STOCK WATCH: Gap Widens Between ASX Success Stories and Underperformers

Natasha Sholl By Natasha Sholl | 18 Aug 2021

As we head into the financial reporting period, who is lifting the average of ASX-listed e-commerce companies and who is pulling it down?

Share price for the ASX 200 has grown by 8.4% over the last 90 days with the average share price for ASX-listed e-commerce companies growing by a massive 20% over the same period. 

Who’s driving this growth? Not Redbubble or Bike Exchange which have shed 8.4% and 14.9% respectively over this time. Booktopia has continued its steady trajectory, recording a 3.4% increase in its share price. Nothing that’s causing the average to skyrocket, but certainly maintaining the consistency we’ve been seeing throughout the year. As we head to the latter part of August and FY20 results are released, we expect this smooth and steady growth to show some larger swings.

MyDeal seems to have recovered somewhat after its dips in May and June, though its release of its unaudited results failed to bring its share price up to the $0.90+ we saw in April (closing out at $0.64 on Tuesday). Despite this, it’s 20.8% growth certainly helped lift the ASX e-commerce index. It today announced a new branding strategy. ‘[W]e aren’t slowing down,’ said Founder and CEO of MyDeal, Sean Senvirtne, ‘which makes this moment the right time to get a look, feel and personality that matches our ambition.’

Power Retail Australian Listed E-Comm Index, based on ASX reporting

Kogan and Cettire recorded similar growth levels over the last three months, with 17.2% and 19.1% growth respectively. Both companies have experienced question marks (for Kogan over stock management and for Cettire over its supply chain). While there has been some recalibration, the end of month announcements will surely lead to a shift in investor sentiment.

Adore Beauty and Temple & Webster are the companies that have been pulling their weight in the ASX e-commerce index. Beauty retailer Adore has recorded 42.1% growth over 90 days and furniture and homewares retailer Temple & Webster recorded an impressive 30.7% in the last three months. Investor confidence is high. Will it hold when full year results are released? Will year on year growth after an enormous 2020 be enough to satisfy the market? 

Expectations are high. Which companies will be able to meet them? 

Figures are current as at close of ASX on 17 August 2021. This is analysis only and not intended as investment advice.

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