Why BrainChip, GrainCorp, Redbubble, and Zip shares are dropping today

These ASX shares are in the red on Thursday…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has fought back from earlier declines and is on course to record a small gain. At the time of writing, the benchmark index is up 0.1% to 7,340.3 points.

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

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is down 6.5% to $1.99. This appears to have been driven by profit taking after some very strong gains in recent weeks. For example, even after this decline, the BrainChip share price is up 150% in 2022. Investors may also be questioning whether a company with such little revenue warrants a valuation of over $3.5 billion.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is down 2% to $7.67. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has downgraded the grain exporter's shares to a neutral rating with an $8.00 price target. UBS made the move on valuation grounds following a strong gain in recent months.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has continued its slide and is down a further 4.5% to a 52-week low of $2.10. Investors have been selling the ecommerce company's shares this week following the release of a disappointing half year trading update. That update revealed weaker sales and a collapse in its profitability due to increased competition.

Zip Co Limited (ASX: Z1P)

The Zip share price is down 1% to $3.62. This is despite the buy now pay later provider reporting strong growth during the second quarter. Zip posted a 53% increase in transaction volume to a record of $2.6 billion and a 58% lift in quarterly revenue to a record of $167.4 million. A key driver of this growth was a 57% increase in customer numbers to 9.9 million. It appears as though some investors were expecting even stronger growth.

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 and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why EOS, Latitude, Northern Star, and Rio Tinto shares are falling today

These shares are ending the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why A2 Milk, BWP, Core Lithium, and Newmont shares are sinking today

These shares are falling heavily on Thursday. But why?

Read more »

a person holds their head in their hands as they slump forward over a laptop computer which features a thick red downward arrow zigzagging downwards across the screen.
Gold

Why are ASX 200 gold stocks like Northern Star and Newmont down so much today?

ASX 200 gold stocks like Northern Star and Newmont are getting hammered on Thursday. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why Brightstar, EQ Resources, Novonix, and Pro Medicus shares are falling today

These shares are under pressure on hump day. But why?

Read more »

Frustrated and shocked business woman reading bad news online from phone.
Share Fallers

Why New Hope, Pepper Money, Pro Medicus, and Reece shares are falling today

These shares are having a tough time on Tuesday. But why?

Read more »

A man in a business suit looks at a gold phone with his head in an exploding cloud of gold dust.
Gold

Newmont stock has plunged 17% in March. Here's why

This war has had an unusual effect on the price of gold.

Read more »

a woman looks exhausted and overwhelmed as she slumps forward into her hand while looking at her laptop screen.
Share Fallers

Why Regis Resources, Strike Energy, Telix, and Virgin Australia shares are falling today

These shares are starting the week in the red. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why CAR Group, Immutep, Northern Star, and Syrah Resources shares are sinking today

These shares are ending the week in the red? Here's why.

Read more »