The S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is on course to record a sizeable decline. At the time of writing the benchmark index is down 1.4% to 5,819.9 points.
Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:
The Galaxy Resources Limited (ASX: GXY) share price is down 2% to 77.5 cents. Investors have been selling the lithium miner’s shares after analysts at Credit Suisse downgraded them to a neutral rating and slashed their price target to 84 cents. It made the move due to weakening lithium prices.
The Jumbo Interactive Ltd (ASX: JIN) share price has crashed 8% lower to $10.52. This follows the announcement of a 10-year lottery ticket reseller extension with Tabcorp Holdings Limited (ASX: TAH). While this removes a lot of uncertainty, it has come at a cost. Jumbo will pay Tabcorp an upfront fee of $15 million and increasing royalties on ticket sales. Eventually Jumbo will pay Tabcorp a service fee of 4.65% of the ticket subscription price.
The Webjet Limited (ASX: WEB) share price has tumbled 5% lower to $3.21. Webjet is one of a number of travel shares that are tumbling lower on Monday. Investors appear concerned that the domestic travel market could take longer to recover following a spike in coronavirus cases in Victoria. In addition to this, valuation concerns could be weighing on the online travel agent’s shares.
The Zip Co Ltd (ASX: Z1P) share price has fallen almost 4% to $5.24. With the market tumbling notably lower today, investors appear to have been taking a bit of profit off the table. Prior to today, the Zip Co share price was up 45% since this time last month. Investors have been buying the payments company’s shares after it announced its expansion into the United States.
3 “Double Down” Stocks To Ride The Bull Market
Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.
He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.
*Extreme Opportunities returns as of June 5th 2020
More reading
- Jumbo Interactive share price sinks lower on new Tabcorp agreement
- ASX 200 Weekly Wrap: ASX retreats as confidence wanes
- Here are the 10 most shorted shares on the ASX
- Could the Afterpay share price really be good value right now?
- These were the worst performing ASX 200 shares last week
James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post Why Galaxy, Jumbo, Webjet, & Zip Co shares are sinking lower appeared first on Motley Fool Australia.
from Motley Fool Australia https://ift.tt/3idTXVI
Leave a Reply