Why Aussie Broadband, Baby Bunting, DroneShield, and Web Travel shares are falling today

These shares are under pressure on Tuesday. But why?

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Key points

  • Aussie Broadband shares fell 1.5% as the market reacted to a trading update that set growth expectations, seemingly lower than anticipated by investors.
  • Baby Bunting's shares dropped 5% after a trading update revealed modest sales growth and a net profit expectation heavily reliant on the second half.
  • DroneShield experienced a 4% decline, likely due to profit-taking, despite significant overall gains year to date.

The S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory. In afternoon trade, the benchmark index is up a fraction to 8,887.6 points.

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

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price is down 1.5% to $5.70. This follows the release of a trading update ahead of its annual general meeting. The company's CEO, Brian Maher, said: "FY26 is set to be another year of growth for Aussie Broadband and we anticipate growth of between 14 and 21% in underlying EBITDA to a range of $157 to $167 million." It seems that the market was expecting even stronger growth from the telco in FY 2026.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down 5% to $3.00. This also appears to have been driven by the release of a trading update ahead of the baby products retailer's annual general meeting. Baby Bunting revealed that total sales are up 3.5% year to date through to 12 October. This has been achieved with an improved gross profit margin of 40.6%. Looking ahead, a net profit after tax in the range of $17 million to $20 million is expected. This is up from $12.1 million in FY 2025. However, it is worth noting that this earnings guidance is heavily weighted to the second half. Management expects a net profit of just $4.5 million to $5.5 million for the first half.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down almost 4% to $5.81. This may have been caused by profit taking from some investors after strong gains in recent weeks. For example, the counter drone technology company's shares are up over 75% since this time last month despite today's pullback. And looking further back, the high-flying stock is up an incredible 680% year to date.

Web Travel Group Ltd (ASX: WEB)

The Web Travel share price is down almost 4% to $4.22. This may have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has retained its underweight rating on the travel company's shares with a reduced price target of $4.00 (from $4.25). This follows the recent release of a trading update which fell short of the broker's expectations.

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband and DroneShield. The Motley Fool Australia has recommended Aussie Broadband. 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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