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Why Helloworld, IDP Education, NEXTDC, & Redbubble are tumbling lower

In afternoon trade on Monday the S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a high. At the time of writing the benchmark index is up almost 3% to 5,216.9 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

The Helloworld Travel Ltd (ASX: HLO) share price has crashed 10% lower to $1.24. This decline may be in response to an update by rival Flight Centre Travel Group Ltd (ASX: FLT) this morning. The travel agent giant revealed that its total global transaction value (TTV) fell in March to 20% to 30% of normal levels. This is expected to decline further in the coming weeks as travel restrictions continue.

The IDP Education Ltd (ASX: IEL) share price has dropped almost 6% to $13.02. This appears to have been driven by profit taking after a very strong gain last week. The student placement and language testing company’s shares rocketed higher after it successfully completed a $225 million placement to institutional investors. These funds will be used to ensure the company is well-positioned to ride out the coronavirus storm.

The NEXTDC Ltd (ASX: NXT) share price is down almost 4% to $8.86. This decline appears to be in relation to a broker note out of Morgans this morning. According to the note, the broker has downgraded the data centre operator’s shares to a hold rating with an $8.56 price target. This was made largely on valuation grounds after a strong share price run.

The Redbubble Ltd (ASX: RBL) share price has fallen 6.5% to 51.5 cents. This morning analysts at Goldman Sachs responded to its trading update by retaining its neutral rating and slashing its price target on the ecommerce company’s shares by 44% to 60 cents. It notes that the Redbubble marketplace had demonstrated a significantly lower revenue growth profile over the past 12 months ahead of this weaker demand environment.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited and Helloworld Limited. The Motley Fool Australia has recommended REDBUBBLE 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.