These were the worst performing ASX 200 shares last week

The S&P/ASX 200 Index (ASX: XJO) was well and truly out of form last week after rising bond yields spooked global markets. This led to the benchmark index losing 1.8% over the five days to end at 6,673.3 points.

While a large number of ASX 200 shares dropped with the market, some fell more than most. Here’s why these were the worst performers last week:

Service Stream Limited (ASX: SSM)

The Service Stream share price was the worst performer on the ASX 200 last week with a 32.5% decline. Investors were heading to the exits in their droves last week following the release of a disappointing half year result. In the first half the essential network services provider reported a 17.7% reduction in revenue to $409.9 million and a 40.5% decline net profit after tax to $16.2 million. Unfortunately, management was expecting a much stronger second half, but warned that this is unlikely now due partly to COVID-19 related and client-initiated delays to work programs.

Appen Ltd (ASX: APX)

The Appen share price was out of form last week and recorded a decline of 22.7%. The catalyst for this decline was the artificial intelligence services company’s full year results. For the 12 months ended 31 December, Appen posted a 12% increase in revenue to $599.9 million and an 8% lift in EBITDA to $108.6 million. Looking ahead, Appen is forecasting EBITDA growth of 18% to 28% in FY 2021. While this doesn’t look bad on paper in the current environment, it fell well short of the market’s expectations. Analysts now appear concerned that increasing competition could put pressure on pricing and weigh on its growth.

Afterpay Ltd (ASX: APT)

The Afterpay share price was an uncharacteristically poor performer and sank 21.3% over the five days. A selloff in the tech sector due to rising bond yields was largely to blame for this share price weakness. But also impacting the payments company’s shares was its upsized convertible notes offering. Afterpay raised a total of $1.5 billion from investors via the issue of convertible notes with a due date of 2026 and an initial conversion price of $194.82. In addition to this, the company revealed that its Co-CEOs have each sold ~$60 million worth of shares. The funds from its offering will be used to increase its interest in its US business and support its growth.

Perenti Global Ltd (ASX: PRN)

The Perenti share price had a disappointing week and dropped 17.4% over the period. The catalyst for this was the release of the mining services company’s half year results. Although Perenti posted a 4.8% increase in revenue to $1,056.2 million, it wasn’t able to grow its earnings. The company reported a 25.8% reduction in underlying net profit to $44.6 million. Furthermore, on a statutory basis, things were even worse. Perenti recorded a statutory net loss after tax of $63.8 million.

More reading

• Forget the ASX 200! Another market crashed this week
• ASX 200 sinks 2.4%, Afterpay plunges, AMP jumps
• Here are 3 ASX 200 diamonds in the spotlight while the market sank today
• The big themes from ASX reporting season
• Why this ASX tech ETF is in the buy zone

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Service Stream Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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