Why Afterpay, Flight Centre, Helloworld, & QBE shares are tumbling lower

Afterpay Ltd (ASX:APT) and QBE Insurance Group Ltd (ASX:QBE) shares are two of four dropping notably lower on Tuesday. Here's why…

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to start the month in a very disappointing fashion. At the time of writing the benchmark index is down a sizeable 2.3% to 5,920.4 points.

Four shares that have fallen more than most today are listed below. Here's why they are tumbling lower:

The Afterpay Ltd (ASX: APT) share price is down 6% to $86.02. Investors have been selling the payments company's shares (and those of its rivals) after PayPal announced a buy now pay later offering. The US payments giant will launch Pay in 4 in the United States in the fourth quarter of 2020. It will allow consumers to buy things and spread the payment out over four interest-free instalments.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is down over 4% to $12.68. Investors appear to be taking profit after some strong gains over the last few weeks. Prior to today, the Flight Centre share price was up 34% in the space of a month.

The Helloworld Travel Ltd (ASX: HLO) share price is down 4.5% to $1.86 following the release of its full year results. The travel company posted a statutory loss after one-off costs and non-cash impairments of $70 million. Positively, the company has a strong balance sheet and appears well-placed to ride out the storm. Helloworld finished the period with a cash balance of $131.9 million. Though, this has increased to $174.8 million since then following a recent capital raising. 

The QBE Insurance Group Ltd (ASX: QBE) share price has dropped 5% to $10.06 after announcing the shock departure of its chief executive officer. This morning the insurance giant revealed that Pat Regan was given the boot following an external investigation concerning workplace communications. The outcome of this investigation found these communications did not meet the standards set out in the company's code of ethics and conduct, leading to the board taking decisive action.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Helloworld Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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