The Kogan (ASX:KGN) share price was a lockdown winner, so what’s going on now?

Investors are treating the Kogan share price quite differently in lockdowns this year, compared to company’s boom-time days of 2020.

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The Ltd (ASX: KGN) share price was one of only a few winners amid the first COVID-19 lockdowns. But now, while half of Australia is locked inside the home perimeters, it’s flopping.

The online retailer’s shares have fallen 15.9% over the last month, despite people in Sydney, Victoria, and South Australia locking down to avoid the Delta strain. Right now, Kogan shares have closed at $10.79, down another 1.9% today.

Let’s take a look at how the Kogan share price moved last time Australia faced large numbers of COVID-19 cases.

Flashback to 2020

Last year, Kogan was spruiked as one of only a few ASX shares to benefit from the global pandemic.

The Kogan share price gained 279% between 20 March 2020 and 10 July 2020 – going from $4.56 to a whopping $17.29. And it didn’t stop there.

The online retailer’s shares reached their highest point ever in late 2020, when they hit $25.57 during intraday trade.

The gains were driven by record sales in March 2020 as many Australians worked, studied, socialised, and, of course, shopped online.

Kogan sales broke more records in April 2020 and it received 126,000 new active customers in May.

The multitude of positive news sent the Kogan share price soaring in 2020, but the same can’t be said for 2021.

What’s up with the Kogan share price now?

The Kogan share price is failing to gain the same traction it enjoyed during lockdowns in 2020.

This was highlighted last Wednesday, when Kogan released a business update.

Much of the update was positive, with Kogan reported earnings before interest, tax, depreciation, and amortisation (EBITDA) of $61.1 million for the 2021 financial year.

However, that figure is just 23.1% higher than Kogan’s EBITDA of the 2020 financial year. While it’s still a gain, it suggests Kogan’s growth is slowing.

Additionally, the company’s inventory issues dug into its profits during the second half of the financial year. Thankfully, the issues have now been solved

Finally, as the Australian Financial Review reported, Kogan is the ASX’s fourth most shorted stock. According to the publication, “most of the reasons investors are shorting were reinforced by Wednesday’s update”.

Kogan share price snapshot

All eyes were on the Kogan share price during 2020 but it now appears the market has lost interest.

Right now, the company’s shares are 44% lower than they were at the start of 2021. They have also fallen 36% since this time last year.

The company has a market capitalisation of around $1.1 billion, with approximately 106 million shares outstanding.

Should you invest $1,000 in Kogan right now?

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ltd. The Motley Fool Australia owns shares of and has recommended ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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