The S&P/ASX 200 index has returned to form and is on course to finish the week on a high. In afternoon trade the benchmark index is up 0.25% to 7,026.4 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are ending the week in the red:
The Bubs Australia Ltd (ASX: BUB) share price has crashed almost 11% lower to 83 cents. Investors have been selling the infant formula and baby food company’s shares following the release of its second quarter update. Although its sales grew by 21% on the prior corresponding period to a record $14.54 million, a sudden decline in its China sales appears to have spooked investors. Sales in China sell 32% during the second quarter.
The Gold Road Resources Ltd (ASX: GOR) share price is down over 4% to $1.43. This appears to be down to profit taking after a strong gain on Thursday. The gold miner’s shares raced higher yesterday after the release of its quarterly update. That update revealed that production at its Gruyere operation came in at the top of its guidance range.
The PointsBet Holdings Ltd (ASX: PBH) share price has tumbled 10% lower to $5.25 following the release of its second quarter update. Investors have been selling the sports betting company’s shares despite it reporting quarterly turnover of $297.3 million. This was a 169% increase on the prior corresponding period. Also growing strongly were its Gross Win and Net Win. PointsBet’s Gross Win climbed 134% to $28.9 million and its Net Win rose 117% to $18 million.
The Splitit Ltd (ASX: SPT) share price has crashed 10% lower to 61.5 cents. Investors have been selling the buy now pay later company’s shares after the release of its fourth quarter update. Investors appear concerned by a decline in Active Shoppers during the quarter. Today’s update revealed that Splitit’s 12 Month Active Shoppers fell 6% quarter on quarter to 118,000. It also posted a 7% decline in quarterly revenue to US$433,000.
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Returns as of 6th October 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO and Pointsbet Holdings Ltd. 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.
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