Why Afterpay, PointsBet, Webjet, & Zip shares are sinking

It hasn’t been a good day for these ASX shares…

| More on:
share price plummeting down

Image source: Getty Images

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is defying overnight weakness on Wall Street and pushing higher. At the time of writing, the benchmark index is up 0.2% to 7,348.5 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is tumbling 8% lower to $108.69. This follows speculation that tech behemoth Apple is planning to enter the buy now pay later (BNPL) market. Bloomberg understands Apple will soon launch Apple Pay Later, allowing consumers to pay for any Apple Pay purchase in instalments. The tech giant will use Goldman Sachs as the lender for the instalment loans.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is down almost 3% to $12.36. Today’s decline appears to have been driven by news that rival Bluebet Holdings Ltd (ASX: BBT) is joining PointsBet in the state of Iowa. This follows BlueBet’s deal with Dubuque Racing Association that will soon allow it to compete head on with PointsBet in the key market.

Webjet Limited (ASX: WEB)

The Webjet share price has fallen 2% to $5.00. Webjet and a number of travel shares are trading notably lower today. These declines appear to have been driven by concerns that the Sydney lockdown could continue for several more weeks. This has the potential to derail the domestic travel market’s recovery, especially if cases leak into other states.

Zip Co Ltd (ASX: Z1P)

The Zip share price has crashed 10% lower to $7.44. Once again, this is due to reports that Apple is about to disrupt the BNPL market with the launch of Apple Pay Later. Investors appear concerned that Apple could steal a significant number of customers away from the likes of Afterpay and Zip. This could put significant pressure on growth rates in the coming years if the reports turn out to be true.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor 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 and has recommended AFTERPAY T FPO, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Webjet Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers