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.

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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.

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