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Highlights
- IT stocks have been hammered this year on account of worries over aggressive interest rate hikes and sky-high valuations.
- SZL and LBY are two fintech stocks that have gone below AU$1 this year.
- One should not fall for much-claimed exorbitant returns from investing in penny stocks and always keep their risk in check.
The Australian market started the week on a negative note and has continued its fall for the second day. The benchmark ASX 200 index has fallen 0.81% to 7,258.4 by 12:30 PM AEST. US markets have also been taking a hit for last few sessions, with the tech-heavy NASDAQ-100 last closing at the lowest level since May 2021.
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With IT stocks being hammered this year on account of worries over aggressive interest rate hikes and sky-high valuations, let us have a look at three ASX IT penny stocks that have plunged the most this year.
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- Advanced Human Imaging Limited (ASX:AHI)
Advanced Human Imaging is an ASX-listed smartphone-based human scanning technology company, having a diverse range of data-driven applications in fields of Health, Fitness, Apparel, Life & Health Insurance, etc. The company has a market capitalisation of AU$39.1 million and has been reeling under losses for several years.
AHI’s shares have eroded almost three-fourths of investors’ wealth this year, falling 74.6% to the last closing price of AU$0.245 on 26 April 2022. Last year, the stock was comfortably trading over a dollar mark and touched a high of AU$2.19. Recently, the company had also changed its leadership team, appointing a new CEO and CFO.
- Sezzle Inc. (ASX:SZL)
Once the darling of the stock market during the peak of the COVID-19 crisis and now a space where every investor is trying to cut losses short is the BNPL sector. Debuting a few months before the COVID-19 pandemic, in July 2019, the stock had delivered over 10x return from its March 2020 lows in a matter of a few months to near AU$12.
However, the buying frenzy didn’t last long, and the stock soon reversed sharply and till date, has only been making new lows. The YTD return of SZL shares is a disappointing negative 70.2% to the last closing price of AU$0.9 on 26 April 2022.
- LayBuy Holdings Limited (ASX:LBY)
Another BNPL player on the list is LayBuy Holdings. The company has been only posting increased losses for last few years, and in FY21, its losses more than doubled to AU$41.28 million, compared to a loss of AU$16.13 million in FY20.
LBY shares marked their debut during the COVID-19 pandemic in September 2020, and the highest price till date was marked on the listing day itself, meaning the stocks have been only making lower lows since they began trading on the ASX. The stock delivered a YTD return of a negative 69.8% by 26 April 2022, closing the day at AU$0.071.
Bottom Line
Behind one multi-bagger penny stock, there are tens of these stocks which go to the dogs. Therefore, one should not fall for much-claimed exorbitant returns and always keep their risk in check.
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