Why Appen Ltd is among 4 shares tumbling today

The Medibank Private Ltd (ASX:MPL) share price hit a 52-week low today.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P / ASX200 (ASX: XJ) is down 0.5% in lunchtime trade as US futures point to another session heavily in the red on Wall Street tonight. News wires  even reported that the Chicago futures exchange briefly suspended trading due to violent moves lower potentially triggered by algorithmic or robot-style trading.

On the ASX there are plenty of well knowN companies tumbling lower. So let's take a look at what might be behind the share price action.

The Appen Ltd (ASX: APX) share price is down 4.2% to $13 today as investors globally worry about the valuations of tech shares that trade on huge multiples of sales and profits. If interest rates in the US rise as expected analysts will start to use higher discount rates to calculate the net present value of companies. Therefore those with most long-term growth priced in are vulnerable to the steepest downward revisions of the value of their future cash flows.

The Pendal Group Ltd (ASX: PDL) share price is down 5% to $8.10 today as equity markets continue to drop around the world. Pendal is the former BT Investment Management Group part owned by Westpac Banking Corp (ASX: WBC). It also operates the JO Hambro international equities management business and in total has around 20% of its assets invested in British pound denominated assets. As such it's vulnerable to a falling British pound as the country runs out of time to agree a Brexit deal with the EU.

The Carsales. Com (ASX: CAR) share price is down 2.7% to $11.49 today despite it releasing no specific news to the market. The shares are now down more than 25% from highs hit just back in August 2018. Investors are probably worried about the macro outlook for the Australian economy, with weaker-than-expected GDP growth reported yesterday. House prices are also falling in Sydney and Melbourne which is one factor major car dealership Automotive Holdings Group (ASX: AHG) has already blamed for a recent profit downgrade.

The Medibank Private Ltd (ASX: MPL) share price hit a 52-week low of $2.36 today as investors worry that tougher economic times for Australians may see more of them take their chances with free or discounted public healthcare services before private healthcare. Medibank also recently warned it had lost a major contract with the Australian Defence Force that carried an operating profit of around $30 million.

More on Share Fallers

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why APA, DroneShield, EOS, and Woodside shares are tumbling today

These shares are missing out on the good times on Tuesday.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Adairs, ANZ, Aurelia Metals, and Pilbara Minerals shares are falling today

These shares are having a tough start to the week in the red. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why ANZ, Clarity, IGO, and Pilbara Minerals shares are dropping today

These shares are ending the week in the red. But why?

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Aurelia Metals, Centuria Office, Meeka Metals, and Resolute shares are tumbling today

These shares are having a tough time on Thursday. Let's find out why.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Block, Catalyst Metals, Coronado Global, and Pilbara Minerals shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Betr, Regis Resources, St Barbara, and Woodside shares are falling today

These shares are taking a tumble on Tuesday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why 4DS Memory, ASX, Betr, and Northern Star shares are tumbling today

These shares are starting the week in the red. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

Why Accent, Cettire, Ioneer, and Pro Medicus shares are dropping today

These shares are ending the week in the red. What's going on?

Read more »