Listed E-Com companies have taken a hit. With Booktopia the best performer this week, is online retail ready to bounce back?
At $1.29, Booktopia is down 46.5% over 90 days, but is showing signs of recovery, up 15.7% in the last week. This makes it the best performer on the ASX Listed E-Com Index for the 7 day period.
In comparison, BikeExchange is continuing its downward spiral, now at $0.11 (as at close of ASX on Tuesday), a 21.4% loss over 7 days, and making it the worst performer on the index during this period. Last week we suggested it couldn’t go much lower, but apparently it could.
Temple & Webster is also making gains after a horror few months, opening at $8.89 this morning, which is a 7.1% lift over the last week (albeit a 29.4% loss over 90 days). Similarly, Adore Beauty closed at $3.25 on Tuesday, representing growth of 8% over the last week, picking up after 30.4% dip compared to this time three months ago.
Source: ASX Listed E-Com Index based on ASX reporting for the period
The ASX200 posted its biggest monthly drop since COVID-19 first hit (down 6.7% over a 30 day period). We have well and truly exited those early pandemic feels when e-commerce seemed to be the solution to (almost) every COVID related issue and the recipient of general market adoration. Instead, the ASX-Listed E-Com Index has lost 23.1% over the last month and a massive 33.9% over 90 days. We’ve said it once, and we’ll say it again (and probably again), but the words short-sighted come to mind. The uptake of digital and the enormous growth of the sector surely outweighs the shorter term supply chain challenges and hurdles around delivery delays?
While Cettire’s share price losses (down 10.9% over 90 days) seems to be more of a stabilisation after its enormous gains in 2021, other online retailers aren’t faring so well. Redbubble is at $1.85, marking a loss of 55.5% over the same time period. Redbubble’s share price took a massive hit following the release of its trading update two weeks ago, and whether it continues to lift (it’s already up from yesterday’s $1.78) or stagnates is yet to be seen. Kogan is also up in the shorter term, closing at $6.19 on 31 January and opening at $6.38 this morning. It’s still a 10.5% loss over 7 days (and a massive 37.6% loss over the last three months) but if we’re looking for signs of recovery, Kogan, Temple & Webster, Booktopia and Adore may be it. (If you squint, you can see it.)
MyDeal suffered a massive drop after releasing its Q2 FY22 Activities Report last week, dropping to $0.60 last Tuesday. At $0.61 as at close of ASX on Tuesday, it has managed to avoid any further downward spirals, perhaps escaping the market decimation we’ve seen elsewhere. Its current share price is, however, a 24.4% drop over 90 days.
It’s not pretty. Whether we see recovery in the e-com sector as we head further into 2022, or whether the value of listed e-com companies continues to be decimated, something has to shift. The gap between the ASX winners and losers will continue to grow, and some will rise from the Omicron rubble stronger than ever.
Figures are current as at close of ASX on 1 February 2022. This is analysis only and not intended as investment advice.
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