Have we turned a corner? Online retail is outperforming the ASX-200 with investor confidence looking strong.
On the precipice of the busiest quarter in e-commerce history, online retailers are performing exceptionally well on the ASX. This is off the back of a short period of what can only be seen as investor uncertainty. In the last week, the Australian Listed E-Com Index has grown an average of 4.9%. While this in itself doesn’t seem like enormous growth, it has outperformed the stagnant ASX-200 which was flat at 0% over the same period. In fact, at the 90 day, 30 day and 14 day mark, the ASX-200 has recorded dips in average share price value (-0.4%, -2.8%, -2.2% respectively). In contrast, the ASX Listed E-Com Index has recorded growth at each of these markers (+2.2%, +1.4% and +1.7% in the same time periods). It would be no surprise if we started to see some double digit growth in the average share price of e-commerce companies as we head into the next few months.
Cettire closed at $3.53 yesterday, marking a 33.2% gain in the last three months. Another top performer is (perhaps surprisingly) MyDeal which has grown 32.1% over 90 days, closing out at $0.74 on Tuesday. While Cettire’s share price has taken a small dip in the last week (down 3.3%), MyDeal has continued to record growth, up 4.2% in the last seven days.
Source: Australian Listed E-Commerce Index based on ASX reporting
Given BikeExchange’s recent numbers, it’s not a surprise that it has been the worst performer on the E-Com Index. Opening at $0.17 this morning, it has lost 30.6% over the last three months. In the last week, it has shed 5.6%. Investor confidence is low. While Kogan has shed 17.8% in the last three months, we are perhaps seeing a shift in investor sentiment, the company recording gains of 11.6% over seven days. While we did see a swift backlash after its full year results were announced earlier in the month, it would be a surprise if we didn’t see a continuation of this upwards trend as we head into the busy November sales season and Christmas period.
Booktopia has remained pretty stable over 2021, even when other companies were recording large swings in either direction. A similar result this week, with 1.1% growth over 90 days. Last week it was reported that Booktopia was considering raising new capital and was in the process of conducting due diligence on a number of businesses. The potential acquisition strategy hasn’t resulted in an immediate bump to its share price, though with a clear growth plan, this is one to watch. After some massive share price growth earlier in the year, Temple & Webster closed out at $12.60 on Tuesday, a gain of 9.4% over three months. Adore similarly recorded growth of 7% in the same period, closing at $4.88.
We seem to have been given a break from the extreme volatility of recent times, but ahead NSW and Victoria on the path to reopening, and the forecast for extreme e-commerce growth come December, the next few months are sure to be interesting.
Figures are current as at close of ASX on 20 September 2021. This is analysis only and not intended as investment advice.
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