These ASX shares are having bad days…
The post Why ARB, AVZ, Temple & Webster, and Zip shares are sinking appeared first on The Motley Fool Australia. –
In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.1% to 7,306.7 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:
ARB Corporation Limited (ASX: ARB)
The ARB share price has crashed 13% to $33.03 following the release of a market update. That update revealed that the 4×4 parts manufacturer expects to report a 12% increase in revenue to $700 million in FY 2022. However, due to a large increase in expenditure, its margins and earnings are under significant pressure.
AVZ Minerals Ltd (ASX: AVZ)
The AVZ share price has sunk 20% to 78.7 cents. Incredibly, the AVZ share price was up as much as 19% at one stage today before capitulating. Although the lithium developer has been granted a mining licence, there are concerns over just how much of the Manono Lithium Project it will end up owning.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price is down 7% to $5.01. This morning the online furniture and homewares retailer announced its expansion into the home improvement market with its The Build business. While the home improvement market is clearly a big opportunity, launching a business that is expected to be loss-making for several years in the current environment doesn’t appear to have gone down well with the market.
Zip Co Ltd (ASX: ZIP)
The Zip share price is down 11% to $1.03. The weakness in this buy now pay later provider’s shares appears to have been driven by a couple of factors. One is the impending release of a sizeable number of shares from escrow. The other is a bearish broker note out of UBS from yesterday. The latter saw the broker reiterate its sell rating and cut its price target on Zip’s shares down to a lowly 90 cents.
The post Why ARB, AVZ, Temple & Webster, and Zip shares are sinking appeared first on The Motley Fool Australia.
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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 Temple & Webster Group Ltd and ZIPCOLTD FPO. The Motley Fool Australia has recommended ARB Corporation Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.