Why Betmakers, Brainchip, Core Lithium, and Megaport shares are sinking today

These ASX shares are being sold off on Monday. But why?

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher. At the time of writing, the benchmark index is up 0.7% to 7,627 points.

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

Betmakers Technology Group Ltd (ASX: BET)

The Betmakers share price is down 14% to 12 cents. This follows the release of the betting technology company's quarterly update. Betmakers reported a 4.1% decline in revenue to $22.3 million. This was driven by soft conditions in the Australian wagering market. It highlights that the quarter was a challenging period for Australian operators as a result of the competitive landscape coupled with regulatory and taxation headwinds. This led to an underlying EBITDA loss of $2.5 million for the three months.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 8% to 28 cents. Investors have been rushing to the exits following the release of another abject update from the semiconductor company. Brainchip pulled in just US$90,000 in cash receipts for the three months, which is less than some bakeries pull in. And those bakeries probably don't report a cash outflow of US$4.4 million a quarter. In addition, investors may be alarmed by how a $500 million company named its appearances on podcasts as one of its most notable achievements during the three months. All eyes will be on the company next month when it holds its annual general meeting and faces a second strike to its remuneration report.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 3.5% to 14 cents. This has been driven by the release of the lithium miner's quarterly update. Core Lithium reported quarterly spodumene concentrate production of 24,927 tonnes but only shipped 10,199 tonnes. The latter is down from 30,718 tonnes in the previous quarter. The company ended the period with 19,756 tonnes of spodumene concentrate and 20,000 tonnes of lithium fines available for sale. Management advised that while mining activities have been suspended, it will continue to process its ore stockpiles until the middle of the year.

Megaport Ltd (ASX: MP1)

The Megaport share price is down 4% to $13.75. This is despite the leading network as a service (NaaS) solutions provider upgrading its earnings guidance this morning. Megaport now expects FY 2024 EBITDA to be in the range of $56 million to $58 million. This is up from $51 million to $57 million. It will also mean a 177% to 187% increase on FY 2023's numbers. Whilst this is very strong, investors may have noted that the company's EBITDA has fallen 7.3% quarter on quarter.

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 Betmakers Technology Group and Megaport. The Motley Fool Australia has recommended Megaport. 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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