The Ocado (LSE:OCDO) share price has been on fire this past year. With the pandemic forcing most people to stay at home, the online-supermarket stock enjoyed a significant business boost.
But over the past few weeks, the share price has begun to decline. Why? And is this a potential buying opportunity for my growth portfolio? Let’s take a look.
Why did the Ocado share price fall?
The business published its full-year 2020 results in early February and I think the company is performing quite well. Total revenue increased by 32.7%, primarily due to UK operational growth. And its International Solutions segment looks like it’s taking off with revenue rising from £0.5m to £16.6m.
The firm remains unprofitable, but its losses also declined from £214.5m in 2019 to £44.1m in 2020. So why is the Ocado share price falling?
As I see it, investors are being more cautious due to two factors. The first is the potential introduction of a digital sales tax. The second is the expectation of a slowdown in online sales growth as more of the population gets vaccinated against Covid-19. Personally, I’m not overly concerned about either of these threats. And here’s why.
Ocado is building a robot army
As previously stated, the recent pullback in the Ocado share price is likely linked to its online supermarket segment…