Zomato Stock Slides 21% from 52-Week High: Should Investors Buy, Sell, or Hold?
18th Jan 2025
Investor Concerns Weigh on Zomato Stock
Zomato's stock is currently trading approximately 21% below its all-time high, driven by growing investor concerns about the company's accelerated investments in Blinkit's supply chain (dark store and warehouse network) and rising competitive pressures in the quick commerce space.
Potential Impact on Blinkit's Financials
While these concerns have merit, experts believe the impact on Blinkit's adjusted EBITDA margin (as a percentage of Gross Order Value) may not be significant. The deviation from the near-term guidance of break-even levels is expected to be limited to around 100 basis points as a percentage of Gross Order Value, and this deviation could be temporary as well.
Zomato's stock is currently trading approximately 21% below its all-time high, driven by growing investor concerns about the company's accelerated investments in Blinkit's supply chain (dark store and warehouse network) and rising competitive pressures in the quick commerce space.
Potential Impact on Blinkit's Financials
While these concerns have merit, experts believe the impact on Blinkit's adjusted EBITDA margin (as a percentage of Gross Order Value) may not be significant. The deviation from the near-term guidance of break-even levels is expected to be limited to around 100 basis points as a percentage of Gross Order Value, and this deviation could be temporary as well.