We all know that Amazon.com Inc (NASDAQ: AMZN) is one of the largest and most successful companies in the world. Its founder and former CEO, Jeff Bezos, is a household name, and the company’s services are wildly popular in Australia, as well as around the world. As such, it’s also arguably common knowledge that Amazon stock has been a long-term winner for any investor who has held it for any significant length of time.

Most people know Amazon for its sophisticated online store featuring fast delivery, as well as its Prime membership program, and, more recently, its streaming service.

But those businesses, while important, only make up part of this behemoth’s revenue streams. Perhaps its most successful segment operates behind the scenes. It is none other than Amazon Web Services (AWS), a service that facilitates back-end internet operations. It is used by clients ranging from Netflix and Coca-Cola to Apple and LinkedIn.

But how has this success translated into the company’s share price? Well, let’s take a look at Amazon stock over the past five years to find out.

So, five years ago, back in early December 2020, Amazon stock was going for just over US$3,115 a share. That’s about US$158 on a post-stock split basis – remember, Amazon underwent a 20-for-1 stock split back in mid-2022.

As it stands today, its shares last traded at US$233.22 each, the price recorded on Saturday morning (our time) at the end of the short trading day over in the US.

This means that investors have enjoyed a gain of about 47.5% from the Amazon stock price itself since December 2020. That works out to be a yearly rate of return of approximately 8.1% per annum over the five years.

Why has Amazon stock been a market laggard?

Now, Amazon doesn’t pay any dividends at the current time. In fact, the company has never paid out a dividend. As such, those capital gains are the only returns investors would have bagged from their Amazon stock. However, for Australian investors, currency movements would have added about 2.5% per annum to their total returns.

If an investor bought US$5,000 worth of Amazon stock five years ago this week, this means they would have been able to pick up 31.6 shares at the time. Today, those 31.6 shares would have a value of US$7,374.30.

Many investors might be startled to see such a low rate of return from Amazon. A member of the ‘Magnificent 7’, no less. You would have been far better off investing in a generic S&P 500 Index (SP: .INX) fund.

It’s not as though this company isn’t growing through. As we reported last month, the company’s latest quarterly report showed Amazon’s sales increasing 13% year on year, while its AWS revenue surged 20%.

As such, we can conclude that Amazon stock’s sluggish performance since late 2020 is almost entirely due to price-to-earnings (P/E) ratio compression. This company’s five-year earnings multiple average stands at just over 58. Yet the company trades at a far lower 32.95 today.

Thus, investors might conclude that the company is looking relatively cheap right now, despite being just under 10% away from its all-time high of US$258.60 a share.

The post $5,000 invested in Amazon stock 5 years ago is now worth… appeared first on The Motley Fool Australia.

More reading

• Ranking the best “Magnificent Seven” stocks to buy for 2026. Here’s my No. 5 pick.
• If you’d invested $100 in Amazon 5 years ago, here’s how much you’d have today
• The best ASX ETFs to buy and hold for 20 years
• US stocks will underperform over next decade: Goldman Sachs
• 2 “Magnificent Seven” stocks to buy before they soar at least 20%, according to select Wall Street analysts

Motley Fool contributor Sebastian Bowen has positions in Amazon, Apple, Coca-Cola, Microsoft, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Microsoft, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There’s no way around it, November was a horror month for the DroneShield Ltd (ASX: DRO) share price.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed on 31 October trading for $3.83. When the closing bell sounded on 28 November, those same shares were changing hands for $1.98 apiece.

This saw the DroneShield share price down a painful 48.3% over the month just past.

For some context, the ASX 200 dropped 3% in November.

Here’s what had investors overheat their sell buttons.

DroneShield share price flies into stiff headwinds

The first few days of November kicked off just fine, with the ASX 200 defence stock announcing a new $25.3 million contract from a privately owned in-country reseller.

“With this new contract, DroneShield continues to position itself as one of the preferred C-UAS systems in Latin America,” DroneShield CEO Oleg Vornik said on the day.

The DroneShield share price closed up another 1.4% on 10 November after reporting on three new deals with the United States government. The deals to supply handheld counter-drone systems were said to be worth a combined $7.6 million.

But things quickly took a turn for the worse after this, with management having to withdraw the US deal announcement.

“DroneShield advises that the November Contracts do not represent new orders,” the company said. “The November Contracts were inadvertently marked as new contracts rather than revised contracts due to an administrative error.”

CEO and top brass dump holdings and US leader departs

By far the biggest hit to the DroneShield share price came on 13 November, when the stock closed down a precipitous 31.4%.

That followed news that CEO Oleg Vornik had unloaded 14.81 million shares in the company the previous week, netting him $49.47 million. With several other directors also selling material holdings in the company, investors were quick to follow suit.

But the pain wasn’t over for stockholders yet.

On 19 November, the DroneShield share price closed down another 19.6% after the company announced that its United States CEO, Matt McCrann, “has resigned from the business, effective immediately”.

The company did not explain why McCrann resigned.

Investors in the ASX 200 defence stock got a little reprieve later in the month, with shares closing up 1.8% on 24 November and up 14.6% on 25 November.

That came after the company released an update dismissing media speculations that the rise of fibre optic drones could threaten its growth plans. Management also used the opportunity to address the various issues plaguing the company in recent weeks.

Despite November’s steep fall, the DroneShield share price remains up a benchmark smashing 164.7% in 2025.

The post Why did the DroneShield share price crash 48% in November? appeared first on The Motley Fool Australia.

More reading

• Why these ASX 200 shares crashed 10%+ in November
• Forget Droneshield shares, I’d buy this ASX defence stock instead
• Why Amcor, DroneShield, Harvey Norman, and QBE shares are falling today
• Here are the top 10 ASX 200 shares today
• Why DroneShield, EOS, Gentrack, and Web Travel shares are surging today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.3% to 8,589.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

ASX Ltd (ASX: ASX)

The ASX share price is down over 2.5% to $56.65. Investors have been selling the stock exchange operator’s shares following another damaging event. A number of ASX shares have been suspended from trade today due to an announcement outage. It stated: “ASX has implemented an initial remediation and commenced processing company announcements received since 11:22 AEDT. Earlier announcements remain impacted. We apologise for the disruption from this event and we are seeking to resolve this as soon as possible.”

AUB Group Ltd (ASX: AUB)

The AUB Group share price is down almost 17% to $31.02. This follows news that the insurance broker’s takeover talks have ended without a deal being reached. EQT and CVC had tabled a non-binding offer of $45.00 per share but have now withdrawn the proposal. AUB’s CEO, Michael Emmett, said: “AUB Group continues to deliver robust performance, underpinned by a clear strategy and disciplined execution. The recent due diligence process, while demanding, has reaffirmed our confidence in our improvement initiatives and long-term growth prospects. Now that discussions with the Consortium have ended, our Board and management team are fully focused on advancing our portfolio of organic growth initiatives and acquisition opportunities. We remain confident in AUB Group’s forecast FY26 financial performance and see significant opportunities to grow profits in FY27 and beyond.”

Dyno Nobel Ltd (ASX: DNL)

The Dyno Nobel share price is down over 3% to $3.30. This has been driven by the commercial explosives company’s shares going ex-dividend this morning for its final dividend of FY 2025. Eligible shareholders can now look forward to receiving Dyno Nobel’s 9.5 cents per share payout later this month on 16 December.

HMC Capital Ltd (ASX: HMC)

The HMC Capital share price is down 7% to $3.60. This is despite there being no news out of the investment company on Monday. However, it is possible that this has been driven by profit taking from investors after some strong gains in recent weeks. For example, even after today’s sizeable decline, HMC Capital’s shares are up 24% since the middle of November.

The post Why ASX, AUB, Dyno Nobel, and HMC shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why HMC Capital, Select Harvests, Web Travel, and WiseTech shares are pushing higher today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• What is Bell Potter’s view on REITs?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended HMC Capital. The Motley Fool Australia has recommended Aub Group and HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Metcash Ltd (ASX: MTS) shares remain suspended in early afternoon trade after an ASX outage.

But when they do return to action, the wholesale distributor’s shares will be watched carefully.

That’s because the ASX 200 stock released its half year results this morning.

ASX 200 stock on watch on results day

For the six months ended 31 October, Metcash reported a 0.1% increase in group revenue to $8.5 billion and a 0.4% lift to $9.6 billion including charge-through. This reflects growth in the Food (excluding tobacco), Liquor, and Hardware pillars.

Thanks to margin improvements, the ASX 200 stock’s EBITDA lifted 2% to $367.2 million for the half. This was driven largely by strong growth in the Food pillar.

Management notes that Food EBITDA increased 9.8%, reflecting a strong trading performance in both Supermarkets and Foodservice & Convenience.

Liquor EBITDA was 4.8% lower due to the impact of one-off strategy costs, lower wholesale price inflation on strategic buying, and higher labour costs.

Hardware & Tools EBITDA was flat for the half, reflecting an improved sales performance, partly offset by one-off integration and strategy costs and retail margin pressure.

This ultimately led to the ASX 200 stock reporting a 0.3% increase in profit after tax to $142.2 million, which allowed it to declare a flat, fully franked interim dividend of 8.5 cents per share. Management notes that this is slightly above the company’s target payout ratio of ~70% of underlying profit after tax, reflecting its strong cash performance.

Management commentary

Metcash’s group CEO, Doug Jones, was pleased with the half. He said:

The business has delivered solid results in tough trading conditions, supported by disciplined operational performance and the successful execution of our strategy. Importantly, we’ve maintained good momentum in our core business, and our independent networks remain healthy and confident despite the challenging conditions.

On the back of decisive action taken over the last 5 years to both improve the core of our business and to position the Group for future growth, Metcash remains wellset for ongoing success with a stronger, more diversified and more resilient business, and with significant opportunities for accelerating growth.

Outlook

The company revealed that sales growth momentum has continued into the second half with the rate of growth lifting in Supermarkets and Total Tools, and “broadly sustained” in Foodservice & Convenience, Hardware, and Liquor.

It also advised that it is “planning for positive sales momentum over the remainder of the half.”

The post Metcash shares on watch amid $142m first half profit and flat dividend appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Up 21% this year! This fast-recovering ASX dividend share might not be a bargain forever
• Why did the ASX 200 dive to a near six-month low last week?

Motley Fool contributor James Mickleboro 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a poor start to the week. In afternoon trade, the benchmark index is down 0.3% to 8,586.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are climbing:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up over 2.5% to $21.93. This is despite there being no news out of the pizza chain operator on Monday. However, with its performance improving and speculation of a takeover by private equity, its shares have been pushing higher in recent weeks. The team at Morgans would be supportive of this buying. The broker recently put a buy rating and $25.00 price target on Domino’s shares.

Greatland Resources Ltd (ASX: GGP)

The Greatland Resources share price is up 11% to $8.41. This has been driven by the release of the gold miner’s feasibility study for its Havieron project. The release notes that its study confirms a pathway to a world-class, long-life, lowest quartile cost Australian gold-copper mine, leveraging existing infrastructure. Greatland’s managing director, Shaun Day, commented: “Today, we are delighted to deliver our Feasibility Study which confirms Havieron’s world-class quality and sets the pathway for its development into a long-life, low cost, leading Australian gold-copper mine that will integrate efficiently with the existing infrastructure at Telfer.”

Nextdc Ltd (ASX: NXT)

The Nextdc share price is up 1.5% to $13.80. Investors have been buying this data centre operator’s shares following the release of a trading update. Following recent customer contract wins, NextDC’s pro forma contracted utilisation has increased by 71MW or 29% since 30 June to 316MW. This means that NextDC’s pro-forma forward order book has increased by 53% to 205MW since 30 June. The company’s forward order book is expected to progressively convert to billings and revenue between now and FY 2029.

Unico Silver Ltd (ASX: USL)

The Unico Silver share price is up 17% to 69 cents. This appears to have been driven by news that the silver price has reached a record high. This bodes well for Unico Silver’s 100%-owned Joaquin Project in Santa Cruz, Argentina. The company recently released drilling results which revealed exceptional high-grade silver gold intercepts at three prospects. This latest gain by the devil’s metal means that it has now risen over 70% since the start of the year.

The post Why Domino’s, Greatland, NextDC, and Unico Silver shares are pushing higher today appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares rocketed 10%+ higher in November
• 2 ASX 200 tech stocks racing higher on big news
• These are the 10 most shorted ASX shares
• ASX 200 tech shares fight back after 10 weeks of decline
• 3 ASX growth shares that could be future giants

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Not all S&P/ASX 200 Index (ASX: XJO) stocks are created equal.

As the performance charts from November clearly demonstrate.

Below we look at the four ASX 200 stocks you would have done really well to buy at market close on 31 October and hold onto throughout the month just past.

As a baseline, the ASX 200 slipped 3% over the month.

Aussie lithium miners blast off in November

You’ll notice a certain similarity between three of the top-performing ASX 200 stocks in November.

Namely, they all earn their keep by hunting for and producing lithium.

The miners all enjoyed strong tailwinds as the lithium carbonate price rocketed more than 16% in November to reach its highest levels in 17 months. This came as markets eyed potentially stronger demand growth for grid storage and EV batteries than previously forecast, particularly in China.

This helped propel Liontown Resources Ltd (ASX: LTR) shares from $1.18 on 31 October to end November trading for $1.44, up 22%. There has been no fresh price-sensitive news out from the miner since the company’s quarterly update, released on 28 October.

Down 0.7% today, Liontown shares are up 150% in 2025.

Rival Aussie lithium producer Pilbara Minerals Ltd (ASX: PLS) also enjoyed a stellar November.

Pilbara Minerals shares closed out October trading for $3.30 and ended November trading for $4.05 each. This put the Pilbara Minerals share price up 22.7% over the month, also without any fresh price-sensitive announcements.

Down 1.9% today, Pilbara Minerals shares are up 79.9% in 2025.

Moving on to the third top-performing ASX 200 stock in November, we find lithium miner IGO Ltd (ASX: IGO).

IGO shares ended October trading for $5.27 each and closed out November trading for $6.77 apiece. This put the IGO share price up 26.1% in the month just past, again without any new price-sensitive news out from the company.

Up 0.9% today, IGO shares have gained 40.5% in 2025.

Which brings us to…

The best ASX 200 stock to have bought and held in November

The top performing ASX 200 stock on my list for November is gaming company Light & Wonder Inc (ASX: LNW).

Light & Wonder shares closed on 31 October trading for $109.47. When the closing bell sounded on 28 November, shares were changing hands for $153 each. This saw the Light & Wonder share price up an impressive 39.8% over the month.

Up 1.6% today, shares in the gaming company have gained 11.4% in 2025.

The ASX 200 stock got a boost following a strong third-quarter results announcement.

Shares closed up 8.2% on 6 November following the release of the company’s Q3 earnings results.

Highlights catching ASX investor interest included a 78% increase in net income to $114 million.

And on the bottom line, adjusted net profit after tax and amortisation (NPATA) increased by 25% to $153 million.

The post The 4 best ASX 200 stocks to buy and hold in November revealed appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares rocketed 10%+ higher in November
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Why Catapult, Kingsgate, Light & Wonder, and Reece shares are storming higher today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a difficult month for Aussie investors, with the S&P/ASX 200 Index (ASX: XJO) crashing 3% during the period.

Unfortunately, that decline wasn’t anywhere near as bad as what some ASX 200 shares recorded. Here’s why these shares fell 10% or more during November:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

The Bendigo and Adelaide Bank share price was down 19.1% in November. This reflects weakness in the banking sector after the release of the results of an investigation by Deloitte into suspicious activity. The investigation, which was initiated by the bank, concluded that deficiencies existed regarding the bank’s approach to the identification, mitigation and management of money laundering (ML) and terrorism financing (TF) risk. The bank stated: “The Board is very disappointed with the findings and is fully committed to ensuring that the Bank undertakes the necessary enhancements to its systems, processes and frameworks to ensure it is fully compliant with its obligations.” In addition, the release of a disappointing first quarter update weighed on investor sentiment.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price lost 11.2% of its value during the month. This was driven by the release of its first quarter result. CBA reported operating income growth of 3% and a 1% lift in cash net profit after tax to $2.6 billion. While not a bad result, it just wasn’t enough to justify its premium valuation. CBA’s CEO, Matt Comyn, also spoke cautiously about its outlook. He said: “We are closely watching the increased competitive intensity and implications across the financial system, and we will continue to adjust our settings as appropriate. The Australian economy remains resilient. Economic growth is recovering and disposable income is rising for many households. We remain focused on our strategy to build a brighter future for all.”

DroneShield Ltd (ASX: DRO)

The DroneShield share price had a month to forget in November and crashed 48.3% lower. The catalyst for this was news that insiders sold down their holdings. This includes its CEO, Oleg Vornik, who offloaded approximately 14.8 million shares through an on-market trade for a total consideration of $49.5 million. But it is worth remembering that he retains a significant amount of vested and unvested equity in the business. As a result, it is fair to say that his interests remain firmly aligned with shareholders.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price was a poor performer and sank 18.4% last month. This was despite the enterprise software company delivering another record full year result for FY 2025. In fact, TechnologyOne outperformed its guidance, announced a special dividend, and reiterated its 2030 $1 billion+ annualised recurring revenue (ARR) target. However, it seems that some investors were expecting even stronger ARR growth for the 12 months and were quick to hit the sell button.

The post Why these ASX 200 shares crashed 10%+ in November appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 tech shares to buy following sector sell-off
• These fantastic ASX 200 tech shares look far too cheap
• ASX 200 tech shares fight back after 10 weeks of decline
• 5 ASX 200 large-cap shares re-rated by Morgans
• What’s driving the dramatic drop in ASX 200 tech shares?

Motley Fool contributor James Mickleboro has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Technology One. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) was out of form in November and crashed 3% lower.

While this was disappointing, not all ASX 200 shares fell with the market.

For example, these popular shares managed to rise 10% or more during the month. Here’s why:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s Pizza share price had a strong month and raced 16.7% higher during the month. This strong gain is likely to have been driven by recent speculation that Bain Capital was planning to make a takeover offer that valued the pizza chain operator at $4 billion. And while Domino’s advised that it hadn’t received an approach, some investors appear to believe there’s no smoke without fire. In addition, a positive trading update during the month gave its shares an extra lift.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price rose 10% in November. This was driven by the release of a trading update from the travel agent giant ahead of its annual general meeting. Flight Centre’s founder and managing director, Graham Turner, revealed that the company has started the financial year positively. He commented: “FY26 is off to a positive start, with first-quarter results and preliminary October trading data confirming momentum across both corporate and leisure segments.” The company’s leader also provided the market with guidance for the full year. He advised that profit before tax is expected to be up by 5.5% to 17.6% year on year for FY 2026.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price was a standout performer on the ASX 200 index last month with a gain of 22.7%. This is likely to have been driven by a rise in lithium prices in China. In the middle of the month, the Spodumene Concentrate Index (CIF China) price was up to US$1,024 per tonne. This meant that it was up more than 20% over previous month. The battery making ingredient was boosted by news that China will be providing new support to its electric vehicle industry.

Web Travel Group Ltd (ASX: WEB)

The Web Travel share price was on form and rose 14.1% in November. This travel technology company’s shares raced higher last month following the release of its half year results. The WebBeds owners reported an 18% increase in bookings to 5.1 million, a 22% lift in total transaction value (TTV) to a record of $3.17 billion, and a 17% rise in underlying EBITDA to a record of $81.7 million. The company’s managing director, John Guscic, was rightfully pleased with the six months. In response, Guscic said: “WebBeds continues to deliver world class TTV growth. We reported $3.2 billion TTV for the first 6 months of the financial year, 22% more than the same period last year, driven by the significant above-market growth coming through in our top 3 regions, particularly the Americas.”

The post These ASX 200 shares rocketed 10%+ higher in November appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• ASX 200 tech shares fight back after 10 weeks of decline
• Here’s the average Australian superannuation balance at 50
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Web Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Treasury Wine Estates Ltd (ASX: TWE) shares are taking a tumble today.

Shares in the S&P/ASX 200 Index (ASX: XJO) global wine company closed on Friday trading for $5.82. In morning trade on Monday, shares are changing hands for $5.61, down 3.6%.

For some context, the ASX 200 is just about flat at this same time.

Here’s what’s got investors reaching for their sell buttons.

What’s happening with Treasury Wine shares today?

Treasury Wine shares are underperforming today after the company announced that it expects to recognise a non cash impairment of its United States-based assets.

When the company released its 2025 Annual Report, management said that an 11% decrease in future cash flows in the Americas business of 11% per year over the forecast period would “reduce impairment headroom to nil”.

Today, the global wine company reported that amid further moderation in US wine category trends, it has “applied more conservative long-term market growth assumptions”.

The new assumptions have reduced Treasury Wine’s long-term earnings growth rates, which management noted will impact carrying values within the Treasury Americas and Treasury Collective, which are the Americas cash generating units.

The final impairment amount and allocation to assets will be concluded as part of the 2026 interim results; however, it is expected that the impairment will result in at least all goodwill ($687.4m at 30 June 2025) currently carried in the Americas being written off, with potential to impact other assets.

The company noted that a number of its larger brands, including DAOU, Frank Family Vineyards, and Matua, continue to grow ahead of the market.

But Treasury Wine shares have come under renewed pressure with the company stating:

The final impairment amount and allocation to assets will be concluded as part of the 2026 interim results, however it is expected that the impairment will result in at least all goodwill ($687.4 million at 30 June 2025) currently carried in the Americas being written off, with potential to impact other assets.

What else has been pressuring the ASX 200 wine company?

On 13 October, management withdrew FY 2026 earnings guidance, citing continued uncertainty in its core markets of the US and China.

“Given the uncertainty that remains as to the outlook, TWE is not in a position to provide revised guidance at this point in time,” management noted. Shares closed down 15% on the day.

Today, Treasury Wine said that following Sam Fischer’s commencement as CEO, the company will host an investor conference call in mid-December, which will include a progress update on performance in key markets, including China and the US.

With today’s intraday losses factored in, Treasury Wine shares are down 50.5% in a year. Losses which will have only been modestly eased by the two partly franked dividends the company paid eligible stockholders over the 12 months.

At the current share price, Treasury Wine trades on a 7.1% partly franked trailing dividend yield.

The post Down 50% in a year, why are Treasury Wine shares sinking on Monday? appeared first on The Motley Fool Australia.

More reading

• Why today’s cheap ASX shares could double my money during the next bull market
• Are Treasury Wine shares a buy, now they are at 10-year lows?
• Why did the ASX 200 dive to a near six-month low last week?
• Leading broker names 1 ASX 200 share to buy and 1 to hold

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.