STOCK WATCH: Redbubble Leads ASX200 and E-Com Index

Redbubble Limited is the star of both the ASX Listed E-Commerce Index and the ASX200. The S&P/ASX200 closed little unchanged Tuesday sitting at 7,248.40. The top performing stocks in this index were Gold Road Resources Limited and Redbubble Limited, up 7.23% and 7.19% respectively. The ASX200 lost 0.9% over 90 days. Over to the ASX Listed E-Commerce Index, and Redbubble is again the top performer, closing at $4.47 on Tuesday and up a massive 29.6% over 90 days.

The ASX-Listed E-Com Index is up 5.3% over the last three months, well above the ASX200’s -0.9%. When we look at the shorter term however, e-commerce in underperforming compared to the ASX200. At 30 days, the E-Com Index had shed 10.1%, and in the last week, it has shed 8%. In contrast, the ASX-200 has shed 3.6% and 0.4% at the 30 and 7 day mark respectively.

As well as Redbubble, the 90-day gains were driven by Temple & Webster’s 19.7% growth and Cettire’s 19.4% growth. Furniture, fashion and a marketplace retailers are driving the growth of the E-Com Index, but other retailers in the same categories aren’t necessarily pulling their weight. Kogan is down 11.6% over 90 days and BikeExchange shed 23.9% over the same period. These are two that we’ve had our eye on in recent weeks, continuously underperforming since FY21 results were announced. Kogan is now under the $10 mark, closing at $9.89 on Tuesday. Back in August, it was at $13.13.

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

MyDeal sits somewhere in the middle of Temple & Webster and Kogan, growing 2.9% over the last three months. Booktopia has once again shown little swing either way, recording 0% growth in the last 14 days. Adore shed 3.1% over the same period, closing at $4.36 on Tuesday. Will it reach the $5+ we were seeing in September and August this month?

With Victoria and NSW on the path to reopening, vaccination rates on the rise, Australia Post delivery delays and an enormous sales season and holiday period ahead of us, how will this impact he value of e-commerce? We know that the pandemic has pushed people online and that consumer behaviour has been forever altered. Yet the difference between online retailer performance on the ASX is enormous. It’s pretty certain that retailers like Adore and Kogan will make gains and record growth in the coming weeks. Similarly, despite BikeExchange recording double digit percentage losses over the last three months, results over the shorter term are looking more promising (0.8% over 7 days). In contrast, Cettire’s double digit growth over 90 days doesn’t seem to be maintainable, with shorter term results looking less positive (-9.3% over the last week).

Figures are current as at close of ASX on 6 October 2021. This is analysis only and not intended as investment advice.

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