The strong run by the Kogan.com Ltd (ASX: KGN) share price came to a sudden end today with a sharp drop.
In afternoon trade the e-commerce company's shares are down almost 5% to $2.48.
What happened?
Whilst today's decline could be the result of profit taking after a sensational run by its shares, news that Amazon is to open a 24,000 square metre goods delivery centre in Melbourne may have also caught the eye of shareholders.
Furthermore, the retail behemoth is recruiting for hundreds of warehouse and administrative staff immediately. This could mean that its long awaited launch is not far away at all.
Kogan has been busy diversifying its business in recent months by launching mobile phone plans, NBN plans, and insurance services.
Only time will tell whether or not this is enough to offset any decline in market share as a result of an Amazon launch.
