Why Afterpay, Kogan, Orica, & Service Stream shares are crashing lower

Afterpay Ltd (ASX:APT) and Kogan.com Ltd (ASX:KGN) are two of four ASX shares crashing lower on Friday. Here's why they are under pressure…

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a big decline. The benchmark index is currently down 2% to 6,699.4 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:

a trader on the stock exchange holds his head in his hands, indicating a share price drop

Image source: Getty Images

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 9% to $122.49. This follows the completion of the payments company's upsized convertible notes offering this morning. Afterpay raised a total of $1.5 billion from investors via the issue of convertible notes with a due date of 2026 and an initial conversion price of $194.82. In addition to this, the company revealed that its Co-CEOs have each sold ~$60 million worth of shares. The funds from its offering will be used to increase its interest in its US business and support its growth.

Kogan.com Ltd (ASX: KGN)

The Kogan share price has fallen 9% to $14.18. This follows significant weakness in the tech sector today and the release of its half year results. In respect to the latter, the ecommerce company reported a 97.4% increase in gross sales to $638.2 million and a 250.2% lift in adjusted net profit after tax to $36.5 million. This was driven by strong growth across its Exclusive Brands and Kogan Marketplace segments. This was underpinned by a 76.8% increase in Kogan active customers to 3 million.

Orica Ltd (ASX: ORI)

The Orica share price is down a massive 19% to $12.40. This morning the commercial explosives company warned that a number of factors were weighing on its performance and would hit its profits. One of those is trade tensions between Australia and China, which is impacting demand for its services in the higher margin thermal coal market. Management advised that these factors could impact its earnings by as much as $125 million.

Service Stream Limited (ASX: SSM)

The Service Stream share price has continued its decline and is down a further 11% to $1.19. Investors have been selling the essential network services company's shares since the release of a disappointing half year result on Wednesday. After a difficult first half, management warned that its second half may not be any better. In light of this, it advised that the higher contribution that it expected in the second half is unlikely to materialise.

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 Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Kogan.com ltd and Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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