Why Catapult, Tabcorp, Weebit Nano, and Zip shares are dropping today

These ASX shares are having a tough time on Tuesday.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. At the time of writing, the benchmark index is up 0.55% to 7,467.7 points.

Four ASX shares that have failed to follow the market's lead today are listed below. Here's why they are dropping:

Catapult Group International Ltd (ASX: CAT)

The Catapult share price is down 2% to $1.30. This may have been driven by a broker note out of Bell Potter this week. Its analysts have downgraded the sports analytics technology company's shares to a hold rating with a $1.43 price target. The broker made the move on valuation grounds after a strong gain over the past month.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is down 5% to 85.75 cents. This decline may be from profit-taking from some investors following a very strong gain on Monday. Investors were buying the gambling company's shares after it announced that it has been awarded the new Victorian Wagering and Betting Licence by the Victorian Government. Management estimates that this licence would have boosted FY 2023's EBITDA by $140 million if it had been in place for that period.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is down 5% to $4.21. This is despite there being no news out of the semiconductor company. However, its shares have been in freefall over the last six months amid scepticism over its technology and sales potential. Short sellers currently hold 7.6% of its stock. The Weebit Nano share price is now down over 40% since this time in June.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 4.5% to 58.7 cents. This may be another case of profit-taking. After all, the buy now pay later provider's shares were up 24% in the space of a week prior to today's decline. The prospect of interest rates falling next year has given its shares a major boost.

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. has positions in and has recommended Catapult Group International and Zip Co. The Motley Fool Australia has recommended Catapult Group International. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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