Why Appen, Aussie Broadband, IGO, and Kogan shares are sinking today

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 1.3% to 7,335.8 points.

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

Appen Ltd (ASX: APX)

The Appen share price is down 4% to $6.39. Investors have been selling Appen and other tech shares on Monday following a major selloff on the tech-focused Nasdaq index on Friday night. Not even a positive broker note out of Citi could stop Appen’s shares from sinking today. Its analysts have retained their buy rating and $9.15 price target on the company’s shares.

Aussie Broadband Ltd (ASX: ABB)

The Aussie Broadband share price has crashed 24% to $4.20. This follows the release of a trading update which included a number of negatives. The main ones are downgrades to the top end of its earnings and broadband connections guidance for FY 2022. In respect to the former, Aussie Broadband was previously guiding to EBITDA of $27 million to $30 million. Whereas it now expects EBITDA to be $27 million to $28 million.

IGO Ltd (ASX: IGO)

The IGO share price is down almost 6% to $12.42. Investors have been selling this battery materials miner’s shares in response to the release of its quarterly update after the market close on Friday. That update revealed that the commissioning of Train 1 at Kwinana is progressing. However, it has not yet successfully produced battery grade lithium hydroxide. Management advised that the debugging process and understanding of what it needs to do to deliver quality product and consistent operations is being progressed.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down a further 3% to $3.79. This ecommerce company’s shares have been hammered over the last two trading sessions following an abject quarterly update. The team at Credit Suisse responded to its update this morning by downgrading Kogan’s shares to an underperform rating and slashing its price target by almost a third to $3.75.

The post Why Appen, Aussie Broadband, IGO, and Kogan shares are sinking today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd, Aussie Broadband Limited, and Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/UtfDjz9

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s