Zomato, Swiggy tumble after big downgrade from BofA. 3 reasons why

The quick commerce shares may be the toast of the town but BofA Securities is not convinced. The international brokerage firm has downgraded ratings for Zomato and Swiggy. It has cut the rating on Zomato to Neutral from Buy and Swiggy to Underperform. It expects losses to rise in the Q-com business over the next 12-15 months and believes that the pace of margin growth in the food delivery business will be slower.