Lucky 13? Why the Kogan (ASX:KGN) share price is leaping 13% today

Kogan shares are on fire today…

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The All Ordinaries Index (ASX: XAO) is in a buoyant mood this Thursday. At the time of writing, the All Ords is up a very pleasing 1.2% at just over 7,500 points. But one ASX share is doing a whole lot better. That would be the Kogan.com Ltd (ASX: KGN) share price.

Kogan shares are presently trading at $5.56 each, up a rather extraordinary 13.24%. So what has happened to this ASX e-commerce company to elicit such a response from investors?

Well, unfortunately, the answer is not clear. The company hasn't put out any news or ASX releases today that might easily explain this move.

A businessman jumps outdoors in sky between two rocks.

Image source: Getty Images

Kogan share price caught in a tornado of goodwill?

However, let's put today's move in context. Before this leap upwards, Kogan shares had lost more than 41% of their value in 2022 to date.

Even after today, the company remains down more than 35% this year. Kogan arguably falls into the 'growth share' characterisation that many market participants love to use.

Growth shares are typically in favour when the market is in the mood for taking risks and making money. But conversely, they are often the first shares to be sold when there is an investing climate dominated by fear. And 2022 has certainly served up a lot more fear than greed thus far.

But today, the markets seem to be in a very good mood, which could explain the rush back into Kogan that we are seeing.

It's not just Kogan either. Many of the ASX's most prominent growth shares that have seen nasty share price falls this year are also booming today. Look at Zip Co Ltd (ASX: Z1P), up 10.3%. Or Block Inc (ASX: SQ2), up nearly 11%. Polynovo Ltd (ASX: PNV) has gained 8.8% so far today.

Thus, it appears this 'risk-on' sentiment may be the primary driving force behind the Kogan share price's gains so far this Thursday.

No doubt shareholders will be hoping the party continues tomorrow.

At the current Kogan share price, this ASX e-commerce share has a market capitalisation of $525.01 million.

Motley Fool contributor Sebastian Bowen owns Kogan.com ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., Kogan.com ltd, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. and Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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