Ocado shares surged by more than 40% on rumours of Amazon buyout.

Following a report in The Times newspaper about "speculation of bid interest from more than one American suitor," shares of British online grocer Ocado soared by more than 40% on Thursday.

The article identifies Amazon as a potentially interested player and speculates that major technology firms may be examining their options with regard to Ocado.

According to the corporate website, Ocado licences grocery delivery technology that is used in the firm's retail sector to deliver food, drinks, and home items to more than 800,000 customers around the U.K.

Ocado offers both Marks & Spencer and own-brand goods. Marks & Spencer stock increased by 3% during London's afternoon trading.

Ocado had a surge in business during the Covid-19 outbreak when British citizens who were under lockdown switched to online food delivery services. However, the company's shares have subsequently declined, and the London Stock Exchange subsidiary FTSE Russell predicted in May that it may leave the FTSE 100 completely.

The business posted a pre-tax loss of £501 million in February, which was worse than analysts had predicted.

Customers abandoning their large basket purchasing habits from the pandemic, pressure from the cost-of-living crises and inflationary stresses, and higher marketing costs were the reasons given by Ocado for its losses.

Ocado's ambitions to grow were reportedly put on hold in December, but the business later stated in April that it would be shutting its oldest automated warehouse in Hatfield, north of London.

(Sources: cnbc.com)