In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to extend its winning run with another solid gain. At the time of writing the benchmark index is up 0.8% to 6,695.7 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
Mesoblast limited (ASX: MSB)
The Mesoblast share price is down 5% to $4.24. This appears to have been driven by profit taking after a meteoric rise over the last few days. Prior to today, the Mesoblast share price was up 37% over the prior three trading days. Investors have been buying the biotech company's shares following the announcement of a major deal with pharma giant Novartis.
Temple & Webster Group Ltd (ASX: TPW)
The Temple & Webster share price has crashed 9% lower to $9.83. The catalyst for this decline appears to be the ongoing rotation from COVID winners to other areas of the market. The online furniture retailer's shares have been on fire this year and are still up 272% in 2020 even after today's sizeable decline.
Xero Limited (ASX: XRO)
The Xero share price has fallen 3% to $131.69. Investors have been selling the cloud-based business and accounting software platform provider's shares after it announced the pricing of a US$700 million convertible notes offering. The proceeds will be used to repurchase existing notes and for potential acquisitions and strategic investments. Xero upsized its offering by US$100 million due to significant demand from across its global investor base.
Zip Co Ltd (ASX: Z1P)
The Zip share price is down 4% to $6.00. Not even a reasonably positive broker note out of Citi has been able to give the buy now pay later provider's shares a boost today. This morning the broker upgraded Zip to a neutral (high risk) rating and lifted the price target on its shares to $6.70. This follows the release of its recent trading update.
