How does the Webjet (ASX:WEB) share price perform during lockdowns?

How have the company’s shares been trending when lockdowns occur?
The post How does the Webjet (ASX:WEB) share price perform during lockdowns? appeared first on The Motley Fool Australia. –

The Webjet Limited (ASX: WEB) share price has been hit hard during COVID-19 as the federal and state governments enforced travel restrictions. Although almost 60% higher than this time last year, the online travel agent’s shares have more than halved in value since January 2020.

At Tuesday’s market close, Webjet shares finished the day flat at $5.10.

How Webjet shares react to lockdowns

When COVID-19 arrived on the world stage, investors feared the travel industry would be the first to feel the impact. And they were right. Webjet saw international and domestic bookings cancelled, along with its WebBeds business becoming almost non-existent.

As a result, Webjet shares fell from the $14 mark at the beginning of 2020 to a lowly $2.25 in late April 2020. For the first time in history, the Australian international border, as well as state borders, closed.

Webjet had been forced to go into hibernation mode in a move to reduce costs and save the business. Its shares have been volatile, picking up when state governments ease border restrictions but plummeting when parts of the country re-enter lockdowns.

This was evident when Victoria went into a hard lockdown from March 2020 to June 2020. Webjet shares had started to rise to around $4.50 when the state declaring it was beating the virus and relaxed restrictions.

However, this was short-lived. Just 2 weeks later, Victoria again went back to stage 4 restrictions, with Webjet shares tumbling to under $3 again.

What about the current COVID-19 lockdown?

Fast-forward to today, the Webjet share price is hovering around $5 as the near-term future remains uncertain. Vaccination rates are increasing by the tens of thousands per week, but parts of Australia remain in lockdown. This includes Victoria, North Queensland and many parts of New South Wales.

The latter may not open in time for the busy Christmas holiday season, recording 356 new cases yesterday. If this happens, it would have a detrimental effect on Webjet shares.

Webjet share price snapshot

Over the last 12 months, Webjet shares have accelerated almost 60% since hitting near COVID-19 lows.

Currently, the company’s share price is sitting just above the middle of its 52-week range of $2.63 to $6.33.

Based on its current valuation, Webjet has a market capitalisation of around $1.93 billion with approximately 379 million shares outstanding.

The post How does the Webjet (ASX:WEB) share price perform during lockdowns? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Webjet (ASX:WEB) share price tumbles: Is this a buying opportunity?
Why is the Flight Centre (ASX:FLT) share price slipping 2% today?
These are the 10 most shorted ASX shares

What’s the outlook for the Webjet (ASX:WEB) share price?
If you’d invested $2,000 in Webjet (ASX:WEB) shares 10 years ago, here’s what it would be worth now

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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!