Ocado’s market capitalisation topped £20 billion this week as its share price continued to rally to record levels.
Thursday afternoon saw Ocado’s share price rise to a record high of 2756p per share on Friday morning, seeing its market capitalisation surpass £20 billion for the first time.
Its £20.2 billion value is now just below Tesco’s £21.3 billion and nearly five times Sainsbury’s market capitalisation of £4.36 billion.
The sharp rise comes after Ocado posted better than expected third-quarter figures earlier this week, seeing revenues rise 52 per cent to £587.3 million.
It also coincides with the launch of Ocado’s new joint venture with Marks & Spencer, launched on September 1, which has introduced M&S’s food to the online market for the first time.
According to Ocado the changeover has proved popular and customers were favouring M&S’ goods over that of Waitrose which it replaced on the platform.
This has encouraged the retailer to forecast a full year EBITDA of at least £40 million for its retail arm, rising from £35 million a year earlier.
Looking ahead Ocado said it remained “on track to increase capacity by 40 per cent through 2021” and that while uncertainties remained over the ongoing impact of the virus it expected full year EBITDA for Ocado Group to top “at least £40 million”.