STOCK WATCH: E-Commerce Stocks Slip. Again.

The ASX Listed E-Commerce Index is once again severely underperforming compared to the ASX200. The Index is down 8.4% in the last fortnight while the ASX200 is up 1%. It does show the extent to which investors are shunning tech and online retail companies, with the post-pandemic landscape causing e-commerce to lose its shine.

While the reporting season may have impacted share prices, with investors failing to be impressed by customer acquisition and EBITDA figures generally, it’s clear that consumers who were forced online when restrictions were imposed in 2020 and 2021, have continued to stay online. Shoppers are more confident online now than ever before, with not only digital natives driving sales, but a new (read, older) demographic of online shopper who perhaps would never have seen a reason to head online had the pandemic not happened. In this way, the supercharged growth of the last few years has been maintained (proving the naysayers wrong, who said we were all set for the bubble bursting). Yet this hasn’t necessarily been reflected on the ASX.

So, what’s happened in the last week? Adore Beauty opened at $1.81 this morning, an 8.4% dip in the last seven days. Redbubble also lost 8.4% in the same period, now down to $1.26. Booktopia at $0.70 marks a loss of 10.8%. Temple & Webster, MyDeal and Kogan were the top three performers on the E-Commerce Index, though all stocks lost value, down 0.3%, 2.5% and 4.6% respectively in the last seven days.

Source: ASX Listed E-Commerce performance based on ASX reporting for the period

Bike Exchange dropped to an eye-watering $0.05, shedding 16.4% in the last week, with Cettire’s $0.91 representing a loss of 15.7%, making the pureplay bike retailer and luxury fashion retailer the worst performers on the E-Com Index. Taking a longer term view, Cettire is down 73.4% over 90 days and Bike Exchange is down 71.7% over the same period. Cettire’s business model has previously come under the spotlight, and while it experienced growth (after a massive dip) in 2021, it has struggled (to say the least) this year. After a selldown by CEO Dean Mintz at the end of March, it has continued to slide.

While we’ve previously pointed to signs of recovery, it doesn’t look like we’re set for a change in trajectory on the E-Commerce Index as a whole. What we may see however, is the distance between the best and worst performers grow.

Figures are current as at close of ASX on 19 April 2022. This is analysis only and not intended as investment advice.

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