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Why Afterpay, Northern Star, WiseTech Global, & Zip Co sank lower

In afternoon trade the S&P/ASX 200 index is on course to end its positive run. At the time of writing the benchmark index is down 0.5% to 6,704.2 points.

Four shares that are falling more than most today are listed below. Here’s why they have sunk lower:

The Afterpay Touch Group Ltd (ASX: APT) share price has fallen heavily for a second day in a row and is down 6% to $31.98.  Investors have been selling the payments company’s shares after it was the subject of a bearish broker note. On Wednesday analysts at UBS initiated coverage on the company with a sell rating and $17.25 price target. It believes excessive growth is already priced in and has concerns over regulatory risks.

The Northern Star Resources Ltd (ASX: NST) share price has fallen 8% to $10.27 following the release of a quarterly update that fell short of expectations. During the quarter, Northern Star’s group gold sold came to 184,005 ounces at an all-in sustaining cost (AISC) of US$1,024 an ounce. Sales from the Pogo operation weighed heavily on its overall result, coming in at 28,962 ounces at an AISC of US$1,919 an ounce

The WiseTech Global Ltd (ASX: WTC) share price has crashed 10% lower to $30.00 after being attacked by a short seller. Late this morning J Capital released a report claiming that the logistics solutions company is overstating its profits. The short seller alleges that “overstated profit in the three years since WiseTech listed may be as high as $116 mln. That would be an overstatement of 178%.”

The Zip Co Ltd (ASX: Z1P) share price has fallen a further 11% to $4.65. The buy now pay later platform provider was also hit with a bearish broker note by UBS this week. According to the note, UBS has initiated coverage on Zip Co with a sell rating and $4.80 price target. The broker has concerns over how credit-worthy the users of buy now pay later services are. As a result, it suspects that regulators may soon target the industry. It is worth noting that its share price has now dropped below this price target.

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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 AFTERPAY T FPO, WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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.