Why Brainchip, Calix, Fortescue, and ResMed shares are sinking

The S&P/ASX 200 Index (ASX: XJO) is having a difficult day and is on course to end the week in a disappointing fashion. In afternoon trade, the benchmark index is down 0.9% to 6,785.6 points.

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

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 20% to 68 cents following the release of a dismal third quarter update. The struggling semiconductor company, which was valued at $1.5 billion prior to today, reported revenue of just $118,000 for the three months. Based on this quarterly performance, investors appear concerned that this meme stock could have developed a product that nobody wants.

Calix Ltd (ASX: CXL)

The Calix share price is down 18% to $4.50. This morning this environment technology company revealed that the Australian government has withdrawn previously announced grant funding. A total of $41 million earmarked for projects has been cancelled by the government.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price is down 8% to $14.75. Investors have been selling this mining giant’s shares following a sharp pullback in the iron ore price overnight. In addition, this morning the team at Bell Potter downgraded the company’s shares to a sell rating and cut its price target by ~19% to $14.09. The broker said: “We downgrade our recommendation to Sell, largely on the impact of the increased FFI investment commitment.”

ResMed Inc (ASX: RMD)

The ResMed share price is down almost 6% to $33.73. This follows the release of the medical device company’s first quarter update. ResMed delivered a 5% (9% constant currency) increase in revenue to US$950.3 million but flat net income of US$222.1 million (on a non-GAAP basis). While it achieved Goldman Sachs’ estimates on the top line, it missed on the bottom line.

The post Why Brainchip, Calix, Fortescue, and ResMed shares are sinking appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares getting bashed around today?
• Why did this ASX All Ordinaries share crash 18% today?
• Why is the ResMed share price sinking 6% on Friday?
• Could Fortescue be on the hunt for an ASX lithium acquisition?
• The Fortescue share price has dumped over 10% since Monday. What’s going on?

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 ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. 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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