There were several reasons for Ocado's plunge this morning.
The fact that Waitrose is gearing up to set up an online home delivery service is clearly one of them. For many customers, Ocado is seen as simply the online arm of Waitrose.
But Tim Steiner's share sale late on Friday, coupled with the sale of the stake owned by the John Lewis pension fund, is also likely to have been significant.
On one level, many are saying that this shows that the bid talk pushing up the share price was untrue - if Ocado had had approaches, would the chief executive be selling 2m shares?
Another reason for the rise in Ocado shares (to as high as 285p on the 10th of January) was the so-called "short squeeze". This related to the momentum effect of short-sellers facing margin calls as the share price rose. Analysts suggested today that greater liquidity in the market has eased those pressures.
Ocado was 7.6% down this afternoon - almost 20p off - at 239p.
