The S&P/ASX 200 Index (ASX: XJO) is out of form on Wednesday and has dropped deep into the red. In afternoon trade, the benchmark index is down 0.7% to 7,354.5 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling lower:
Allkem Ltd (ASX: AKE)
The Allkem share price is down 7% to $10.77. This may have been driven by a broker note out of Ord Minnett this morning. According to the note, the broker has downgraded the lithium miner’s shares to an accumulate rating from buy with a $12.50 price target. It made the move on valuation grounds.
Megaport Ltd (ASX: MP1)
The Megaport share price has tumbled 16% to $15.30. This follows the release of the leading elastic interconnection services provider’s second quarter update. According to the release, Megaport posted a quarter on quarter monthly recurring revenue (MRR) increase of just $0.6 million to $9.2 million. This led to an 8% increase in second quarter revenue to $26.6 million. Investors appear to have been expecting much stronger growth given the lofty multiples its shares trade on.
Redbubble Ltd (ASX: RBL)
The Redbubble share price has continued its slide and is down a further 8% to $2.14. Investors have been selling down the ecommerce company’s shares after brokers responded negatively to its recent trading update. One of those brokers is Morgan Stanley. It downgraded Redbubble’s shares to an equal weight rating and cut the price target on them from $6.50 to $2.65.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price is down 9% to $8.32. This is despite there being no news out of the online furniture and homewares retailer. However, given disappointing updates from other ecommerce companies recently, investors appear to believe Temple & Webster could be struggling in FY 2022.
The post Why Allkem, Megaport, Redbubble, and Temple & Webster’s shares are falling appeared first on The Motley Fool Australia.
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More reading
- Analysts name 3 hot ASX lithium shares to buy now
- ASX 200 (ASX:XJO) midday update: BHP’s update, Megaport sinks, HUB24 impresses
- Is the Allkem (ASX:AKE) share price going to keep charging higher?
- Why the Megaport (ASX:MP1) share price is crashing 12% today
- Why AVZ, Kogan, Panoramic, and Redbubble shares are sinking
Motley Fool contributor James Mickleboro owns Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended MEGAPORT FPO and Temple & Webster Group Ltd. The Motley Fool Australia has recommended MEGAPORT FPO and Temple & Webster Group Ltd. 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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