted prices of stocks make them compelling investment choices. Despite uncertainties and ambiguity surrounding China’s economic development, Hsu suggested that waiting for absolute clarity before investing could result in missed opportunities for future growth. By considering the long-term prospects of China’s market and its potential resurgence, investors can benefit from the current negative sentiment and capitalize on discounted stock prices.
European markets were anticipated to open on a negative note, with fluctuations expected in key indices such as the FTSE 100, DAX, CAC, and FTSE MIB. Investors were closely monitoring earnings reports from companies like Porsche, the John Lewis Partnership, Vistry, and Deliveroo, which could influence market sentiment. Additionally, data releases including Spain’s final inflation figures for February were awaited to provide further insights into the economic landscape. Despite the initial market outlook, developments in earnings and economic indicators could potentially drive market movements throughout the trading day.
Through the performance of Deliveroo, the resilience of European stock markets, insights on Chinese stocks, and the market outlook for European indices, investors can gain valuable perspectives on current market dynamics and investment opportunities. By staying informed about financial developments and trends, individuals can make well-informed decisions regarding their investment strategies and navigate the complexities of the global financial landscape effectively.