Why the JB Hi-Fi (ASX:JBH) share price is down 7% today

The JB Hi-Fi share price is down 7.53% in late afternoon trading, while the ASX 200 is up. Here’s why investors are selling.
The post Why the JB Hi-Fi (ASX:JBH) share price is down 7% today appeared first on Motley Fool Australia. –

Two men react in shock at Iluka share price drop

The JB Hi-Fi Limited (ASX: JBH) share price is down 7.53% to $46.40 in late afternoon trading.

That’s heading in the opposite direction of the broader S&P/ASX 200 Index (ASX: XJO), which is up 0.5% at this same time.

What does JB Hi-Fi do?

JB Hi-Fi is a consumer goods retailer. The company’s products include a range of home entertainment, gaming, music and IT products as well as white goods and home appliances. The company has made several acquisitions over the years, including acquiring The Good Guys in 2016. It has also been actively expanding its online presence.

JB Hi-Fi has more than 300 stores across Australia and New Zealand. The company also operates online stores in both markets. JB Hi-Fi first began trading on the ASX in 2003.

Why is the JB Hi-Fi share price down today?

Shareholders in JB Hi-Fi have enjoyed a banner year, especially relative to the wider market.

While the ASX 200 is still down 5% since 2 January, the JB Hi-Fi share price is up 23%, even after today’s losses. And that gain comes despite shares getting ravaged by COVID-19 alongside most of the rest of the market, falling 47% from 10 February through to 25 March.

But in late March, JB Hi-Fi began to benefit from some wider trends impacting share markets.

With Aussies suddenly finding themselves working, shopping and socialising from home, demand grew for JB Hi-Fi’s large selection of consumer electronic goods and white goods, among others items.

The company also benefited from its large online footprint (it could make sales without people coming in-store), as well as government income support measures that put more money into consumers’ pockets.

And the JB Hi-Fi share price reflected this, rocketing 123% higher from the 25 March low to the all-time high of $52.40 per share on 25 August.

But last night’s coronavirus vaccine announcement from Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) looks to have stolen some of the tailwinds helping drive JB Hi-Fi, and indeed many ASX 200 tech shares, to new highs.

If the vaccine proves to effectively prevent more than 90% of symptomatic infections, as is hoped, it could see the end of expanded government income support measures. Even as people return to working from the office, shopping in brick and mortar locations, and socialising face to face.

That potential reality is still some ways off.

But judging by the falling JB Hi-Fi share price – and indeed the wider tech share selloff that’s sent the S&P/ASX All Technology Index (ASX: XTX) down 5% today – the market is optimistic that the year of the pandemic may soon be relegated to history.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks 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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the JB Hi-Fi (ASX:JBH) share price is down 7% today appeared first on 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!