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Why I’m investing in the Ocado share price right now

Ocado (LSE: OCDO) has been at the front of many investors’ minds this year thanks to its new agreement with Marks & Spencer this February. However, many people are reluctant to invest after the sky-rocket in share price thanks to this new development.

Here’s why I think that the Ocado share price will only go up and why you might want to think about investing right this very second… after reading this, of course.

Best performing of 2019

After a difficult end to 2018, the stock market has seemingly bounced back with a vengeance in 2019. Topping the list of best performers so far this year is, you guessed it, Ocado, experiencing around a rise of over 40% so far.

Ocado has often been described as the “Microsoft of Retail” and it’s pretty easy to see why. It is rolling out technology that supermarkets have never thought about using before in their warehouses and I think that Ocado truly is innovating the way we shop.

The online supermarket has taken a few hits in the past but seems to only be on the rise after its recent partnership.

Enter, Marks & Spencer

The Ocado share price has risen to around 1,410p at the time of writing, which is nearly double what it was at the start of the year. It seems that Ocado has proven all of its naysayers wrong, and much of that is thanks to Marks & Spencer.

Marks & Spencer formed a £1.8bn supermarket joint venture with Ocado. This agreement definitely seems to make more sense for Ocado than Marks & Spencer as its dive into the world of online food shopping came at a very hefty price of billions.

Having said this, Ocado will now have access to all of Marks & Spencer’s products, supplier relationships and customers on the new online food shopping website that makes it easier than ever for Marks & Spencer’s customers to get food delivered right to their door.

This has had a huge influence on Ocado’s growth, and I believe that it promises a very bright future for the company indeed.

Could Ocado be the share of the year?

Sadly, if I knew the answer to this question, I would probably be a millionaire. However, even though no one really knows what the future holds for Ocado, it does look very rosy to me. If the company sees huge success selling Marks & Spencer’s products, could we see other supermarkets getting involved? Possibly. We have already seen many retailers investing in Ocado’s technology.

Ocado’s technology claims to be a huge game changer and only time will tell if it will change the world of food shopping. Soon we may never wander down the cold supermarket aisles again thanks to Ocado…

Furthermore, supermarkets seem to notoriously fare well during economic falls (as we still need to buy food, right?) So, Brexit hopefully shouldn’t be much of a threat to Ocado and its future success.

I believe that Ocado’s share price is only going to continuously rise and it’s worth investing now before it becomes unobtainable!

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Fiona Leake owns shares of Ocado and Marks & Spencer. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.