Why did the Kogan share price rocket 20% this week?

Woman looks amazed and shocked as she looks at her laptop.

Woman looks amazed and shocked as she looks at her laptop.Despite a few bumps and bruises, it’s been a pretty good week for ASX shares this week.

As it stands on Friday afternoon, the All Ordinaries Index (ASX: XAO) has put on a pleasing 3.15% since last Friday’s close. But that’s nothing compared to the Kogan.com Ltd (ASX: KGN) share price.

Kogan shares have had a ripper of a week, no way around it. For starters, this online-based retailer added a pleasing 4.47% during today’s trading session alone, leaving it at $3.27 a share going into the weekend.

This time last week, Kogan shares were trading at just $2.72, only a whisker off the company’s 52-week low of $2.66.

This means that the Kogan share price has climbed from $2.72 to $3.27 in a week – a whopping gain of 20.22%.

But even so, this company is still deep in the red over 2022 thus far. Year-to-date, the Kogan share price remains down a nasty 62% or so, despite this week’s gains.

So what has put such a rocket behind the Kogan share price this week?

Why has the Kogan share price shot the moon this week?

Well, unfortunately, it is entirely unclear. This week’s spectacular gains have not resulted from anything the company has released itself. Indeed, we haven’t had any official news or announcements from Kogan since 8 July.

However, we have seen a definite trend emerging on the ASX boards this week that could shed some light on Kogan’s gains.

Many smaller ASX retailers like Kogan have been suffering a similar fate this year. But this week has seen several of them jump on a similar rocket to Kogan.

Take Dusk Group Ltd (ASX: DSK). Its shares are up 8.6% over the past week. Or Lovisa Holdings Ltd (ASX: LOV). Lovisa shares have surged more than 8% over the same period. Not quite at Kogan’s level, but pleasing enough.

So perhaps Kogan’s impressive gains are just part of this trend that we are seeing. Whatever the reason, it has undoubtedly been a great week for Kogan shareholders.

At the last Kogan share price, this ASX retailer has a market capitalisation of $350.72 million.

The post Why did the Kogan share price rocket 20% this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Dusk Group Limited and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Dusk Group Limited and Lovisa Holdings 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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