Jump to content

ASOS share price firmly under pressure ahead of trading statement


Recommended Posts

ASOS shares are on the back foot again, as the gloomy outlook for consumer spending continues to pressure the share price.

bg%20asos%20987987987.pngSource: Bloomberg
 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 12 July 2022 

ASOS hits 12-year lows

It has been a miserable 18-months for ASOS shareholders.

The big rally from the depths of the pandemic finally petered out early in 2021, as questions over the outlook for such stocks began to take hold.

In addition, inflows shifted away from the pandemic’s winners like ASOS towards those believed to be more likely to benefit from the renewed economic expansion and rising commodity prices.

Markets focus on expectations of future earnings, and for ASOS the picture has become increasingly gloomy. The above-mentioned rise in commodity prices has meant a surge in inflation readings globally, and a consequent response by central banks, which have tightened policy in order to try and slow the rise in prices.

This has resulted in a squeeze on consumer incomes, pressuring stocks like ASOS. Customers have been returning more items in this straitened climate, something that has also affected rival, BooHoo. Having benefited from the strong level of online spending in its core market of 20-year olds, the firm is now feeling the pressure as this demographic is particularly hard-hit by rising prices.

Brokers have been cutting estimates for full-year performance, causing the shares to decline further. For the time being, it looks like this gloomy outlook will persist.

ASOS share price – technical analysis

The share price has dropped by around 80% since last May, moving from around £50 to sub-£10 now, in a fairly relentless move that has seen few sustained rebounds.

The June rebound faltered as it returned to £10, and we have seen the share price fall again over the past two sessions. Additional declines seem set to target the lows from June at £7.72, with the next big level below this down at £5.19.

ASOS_120722.pngSource: ProRealTime
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • ARTFI's mission to make high-value art accessible through fractional ownership and NFTs is a fascinating concept. Let's explore other projects breaking down barriers in the art world and bringing ownership to the masses. ARTFI offers some unique features beyond just fractionalization: Focus on Blue-Chip Art, their concentration on established artists attracts high-net-worth collectors and increases investment potential. Industry Endorsements, supports from prominent figures adds credibility to the platform. So, is ARTFI your one-stop shop for owning a piece of an iconic painting because they are listed on Bitget? Maybe or maybe not. There are other options, and the art market itself is evolving alongside NFTs. What do you think? Is ARTFI a revolutionary force in art ownership, or just a trendy gimmick? Have you explored any other fractional ownership or art-related NFT projects? Share your thoughts in the comments!
    • Mystiko Network like competitors like Omni are promoting interoperability and scalability in the crypto landscape. However, Mystiko is standing out with seamless compatibility with various L1 and L2 blockchains which they have extended to cross-chain bridges, wallets, DEXs, and other dApps. By eliminating blockchain barriers, Mystiko Network allows users to transfer assets and interact with various dApps more easily. This focus on interoperability goes hand-in-hand with scalability. Plus, their ZK SDK allows developers to build secure and private dApps while reducing costs and simplifying cross-chain transactions. It has successfully raised $29.25 million and have forge backing from industry giants like Samsung Next, Coinlist, Hashkey Capital etc... emphasizes it potential and gives it a firm foothold in the interoperability niche. Mystiko is about to hit another milestone as their token XZK is about to be listed on a Tier1 CEX like Bitget further exposing it to investors! Overall, they are ticking the right boxes and I believe they are a project to watch!
×
×
  • Create New...
us