Delivery Hero CEO Östberg apologizes to shareholders
Felix Leitmeyer
| 14.02.2022
His company's stock has been in a tailspin since last week. Östberg, however, declared his intention to stick to his strategy.
The head of food delivery service Delivery Hero, Niklas Östberg, has apologized to his company's shareholders via the short message service Twitter. The company's profit forecasts for the current year were below expectations. As a result, Delivery Hero's stock lost more than 30 percent last Thursday and continued its fall on Friday, with shares closing down 11.8 percent.
"I'm really sorry for all shareholders!" wrote Östberg in his tweet, adding a sad emoji to the sentence. "We are in the same boat." At the same time, however, Östberg appeared ready to fight, promising, "We won't change our strategy because of the decline." However, he said, the company will work even harder. The goal: "Prove that our investment strategy will pay off."
Östberg is under a lot of pressure. Delivery Hero is currently worth about as much as it was in November 2019. The company had benefited extremely from the Corona pandemic. Its share price peaked at around 140 euros last year.
Many investors had bet that customers would continue to order a lot of food and that Delivery Hero's success on the stock market would be sustainable. However, the value had already fallen by the end of last year. After that, the share was in free fall. In the meantime, Delivery Hero shares are worth about 39 euros (as of February 14, 12:45 p.m.).
Not all investors seem to have accepted Östberg's Twitter apology. One user writes, "'We're in the same boat,' says the man who doesn't even bother to come to his own shareholder meeting." Another user on the social network describes the tweet as desperate.
Some analysts are also pessimistic about Delivery Hero's further share price development: for example, investment bank Barclays reduced its price target from 153 to 80 euros, as the Handelsblatt reports. UBS, on the other hand, maintained its buy recommendation and renewed its price target of 110 euros.
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Startup
2011
Berlin
Delivery Hero
Online food ordering and delivery marketplaces.
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