Zomato added 400,000+ unique shareholders in the first six months of 2024, but does it move the needle in increasing the share price?
Buzz around Blinkit and Zomato has been rising lately on platforms like LinkedIn and X. Whether it’s the growth of quick commerce, with Blinkit as the largest player, or new initiatives and features launched by Zomato, including the upcoming ‘District’ app, they have been attracting attention. This, in turn, has led to many new retail investors buying the stock recently as the data shows.
BUT IT’S NOT ENOUGH TO MOVE THE NEEDLE!
While the absolute number of additions in 2024 looks significant, in terms of the total percentage of shareholding, it actually isn’t. New retail investors buying Zomato stock in the first six months of 2024 didn’t even result in a 1% rise in retail shareholding. This percentage is minuscule, especially considering that Alibaba Group just in August 2024 sold a 2.40% stake in Zomato in one go, contributing to a total of 43% shareholding being sold by various investors over the last two years.
One might assume there’s a frenzy with everyone discussing the same company, but that might not be the case just yet! Any thoughts?
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