Why has the Mesoblast share price crashed 40% since April?

The tech share extends losses today.

| More on:
Red arrow going down and symbolising a falling share price.

Image source: Getty Images

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

Key points

  • Mesoblast shares continue their downward slide today 
  • The company has seen heavy selling pressure in 2022 alongside an unwind of the tech trade 
  • The Mesoblast share price has tumbled more than 69% into the red over the last 12 months 

The Mesoblast Limited (ASX: MSB) share price has started the day well and is now trading around 4% higher at 68.5 cents apiece.

Despite the gain today, Mesoblast shares have struggled since April. They are down around 40% since that time, in continuation of a longer-term downtrend.

Mesoblast is also down 51% this year to date, amid a heavy sell-off in ASX tech shares. In the last 2 weeks, a plunge in the broader market has pulled the share lower.

What's up with the Mesoblast share price?

Investors have been selling the Mesoblast share price down on no news. The company did release its financial and operational highlights for the last quarter on 1 June, however, the market was unfazed.

In fact, shares have been trending south for over 1 year now, having fallen hard from a sharp peak of $4.60 in December 2020.

Since then, shares have rolled lower and now trade at both 2-year and 52-week lows.

With the trend in place, there's been no support from the market, not in 2022 anyway. The S&P/ASX All Technology Index (ASX: XJO) is also at yearly lows having sunk 38% this year to date.

Furthermore, Mesoblast has seen proceedings started against it in a Federal Court of Australia back in May.

According to TMF at the time, the claimant – someone who bought shares between 2018-2020 – alleges Mesoblast "engaged in unlawful conduct that misled the market about remestemcel-L".

"Mesoblast has reportedly faced multiple class actions in the US on similar allegations," TMF added.

Nevertheless, the Mesoblast share price has tumbled more than 69% into the red over the last 12 months, as seen below.

TradingView Chart

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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 Scott Phillips.

More on Technology Shares

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

Goldman Sachs just slapped a buy rating on this ASX 200 tech stock

The broker thinks this market darling can keep rising.

Read more »

Happy man and woman looking at the share price on a tablet.
Technology Shares

Up 61% since February, why this ASX 200 tech stock could 'continue to surprise to the upside'

The ASX 200 tech share is poised for more growth, according to this leading fund manager.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Technology Shares

What could $5,000 invested in Block shares become in 1 year?

Is it worth investing in this tech stock? Let's find out.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Technology Shares

DroneShield share price jumps 16% on 'significant' NATO deal

More big news has come out of this tech stock this morning.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Technology Shares

Why is this ASX stock crashing 75% on Wednesday?

This call recording technology company's shares have been hit hard on its return to trade.

Read more »

A man wearing glasses and a white t-shirt pumps his fists in the air looking excited and happy about the rising OBX share price
Technology Shares

This little-known Australian stock has doubled in less than 1 year

Investors have doubled their money in less than 12 months with this stock.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Technology Shares

How is the DroneShield share price avoiding the market weakness and jumping 13%?

This tech stock reported stunning quarterly growth.

Read more »

A man looking at his laptop and thinking.
Technology Shares

NextDC share price tumbles as trading resumes amid $1.32 billion cap raising

ASX 200 investors are bidding down the NextDc share price on Monday.

Read more »