It certainly has been a volatile week for the Kogan.com Ltd (ASX: KGN) share price.
After storming higher on Monday following the announcement of the launch of Kogan Energy, the ecommerce company's shares plunged 12% lower on Tuesday.
And today the Kogan share price is on the rebound and up over 8% to $4.76 in afternoon trade.
What has been happening?
Investors were quick to head to the exits on Tuesday after a research report suggested that the company had experienced a significant decline in traffic to its Kogan.com website.
The report claimed that visits to the website had fallen year on year in February and were down 20% compared to the prior corresponding period in May.
This appears to have sparked fears that Amazon was stealing market share away from the company or that it was suffering a decline in organic search traffic like fellow ecommerce company Redbubble Ltd (ASX: RBL) has over the last 12 months.
However, this morning the company refuted these claims and advised that all of its key metrics are showing growth.
It said that it "believes that the traffic data in the report is inaccurate. According to Google Analytics, which the Company uses to monitor its website traffic, Sessions, Page Views and Users have each grown year-on-year in every month of FY19."
This appears to have convinced investors that business conditions remain strong and Kogan is on track to build on its positive start to the second half.
In April Kogan revealed that the business generated strong earnings growth in the March quarter. During the quarter the company posted a 23.4% year-on-year increase in Active Customers to 1,589,000.
This ultimately led to the company reporting a 9.5% increase in revenue, a 28.4% lift in gross profit, and a whopping 96.4% jump in EBITDA compared to the third quarter of FY 2018.
