Why is the Temple & Webster share price surging 11% on Monday?

Why are Temple & Webster shares rocketing 11% today?

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It’s been a pretty bleak day for ASX shares so far this Monday. As it currently stands, the S&P/ASX 200 Index (ASX: XJO) has lost 0.54% of its value and is trading around the 6,450 point mark. But no one seems to have told the Temple & Webster Group Ltd (ASX: TPW) share price.

Temple & Webster shares are having an absolute cracker today. The online furniture retailer has exploded in value, rising a pleasing 11.25% to $3.56 a share at the time of writing.

Saying that, this move doesn’t exactly erase the awful share price performance Temple & Webster has endured in recent weeks and months. Even after this dramatic move higher, the company remains down by 1.11% over the past five trading days and a nasty 20% over the past month.

Temple & Webster is also down a depressing 67.1% in 2022 thus far and a nasty 76.4% from the all-time high of $15 a share that we saw back in September last year.

But we digress. So what is behind this company’s explosive performance this Monday?

Why are Temple & Webster shares shooting the moon on Monday?

Well, we can’t be sure. There haven’t been any news or announcements out from Temple & Webster today. Or indeed, in June thus far.

But, as my Fool colleague Brooke noted this morning, ASX online retail shares seem to be collectively having a very positive day. Alongside Temple & Webster shares rising by 11%, we also see Kogan.com Ltd (ASX: KGN) shares gain an impressive 6% or so. City Chic Collective Ltd (ASX: CCX) shares have gained around 5%, while Accent Group Ltd (ASX: AX1) shares are up 3.35%.

So perhaps this is a reaction to the savage sell-off we saw last week. These kinds of companies saw some of the worst of the ASX’s falls last week, with Temple & Webster even hitting a new 52-week low of $3.17 on Friday.

Perhaps value investors have decided in hindsight that these falls were too extreme and have decided to jump back in today.

Whatever the cause of today’s market-bucking moves for online retail shares like Temple & Webster, it will no doubt be welcomed by investors.

At the current Temple & Webster share price, this ASX retailer has a market capitalisation of $429 million.

Motley Fool contributor Sebastian Bowen has positions in Kogan.com ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Accent Group and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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