The strong run by the Kogan.com Ltd (ASX: KGN) share price came to a sudden end today with a sharp drop.
In afternoon trade the e-commerce company’s shares are down almost 5% to $2.48.
Whilst today’s decline could be the result of profit taking after a sensational run by its shares, news that Amazon is to open a 24,000 square metre goods delivery centre in Melbourne may have also caught the eye of shareholders.
Furthermore, the retail behemoth is recruiting for hundreds of warehouse and administrative staff immediately. This could mean that its long awaited launch is not far away at all.
Kogan has been busy diversifying its business in recent months by launching mobile phone plans, NBN plans, and insurance services.
Only time will tell whether or not this is enough to offset any decline in market share as a result of an Amazon launch.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.