STOCK WATCH: Australian Listed E-Commerce Index Grows 13.5%

As we head into the post-reporting season and pre-holiday period, it’s interesting to see which e-commerce companies are the beneficiaries of investor confidence and which continue to lag.

Overall, e-commerce companies are out-performing the ASX-200. In the last 90 days, the Australian Listed E-Com Index grew an average of 13.5%. This speaks to the impact of ongoing NSW and Victorian lockdowns driving online retail. In contrast, average share price for the ASX-200 grew only 0.7%.

So who is driving this impressive growth? After a trading halt in June, Cettire has clawed back its position over the last 90 days, growing from $2.10 to $3.48 and recording stellar 65.7% growth. Temple & Webster recorded 27.5% share price growth over the same 90 day period, jumping from $10.20 in mid-June to $13 as at close of ASX on Tuesday.

While Booktopia and Adore experienced a spike after their results announcements, both companies now seem to have stabilised and to be travelling in the same steady manner we’ve seen throughout the year. Beauty retailer Adore closed out at $4.72 on Tuesday, marking 7% growth over three months. While this also marked a 7.3% dip over the last week, it is representative of the evening out we’ve seen since its results announcement. Similarly, Booktopia’s 1.5% growth over 90 days is similar to its stable performance over 2021. As with Adore, it shed 5.4% over the last 7 days, but again this represents a return to previous levels, closing out at $2.64 on Tuesday.

Source: Australian Listed E-Commerce Index based on ASX reporting

While MyDeal didn’t necessarily benefit from immediate growth after its results announcement in August, it has nevertheless grown 15.1% over the last 90 days, closing out at $0.73 on Tuesday after dropping to $0.56 mid-June. With a new branding strategy, the pressure is on for the marketplace to make its mark in the next quarter.

Bike Exchange shed 30.7% over the last 90 days, dropping from $0.25 to $0.17. Its poor performance over the last three months is somewhat counteracted by growth (3%) in the last 7 days. Is this a sign of things to come? As we head into the holiday period, summer months and sales season, will investors see more value in the company? This time last year it was listed at $0.23. Can it reach (or exceed) this price again?

Kogan has (perhaps surprisingly) recorded a dip of 5% over the last 90 days. Kogan shares initially dropped after its results announcements (with inventory woes and general investor unease leading to a swift response). It had been assumed by some analysts that it would track in a similar way to Booktopia and Adore, growing steadily and returning to the pricing we saw earlier in the year. Instead, it closed out at $10.25 on Tuesday. Heading into the holiday season which is typically strong for electronics, it would be a surprise if Kogan’s dominance in the category didn’t lead to a spike. It may be hovering around the $10-$11 mark, but surely we’ll start to see its share price return to $13+ soon?

Figures are current as at close of ASX on 14 September 2021. This is analysis only and not intended as investment advice.

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