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

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today

These shares are having a poor session on Thursday. What's going on?

Read more »

A woman looks shocked as she drinks a coffee while reading the paper.
Share Fallers

Why on earth is the Bapcor share price crashing 21% on Thursday?

Investors are pummelling Bapcor shares today. But why?

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Healthcare Shares

Down 59%: Will CSL shares ever regain momentum?

Here's what to expect over the next 12 months.

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today

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

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Share Fallers

Why Amotiv, DroneShield, Life360, and WiseTech shares are tumbling today

These shares are under pressure on Tuesday. What's going on?

Read more »

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

How low can CSL shares go?

CSL shares have fallen 44% this year. Can they fall further?

Read more »

Woman with a concerned look on her face holding a credit card and smartphone.
Share Fallers

Why ANZ, CSL, Dateline, and DroneShield shares are sinking today

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

Read more »

An arrow crashes through the ground as a businessman watches on.
Healthcare Shares

CSL shares suffer their biggest one-day crash ever! What just went wrong?

CSL shares crash after another profit warning rocks investor confidence.

Read more »