Why Afterpay, Kogan, Orica, & Service Stream shares are crashing lower

Afterpay Ltd (ASX:APT) and Ltd (ASX:KGN) are two of four ASX shares crashing lower on Friday. Here’s why they are under pressure…
The post Why Afterpay, Kogan, Orica, & Service Stream shares are crashing lower appeared first on The Motley Fool Australia. –

a trader on the stock exchange holds his head in his hands, indicating a share price drop

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a big decline. The benchmark index is currently down 2% to 6,699.4 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 9% to $122.49. This follows the completion of the payments company’s upsized convertible notes offering this morning. Afterpay raised a total of $1.5 billion from investors via the issue of convertible notes with a due date of 2026 and an initial conversion price of $194.82. In addition to this, the company revealed that its Co-CEOs have each sold ~$60 million worth of shares. The funds from its offering will be used to increase its interest in its US business and support its growth. Ltd (ASX: KGN)

The Kogan share price has fallen 9% to $14.18. This follows significant weakness in the tech sector today and the release of its half year results. In respect to the latter, the ecommerce company reported a 97.4% increase in gross sales to $638.2 million and a 250.2% lift in adjusted net profit after tax to $36.5 million. This was driven by strong growth across its Exclusive Brands and Kogan Marketplace segments. This was underpinned by a 76.8% increase in Kogan active customers to 3 million.

Orica Ltd (ASX: ORI)

The Orica share price is down a massive 19% to $12.40. This morning the commercial explosives company warned that a number of factors were weighing on its performance and would hit its profits. One of those is trade tensions between Australia and China, which is impacting demand for its services in the higher margin thermal coal market. Management advised that these factors could impact its earnings by as much as $125 million.

Service Stream Limited (ASX: SSM)

The Service Stream share price has continued its decline and is down a further 11% to $1.19. Investors have been selling the essential network services company’s shares since the release of a disappointing half year result on Wednesday. After a difficult first half, management warned that its second half may not be any better. In light of this, it advised that the higher contribution that it expected in the second half is unlikely to materialise.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended ltd and Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Afterpay, Kogan, Orica, & Service Stream shares are crashing lower appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!