Delivery Hero Share Price Guide: Trading DHER stock CFDs

Delivery Hero SE (DHER.DE) is a global online food ordering and delivery service operating in countries across Europe, Asia, the Middle East, Africa, and Latin America. Through strategic acquisitions and innovative services, the company has built a strong presence in the food delivery sector.

Understanding the factors influencing Delivery Hero SE's share price is essential for traders. Elements such as business expansion, financial performance, and competitive pressures all shape its price movements. This article explores how these factors impact Delivery Hero SE's stock and provides insights for those looking to trade its shares through CFDs.

Let's dive in.

TL;DR

• Delivery Hero SE's share price is shaped by business expansion, financial performance, and competition in key markets.
• Strategic acquisitions, regulatory challenges, and operational growth can cause significant fluctuations in DHER.DE stock value.
• CFD trading offers speculation on Delivery Hero SE's stock price movements, allowing traders to take positions in both rising and falling markets.

The Delivery Hero SE Business Model & Market Position

Founded in 2011 and headquartered in Berlin, Germany, Delivery Hero SE is a global leader in online food ordering and delivery services. Operating in approximately 70 countries, the company scaled through strategic acquisitions such as Foodpanda and Foodora.

Delivery Hero SE went public on the Frankfurt Stock Exchange on 30 June 2017, with an initial public offering (IPO) price of €25.50 per share, raising nearly €1 billion. The company's market capitalisation grew significantly, surpassing €25 billion in 2024.

The company's business model is based on an online platform that connects customers with restaurants, offering various food options, including fast food and vegan cuisine. Delivery Hero takes a commission on each order, typically around 10-11%, with higher fees when it handles delivery directly.

The company has prioritised revenue over profit, reporting revenue of €9.9 billion in 2023 while facing regulatory challenges such as a potential €400 million EU antitrust fine. Its diversified operations, including quick commerce through Dmart stores and a broad range of products, help sustain its competitive position. However, it's important to note that the company's past performance does not guarantee future results.

Strategically, Delivery Hero has focused on global expansion and technological innovation. The company utilises machine learning and real-time data to optimise logistics and pricing. Despite challenges in its home market and competition from companies like Swiggy, GoPuff, and Rappi, Delivery Hero remains a significant player in the food delivery industry.

Speculating on Delivery Hero SE's Share Price Movements: DHER CFDs

Trading Delivery Hero SE shares through contracts for difference (CFDs) allows traders to trade share price movements without owning the actual shares. For example, if Delivery Hero announces an acquisition or new growth in markets like South Korea, traders may go long (buy) on DHER.DE CFDs in anticipation of a price rise. Alternatively, negative industry news or regulatory developments could lead traders to go short (sell), expecting the stock price to fall.

CFDs also offer the use of leverage, enabling traders to open a larger position with a smaller initial capital outlay. For instance, with leverage, a trader could control a larger Delivery Hero position with only a fraction of the capital required for a traditional stock purchase.

However, while leverage can magnify potential gains, it equally increases the risk of significant losses. As a result, traders should employ robust risk management strategies when trading Delivery Hero CFDs.

What Drives Delivery Hero SE's Share Price?

Various factors, including business expansion strategies, financial performance, and the competitive landscape, can significantly influence Delivery Hero's share price. Understanding how these elements interact within the food delivery industry is essential to making informed decisions when trading DHER.DE shares, including through CFDs.

Business Expansion and Operational Growth

Business expansion and operational growth are crucial in shaping Delivery Hero SE's stock performance. Expansion initiatives like acquisitions and entering new markets can drive growth and bring operational challenges.

For instance, Delivery Hero's $4 billion acquisition of Woowa Brothers gave the company a dominant position in South Korea's food delivery market. This move positively influenced its stock, with DHER.DE shares rising 3.6% following the regulatory approval. However, regulatory conditions required the company to sell its South Korean unit, Yogiyo, which could affect long-term growth potential.

Operational growth, measured by metrics like gross merchandise value (GMV) and profit margins, may also directly impact share prices. Delivery Hero reported 7.4% growth in GMV for Q2 2024, exceeding market expectations and contributing to a 3.6% rise in its share price on 29 August 2024. This rise may have been influenced by both the GMV growth and the announcement of an IPO of its Emirati subsidiary Talabat on the Dubai Stock Exchange.

Conversely, operational challenges in competitive regions, such as shrinking GMV in Asia, could negatively affect trader confidence and result in stock price fluctuations.

Financial Performance

Financial performance is a key factor influencing Delivery Hero's stock price. For example, in 2023, the company reported a revenue increase to €9.9 billion, up from €8.6 billion the previous year. Such a significant boost can positively impact share prices by increasing trader confidence.

However, fluctuations in financial results can also negatively affect stock value, as seen when Delivery Hero's stock lost 26% of its value following news of asset sales and the early release of preliminary financial results in February 2024.

Moreover, strong revenue growth and EBITDA (adjusted earnings before interest, taxes, depreciation, and amortisation) exceeding €250 million in 2023 helped the company recover 5.6% of its stock value. This result highlighted how improved profitability can lead to positive stock movements. However, financial missteps or market reactions to asset divestitures can lead to volatility.

Competitive Landscape and Challenges

Delivery Hero SE operates in a highly competitive environment with strong players like Coupang (CPNG) and Yogiyo in South Korea. Political efforts to curb the market power of large internet providers in South Korea negatively impacted Delivery Hero's share price in December 2023, causing a 4.4% decline as concerns arose about its dominant position through its subsidiary Woowa Brothers. Regulatory and political pressures can weigh heavily on trader sentiment, leading to stock price drops when market dominance is at risk.

However, competitive actions can also positively affect stock prices. In July 2024, initiatives by Woowa Brothers to revise its Baemin app's pricing structure and user interface resulted in a nearly 10% rise in Delivery Hero's share price. These innovations, which improved profitability and market stability in South Korea, show how strategic responses to competitive pressures can potentially drive stock value upward.

DHER Stock Trading Conclusion

Delivery Hero SE's stock price is shaped by its business model, market position, and factors such as business expansion, financial performance, and competitive pressures. Acquisitions and operational growth can boost stock value, while challenges in key markets may create volatility.

For traders, understanding these elements can provide helpful insights for CFD trading on Delivery Hero SE shares. By monitoring the company's strategic decisions and market conditions, traders can make more informed decisions when speculating on upward or downward share price movements.

If you're interested in Delivery Hero CFD trading, you can start trading DFER CFDs with Plus500.