Why the Flight Centre share price is falling today


What happened

The Flight Centre share price fell around 11% on Thursday. This came on a day when the ASX followed Wall Street’s weak overnight trading. In late afternoon trade, the ASX 200 was 140 points lower at 5,826.

In February this year, Flight Centre (ASX:FLT) shares traded at around $40 before tumbling as low as $8.56 during the depths of the COVID-19 sell-off.

So what

The Flight Centre share price took a knock today because of a spike in coronavirus cases, both in the US and other parts of the world, and also here in Victoria.

Also impacting Flight Centre share was news that Qantas were axing 6,000 staff, with around 100 aircraft to be grounded for up to 12 months, some for even longer.

Although there wasn’t any specific news out from Flight Centre today, the fall in its share price can likely be put down to fears consumers will further delay travel plans, plus a bout of profit taking. The FLT share price had traded as high as $17.52 earlier in June as investors bet on travel bookings bouncing back hard and fast.

Now what

Shares in beaten down travel companies like Flight Centre and Webjet have been popular in recent weeks. Like many stocks directly impacted by the coronavirus, the timing and extent of any bounce back remains highly uncertain.

Here’s how you can strike it rich in the share market… The best way to strike it rich in the share market is to buy shares that are not only cheap, but growing quickly. Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018. Best of all, the report is absolutely free, exclusively for readers of The Capital Club. In this comprehensive free report, you’ll find the name of one ASX gold stock that’s not only profitable, but trading at less than 4 times forecast profits. You’ll also discover the name of a company one fund manager has called the cheapest stock in the ASX 100, and you’ll read about the three catalysts that could push the share price higher in the next six months. Finally, the report names one of the cheapest retailers trading on the ASX, a company that just picked up the assets of a distressed competitor on the cheap, paying just 2 times earnings. No wonder one top fund manager thinks its share price could at least double. With the share prices of each of these 3 companies having the potential to double or more, you’ll want to act now. Simply click here or the button below, enter your email address, and this free report will be instantly sent to you. See the 3 stocks
Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au