Shares in Kogan.com Ltd (ASX: KGN) are soaring this week despite no news being released by the online retailer.
The Kogan share price is currently trading at $11.41 apiece. That's almost 10% higher than it was at last Friday's close.
Historically, Kogan has been a COVID-19 winner. With lockdowns currently ongoing in Australia's 3 most populated states, could the market be expecting Kogan's profits to spike once more?
Let's take a closer look at what might be driving Kogan on the ASX.
Image source: Getty Images
COVID-19 winner?
The Kogan share price is rallying this week, and while it's not gaining with the same intensity it did in March 2020, this latest lift may be happening for the same reasons.
Kogan shares started 2020 trading at $7.47. They slumped in the March COVID-19 market meltdown but, by the end of the 2020 financial year, had bounced up to $13.91. The upward trajectory didn't stop there either, with the Kogan share price hitting a 52-week high of $25.57 in October.
Back then, Kogan's gains were spurred by a series of record sales. There's no news of the same right now.
However, Victoria last night joined Sydney and Southeast Queensland in locking down against the Delta variant.
Past lockdowns have spurred a switch in consumer retail habits from traditional brick-and-mortar to online shopping. As Kogan is the self-proclaimed largest online retailer in the country, investors might be rallying in case these lockdowns extend beyond their estimated endpoints.
Additionally, the company recently reported that it had solved inventory issues plaguing the Kogan share price.
That might also help to remove the brake on Kogan's shares.
Kogan share price snapshot
Even with this week's uptick, the Kogan share price is well below its golden days.
It has slipped 41% since the start of 2021 and is 39% lower than it was this time last year.
The company has a market capitalisation of around $1.1 billion, with approximately 106 million shares outstanding.
