Kogan.com Ltd (KGN.AU) shares plummeted 5.13% during intraday trading on Monday, as investors reacted to the company's announcement of a significant goodwill write-down related to its Mighty Ape acquisition.

The Australian e-commerce retailer revealed that it has resolved to write down the associated goodwill of its Mighty Ape acquisition. As of June 30, 2024, the value of the goodwill associated with this acquisition stood at A$46.3 million. This decision to write down the goodwill suggests that the company now values the Mighty Ape business less than the original purchase price, which has raised concerns among investors about the acquisition's performance and future prospects.

Kogan.com acquired Mighty Ape, a New Zealand-based online retailer, in a strategic move to expand its market presence. However, this write-down indicates that the expected benefits from the acquisition may not have fully materialized as initially anticipated. The market's sharp negative reaction reflects investor disappointment and concerns about the company's growth strategy and financial health. As Kogan.com navigates this challenging period, investors will likely be closely monitoring the company's future performance and any additional information regarding the impact of this write-down on its overall business outlook.