The Webjet Limited (ASX: WEB) share price is sliding lower on Thursday despite no word from the company.
However, its dip might be linked to Wednesday’s rough session in the US that saw international travel stocks slumping amid interest rate concerns.
At the time of writing, the Webjet share price is $5.30, 5.19% lower than its previous close.
For context, the S&P/ASX 200 Index(ASX: XJO) is currently down 0.53%.
Let’s take a closer look at what might be weighing on the Webjet share price today.
Why is the Webjet share price plummeting today?
Webjet’s stock is suffering today. Meanwhile, Australia has woken up to carnage among US travel stocks.
As The Motley Fool’s Rich Smith reported, many of the nation’s biggest airlines’ stocks fell overnight, weighed down by rising interest rate concerns.
Airlines are – perhaps unsurprisingly, given the still-ongoing pandemic – some of the most indebted companies on US exchanges, said Smith.
That means they could be hit hard if interest rates increase, as that would increase the cost of their debts.
And it wasn’t just US airline stocks that suffered while Australia slept.
Booking Holdings Inc (NASDAQ: BKNG) – the parent company of Booking.com – saw its share price slip 3.3% on Wednesday. Meanwhile, the Expedia Group Inc (NASDAQ: EXPE) share price fell 4.7%.
Landing back in Australia on Thursday, the Webjet share price is joined in the red by fellow ASX 200 travel stock, Flight Centre Travel Group Ltd (ASX: FLT). It has fallen 3.9% at the time of writing.
Qantas Airways Limited (ASX: QAN) and Corporate Travel Management Ltd (ASX: CTD) are also down, having fallen 1.7% and 3.2% respectively.
Sadly, today’s tumble has wiped the Webjet share price’s 2022 gains off the board. It’s currently trading for 2.3% less than it was at the start of the year. It is also 5.1% lower than it was this time last year.
The post The Webjet share price is tumbling 5% on Thursday. Could this be why? appeared first on The Motley Fool Australia.
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More reading
- ASX travel shares have been flying higher over the past month. Here’s why
- Why this broker thinks the Webjet share price can fly 26% higher
- How did the Webjet share price travel in March?
- These are the 10 most shorted ASX shares
- Top brokers name 3 ASX shares to buy next week
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. owns and has recommended Booking Holdings. The Motley Fool Australia has recommended Booking Holdings, 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.
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