Why the Kogan (ASX:KGN) share price is soaring 10% this week

Is the historical lockdown winner being boosted from current COVID-19 outbreaks?

| More on:
Cheering woman shopping online with credit card

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares in Kogan.com Ltd (ASX: KGN) are soaring this week despite no news being released by the online retailer.

The Kogan share price is currently trading at $11.41 apiece. That's almost 10% higher than it was at last Friday's close.

Historically, Kogan has been a COVID-19 winner. With lockdowns currently ongoing in Australia's 3 most populated states, could the market be expecting Kogan's profits to spike once more?

Let's take a closer look at what might be driving Kogan on the ASX.

COVID-19 winner?

The Kogan share price is rallying this week, and while it's not gaining with the same intensity it did in March 2020, this latest lift may be happening for the same reasons.

Kogan shares started 2020 trading at $7.47. They slumped in the March COVID-19 market meltdown but, by the end of the 2020 financial year, had bounced up to $13.91. The upward trajectory didn't stop there either, with the Kogan share price hitting a 52-week high of $25.57 in October.

Back then, Kogan's gains were spurred by a series of record sales. There's no news of the same right now.

However, Victoria last night joined Sydney and Southeast Queensland in locking down against the Delta variant.

Past lockdowns have spurred a switch in consumer retail habits from traditional brick-and-mortar to online shopping. As Kogan is the self-proclaimed largest online retailer in the country, investors might be rallying in case these lockdowns extend beyond their estimated endpoints.

Additionally, the company recently reported that it had solved inventory issues plaguing the Kogan share price.

That might also help to remove the brake on Kogan's shares.

Kogan share price snapshot

Even with this week's uptick, the Kogan share price is well below its golden days.

It has slipped 41% since the start of 2021 and is 39% lower than it was this time last year.

The company has a market capitalisation of around $1.1 billion, with approximately 106 million shares outstanding.

Should you invest $1,000 in Sayona Mining Limited right now?

Before you buy Sayona Mining Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Sayona Mining Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Retail Shares

Woman checking out new iPads.
Retail Shares

JB Hi-Fi share price sinks on sales growth figures

JB Hi-Fi shares are under pressure on Wednesday. But why?

Read more »

a close up of a motorcycle's front wheel and body on the open road with another motorcycle rider in the background cruising behind the leading driver.
Retail Shares

Up 100% in 11 months, can this small-cap ASX stock keep flying higher?

This business has delivered huge returns. Is it still a buy?

Read more »

A happy woman peaks out from under her bed sheets
Retail Shares

Interest rate cut beneficiaries: Should I buy Adairs or Temple & Webster shares?

These two ASX stocks should benefit from rate cuts.

Read more »

A warehouse worker is standing next to a shelf and using a digital tablet.
Retail Shares

3 reasons why the Wesfarmers share price could still be a buy

Wesfarmers is a wonderful business for a few reasons.

Read more »

A senior pharmacist talks to a customer at the counter in a shop.
Share Market News

Where are Australian consumers spending their money in this environment?

Macquarie research reveals new spending trends and the best ASX 200 retail stocks to buy now.

Read more »

Young couple at the counter of a hardware store.
Retail Shares

Interest rates down and renos up: 2 ASX stocks to benefit

These businesses have a lot going for them.

Read more »

A blonde woman shows off her ring to two excited friends with Michael Hill Jeweller among the top ASX retail shares of FY22
Retail Shares

Lovisa shares: The bull and bear cases

Let's explore the pros and cons of this popular ASX retailer.

Read more »

A warehouse worker is standing next to a shelf and using a digital tablet.
Retail Shares

The pros and cons of buying Wesfarmers shares this month

Is it a good time to buy this top retail giant?

Read more »