Despite just being four days long, the S&P/ASX 200 Index (ASX: XJO) has just had its worst week in over two years. Over the four days, the benchmark index shed 6.6% of its value to end the period at 6,474.8 points.
While a good number of shares dropped with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 last week:
GUD Holdings Limited (ASX: GUD)
The GUD share price was the worst performer on the ASX 200 last week with a decline of 27.1%. Investors were selling down this products company’s shares following the release of a profit warning. Due partly to supply chain issues, GUD downgraded its underlying operating earnings guidance to $147 million in FY 2022. This compares to its previous guidance of $155 million to $160 million. In response to the news, Citi downgraded its shares and slashed its price target.
The Block share price wasn’t far behind with a disappointing 26.1% decline. This follows an equally poor performance by the payment giant’s NYSE listed shares. Last week Block held its annual general meeting. At the meeting, NorthStar Asset Management hit out at the company’s voting structure and some of management’s recent moves. The latter includes the purchase of a majority stake in music streaming service Tidal, the rebranding from Square to Block, and Jack Dorsey’s passion for cryptocurrencies.
The Hub24 share price was out of form and tumbled 20.1% over the four days. This may have been driven by weakness in the tech sector and the investment platform provider’s investor briefing event. At the event, the company revealed that platform flows have been affected by market volatility.
The Novonix share price continued its disappointing run and sank a further 19.6%. This means the battery technology company’s shares are now down 76% since the start of the year. Investors have been selling higher risk shares during the market volatility. And with a market capitalisation still over $1.2 billion and no meaningful revenue, Novonix is certainly high up the risk scale.
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