ASX Tech Stocks Under Pressure: ZIP, BLG and DXN Shares Drop

Sonal Goyal

23 October 2026 02:46 PM AEDT

ASX Tech Stocks Under Pressure: ZIP, BLG and DXN Shares Drop

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Key Highlights

ZIP Co Ltd (ASX:ZIP) was trading at A$1.46, down 29.71%, Bluglass Ltd (ASX:BLG) at A$0.195, down 9.30%, and DXN Ltd (ASX:DXN) at A$0.24, down 12.73%, during the 23 October 2026 session.
The S&P/ASX 200 was at 8,760.50, down 0.37% (32.70 points), at 1:16 pm AEDT on 23 October 2026.
ZIP and BLG released updates on 23 October 2026, while DXN's latest results announcement was dated 31 August 2026.

Three ASX-listed technology names traded sharply lower during the 23 October 2026 session. ZIP Co Ltd (ASX:ZIP) was trading at A$1.46, down 29.71%, Bluglass Ltd (ASX:BLG) was at A$0.195, down 9.30%, and DXN Ltd (ASX:DXN) was at A$0.24, down 12.73%. By comparison, the S&P/ASX 200 (XJO) was at 8,760.50, down 0.37% (32.70 points), at 1:16 pm AEDT. The three companies operate in payments and fintech, photonic lasers and modular data centres respectively, and each has recently published an update that is summarised below.

ZIP Co Ltd (ASX:ZIP)

ZIP Co Ltd was trading at A$1.46, down 29.71%, during the 23 October 2026 session. Zip operates a consumer Credit and instalment-payment platform in the United States and Australia. The move came on the same day the company released its 1Q FY27 results update for the three months ended 30 September 2026.

On 23 October 2026, Zip reported total transaction Volume of A$4.6 billion, up 18.0% on 1Q26, and total income of A$376.1 million, up 17.0%. Net Bad Debts were 1.97% of transaction volume, compared with 1.65% a year earlier. Cash EBTDA was A$65.0 million, which includes A$10.1 million of operating expenses relating to an external Fraud event in the US. Excluding those costs, adjusted cash EBTDA was A$75.1 million, according to the company. Zip said it reconfirmed its FY27 guidance, including Group cash EBTDA of A$340 million, and reported a first US asset-backed security issuance of US$300.0 million.

Bluglass Ltd (ASX:BLG)

Bluglass Ltd was trading at A$0.195, down 9.30%, during the 23 October 2026 session. BluGlass is a vertically integrated developer and manufacturer of visible gallium nitride (GaN) lasers, with operations in Australia and the US. On the same day, 23 October 2026, it released its September 2026 quarter activities update and Appendix 4C.

In that update, BluGlass said it received an A$1.4 million Phase II contract from U.S. photonics company Uviquity and entered an approximately A$286,000 early-stage collaboration with a global photonics leader. It said it secured an A$8.0 million R&D financing Facility with Rockford, replacing the A$2.27 million Radium facility, and received its A$6.1 million FY26 R&D Tax Incentive refund in October, with A$2.75 million applied to the Rockford Loan repayment. The company reported quarterly customer receipts of A$1.66 million, net cash used in Operating Activities of A$3.12 million and cash and cash equivalents of A$8.66 million at quarter-end. Its 2026 Annual General Meeting was scheduled for 1:30 pm AEDT on 23 October 2026.

DXN Ltd (ASX:DXN)

DXN Ltd was trading at A$0.24, down 12.73%, during the 23 October 2026 session. DXN describes itself as a vertically integrated manufacturer and operator of modular data centres in Asia Pacific. Its most recent results announcement in the material reviewed was dated 31 August 2026 and is not presented here as related to the 23 October 2026 movement.

On 31 August 2026, DXN reported FY26 Revenue of A$10.1 million, down 33% on the previous corresponding period, and an EBITDA loss of A$4.4 million. The company said it signed its maiden AI High-Performance Compute contract, worth approximately A$8.8 million, in June 2026 and a second such contract of approximately A$12.2 million afterwards. It said Backlog was A$40.9 million as at 30 August 2026, which it described as its strongest-ever position, and that it anticipated converting approximately 45% of backlog into revenue in the first half of FY27. DXN also reported a A$7.0 million Capital raise, a new Manufacturing facility in Johor, Malaysia, and cash of A$11.0 million as at 30 June 2026.

Related Sector Context

The three companies sit in different corners of the ASX technology landscape. Zip operates in the BNPL and consumer finance segment, where credit performance and funding arrangements feature in company reporting. BluGlass operates in semiconductor lasers and photonics, an area that includes development-stage and early-commercial businesses often supported by customer-funded programs and government incentives. DXN operates in modular data centre construction, linked to Demand for digital and AI computing capacity. The S&P/ASX 200 was down 0.37% at 1:16 pm AEDT on 23 October 2026, a considerably smaller move than those recorded by the three stocks during the same session.

Risks to Weigh In

Zip reported net bad debts of 1.97% of transaction volume against a US target range of 1.5 to 2.0%, and said an external fraud event added A$10.1 million of operating expenses.
BluGlass reported net cash used in operating activities of A$3.12 million for the quarter, and its new Rockford facility bears interest at 16.5% per annum.
DXN reported FY26 revenue down 33% and negative EBITDA, and said its potential US$200 million-plus follow-on opportunity is contingent on successful delivery of a proof of concept module.
DXN's Indonesian joint venture is described by the company as non-binding, and its new manufacturing facilities were not yet in production at the time of its announcement.
Zip said its outlook is subject to market conditions.

Catalysts on Watch

Zip's planned launch of Zip Cash to select US customers over the holiday season and its forecast of lower US credit losses in the second quarter.
BluGlass's 2026 Annual General Meeting on 23 October 2026 and the outcome of its three to five month feasibility study with a global photonics leader.
DXN's delivery and commissioning of its maiden AI HPC pilot, which the company called its near-term priority.
DXN's expected commencement of production in Malaysia in the second quarter of FY27.
Conversion of approximately 45% of DXN's backlog into revenue in the first half of FY27, as anticipated by the company.

Where Things Stand

ZIP Co Ltd, Bluglass Ltd and DXN Ltd all traded lower during the 23 October 2026 session, with declines of 29.71%, 9.30% and 12.73% respectively, against a 0.37% fall in the S&P/ASX 200 at 1:16 pm AEDT. Zip and BluGlass released updates on the same day, while DXN's most recent results announcement was dated 31 August 2026. Each company's own announcement is the source of the figures summarised above.

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