Why Appen, Brainchip, GQG, and Star shares are tumbling today

These shares are having a poor finish to the week. But why?

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The S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decline. In afternoon trade, the benchmark index is down 0.5% to 8,286 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

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Image source: Getty Images

Appen Ltd (ASX: APX)

The Appen share price is down over 5% to $2.66. This is despite there being no news out of the artificial intelligence data services company. However, with its shares up materially since last year, it is possible that some profit taking is happening on Friday. For example, even after today's pullback, Appen's shares remain up by approximately 400% over the past 12 months.

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down over 4% to 33.5 cents. This semiconductor company's shares have come under pressure this week after it revealed plans to raise more capital through a put option agreement with LDA Capital. Total funding available under the agreement has increased by $37 million to $140 million, of which the company has drawn approximately $68 million in gross proceeds since inception in August 2020. The market appears to believe this news is an indication that management isn't expecting any meaningful revenue to be generated in the near future. This is likely to mean that Brainchip's upcoming quarterly update will reveal further sizeable cash burn.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down a further 3% to $1.88. Investors have been selling this fund manager's shares this week after it released its latest funds under management (FUM) update. The release reveals that GQG Partners ended 2024 with FUM of US$153 billion. While this is up approximately 27% year on year, it has fallen 4.1% since the end of November. The consensus estimate was for year-end FUM of $164 billion.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down a further 14% to 11.2 cents. Investors have been rushing to the exits this week after the embattled casino and resorts operator released an update on its cash position. Star revealed that its available cash on 31 December 2024 was $79 million, down from $149 million at the end of September and despite a cash injection. The company is now trying to find a way to meet conditions precedent to draw down $100 million from a debt facility. However, it admits that "conditions remain challenging to meet given the Group's current circumstances." This has sparked fears that the company could soon go bust.

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 Appen. 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.

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