The Kogan.com Ltd (ASX: KGN) share price was an exceptionally strong performer once again on Monday.
The ecommerce company's shares were up as much as 11% at one stage, before ending the day 9.5% higher at $18.25.
This latest gain means the Kogan share price is now up 430% from its March low of $3.45.
Why did the Kogan share price rocket higher today?
Investors have been fighting to get hold of Kogan's shares again after the Victorian state government declared a state of disaster and announced a six-week lockdown.
While supermarkets such as Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES) operated Bunnings home improvement stores are likely to remain open as normal, non-essential retailers are expected to close.
As we have seen over the last few months, this has accelerated the shift to online shopping and led to a material increase in sales and customer numbers for ecommerce companies such as Kogan and Temple & Webster Group Ltd (ASX: TPW).
Investors appear confident that this will be the case again with the Victorian lockdown, which could position Kogan for another outstanding quarter of sales and profit growth.
Pleasingly, they may not have to wait long for Kogan to reveal how it is performing. It is scheduled to release its full year results in two weeks on Monday 17 August 2020. I suspect the company will provide investors with an update on trading during the first quarter with its results.
Is it too late to invest?
I think Kogan's shares are looking fully valued now, so I wouldn't buy them if you're just looking for a quick gain.
However, I would be a buyer of them if you plan to hold on for the long term. Given its positive long term outlook from the shift to online shopping, potential acquisitions, and its expansion into other verticals, I believe Kogan can grow significantly over the next decade.
This could make the Kogan share price a market beater over the 2020s.
