Shop Stock: This could be boosting the Kogan (ASX:KGN) share price today
The Kogan.com Ltd (ASX: KGN) is having a top day today. Although the S&P/ASX 200 Index (ASX: XJO) is up 0.5% today, Kogan shares are doing one better with a 3.83% gain. That puts the Kogan share price at $13.55, its highest level in over a month.
Kogan shares have been enduring something of a fall from grace over the past 6 months or so. This company last peaked back in October at an all-time high of $25.57. But it has been downhill ever since then. Between 20 October and 31 March, Kogan lost more than 52% of its value. Even on today’s pricing, the shares are still down more than 46% from those highs.
So what’s going so right for Kogan today?
A new partnership for Kogan shares
Well, one potential catalyst is a new partnership Kogan has entered into. According to a report from PRWeb, Codisto, a private sales channel integration company, has just inked an agreement with Kogan for use of its Channel Cloud Plus enterprise solution. Codisto is a software company that specialises in sales channel integration software for e-commerce platforms in particular. It is already used by other e-commerce platforms like Shopify Inc (NYSE: SHOP), Amazon.com Inc (NASDAQ: AMZN) and Walmart Inc (NYSE: WMT). Channel Cloud Plus aims to simplify the process for sellers to list and manage products on online channels.
Reportedly, Kogan.com’s online marketplaces will be integrating with Costido’s product. This, the two companies hope, will result in new channel of sellers being opened up for Kogan. Here’s some of what Kogan’s Lazar Monin, director of marketplace, had to say on the deal:
At Kogan, we’re dedicated to providing our sellers with the tools they need to deliver exceptional service from sale to delivery… Partnering with Codisto and their Channel Cloud Plus solution makes it easier for sellers to launch and grow their sales with Kogan by taking the time and complexity out of multichannel management. It’s a win for sellers and a win for our customers which means it’s a win for Kogan.
It’s not immediately clear that this announcement is what is driving up the Kogan share price today. It was made back on Monday after all. But Kogan shares have indeed been on the rise since Monday. In fact, Kogan shares are now up more than 7% over the past week or so. So clearly investors think Kogan is doing something right. Or perhaps the market has woken up and decided that the $12 a share that Kogan hit back on 3 March was just too low. Either way, today has been a great day for Kogan shareholders.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Fintech Zoom Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Fintech Zoom’s board of directors. Sebastian Bowen has no position in any of the stocks mentioned. The Fintech Zoom Australia’s parent company Fintech Zoom Holdings Inc. owns shares of and recommends Amazon and Shopify and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Fintech Zoom Australia owns shares of and has recommended Kogan.com ltd. The Fintech Zoom Australia has recommended Amazon. The Fintech Zoom has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.