The Kogan.com Ltd (ASX: KGN) share price has had a disappointing end to the week.
At one stage on Friday the ecommerce company's shares were down as much as 6.5% to $4.35. Currently Kogan's shares are trading 5.5% lower at $4.41.
Why is the Kogan share price sinking lower?
With no news out of the company or broker notes that I'm aware of, today's decline appears to be related to general weakness in the tech sector following a disappointing night of trade on the Nasdaq index.
The technology-focused index finished the session down 1.2% amid concerns that the trade war between the U.S. and China is about to reignite.
According to CNBC, U.S. stocks fell sharply when it became clear that a trade meeting between President Trump and China's President Xi would not happen before a key March deadline.
The two parties have until the start of March to strike a trade deal. If not, additional tariffs on Chinese goods will take effect.
While this has very little to do with Kogan's business, I suspect today's selling is more to do with investors rotating some funds away from riskier assets due to concerns that a trade war could ultimately impact global economic growth.
Kogan isn't the only tech share in the red today. The Afterpay Touch Group Ltd (ASX: APT) share price is down 3%, the SPLITIT Payment Ltd (ASX: SPT) share price has sunk 11% lower, and the WiseTech Global Ltd (ASX: WTC) share price has tumbled 2.5% lower.
Should you buy the dip?
Whilst this could arguably be a buying opportunity for Kogan's shares, with its half year results just around the corner I think investors should hold firm and wait for those before making an investment decision.
After all, although it had a strong Christmas period, the company's first half performance has been reasonably mixed. I'm eager to see what impact this has had on its margins and ultimately its bottom line before taking the plunge.
