Why Aristocrat, Inghams, Life360, and Megaport shares are falling today

These shares are having a tough time on hump day. But why?

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Key points

  • Aristocrat Leisure shares dropped 5% despite a strong FY 2025 performance, as investors were unimpressed with its guidance for the upcoming year, which leaves some uncertainty about achieving forecasted growth.
  • Life360 experienced a 9.5% decline, with market reaction focusing on slower monthly active user growth overshadowing strong sales and profit gains, even as Bell Potter suggests the strategic user retention focus is being misunderstood.
  • Megaport fell 3% amid the completion of a significant institutional placement intended to finance the acquisition of Latitude.sh, reflecting typical market movements during capital raising activities.

The S&P/ASX 200 Index (ASX: XJO) is pushing higher in afternoon trade. At the time of writing, the benchmark index is up 0.2% to 8,836.6 points.

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

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat Leisure share price is down 5% to $60.93. This follows the release of the gaming technology company's FY 2025 results. Although Aristocrat delivered a strong result, its guidance for the year ahead appears to have disappointed investors. In FY 2025, the company posted an 11% increase in revenue to $6,297 million and a 12% jump in normalised NPATA to $1,550.7 million. For the new financial year, Aristocrat is expecting to "deliver NPATA growth over the full year." Bell Potter is forecasting 12% growth in FY 2026. So, it is unclear if this will be achieved based on its guidance statement.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 1.5% to $2.38. This poultry producer's shares are falling today following the release of a trading update. Inghams advised that it has "experienced higher than expected operational costs in Australia across farming and processing operations which arose toward the end of FY25." As a result, it warned that "these factors will weigh on first half earnings." Nevertheless, management has reaffirmed its guidance for the full year.

Life360 Inc. (ASX: 360)

The Life360 share price is down 9.5% to $41.46. This location technology company's shares are falling today after its strong sales and profit growth during the third quarter was overshadowed by softer monthly active user (MAU) growth. However, Bell Potter thinks this is an overreaction given how its slower MAU growth was driven by management's strategic focus on retaining and converting users rather than sheer user growth. In response, Bell Potter has retained its buy rating with an improved price target of $52.50.

Megaport Ltd (ASX: MP1)

The Megaport share price is down 3% to $14.84. This follows the completion of the network solutions company's institutional placement this morning. Yesterday, Megaport revealed that it was raising $220 million to fund the acquisition of Latitude.sh for US$150 million in cash and scrip. It said: "Latitude.sh is a globally scalable, high performance software platform that automates infrastructure. It is similar to Megaport and offers customers compute-as-a-service which can be provisioned on demand."

Motley Fool contributor James Mickleboro has positions in Life360 and Megaport. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Megaport. The Motley Fool Australia has positions in and has recommended Life360. 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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