Why Appen, Credit Corp, Mineral Resources, and Zip shares are sinking today

These shares are missing out on the good times on Thursday and dropping into the red.

The S&P/ASX 200 Index (ASX: XJO) is on form again on Thursday. In afternoon trade, the benchmark index is up 0.5% to 8,490 points.

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

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward.

Image source: Getty Images

Appen Ltd (ASX: APX)

The Appen share price is down almost 11% to $2.34. This artificial intelligence data services company's shares were racing higher in early trade before taking a tumble. It seems that some investors have seen something in its fourth quarter update that they didn't like. Appen reported a 7% decline in revenue to $66.7 million for the fourth quarter. However, this decline was due to the loss of Google (NASDAQ: GOOG) as a major customer. Excluding Google, revenue grew 37% year-on-year. The market may have been expecting stronger ex-Google growth.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is down over 9% to $16.55. This follows the release of the debt collector's half year update this morning. Although Credit Corp reported a 32% increase in underlying net profit after tax to $44.1 million, this is run-rating below its guidance for the full year. Management has reaffirmed its underlying net profit after tax guidance of $90 million to $100 million. Investors may have doubts that it will achieve this, let alone reach the high end of the range.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down 2% to $35.48. Investors have been selling the mining and mining services company's shares after it released a second quarter update. That update fell short of expectations across iron ore shipments, lithium shipments, and mining services volumes.

Zip Co Ltd (ASX: ZIP)

The Zip Co share price is down 22% to $2.54. Investors have been selling the buy now pay later (BNPL) provider's second quarter update. For the three months ended 31 December, Zip reported cash earnings before taxes, depreciation and amortisation (EBTDA) of $35.3 million. While this is up 50.2% on the prior corresponding period, it is lower than what some analysts were forecasting for the high-flying stock. Zip's growth was driven by its US operations. Zip's CEO Cynthia Scott said: "Our strong performance was driven by outstanding US growth, with year on year TTV and revenue growth of 38.3% and 41.0% respectively, driven by an exceptional holiday trading period which included the single largest trading day and month in Zip's history."

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet, Appen, and Zip Co. The Motley Fool Australia has recommended Alphabet. 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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