Marley Spoon AG (ASX: MMM) shares have been hot property in 2020.
Shares in the food delivery company are up a whopping 1,103.6% this year. The coronavirus pandemic has been a boon for the industry and investors have been keen to buy.
With Victoria and other states tightening restrictions, could Marley Spoon shares be headed even higher this year?
Why Marley Spoon shares have rocketed
The company's primary business centres around food delivery services. Marley Spoon delivers fresh ingredients with easy-to-follow recipe cards to the door.
That convenience and reliability have seen demand for Marley Spoon's services rocket in recent years. That's also triggered a surge in the Marley Spoon share price, particularly amid coronavirus concerns in 2020.
More people across the globe are looking at alternative ways to access food. Door-to-door delivery services for Marley Spoon have provided a ready-made solution.
It's not just investor sentiment driving the company's value higher. In fact, Marley Spoon has posted some seriously impressive growth numbers this year.
Marley Spoon shares rocketed up last week on the back of a strong quarterly update.
The company upgraded its full-year guidance to at least 70% revenue growth in 2020, up from 30% previously.
That has been driven by strong results across its global operations in 8 countries. Australian revenue climbed 103% for the quarter while United States (+171%) and Europe (+83%) also delivered a strong result.
What can we expect for the rest of the year?
If that quarterly trading update is anything to go by, Marley Spoon shares could be headed higher.
It's important to remember the global perspective. Of course, Australia is still a big market for the company.
However, Europe and the United States are looming as potential value makers. If we see second waves, combined with food delivery being a permitted service, that could be good for earnings.
The risk with stratospheric growth is a company can quickly become out of its depth. That's certainly a risk but one that I think is being managed well.
Given the recent successes, it looks like we could see more growth in 2020.
I think there's a good chance Marley Spoon shares will hit a new record high in August. Whether this valuation at nearly $600 million is sustainable is another question altogether…
