In late morning trade the S&P/ASX 200 Index (ASX: XJO) is back on form and is charging notably higher. At the time of writing the benchmark index is up 1.45% to 6,040.1 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
The Afterpay Ltd (ASX: APT) share price is down 4% to $80.84. Investors have been selling the payments company's shares again on Wednesday following an announcement by PayPal yesterday. That announcement revealed the upcoming launch of Pay in 4 in the United States. As its names indicates, Pay in 4 is a buy now pay later offering which allows consumers to pay for items in four interest-free instalments.
The IOOF Holdings Limited (ASX: IFL) share price has crashed 21% lower to $3.66. This follows the completion of the institutional component of its $1,040 million capital raising. IOOF raised a total of $734 million from institutional investors at a 24.4% discount of $3.50. It launched the capital raising to partly fund the acquisition of the National Australia Bank Ltd (ASX: NAB) wealth business, MLC Wealth for $1,440 million.
The Redbubble Ltd (ASX: RBL) share price is down 3.5% to $4.04. This appears to be down to profit taking from investors after some stellar gains in recent weeks. In fact, on Tuesday the Redbubble share price jumped to a record high despite the market selloff. One broker that believes its shares can still go higher is Morgans. It recently put a $4.33 price target on the company's shares.
The Zip Co Ltd (ASX: Z1P) share price has crashed 14% lower to $6.89. Investors have been selling the buy now pay later provider's shares amid concerns that the PayPal launch could undermine its US ambitions. Zip isn't in as strong a position as Afterpay to fend off PayPal in the lucrative market. In addition to this, this morning Citi downgraded its shares to a sell rating with a $6.70 price target.
