Shares in Ocado (OCDO) have fallen by 20% over the past month as the online grocer continues with its fractious relationship with joint venture partner Marks & Spencer (MKS).

Despite reporting average orders per week of 414,000, an 8.4% increase compared with the first quarter of 2023, and a 10.6% rise in revenue for Ocado Retail for the 13 weeks to 3 March, trouble is brewing for the online grocer.

The recent positive trading update comes after a lengthy period of disappointing performance, and for Marks & Spencer the targets set out when it agreed the tie-up with Ocado in 2019 have not been met.

Ocado has threatened legal action over an outstanding, performance-dependent instalment in the £750 million agreement, and according to recent media reports the online grocer is under pressure from shareholders to abandon its London listing for New York.

Although Ocado’s innovative technology has global potential and revenue growth is on an upward trajectory, its shares are far off their peak of around £28 during the pandemic.

DISCLAIMER: The author of this article (Sabuhi Gard) owns shares in Ocado.

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