A strong rebound during the month of March helped the S&P/ASX 200 Index (ASX: XJO) recover and record a 0.7% gain to 7,499.6 points during the first quarter.
Unfortunately, not all shares were able to climb with the market. Here's why these were the worst performing ASX 200 shares during the quarter:
Zip Co Ltd (ASX: Z1P)
The Zip share price was the worst performer on the ASX 200 during the quarter by some distance with a 65.6% decline. Investors were selling the buy now pay later (BNPL) provider's shares amid weakness in the tech sector and particularly the BNPL industry. In addition, a greater than expected loss for the first half of FY 2022 and a capital raising announcement weighed heavily on investor sentiment. This offset any positives from news that it is acquiring Sezzle Inc (ASX: SZL).
PointsBet Holdings Ltd (ASX: PBH)
The PointsBet share price was out of form and tumbled 46.4% over the three months. Investors were selling sports betting shares globally amid concerns over valuations and increasing marketing spend in the industry. In respect to the latter, rival DraftKings warned that it was likely to make a loss of US$1 billion in 2022 due largely to marketing costs.
Boral Limited (ASX: BLD)
The Boral share price was a poor performer and sank 43.3% during the period. However, the majority of this decline reflects the building materials company returning a total of $3 billion to shareholders following a series of asset sales. Boral's total cash return of $2.72 per share comprised a $2.65 per share capital reduction and an unfranked dividend of 7 cents per share.
Appen Ltd (ASX: APX)
The Appen share price continued its slide during the first quarter with a 38% decline. Investors were selling off this artificial intelligence data services company's shares following the release of a disappointing full year result. Appen reported a 3% increase in underlying EBITDA to US$77.7 million in FY 2021, which fell short of its revised guidance. Management also revealed that it wouldn't provide any guidance for FY 2022, which didn't go down well with the market.
