Does Deliveroo share price weakness mean its time to buy?
The Deliveroo (LSE: ROO) flotation in March was keenly anticipated. Home deliveries were a big thing, and getting bigger. Now, a cynic might suggest that an IPO is merely an opportunity for private stockholders to cash in their assets. In an attempt to reassure potential investors and provide a bit of early confidence in the Deliveroo share price, the company attached some lock-in conditions. The deal prohibits existing holders from selling for at least 180 days, with that horizon expanded to a full year for company directors. I applaud that, but it could come back to bite investors. Ill get back to that shortly. But first, Ill remind us how the Deliveroo flotation went. 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... It was a flop. By 23 April, the Deliveroo share price had fallen to 224p. Thats a 43% loss on the initial offer price of 390p. Companies come to market to benefit their existing owners, not to provide me with a bargain buy. So theyll try to set the timing and the price to make maximum gains for themselves. Theres obviously nothing wrong with that, but I always remind myself of it whenever Im tempted to think Ooh, theyre letting me in on a good thing cheap, so maybe I should fill my boots.  Deliveroo share price still down  At 262p as I write, the Deliveroo share price has recovered a bit. But were still looking at a 33% fall since flotation. Still, after a couple of rocky months, the shares appear to be stabilising. That might be a good thing, as it suggests the market has found a valuation its happy with. But for me, theres one main reason why I cant share that apparent confidence right now. Its because I really dont know how to estimate a fair value for the stock, and I wont have any real clue until it turns profitable. Oh yes, Deliveroo hasnt made any profit yet. Deliveroos most recent trading update revealed a 130% year-on-year rise in gross transaction value. Thats impressive, but that gain has clearly been boosted by the pandemic. How things go now that lockdown is over and the end of coronavirus restrictions is approaching is a big unknown. And I wouldnt buy a stock until I see the company in action during normal times. Fellow Motley Fool writer Paul Summers explained it well. In short, a whole bunch of pre-IPO owners will be free to sell their shares and pocket their profits come September. If they do, that could put some downward pressure on the Deliveroo share price. But heres where I find the whole thing a bit frustrating. I do see a pretty good chance that Deliveroo will go on to reward investors very well in the coming years. And I often look back on successful growth stocks and think what might have been had I had the courage to get in earlier. It could happen with Deliveroo. But theres just too much uncertainty to suit my conservative approach to risk these days.