Why is the Kogan share price soaring 6% on Monday?

a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.a man sits at his computer screen scrolling with his fingers with a satisfied smile on his face as though he is very content with the news he is receiving.

The Kogan.com Ltd (ASX: KGN) share price is lifting higher today after last week’s disastrous performance.

And while there’s been no news from the company to explain today’s gains, there are a number of happenings that might have influenced it.

At the time of writing, the Kogan share price is $2.97, 6.07% higher than its previous close.

For context, the broader market is struggling on Monday. The S&P/ASX 200 Index (ASX: XJO) is down 0.67% while the All Ordinaries Index (ASX: XAO) has slipped 0.85%.

Let’s take a closer look at what might be going on with the Kogan share price today.

What’s going on with the Kogan share price?

Kogan’s stock appears to be recovering from last week’s 13% tumble despite the company’s silence.

Kogan’s stock hit a nearly four-year low on Friday when it slumped to $2.77 a share. Thus, today’s boost might be a reaction to last week’s selloff.

Interestingly, however, the latest data has placed the online retailer’s stock among the most shorted on the ASX. The company has a short interest of 9% – making it the seventh most shorted stock on the Aussie market.

Today’s gains might also come on the back of a broader boost experienced by many consumer discretionary shares.

At the time of writing, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 1.96%, making it the ASX 200’s second-best performing sector behind the S&P/ASX 200 Real Estate Index (ASX: XRE).

The Kogan share price is joined in the green by those of fellow retailers City Chic Collective Ltd (ASX: CCX), Accent Group Limited (ASX: AX1), and Adairs Ltd (ASX: ADH).

That’s despite Deloitte predicting consumer spending will slow in the second half of 2022 amid rising costs, as reported by The Australian.

Sadly, today’s lift hasn’t been enough to boost the Kogan share price into the long-term green.

The stock is currently 66% lower than it was at the start of 2022. It has also slipped nearly 73% since this time last year.

The post Why is the Kogan share price soaring 6% on Monday? appeared first on The Motley Fool Australia.

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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. has positions in and has recommended ADAIRS FPO and Kogan.com ltd. The Motley Fool Australia has positions in and has recommended ADAIRS FPO and Kogan.com ltd. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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