Ocado Group PLC (LSE:OCDO) whirred to the top of the FTSE 100 leaderboard on Thursday, zooming over 40% higher to 608p on reports that it "may" be a takeover target for Amazon.
The shares recently sank to a six-year low and are the most shorted stock in London, according to the ShortTracker website.
On the back of this, the Times market report noted rumours of bid interest are "circling", with the buying on this rumour squeezing the short-sellers.
So the story goes, Ocado is being lifted this week by "speculation of bid interest from more than one American suitor", including "technology heavyweights such as Amazon".
The rise in the shares in the online grocery technology group this morning only brings them back to where they were in late February, having tumbled to a low below 345p in early June, narrowly avoiding relegation from London's blue chip index.
Victoria Scholar, head of investment at Interactive Investor, said: "Ocado has fallen out of favour with investors lately, trading down 40% over the past 12 months even after today’s jump, attracting potential opportunistic interest from parties looking to pounce on its depressed share price.
"It was a stay-at-home stock market winner during the pandemic with shares surging in 2020, however the economic reopening ever since has prompted a downward trendline to emerge with many investors unwinding their holdings.
"In February its full-year losses mushroomed to $604 million, below analysts’ expectations, despite its joint venture with Marks and Spencer and its US partnership with Kroger as cost-of-living pressures on the consumer as well as elevated cost inflation and expensive energy bills take their toll."