The JB Hi-Fi Limited (ASX: JBH) share price is down 7.53% to $46.40 in late afternoon trading.
That's heading in the opposite direction of the broader S&P/ASX 200 Index (ASX: XJO), which is up 0.5% at this same time.
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What does JB Hi-Fi do?
JB Hi-Fi is a consumer goods retailer. The company's products include a range of home entertainment, gaming, music and IT products as well as white goods and home appliances. The company has made several acquisitions over the years, including acquiring The Good Guys in 2016. It has also been actively expanding its online presence.
JB Hi-Fi has more than 300 stores across Australia and New Zealand. The company also operates online stores in both markets. JB Hi-Fi first began trading on the ASX in 2003.
Why is the JB Hi-Fi share price down today?
Shareholders in JB Hi-Fi have enjoyed a banner year, especially relative to the wider market.
While the ASX 200 is still down 5% since 2 January, the JB Hi-Fi share price is up 23%, even after today's losses. And that gain comes despite shares getting ravaged by COVID-19 alongside most of the rest of the market, falling 47% from 10 February through to 25 March.
But in late March, JB Hi-Fi began to benefit from some wider trends impacting share markets.
With Aussies suddenly finding themselves working, shopping and socialising from home, demand grew for JB Hi-Fi's large selection of consumer electronic goods and white goods, among others items.
The company also benefited from its large online footprint (it could make sales without people coming in-store), as well as government income support measures that put more money into consumers' pockets.
And the JB Hi-Fi share price reflected this, rocketing 123% higher from the 25 March low to the all-time high of $52.40 per share on 25 August.
But last night's coronavirus vaccine announcement from Pfizer Inc (NYSE: PFE) and BioNTech SE (NASDAQ: BNTX) looks to have stolen some of the tailwinds helping drive JB Hi-Fi, and indeed many ASX 200 tech shares, to new highs.
If the vaccine proves to effectively prevent more than 90% of symptomatic infections, as is hoped, it could see the end of expanded government income support measures. Even as people return to working from the office, shopping in brick and mortar locations, and socialising face to face.
That potential reality is still some ways off.
But judging by the falling JB Hi-Fi share price – and indeed the wider tech share selloff that's sent the S&P/ASX All Technology Index (ASX: XTX) down 5% today – the market is optimistic that the year of the pandemic may soon be relegated to history.
