Why Fortescue, Life360, PLS, and Syrah shares are dropping today

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

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The S&P/ASX 200 Index (ASX: XJO) has followed Wall Street's lead and dropped into the red. At the time of writing, the benchmark index is down 0.3% to 8,879.1 points.

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

Fortescue Ltd (ASX: FMG)

The Fortescue share price is down almost 2% to $22.40. This may have been driven by the release of a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded the iron ore miner's shares to an underweight rating with a $19.75 price target. This implies potential downside of approximately 12% from current levels. The broker is expecting strong realised prices for the second quarter of FY 2026. However, it thinks costs could be higher and Iron Bridge production could soften. And due to recent share price strength, it feels its shares are overvalued now and downgrades them to underweight.

Life360 Inc (ASX: 360)

The Life360 share price is down almost 7% to $27.23. This follows a similar decline by the location technology company's NASDAQ listed shares on Wall Street on Friday night. This appears to have been driven by broad weakness in the tech sector as investors rotate into other areas of the market.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is down 4% to $4.49. This is despite there being no news out of the lithium miner on Monday. Though, it is worth noting that Australian Super revealed that it has been selling down its holding in the company. Last week, it sold down its stake from 16.27% to 15.11%. Despite today's share price weakness, the lithium miner's shares remain up over 80% since this time last year.

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price is down 3% to 29.5 cents. This follows the release of an update on the graphite producer's offtake agreement with Tesla (NASDAQ: TSLA). The parties have an agreement for the supply of natural graphite active anode material (AAM) from Syrah's 11.25ktpa AAM facility in Vidalia, Louisiana. Today's update reveals that the parties have agreed to amend the offtake agreement to extend the final qualification date to 16 March 2026. This is subject to the consent of the United States Department of Energy. Tesla has the right to terminate the offtake agreement if Syrah does not provide conforming AAM samples from Vidalia by this date.

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