Thanks to solid gains by the banks and miners, the S&P/ASX 200 Index (ASX: XJO) recorded a solid gain last week. The benchmark index rose 55 points or 0.8% to end the period at 7,080.8 points.
Unfortunately, not all shares were able to climb higher with the market. Here’s why these were the worst performers on the ASX 200 last week:
Appen Ltd (ASX: APX)
The Appen share price was the worst performer on the ASX 200 last week with a 21.5% decline. Investors were selling off the artificial intelligence (AI) data services company’s shares following the release of a presentation which provided colour on industry conditions. While management spoke positively about its position in the industry, it also revealed that its customers are changing the ways in which they develop projects. This has resulted in changing data volumes on a handful of large projects, impacting Appen’s revenue. The failure of management to comment on its guidance for FY 2021 also hit investor sentiment.
Nearmap Ltd (ASX: NEA)
The Nearmap share price wasn’t far behind with a disappointing 19.3% decline last week. This decline is all the more worse when you consider that the aerial imagery technology and location data company’s shares were up 14% on Wednesday following a strong trading update. The reason Nearmap’s shares gave back those gains and then fell further was news that it has been hit with legal proceedings. Rival Eagle View alleges patent infringement in relation to its roof estimation technology. While Nearmap has denied any infringement and will defend the complaint, it hasn’t stopped some shareholders from exiting.
Afterpay Ltd (ASX: APT)
The Afterpay share price was a very poor performer last week and dropped 18.9% over the five days. Weakness on Wall Street’s tech-focused Nasdaq index appears to have spooked investors. Particularly in the buy now pay later sector. The shares of rival US-based Affirm lost a quarter of their value between Friday 30 April and Thursday 7 May, dropping to a record low in the process.
Altium Limited (ASX: ALU)
The Altium share price was out of form and dropped 15% last week. This decline appears to have been driven by the aforementioned weakness in the tech sector. In addition to this, a number of shares that trade on high PE ratios came under pressure last week. Altium’s shares were trading at 60x estimated FY 2021 earnings at the end of the week.