Investment Idea

Consumer spending makes Zalando worth an extra thought

Carlsquare Vontobel.jpg
22/11/2022 | 1 min read

The valuation of e-commerce stocks like Zalando has been under pressure. As shown in the chart below, Zalando’s valuation has been more than cut in half over the last year.

On the other hand, in September, US consumer spending grew by 0.6 per cent and exceeded analysts’ expectations, which were 0.4 per cent. October figures will be released on the 1st of December, and the expectation is a growth of 0.7 per cent. In Europe, the year-over-year consumer spending growth was negative in September but increased sequentially. Continued improved consumer spending would speak in favour of a strong Q4, including Christmas shopping, which in turn could give Zalando shares some speculative buying pressure.

Looking at the daily price chart for the Zalando share, one can see that Zalando attempted to break above the falling MA200 but failed. The next downside level is around MA20, currently at EUR 27.5.

Zalando, daily one-year share price chart (EUR)

Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

In the weekly chart below, momentum is negative but improving, as visualized by MACD.

Zalando, weekly five-year share price chart (EUR)

Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

The full name for abbreviations used in the previous text:

EMA 9: 9-day exponential moving average

Fibonacci: There are several Fibonacci lines used in technical analysis. Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers.

MA20: 20-day moving average

MA50: 50-day moving average

MA100: 100-day moving average

MA200: 200-day moving average

MACD: Moving average convergence divergence


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