In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course to defy U.S. markets and push higher. At the time of writing the benchmark index is up a solid 0.4% to 6,124 points.
Four shares that failed to follow the market higher today are listed below. Here’s why they are tumbling lower:
The A2 Milk Company Ltd (ASX: A2M) share price has slumped 13% to $10.56 after the infant formula and dairy company released its full year sales guidance. According to the update, management expects the company to deliver sales between NZ$900 million and NZ$920 million in FY 2018, up 64% to 67% on FY 2017’s result. While this is exceptionally strong growth, it fell short of the market’s full year sales expectations of approximately NZ$950 million.
The Afterpay Touch Group Ltd (ASX: APT) share price has given back most of yesterday’s strong gains and is down over 5% to $7.05. On Tuesday the payment solutions company’s shares rocketed higher after it announced the launch of its U.S. expansion. The Afterpay service has launched online in the U.S. with Urban Outfitters amongst others.
The Bellamy’s Australia Ltd (ASX: BAL) share price has fallen in sympathy with a2 Milk Company today. Its shares are down 10% to $17.27 on the back of concerns that it may not live up to the market’s lofty expectations as well. I think that investors ought to consider seizing on this share price weakness to pick up shares in Bellamy’s with a long-term view.
The CYBG PLC/IDR UNRESTR (ASX: CYB) share price has tumbled 6% lower to $5.49. This follows a 5% decline in its UK-listed shares overnight after the British bank reported its half-year results. Although CYBG delivered a 28% increase in underlying pre-tax profit, investors appear to have focused more on its statutory result which was a loss of £76 million.
This Tiny ASX Stock Could Be the Next Afterpay
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting...
Because 'Doc' Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget 'buy now pay later', this stock could be the next hot stock on the ASX.
Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!
Returns as of 6th October 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk and AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- Link (ASX:LNK) share price on watch on Thursday following takeover update – October 28, 2020 6:07pm
- 3 of the best mid cap ASX shares to buy right now – October 28, 2020 5:38pm
- These ASX growth shares could be long-term market beaters – October 28, 2020 4:25pm