Insights

Why the Digital Wine (ASX:DW8) share price is crashing 12% today

The Digital Wine Ventures Ltd (ASX: DW8) share price is down 12% after its latest update. Click here to see how it might affect your shares.
The post Why the Digital Wine (ASX:DW8) share price is crashing 12% today appeared first on The Motley Fool Australia. –

Spilled wine and a glass on its side, indicating a share price drop for ASX wine companies

The Digital Wine Ventures Ltd (ASX: DW8) share price is having a rough day at trading. At the time of writing, shares in the online wine company are trading for 12 cents each – down 12.0%.

The precipitous fall comes after the company provided an update on its trading during April.

Let’s take a closer look at the announcement and what it means for the Digital Wine share price.

Digital Wine share price crashes on lower sales

In a statement to the ASX, Digital Wines says it sold just over 23,000 cases of wine in April. The company was at pains to point out that this figure is up 580% on the same time last year. However, sales are down 9.1% over March. Back in March, sales increased 540% month on month (MoM). However, orders processed in April are up 350% MoM compared to 504% MoM in March. From March to April, orders processed also fell 22.5% to around 9,500 orders.

Digital Wine largely attributed the fall in sales and orders processed in April to “the extended vintage preoccupying many winemakers.”

Investors did not seem to be buying this, however, judging by the Digital Wine share price.

Other announcements

Along with the sales figure, Digital Wine also had another few announcements in today’s update.

Firstly, 19 additional suppliers have signed with the company since its last update in March. This includes 14 producers and 5 importers/wholesalers.

Digital Wine also reports it has “soft launched” its direct-to-trade marketplace on its Wine Depot platform. First orders were delivered in Sydney and Melbourne last week. Over the next few weeks, the company will progressively roll out access to the trading floor in Sydney before making the platform available in Melbourne.

Finally, the company received a liquor licence allowing Wine Depot to sell alcohol to the general public. With the licence secured, Digital Wine will launch an invitation-only membership program called Insider Trading. Shareholders, staff, and suppliers will be able to purchase wine directly from the business at discounted rates.

Digital Wine share price snapshot

Over the past 12 months, the Digital Wine share price has increased an astonishing 1,733.33%. In mid-April, shares reached an all-time high of 21 cents each.

Digital Wine Ventures has a market capitalisation of $176.3 million.

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

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Digital Wine (ASX:DW8) share price is crashing 12% today 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!