If Zomatowere to give itself a rating on its stock performance of 2022, it would be a one-star. 2022 has been a difficult year for the stock, as it fell 57.9%. It began the year on an unpromising note as the stock plunged 19.6% on January 24, 2022, the most in a single session of trading. 

The overall dip in the month of January was 34.2%. While the fear of the US Fed raising rates turned global markets bearish in January, foreign investors pulled out a total of Rs 35,975 crore from the Indian market.  A major chunk of this sell-off by foreign investors was in the IT sector, especially non-profitable tech stocks.

After falling for two consecutive weeks, the stock rose 4.6% on February 1, 2022. The rise came after the company acquired a 19.8% stake in AdOnMo for Rs 112.2 crore and a 5% stake in UrbanPiper Technologies for Rs 37.38 crore. Zomato posted strong results in Q4FY22 as its revenue jumped 67% to Rs 1,540 crore, helping the stock rise 13.9% on May 24, 2022.

But it fell again by 12.5% on July 26, 2022, touching an all-time low of Rs 40.6 per share post its much-debated acquisition of Blinkit. Investors believed that the deal was overvalued and the acquisition would add pressure on Zomato with higher operating costs, further elongating the company’s path to profitability.

There have been a number of high-profile resignations from the company’s board of directors in the last few months of the year. Following the resignation of Deputy Chief Financial Officer (CFO) Nitin Savara on September 1, the stock rose 7.8%. In November came two more resignations – Rahul Ganjoo, Head of New Initiatives, and Mohit Gupta, co-founder. The stock fell 4.4% on November 14 with the news of Ganjoo’s resignation and another 4.2% on the 21st as Gupta left. The most recent resignation was of Gunjan Patidar, Co-founder and Chief Technology Officer, which caused the stock to fall 2.2% on January 3, 2023. With the company losing senior management and questions of profitability looming, 2023 will be rocky for the Zomato stock, unless it delivers in its upcoming financial results.