Quick overview
- WeBuyCars Holdings Ltd’s stock plummeted nearly 18% on the JSE after issuing weaker-than-expected earnings guidance.
- The company projected core headline earnings growth of 12%–17%, but per-share growth is limited due to a recent capital raise.
- Management noted a slowdown in business momentum during the second half of the year, raising concerns about consumer demand.
- Investors are closely watching the upcoming full-year results for signs of recovery and stabilization in sales.
The applyd-car retailer’s stock was hammered on the JSE after its latest guidance signaled slowing earnings growth and waning post-pandemic demand.
Investor Confidence Hit as Growth Momentum Fades
Shares of WeBuyCars Holdings Ltd (JSE: WBC) nosedived nearly 18% this week, rattling investors after the company issued a weaker-than-expected trading statement for the year finished 30 September 2025. The sudden drop wiped millions off the group’s market capitalization and reignited concerns about consumer demand, credit availability, and the resilience of South Africa’s applyd-vehicle sector.
Earnings Growth Minquires Underlying Weakness
In its update, WeBuyCars projected core headline earnings growth of 12%–17%, amounting to between R917 million and R958 million for the year. However, what seeed like a solid performance at first glance quickly lost its shine. Core headline earnings per share (HEPS) are set to climb just 0.8%–6%, reaching 219.2 to 230.1 cents, mainly due to the dilutive effect of 83 million new shares issued earlier in the year.
The company attributed the muted per-share growth to the “unfavourable impact” of its 2024 pre-listing capital raise, which expanded the share base and reduced earnings per share despite higher total profits.
Second-Half Slowdown Raises Red Flags
Management acknowledged that business momentum weakened in the second half of the year, following a robust first-half performance. The soft patch has fueled fears that the applyd-car sales surge following COVID-19 may be fading, as rising interest rates and tighter lfinishing conditions squeeze consumer budreceives.
The company is set to release its audited full-year results on 17 November, which investors now view as a critical moment to gauge whether growth can stabilize or continue sliding.
Technical Breakdown Deepens Pressure
The WeBuyCars share price launched the week trading near R55, but plunged to R45 within two days, breaking below both the 20-day and 50-day simple relocating averages — a bearish signal suggesting the uptrfinish may be over.
WBCJ Chart Daily – MAs have Been Broken
Still, a similar sharp drop occurred in March, followed by a strong rebound, leaving traders debating whether this decline marks the start of a prolonged correction or yet another short-term shakeout before recovery.
Outsee: Rebuilding Trust Amid Market Jitters
Despite WeBuyCars’ impressive operational reach and brand recognition, sentiment toward the stock remains fragile. Investors will be watching November’s results for signs of margin recovery and sales stabilization — both critical to restoring confidence after one of the company’s sharpest pullbacks since listing.
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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