Is the Deliveroo share price headed back above its IPO level?
Deliveroo (LSE: ROO) didnt exactly sparkle after IPO at the end of March, with its shares falling from day one. But since early June, the Deliveroo share price has turned around and looks to be heading upwards. Im getting used to seeing UK stock market flotations turning into flops. But Im starting to wonder whether Deliveroo might just buck the trend and provide sustainable, long-term investment gains. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... The biggest conundrum for potential investors right now is, I think, that Deliveroo has no profits that we can use to estimate a valuation. But over in the US, companies regularly come to market in such condition. And they often do very well for investors. Maybe we are, but Deliveroo is active internationally too, and that part of its business is also growing strongly. That could help attract global investors to the stock. The IPO was priced at 390p, but the rot set in even on opening day. And by 23 April, the stock had slumped to 224p. Thats a 43% drop from the offer price, in just a little over three weeks. But then the price steadied, and started back up during June. Since the end of May, Deliveroo shares have gained 36%. Were still below IPO level, but the gains do suggest that sentiment is changing. Well, according to The Sun, an actor wearing the firms distinctive uniform has just appeared in an X-rated film, so theres publicity there. But maybe thats not the reason. After all, I cant imagine viewers being distracted into thinking Oh yes, I must buy some Deliveroo shares. No, I think its far more likely that a recent court ruling has had something to do with the Deliveroo share price surge. The UK Court of Appeal ruled that Deliveroo riders are self-employed. The Independent Workers Union of Great Britain had appealed an earlier judgment. But the latest decision marks the fourth time a court has decided in favour of the company. Growing sales  Thats one key bit of uncertainty removed, which could have increased Deliveroos UK costs significantly had it gone the other way. The next, and more important, uncertainty is whether theres sufficient potential there to justify a high growth valuation. On that score, Deliveroos first-quarter update brought home the goods. Orders were up 114% year-on-year, with gross transaction value up 130% to 1.65bn. The UK and Ireland led the way, but International growth wasnt far behind. All eyes will surely now be on Deliveroos first-half results. If they continue the trend set by the first quarter, I think theres a decent chance well see the Deliveroo share price finally getting back above flotation. But if the figures fall even slightly short, the shares could turn south. On balance Im positive. But I wont buy, as my days of investing in not-yet-profitable growth shares are behind me.