It hasn’t been a good day for these ASX shares…
The post Why Kogan, Service Stream, Whispir, & Zip shares are sinking appeared first on The Motley Fool Australia. –
In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is charging higher again. At the time of writing, the benchmark index is up a sizeable 1% to 7,380.1 points.
Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:
Kogan.com Ltd (ASX: KGN)
The Kogan share price is down 3% to $11.22. There may be a couple of catalysts for the weakness in this ecommerce company’s shares today. One is the ACCC revealing that it plans to look into online marketplace practices. The other is a broker note out of Credit Suisse. Although the broker has retained its outperform rating, it has slashed its price target by 15% to $15.21. This was in response to Kogan’s business update yesterday.
Service Stream Limited (ASX: SSM)
The Service Stream share price has fallen 1.5% to 94.5 cents. This morning the essential network services company revealed that it successfully completed its placement and institutional entitlement offer to raise $130 million at 90 cents per new share. It will now seek to raise a further $55 million from retail shareholders. These funds will be used to acquire the Lendlease Group (ASX: LLC) Services business.
Whispir Ltd (ASX: WSP)
The Whispir share price is down 1.5% to $2.78. This is despite the company being the subject of a positive broker note this morning. According to a note out of Ord Minnett, its analysts have responded to Whispir’s quarterly update by retaining their buy rating and lifting their price target to $4.30. Though, with its shares rising strongly yesterday, some investors may be taking profit today.
Zip Co Ltd (ASX: Z1P)
The Zip share price is down 7.5% to $7.00. Investors have been selling the buy now pay later provider’s shares following the release of its fourth quarter update. Although Zip reported a 116% year on year increase in quarterly total transaction volume (TTV) to $1.8 billion and a 104% increase in quarterly revenue to $129.9 million, this was still short of the market’s lofty expectations.
The post Why Kogan, Service Stream, Whispir, & 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. owns shares of and has recommended Kogan.com ltd, Whispir Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.