• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Dividend Shares

What Coronavirus Means for the Webjet Share Price (ASX:WEB)

Like 0

By Carl Wittkopp, Wednesday, 18 March 2020

Webjet Limited [ASX:WEB] is a digital travel business spanning both the global consumer markets and the wholesale markets. Headquartered in Melbourne, Victoria, the $589 million company has been hammered by the emergence of COVID-19, pushing the Webjet share price down to $4.35 at time of writing.

Their operations include the online sale of travel products, including flight tickets and hotel rooms.

ASX WEB - Webjet Share Price

Source: Optuma

Growth of Webjet share price and subsequent impact of coronavirus

On 19 February 2020, Webjet their first-half performance update for 2020. The company projected strong growth across the business with flight bookings up slightly and the Webbeds arm of the business, projecting booking up 78% from 1H19, with overall revenue up 24% to $217.8 million.

This all changed in March with Webjet withdrawing their financial earnings guidance for 2020.

‘With Covid-19 placing downward pressure on bookings, we are focused on mitigating the short-term impact to earnings but importantly, we remain intent on retaining our leadership positions in our global WebBeds,’ Managing Director John Guscic noted.

As part of the cost reduction program, Managing Director John Guscic and the Board of Directors have voluntarily agreed to reduce their salary and Directors’ fees by 20% with immediate effect until conditions return to normal. The Managing Director has also agreed to forgo any bonus that would have been achieved in FY20.

Will Webjet share price take off again?

Recording a high of $14.63 close to the end of January 2020, the price has now collapsed and fallen over 70% to $4.35, much like Flight Centre Travel Group Ltd [ASX:FLT], which we covered in a recent article.

ASX WEB - Webjet share price

Source: Optuma

At time of writing, the Webjet share price looked to be in free fall smashing through the historical resistance level of $5.10 and may fall to $2.65, which would represent a fall of over 81%, should this happen as can be seen below:

ASX WEB Share Price Chart 3

Souce: Optuma

With this in mind, the short-term outlook for Webjet is a grim picture, but it is interesting to note that both Macquarie Group and Vanguard Group and have become substantial holders, holding 5.42% and 5.00% respectively.

Once the globe emerges from the Coronavirus pandemic, Webjet may be well-positioned to bounce back strongly due to its 2019 growth and confidence from large investors.

Regards,

Carl Wittkopp,

For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Carl Wittkopp

Carl’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • China’s Game of Commodity Chicken
    By Charlie Ormond

    When commodities become weapons instead of just market goods, traditional investing rules break down.

  • Ride Mining’s Profitable ‘Curve’ this Way
    By Callum Newman

    All week we’ve been on a mission. We’re unpicking the dynamics around gold, and gold stocks. Here’s a bit of advice on this opportunity,

  • Silver & Platinum Squeeze Higher
    By James Cooper

    Cycle Turns: Silver and Platinum on the move… Is it their industrial or precious metal angle that’s getting investors interested?

Primary Sidebar

Latest Articles

  • China’s Game of Commodity Chicken
  • Ride Mining’s Profitable ‘Curve’ this Way
  • Silver & Platinum Squeeze Higher
  • One forecast for gold: 10k per ounce!
  • Three men, $20.8 million, and a $230 million rally… all in a day

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988