ASX e-commerce shares have largely enjoyed a tremendous run since February 2020. We'll look at 2 of those high performing ASX shares below.
The broader e-commerce sector, as you're likely aware, received a tremendous lift from the fallout of the COVID-19 pandemic. With rolling lockdowns and continual social distancing, buying your food and consumer items online suddenly became much more appealing. And much more popular.
So as many bricks and mortar retailers with a limited online presence suffered, the online retail companies broadly boomed.
But investors are now wondering whether that trend has run its course. With vaccines rolling out across the world, will the e-commerce boom fizzle?
What the e-commerce experts said
According to Bloomberg, PayPal Holdings Inc (NASDAQ: PYPL) said "there's been no slowdown in online shopping even as cities around the world begin to reopen".
PayPal CEO Dan Schulman said, "Even as people get vaccines and start to go out, their business will forever be changed. I don't think there's any going back to what was".
PayPal's share price has soared 170% over the past 12 months, giving the BNPL giant a market cap of US$293 billion (AU$378 billion).
Closer to home, Gabby Leibovich knows a thing or 2 about e-commerce as well. As the Australian Financial Review reports, back in 2019 he and his brother sold their company Catch Group to Wesfarmers Ltd (ASX: WES).
Looking back on the pandemic months, Leibovich said:
Who would've imagined that all stores in Victoria would be forced to shut for 10 weeks. Like never before, the change was forced upon us, causing an immediate drive to online shopping by so many Australians that have never shopped online before… I have many friends in retail and e-commerce, and it's fair to say that all of them have experienced tremendous growth over the last 12 months.
That's the past 12 months covered. But what about the future?
Leibovich added, "Once the genie is out of the bottle, it will never go back in… As e-commerce revenue multiplies, companies' valuations skyrocket, and investors are now valuing e-commerce companies more than they ever did before."
Two leading ASX e-commerce shares
There are a number of quality e-commerce shares trading on the ASX. Two of the best performers have been online retailer Kogan.com Ltd (ASX: KGN) and home delivery food service Marley Spoon AG (ASX: MMM).
Kogan's shares are up 3.5% in intraday trade today bring the 12 months gains to 266%. That compares to a gain of 37% on the S&P/ASX 200 Index (ASX: XJO) during that same time. Year-to-date the Kogan share price is down 28%. At the current price of $13.89 per share, Kogan has a market cap of $1.5 billion.
Marley Spoon shareholders have also enjoyed a great 12 months, with shares up an eye-popping 936%. Year-to-date the Marley Spoon share price has slipped 4%. At the current price of $2.64 per share, Marley Spoon has a market cap of $661 million.
