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How to buy boohoo shares
This page takes you through everything you need to know about boohoo. We cover the company’s history, its investment prospects for the future, and we list the best trading platforms to use.
Compare the best boohoo trading platforms
If you have already made up your mind about boohoo, click one of the links below to sign up to a recommended online broker. We have carefully tested each platform, so you know they are fit for the task. If you need to know more about boohoo before investing, simply read on.
How to buy boohoo stock, a step-by-step guide
It’s not difficult to get started, even for an inexperienced investor. We have broken the process down into the easy-to-follow steps you need to take to make an investment.
- Choose a broker. You will need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure, or check out our apps page.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in boohoo shares.
- Place an order for BOO stock. Search for boohoo’s ticker symbol (BOO) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you want and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your boohoo shares will be listed in your account. Congratulations, you’ve just bought shares in boohoo!
What is boohoo? And should I invest?
Founded in 2006, boohoo is a UK-based fashion retailer that sells clothing, shoes, accessories and beauty products, and it is aimed at both teenagers and young adults. Alongside its main website, boohoo operates a portfolio of brands, such as boohooMAN, PrettyLittleThing, Nasty Gal and MissPap, which are all targeted at the same demographic.
Since its £300 million IPO in March 2014, the company has experienced dramatic growth in customers and revenue. Some describe boohoo as a fast-fashion group, claiming it replicates catwalk trends and high-fashion designs by mass-producing them at low cost. However, the company’s popularity is undeniable with approximately 13.9 million active customers in 2020, up from 1.5 million in 2013.
To tap into a younger audience, boohoo has consistently advertised alongside former reality TV contestants. In addition, it has launched numerous collaborations with celebrities like singer Jennifer Lopez, rappers Quavo, Tyla Yaweh, Lil Durk, UFC fighter Jon Jones, and even former World’s Strongest Man, Eddie Hall. Boohoo’s growth is dramatic and it presents an intriguing investment proposition as a fashion growth stock.
How has the company performed in recent years?
On the whole, the group’s share price has risen consistently since it went public, and a lot of this is down to consistently rising YoY revenue, up from just over £67 million in 2013 to a whopping £1.23 billion today. It is definitely worth noting that boohoo doesn’t currently pay dividends, so if you want to profit off the stock, you need to buy it for a lower price than you sell it.
Despite this impressive performance, the company has not been without its share of controversy. Notable incidents include claims boohoo has been exploiting workers at its suppliers’ factory in Leicester, and in October 2020, the company’s own auditor, PricewaterhouseCoopers (PwC), resigned citing concerns over boohoo’s reputation.
However, it does now appear that boohoo has steadied the ship after this scandal, and this has been aided by the dramatic impact of COVID-19 on online retailers, with bored and locked-down people dramatically increasing their spending. Another positive indication is the fact that members of boohoo’s management team have been actively purchasing shares in the company, demonstrating their belief in its long-term potential.
Is it a good time to buy boohoo shares now?
Boohoo is currently riding a wave of momentum. It has managed to capitalise on unprecedented market conditions, but as the world emerges from quarantine, it remains to be seen exactly how the buying habits of its consumers will be affected, if at all. With new clothing lines coming out regularly, the company spending close to £100 million on marketing, and having just acquired defunct high-street brand Debenhams, boohoo has no intention of slowing down.
With this in mind, investing in the company now could be a prudent move ahead of more growth in the coming years. In addition, the volatility created by the unique economic circumstances could create plenty of opportunities for short-term traders to flip boohoo shares at a profit.
There are plenty of online fashion rivals, but boohoo appears to have cracked the code when it comes to attracting young adults in their droves. Aside from several unaffecting scandals, the company doesn’t really appear to have put a foot wrong, though this can always change quickly. To stay up to date with all things boohoo, keep informed with our latest analysis below:
Boohoo stock price extends losses, now down 50% in July
Buying, selling and trading boohoo shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in boohoo shares.
- Research the company. You should always examine the fundamentals of a company first. What is boohoo? How did the company get its start? How did it grow? Is boohoo’s revenue and profit growth picking up? Is the company innovating? The more you know about boohoo, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before you start investing in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Use our broker reviews to find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. While if the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the news to stay on top of the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade boohoo shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for boohoo stock, as outlined in the steps further up this page. Ideally, you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any boohoo shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for the long term, hoping to benefit from the company growing steadily throughout. Or, if you see that boohoo’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade boohoo shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to move stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into BOO shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, use our trading course and read our guide to CFD trading to get you up to speed.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as cryptocurrency and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to get boohoo shares using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest boohoo news
Boohoo Group’s revenue climbs by 32% in fiscal Q1
Boohoo Group’s pre-tax profit climbs by 35% in fiscal 2021
Boohoo Group acquires Debenhams’ intellectual property assets for £55 million
Boohoo Group’s revenue jumps 45% in the fiscal first half
Boohoo share price dips even as retailer posts revenue surge
Boohoo share price: Retailer to post interims next week
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Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >