Why Appen, Credit Corp, Fortescue, and Santos shares are dropping

Three guys in shirts and ties give the thumbs down.

Three guys in shirts and ties give the thumbs down.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down slightly to 6,991.4 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 has crashed over 27% lower to $4.14. Investors have been selling down this artificial intelligence data services company’s shares after the release of a dismal trading update. Appen advised that it expects to report half year revenue down 7% to $182.9 million and a 69% decline in underlying EBITDA to $8.5 million. This reflects weaker digital advertising demand and a resultant slowdown in spending by some of its large customers.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price has sunk 9% to $22.04. This follows the release of the debt collector’s full year results this morning. While Credit Corp achieved its guidance and Morgans’ estimate with a 9% lift in profit to $96.2 million, its guidance disappointed. Morgans was expecting FY 2023 net profit guidance of $94 million to $104 million. However, management is targeting $90 million to $97 million.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 3% to $17.69. This morning UBS became the latest broker to slap a sell rating on the iron ore giant’s shares. The broker has downgraded Fortescue’s shares to a sell rating and cut the price target on them to $15.80. UBS has concerns over costs and the iron ore price outlook.

Santos Ltd (ASX: STO)

The Santos share price is down almost 2% to $7.25. Investors have been selling Santos and other energy shares after oil prices tumbled overnight. Traders were selling oil following concerns over weak Chinese factory data. This has led to the S&P/ASX 200 Energy index falling almost 1% on Tuesday.

The post Why Appen, Credit Corp, Fortescue, and Santos shares are dropping 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

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

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. The Motley Fool Australia has no position in any of the stocks mentioned. 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/5MQKGej

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