Why 4DS, Lynas, REA Group, and Rio Tinto shares are dropping today

These shares are ending the week in the red. But why?

| More on:
A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.

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

The S&P/ASX 200 Index (ASX: XJO) is having a subdued finish to the week. At the time of writing, the benchmark index is down slightly to 8,324.3 points.

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

4DS Memory Ltd (ASX: 4DS)

The 4DS Memory share price is down 7% to 3.8 cents. This semiconductor company's shares are falling today after it raised capital. 4DS Memory advised that it has received binding commitments from institutional and high net worth investors for a placement of shares to raise $6 million. These funds will be raised a 3.6 cents per new share, which represents a 12.2% discount to its last close price. However, it also represents a 55% discount to where it shares were trading when the previous capital raising was abandoned last month. The proceeds will be used to progress the design agreement with Infineon Technologies.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is down over 5% to $6.71. This follows the release of the rare earths producer's quarterly update. Lynas reported an uplift in sales revenue to $141.2 million and sales receipts to $145.9 million for the quarter. This was despite continuing low market prices and subdued inside China demand. While positive on paper, this appears to have fallen short of the market's expectations for the three months.

Rea Group Ltd (ASX: REA)

The Rea Group share price is down over 2% to $230.88. This morning, analysts at Morgans held firm with their hold rating and $215.00 price target on this property listings company's shares. While the broker is positive on the company, it isn't a fan of its valuation. As a result, Morgans thinks that investors should wait for a more attractive entry point before picking up shares.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down over 1% to $118.24. This follows a lukewarm response to the miner's quarterly update from brokers this morning. Macquarie felt the update was mixed and highlights that Rio Tinto's iron ore production has had a soft start to 2025. In light of this, the broker has reaffirmed its neutral rating and $120.00 price target. It thinks BHP Group Ltd (ASX: BHP) shares would be a better option. In other news, there are rumours that Rio Tinto could be plotting a merger with fellow mining heavyweight Glencore (LSE: GLEN).

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

More on Share Fallers

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Beach Energy, McMillan Shakespeare, News Corp, and Pilbara Minerals shares are falling today

These shares are ending the week in the red. But why?

Read more »

A young boy with a sombre face looks down at the zip fastener at the bottom of his jacket as he concentrates on unfastening the clasp.
BNPL shares

Should you buy the 34% dip on Zip shares?

After crashing 34% in a month, what’s next for Zip shares?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Beach Energy, Myer, Pexa, and Pinnacle shares are falling today

These shares are under pressure on Thursday. What's going?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Block, Canyon, Fisher & Paykel Healthcare, and Mesoblast shares are falling today

These shares are having a tough time on hump day. What's going on?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Fisher & Paykel Healthcare, Magellan, Resolute Mining, and Westgold shares are sinking today

These shares are starting the week deep in the red. But why?

Read more »

plummeting gold share price
Gold

Guess which ASX 200 gold stock just plunged 12% on FY 2025 production woes

The ASX 200 gold stock is taking a sharp fall on Monday. Let’s find out why.

Read more »

Man with a hand on his head looks at a red stock market chart showing a falling share price.
Share Fallers

These were the worst performing ASX 200 shares in January 2025

These shares had a month to forget. Why were investors selling them? Let's find out.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Magellan, Medadvisor, Origin Energy, and Pointsbet shares are tumbling today

These shares are ending the week in the red. But why?

Read more »