Kogan.com Ltd (ASX: KGN) shares have swung wildly over the past year but the trend has generally been higher. In fact the stock is up from $2.77 this time last year to $7.07 today.
So what's happened?
Not much has changed in Kogan's underlying business other than it launching a number of new products including Kogan mobile, insurance, and home internet.
Another factor lifting the shares is the successfu 2019 launch of Kogan Marketplace that lets third-party sellers reach customers at very keen prices.
This is an online retail business model pioneered by Amazon.com and Kogan's entrepreneurial management team has generally taken a leaf out of the U.S. giant's operating book by growing market share on razor thin margins.
Kogan Marketplace is also a capital-light business model as Kogan does not need to store the inventory as it's supplied by third party sellers using the Kogan platform.
In my view Kogan looks a pretty good business, although I'd place it higher up the risk curve.
I'd also have to concede that offering this view this time last year would have been a much smarter call given the share price growth. However, I expect there could be good times ahead.
