Jul 14, 2020

Ocado: show me the money

There are very few certainties in capital markets - bar perhaps the Fed put, Dutch fiscal prudence and SPACs being a rip off - but news Tuesday morning made us feel like we can add another one to the list: Ocado burning cash. Despite the most favourable tailwinds imaginable during the first half of 2020, somehow the "Microsoft of Retail" contrived to burn £26.5m of cash flow. Bringing its total cash burn since its 2010 initial public offering to £574m, according to S&P Global data. The bank also thought that the second coming of Webvan would start spitting out positive free cash flow in 2013 as the business pivoted away from serving higher-end customers to those "Who are more price sensitive". Now, analysts don't even believe the company will generate positive cash flow in 2024.

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