The S&P/ASX 200 Index (ASX: XJO) had one of its worst months in recent memory in January after investors panicked over potential rate increases in the United States. The benchmark index lost 6.4% of its value during the period and closed at 6,971.6 points.
While a good number of shares dropped lower with the market, some fell more than most. Here's why these were the worst performers on the ASX 200 last month:
Image source: Getty Images
PointsBet Holdings Ltd (ASX: PBH)
The PointsBet share price was the worst performer on the ASX 200 last month with a 31.1% decline. This was driven by significant weakness in the tech sector and a subdued response to the sports betting company's second quarter update. In respect to its update, PointsBet reported an 11% increase in group turnover to $1,326 million and net win growth of 61% to $71.9 million. However, its operating loss widened to $51.8 million.
Kogan.com Ltd (ASX: KGN)
The Kogan share price wasn't far behind with a 29.8% decline during the period. Investors sold off the ecommerce company's shares in response to another disappointing trading update. That update revealed that Kogan delivered a 9% lift in first half gross sales (thanks to the inclusion of the acquired Mighty Ape business) and a 58% decline in EBITDA to $21.7 million. Management blamed the weak result on supply chain challenges, higher logistic costs, and its investment in marketing.
Megaport Ltd (ASX: MP1)
The Megaport share price was out of form and sank 27.8% last month. Investors were selling the elastic interconnection services provider's shares amid weakness in the tech sector and the release of its second quarter update. According to the release, Megaport posted a quarter on quarter monthly recurring revenue (MRR) increase of $0.6 million to $9.2 million. This led to an 8% increase in second quarter revenue to $26.6 million. While its revenue was in line expectations, a number of brokers cut their valuations in response to expectations of a higher investment spend.
Pro Medicus Limited (ASX: PME)
The Pro Medicus share price was sold off and sank 27.8% during the period. Once again, weakness in the tech sector played a role in this decline. As did a broker note out of Morgans. Early in the month, its analysts downgraded the health imaging company's shares to a reduce rating on valuation grounds. However, due to its share price weakness, the broker has since upgraded its shares twice. Firstly to a hold rating and then up to an add rating.
