Here’s what went wrong for the travel agency last month.
The post Why did the Flight Centre (ASX:FLT) share price go backwards in November? appeared first on The Motley Fool Australia. –
November wasn’t a great month for the Flight Centre Travel Group Ltd (ASX: FLT) share price.
The travel agency’s stock tumbled 13.03% over the course of last month despite no price-sensitive news having been released by the company.
After closing at $20.41 on 1 November, the Flight Centre share price ended the final session of the month trading at $17.75.
For context, the S&P/ASX 200 Index (ASX: XJO) also ended the month in the red, dropping 1.56% over the same time frame.
Let’s take a look at what might have weighed on the company’s shares in November.
Flight Centre share price nosedives over November
The Flight Centre share price finished lower than it started for the second month in a row in November.
This time, it was likely driven lower by increasing numbers of new COVID-19 cases appearing around the globe.
The month started out relatively strong for Flight Centre. Its share price surged 5.4% amid the reopening of the United States’ international borders.
Unfortunately, it took a tumble on 22 November and hasn’t managed to recover yet.
The drop coincided with news that Austria was locking down as COVID-19 took off in the European nation along with many of its neighbours.
At the same time, the United States reported a 16.1% week-on-week increase in cases of the virus.
But that wasn’t Flight Centre’s worst day on the ASX in November.
Last Friday, the value of the company’s shares fell 7.4% amid the emergence of the Omicron COVID-19 variant.
At the time, officials warned that while we didn’t know the impact the variant could have, it had the potential to evade vaccines and treatments and spread rapidly.
It’s worth noting; Flight Centre wasn’t the only ASX 200 travel share to suffer in November.
The post Why did the Flight Centre (ASX:FLT) share price go backwards in November? appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper 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 has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.