Just Eat Takeaway Trading Guide: Just Eat Takeaway Shares
Date Modified: 06/10/2024
If you’re looking for the next addition to your share CFD trading portfolio, Just Eat Takeaway could be the right choice. To help you make your decision, in this article, we will take a deeper look at this food delivery industry leader’s history, stock value dynamics, and ways CFD trading can assist in capturing its share price movements.
TL;DR
- Global Presence: Just Eat Takeaway.com N.V. operates around the world with numerous well-established brands.
- Significant Growth & Volatility: The company has experienced robust growth but has also faced significant stock price volatility.
- Mergers & Acquisitions: The merger with Just Eat and acquisitions like Grubhub have expanded Just Eat Takeaway’s market reach.
- CFD Trading Strategies and Risks: Trading Just Eat Takeaway CFDs can be traded using various strategies, but the use of leverage increases financial risk.
What Is Just Eat Takeaway.com N.V.?
Just Eat Takeaway.com N.V. (TKWY.AS) is a Netherlands-based, globally operating online food ordering and delivery company, known initially as Thuisbezorgd.nl and formerly Takeaway.com. The company emerged in 2020 from the merger of London-based Just Eat and Amsterdam-based Takeaway.com. As a leading entity in the online food delivery sector, Just Eat Takeaway.com operates numerous brands in different countries, including Takeaway.com, Lieferando, Thuisbezorgd.nl, Pyszne. pl, and 10bis in Israel. It also manages brands such as SkipTheDishes and Menulog. In addition, the company expanded its reach by acquiring Grubhub in the United States and Bistro.
The company operates in twenty countries, offering customers the convenience of ordering food online through apps or websites. Orders can be delivered directly to customers' homes or workplaces by restaurant couriers or company-employed couriers. Notably, Just Eat Takeaway.com also partners with IFood to serve markets in Brazil and Colombia.
The merger with Just Eat was completed in February 2020 after receiving clearance from the UK's Competition and Markets Authority in April 2020. This merger allowed Takeaway.com to acquire all of Just Eat's shares, further solidifying its position in the global market. Just Eat Takeaway.com is publicly traded on Euronext Amsterdam and the London Stock Exchange.
Just Eat Takeaway Stock History
Just Eat Takeaway.com has experienced significant volatility in its stock price history. In 2015, the company's stock opened at €36.57 and closed at €24.20, marking a 33.37% decline. However, in 2016, the stock rebounded sharply, with prices ranging from €18.34 to €43.89 and closing at €37.62, representing a 55.45% increase. This positive momentum continued in 2017, when the stock surged by 90.86%, closing at €71.80 after peaking at €74.09. In 2018, the stock saw a modest increase of 6.98% despite fluctuating between €66.53 and €146.73, ending the year at €76.81.
The following years were more turbulent. In 2019, the stock fell by 36.67%, closing at €48.64 after reaching a high of €86.08. However, 2020 saw a significant recovery, with the stock climbing 52.69%, closing at €74.27 after hitting a high of €84.34. This was short-lived as 2021 witnessed a dramatic 85.51% drop, closing at €10.76 despite peaking at €83.02. The downward trend continued in 2022, with the stock declining by 37.55%, ending the year at €6.72 after trading between €5.93 and €11.27.
In 2023 and 2024, Just Eat Takeaway’s share price failed to regain the previous heights it had seen during the years of the COVID-19 pandemic. Throughout 2023, the firm’s stock value declined 30% to close at €13.79 for the year, and over the first half of 2024, it marked a further 18% drop to €11.25.
Just Eat Takeaway’s IPO
Just Eat Takeaway’s initial public offering (IPO) on 3 April 2014 was one of the most critical milestones in the firm’s history. The online takeaway service experienced a 10% rise in its share on the day of its London Stock Exchange debut before stabilising close to the IPO price by the ring of the closing bell. The flotation valued the company at £1.47 billion, a valuation more than 100 times its underlying earnings of £14 million, making it larger than any other technology stock float seen on the London market up to that point since 2006.
Initially, shares hit 285p but quickly dropped back to 262p within the first hour of trading, slightly above the starting price of 260p. Priced at the top end of the 210p-260p range, the IPO saw the company and its investors sell 138 million shares, raising £360 million. Just Eat received £100 million, with the remainder going to its venture capital backers, senior management, employees, and former staff.
Just Eat became the first company to list on the London Stock Exchange's high-growth segment, requiring a smaller flotation of equity than a premium listing. Founded in Denmark in 2001 and relocated to London in 2006, Just Eat planned to use the proceeds from the IPO to fund further expansion and acquisitions. In the previous year, its website and mobile apps had processed over 40 million takeaway orders, with the company charging restaurants nearly 11% commission per order, averaging £2.11 per order. Although, as seen above, the firm’s share price has declined significantly since its IPO era, its future trajectory is far from a foregone conclusion.
What Are Just Eat Takeaway Shares?
Shares Just Eat Takeaway are units of partial ownership in the firm. Due to Just Eat Takeaway's significant role in the online food delivery industry and global reach, its stock has become widely traded internationally.
Although Just Eat Takeaway is based in the Netherlands, its shares can be traded on both European and UK stock exchanges. Additionally, the company's stock is listed as American Depositary Receipts (ADRs) on stateside stock exchanges, providing a way for US investors to trade shares of Just Eat Takeaway. ADRs are a type of equity share specifically designed for foreign companies to be traded on US exchanges, facilitating investment in non-US companies by US investors.
Factors Affecting Just Eat Takeaway’s Share Price
- Industry Developments: Changes in the food delivery industry, such as technological advancements, regulatory changes, and new competitors entering the sector, can impact the value of Just Eat Takeaway's stock.
- Financial Performance: Just Eat Takeaway's periodic quarterly and annual financial results, including profit, total revenue, and earnings per share (EPS) figures, can significantly impact its stock price by changing how investors and traders view its prospects. Positive financial outcomes typically lead to an increase, while negative results can cause a decrease.
- Investor Sentiment: Market perceptions of Just Eat Takeaway's growth prospects, competition, and overall industry trends are key factors behind its stock price movements.
- Macro: Broader economic factors influence Just Eat Takeaway's stock price, including interest rates and inflation. If a recession takes hold of the global marketplace, Just Eat Takeaway’s share price can slide along with national GDP.
- World Stage: Events between countries, such as trade tensions and geopolitical conflicts, have been known to shift market mood and price stability.
Just Eat Takeaway Shares Trading Hours
Generally, traders can trade Just Eat Takeaway shares Monday to Friday from 9:00 AM to 5:30 PM Central European Time (CET) and from 8:00 AM to 4:30 PM GMT on the London Stock Exchange.
Additionally, some brokers and exchanges offer extended trading hours. For instance, pre-market trading might be available from 8:00 AM to 9:00 AM CET and after-hours trading from 5:30 PM to 8:00 PM CET. Similarly, the London Stock Exchange may offer pre-market trading from 7:00 AM to 8:00 AM GMT and after-hours trading from 4:30 PM to 5:30 PM GMT.
Please note that CFD trading hours on platforms like Plus500 may vary.
How to Analyse Just Eat Takeaway Share CFDs
Understanding the ups and downs of Just Eat Takeaway's share price can take the form of technical, fundamental, and sentiment analysis. Each approach provides distinct insights into potential price trends and market behaviours.
Technical Analysis
Technical analysis examines Just Eat Takeaway's historical price movements to forecast future trends. Key strategies include:
Pattern Identification: Identifying consistent patterns in Just Eat Takeaway's price charts, such as support and resistance levels, trendlines, and formations, to predict potential price changes.
Technical Indicators: Using tools like the Relative Strength Index (RSI), Moving Averages, and the Stochastic Oscillator to assess momentum, trend direction, and whether Just Eat Takeaway shares are overbought or oversold.
Fundamental Analysis
Fundamental analysis assesses the intrinsic value of Just Eat Takeaway shares through various perspectives:
Economic Factors: Evaluating sector performance, macroeconomic indicators, and regulatory changes affecting Just Eat Takeaway to understand the broader economic impact on the company.
Financial Statements: Analysing Just Eat Takeaway's financial documents, such as income statements, balance sheets, and cash flow reports, to determine its financial health and stability.
Competitive Analysis: Comparing Just Eat Takeaway's market position relative to its competitors, including market share and service offerings, to gauge its competitive strength within the food delivery sector.
Sentiment Analysis: This aims to comprehend market sentiment towards Just Eat Takeaway shares.
Market Trends: Monitoring broader market trends and their impact on Just Eat Takeaway shares can help anticipate shifts in investor sentiment. Additionally, one should keep abreast of news, analyst opinions, and reports about Just Eat Takeaway to assess market sentiment and investor perceptions.
By integrating these analytical methods, investors and traders can gain a comprehensive understanding of Just Eat Takeaway's share price behaviour, which is crucial for making well-informed investment decisions.
Benefits of Trading Just Eat Takeaway Share CFDs
- Strategic Position: Just Eat Takeaway is strategically positioned to capture a significant market share due to its strong global presence and several well-established brands, allowing it to penetrate and grow in various regions effectively.
- Network Advantages: The company benefits from an extensive network of partner restaurants, a strong brand reputation, and an efficient delivery system. These factors enhance its market position, potentially making it more resilient against competitors.
Downsides of Trading Just Eat Takeaway Share CFDs
- Intense Competition: One significant challenge is the intense competition from other major players like Uber’s (UBER) Uber Eats, Deliveroo, and DoorDash (DASH), as well as numerous smaller local competitors.
- Regulatory Changes: As delivery companies face increasing pressure to improve pay and conditions for their delivery staff, operational costs could rise, squeezing profit margins and negatively impacting share prices.
- Management Missteps: Past strategic decisions, such as the acquisition of Grubhub in America, have proven problematic. Such missteps can lead to financial losses and erode investor confidence, further affecting the company's share price.
For CFD traders, these fluctuations in share price, whether due to competitive pressures, regulatory changes, economic conditions, or strategic missteps, directly impact their trading outcomes. The leveraged nature of CFDs means that both gains and losses can be magnified, making it crucial for traders to assess these potential risks thoroughly.
Different Ways to Trade Just Eat Takeaway Shares
Trading Just Eat Takeaway share CFDs can be approached through various trading styles, each suited to different market strategies and risk appetites:
Position Trading: Position trading involves holding positions for extended periods. This strategy is based on anticipating longer-term trends and is less concerned with short-term market movements.
Swing Trading: This strategy is more focused on the short term than position trading. It involves holding positions for several days or weeks to capture changes in underlying share value. Traders aim to benefit from market swings by identifying potential entry and exit points.
Day Trading: Unlike swing or position trading, day trading focuses on short-term price movements, with positions typically held for minutes or hours. Day traders closely monitor their trades due to the market's intraday volatility, aiming to profit from quick price changes.
How to Trade CFD Just Eat Takeaway Share CFDs with Plus500 (Step-by-Step)
Expand Your Knowledge Base: Utilise resources like the Plus500 Beginners Guide and Trading Academy to deepen your understanding of CFD trading, including its mechanics and potential risks.
Register, Verify, Deposit: Complete the registration and verification processes with Plus500, then make your initial deposit.
Get Connected: Access the Plus500 trading platform to begin your CFD trading journey.
Take a Position: Based on your analysis and market outlook for Just Eat Takeaway shares, decide whether to open a buy or sell position. Continuously monitor the market and your positions to stay informed of any developments.
Evaluate Your Strategy: After executing your trades, review the outcomes to assess the effectiveness of your strategy. Consider making adjustments based on your trading performance and market conditions.
Summing Up
In conclusion, Just Eat Takeaway.com N.V. is a significant player in the global online food delivery industry, with a complex history marked by mergers, acquisitions, and fluctuating stock performance. As an investor, understanding the factors affecting its share price and the methods for trading CFDs is crucial for making informed decisions in this dynamic market.
FAQs
On platforms such as Plus500, you can trade the Just Eat Takeaway share price through CFDs using various strategies, such as swing trading, position trading, or day trading.
Just Eat Takeaway is listed on the Euronext Amsterdam and the London Stock Exchange.
Click here to see Just Eat Takeaway’s current share CFD price on the Plus500 platform.
Just Eat Takeaway's biggest competitors include Uber Eats, Deliveroo, and DoorDash.
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