Why Bubs, Core Lithium, Megaport, and Pointsbet shares are crashing today

These ASX shares are having a terrible time on Tuesday…

| More on:
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.

Image source: Getty Images

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/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up slightly to 7,485.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are crashing:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down 8.5% to 32.5 cents. Investors have been selling this junior infant formula company's shares following the release of a disappointing quarterly update. Bubs reported a 28% decline in quarterly revenue to $14.3 million. And with its costs still significantly more than revenue, Bubs reported a quarterly cash outflow of $13.5 million.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 5% to $1.17. This appears to have been driven by a broker note out of Goldman Sachs. According to the note, the broker has reiterated its sell rating and 95 cents price target on the lithium developer's shares. Goldman continues to believe that Core Lithium's shares are vastly overvalued.

Megaport Ltd (ASX: MP1)

The Megaport share price has crashed 24% to $5.81. This follows the release of the network as a service provider's quarterly update which fell short of expectations. Megaport reported a 10% quarter on quarter increase in revenue to $37 million and annualised recurring revenue of $148 million. This and its new service growth fell short of analyst estimates.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is down 13% to $1.47. Investors have been selling this sports betting company's shares after its cash burn continued during the second quarter. Although Pointsbet recorded a 56% increase in turnover to $2,068.8 million and a 34% lift in net win to $103.4 million, it still recorded a net cash outflow of $75.7 million for the three months.

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 Megaport and PointsBet. The Motley Fool Australia has recommended Bubs Australia, Megaport, and PointsBet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

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

Why Charter Hall Retail, DroneShield, FBR, and St Barbara shares are tumbling today

These shares are having a tough time on Tuesday. 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 EML, GQG Partners, IGO, and Integrated Research shares are sinking today

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of…

Read more »

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Bellevue Gold, Mesoblast, Pilbara Minerals, and Wesfarmers shares are dropping today

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

Read more »

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

Why AGL, CBA, Deep Yellow, and Megaport shares are sinking today

These shares are falling more than most today. What's going on?

Read more »

A wide-eyed man peers out from a small gap in his black zipped jumper conveying fear over the weak Zip share price
BNPL shares

Why did the Zip share price just crash 9%?

Investors seem to be singling Zip out for punishment today...

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Share Fallers

Why Capricorn Metals, Insignia, Sayona Mining, and Southern Cross Gold shares are falling today

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

Read more »

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

Why Data#3, Elders, Karoon Energy, and Tyro shares are falling today

These shares are having a tough session on Tuesday. But why?

Read more »

A man in a suit looks sad as oil is spilled from a barrel.
Energy Shares

This $1 billion ASX 200 energy stock is diving 7%! Here's why

This ASX energy company is taking a beating on Tuesday. But why?

Read more »