Things have gone from worse to ugly for the Redbubble Ltd (ASX: RBL) share price. Its shares have tumbled more than 30% in the past month alone, with today's session shedding another 8.9% to a 10-month low of $3.57.
What's driving the Redbubble share price lower?
It seems the Redbubble share price is caught between a significant weakness today across tech, retail and e-commerce sectors.
The S&P/ASX200 Info Tech (INDEXASX: XIJ) is one of the worst-performing sectors, falling 2.32%. This could be a follow on from the weakness in the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) overnight, which fell 2.55%.
ASX retail shares were a standout performer towards the end of April with the likes of Accent Group Ltd (ASX: AX1), Adairs Ltd (ASX: ADH) and Premier Investments Ltd (ASX: PMV) all soaring into record territory. However, these shares have all topped out and slipped between 5% to 15% in recent weeks.
Similarly, ASX e-commerce shares are cycling through a period of tough comparables against 'supercharged' FY20 earnings. Redbubble peers including Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW) have struggled to make headway in recent months.
Redbubble competitor flags slow growth ahead
Etsy Inc (NASDAQ: ETSY) functions a similar business model as Redbubble, providing an online marketplace for unique items from independent sellers.
The Etsy share price was met with a similar selloff as Redbubble following its quarterly results on 6 May. Esty CFO Rachel Glaser commented on the sector's growth, saying:
Q1 2021 growth will be approximately in line with Q4 2020 and that the industry will start to more rapidly decelerate starting in Q2 with the majority of incremental growth for the year realised in the first quarter.
This could spell bad news for the Redbubble share price as the company had already flagged a decrease in earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins in its third quarter update.
