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.