Why Bapcor, Brainchip, Helloworld, and Woolworths shares are tumbling today

These shares are out of favour with investors on Thursday. But why?

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The S&P/ASX 200 Index (ASX: XJO) has returned to form on Thursday. In afternoon trade, the benchmark index is up 0.45% to 7,604.1 points.

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

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down 25% to $4.33. This follows the release of a trading update from the auto parts retailer this morning. As well as the shock announcement that its CEO-elect decided against joining the company the day before his start date, the company revealed that trading has been below expectations in the second half. Bapcor now expects to report FY 2024 pro-forma net profit after tax of between $93 million and $97 million. This will be down from $125.3 million in FY 2023.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 16% to 24 cents. This morning, Brainchip announced the issue of 10 million shares for its Employee Share Plan Trust. But the real bombshell was news that two key executives have left the company suddenly. Given that you would be unlikely to leave if you thought the company was about to change the world with its technology, investors seem to be interpreting these exits as another big red flag and have scrambled to the exits.

Helloworld Travel Ltd (ASX: HLO)

The Helloworld share price is down 11% to $2.42. This follows the release of the travel agent's quarterly update. Interestingly, investors have been hitting the sell button despite management reaffirming its guidance for the full year. It said: "HLO reaffirms its guidance to achieve an underlying EBITDA of $64-$72m for the FY24 year, subject to no material adverse change in operating conditions over the remainder of the financial year." The market may have been expecting Helloworld to outperform this.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is down 4% to $30.61. Investors have been selling this retail giant's shares after it released its third-quarter sales update. Woolworths reported a 2.8% increase in total sales to $16,800 million. However, its Australian Food sales only rose 1.5% to $12,578 million compared to the prior corresponding period. This is a slower growth rate than its arch-rival, which suggests market share losses. In response, Goldman Sachs notes that there have been "shifts in competition, which is clearly intensifying." It has concerns that this "could signal weaker margins in FY25/26."

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 Goldman Sachs Group. The Motley Fool Australia has recommended Bapcor. 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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