Why is the Kogan share price jumping 12%?

Businessman in suit and holding a briefcase jumps into the sky celebrating the rising Enero share price

Businessman in suit and holding a briefcase jumps into the sky celebrating the rising Enero share price

The Kogan.com Ltd (ASX: KGN) share price is having a long-awaited positive day.

After reaching another multi-year low this week, the ecommerce company’s shares are rebounding strongly on Friday.

At the time of writing, the Kogan share price is up almost 12% to $3.15.

Why is the Kogan share price storming higher?

The driver of today’s gain has been a bit of a mystery. However, it is worth noting that Kogan is not alone in recording strong gains.

In fact, most beaten down ecommerce and tech shares are rising equally strongly at the time of writing. Here’s a quick summary of some of the highlights:

  • The Life360 Inc (ASX: 360) share price is up 15%.
  • The Redbubble Ltd (ASX: RBL) share price has jumped 8%.
  • The Temple & Webster Group Ltd (ASX: TPW) share price is up 9%.
  • The Zip Co Ltd (ASX: ZIP) share price has stormed 13% higher.

This has led to the S&P ASX All Technology index rising 4.5% this afternoon, which is significantly better than the ASX 200 index and its 0.4% gain.

It appears as though investors believe that the tech sector has been oversold and has created a buying opportunity.

Time will tell if the sector has bottomed or if this is a dead cat bounce.

The post Why is the Kogan share price jumping 12%? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd, Life360, Inc., REDBUBBLE FPO, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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