The Kogan.com Ltd (ASX: KGN) share price has jumped out of the gates to open the session on Thursday.
At the time of writing, Kogan shares are 2.84% higher at $4.35 apiece after hitting $4.54 earlier this morning. That's a rise of more than 7% despite no news out of the company today.
In broader market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is also up 1.67% while the S&P/ASX 200 Index is 0.26% higher so far today.
What's up with the Kogan share price?
Kogan shares received a boost last month when the company posted a business update for the 12 months to June 30, 2022.
In the update, Kogan reported it expects gross revenue of $1.18 billion and gross profit of $184 million, up 9.4% on 2021.
It also expects an increase in EBITDA for the period of $19.1 million, up from a loss the prior quarter.
Perhaps one key standout was a reported reduction in Kogan's inventory value, down to $161 million from $193 million in March.
The results, while not fantastic in absolute terms, "wasn't as bad as the market was expecting," TMF reported.
'Bad news is good news'
It seems this is a classic case of the 'bad news is good news' phenomenon that's been reported across various financial news outlets recently.
Last week, Bloomberg reported "[t]he stock market is wrestling with a 'bad news is actually good news' scenario".
Basically, when we're in a bear market and the mood is chronically pessimistic, news that 'isn't as bad as expected' can be deemed good news.
It's quite the paradox, however, as the market may have already priced in the prospect of recession, rising interest rates, and inflation, Bloomberg says.
That aside, consumer cyclical shares such as Kogan have caught a bid lately and are up 9% for the month, reversing a period of heavy downside, as shown below.
Share price snapshot
The Kogan share price has outperformed the sector gaining 52% in the past month. However, even with those gains, it's shed 60% over the last 12 months.
The company has a current market capitalisation of $458 million.
