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

These ASX shares are in the red on Thursday…

| More on:

Image source: Getty Images

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.

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 over ten 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 January 12th 2022

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

Rede arrow on a stock market chart going down.
Share Fallers

Why the Integrated Research share price is cascading 15% today

Clouds gather around Integrated Research amid latest trading update.

Read more »

Red arrow going down, symbolising a falling share price.
Share Fallers

Why Imugene, Integrated Research, Monash IVF, and Step One shares are sinking

These ASX shares are falling on Monday...

Read more »

Share Fallers

These were the worst performers on the ASX 200 last week

These ASX 200 shares were sold off last week...

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

Why A2 Milk, Gold Road, GrainCorp, and Monash IVF shares are dropping

These ASX shares are falling on Friday...

Read more »

a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.
Share Fallers

Why is the CSR share price lagging the ASX 200 on Friday?

The building products manufacturer has had a difficult year so far in 2022.

Read more »

A group of disappointed board members.
Technology Shares

Why is the Novonix share price down 9% today?

Novonix extends its time in the red today, adding to already heavy losses in 2022.

Read more »

Red arrow going down on a stock market table which symbolises a falling share price.
Share Fallers

Why Block, IDP Education, Monash IVF, and Xero shares are dropping

These ASX shares are falling hard on Thursday...

Read more »

Red arrow going down symbolising a falling share price.
Broker Notes

Why is the CSR share price plunging 9% today?

The broker's have weighed in with their opinions after CSR's earnings yesterday.

Read more »