Down 9% today, why the Redbubble (ASX:RBL) share price continues to tumble

The Redbubble Ltd (ASX: RBL) share price dips another 8.9% on Tuesday to a 10-month low. What’s driving the stock lower?
The post Down 9% today, why the Redbubble (ASX:RBL) share price continues to tumble appeared first on The Motley Fool Australia. –

share price bubble burst represented by girl with popped bubblegum on her face

Things have gone from worse to ugly for the Redbubble Ltd (ASX: RBL) share price. Its shares have tumbled more than 30% in the past month alone, with today’s session shedding another 8.9% to a 10-month low of $3.57. 

What’s driving the Redbubble share price lower? 

It seems the Redbubble share price is caught between a significant weakness today across tech, retail and e-commerce sectors. 

The S&P/ASX200 Info Tech (INDEXASX: XIJ) is one of the worst-performing sectors, falling 2.32%. This could be a follow on from the weakness in the tech-heavy  Nasdaq Composite (NASDAQ: .IXIC) overnight, which fell 2.55%. 

ASX retail shares were a standout performer towards the end of April with the likes of Accent Group Ltd (ASX: AX1), Adairs Ltd (ASX: ADH) and Premier Investments Ltd (ASX: PMV) all soaring into record territory. However, these shares have all topped out and slipped between 5% to 15% in recent weeks. 

Similarly, ASX e-commerce shares are cycling through a period of tough comparables against ‘supercharged’ FY20 earnings. Redbubble peers including Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW) have struggled to make headway in recent months.

Redbubble competitor flags slow growth ahead 

Etsy Inc (NASDAQ: ETSY) functions a similar business model as Redbubble, providing an online marketplace for unique items from independent sellers. 

The Etsy share price was met with a similar selloff as Redbubble following its quarterly results on 6 May. Esty CFO Rachel Glaser commented on the sector’s growth, saying: 

Q1 2021 growth will be approximately in line with Q4 2020 and that the industry will start to more rapidly decelerate starting in Q2 with the majority of incremental growth for the year realised in the first quarter.

This could spell bad news for the Redbubble share price as the company had already flagged a decrease in earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins in its third quarter update.

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 Motley Fool 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.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended ltd, Temple & Webster Group Ltd and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Down 9% today, why the Redbubble (ASX:RBL) share price continues to tumble appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!