Month: May 2022

The Flight Centre Travel Group Ltd (ASX: FLT) share price has seen its fair share of ups and downs since the S&P/ASX 200 Index (ASX: XJO) travel share first listed in December 1995.

The biggest down, as you’re likely aware, came in the month following the onset of the global pandemic in early 2020.

But when was the best day ever for the Flight Centre share price?

Flight Centre share price closes for all-time high

That day was 20 August, 2018.

By the time the closing bell rang the Flight Centre share price stood at $69.36, a long way from the current price of $20.13.

Investors at the time were rewarding the company for record full-year financial results for 2018, released the prior week. Those results included all-time high underlying profits before tax of $384.7 million, up 17% from the prior year and 2% higher than Flight Centre’s previous record profits from FY 2014.

The ASX 200 travel share also reported a record total transaction value (TTV) of $21.8 billion for FY 2018. The company paid out a final dividend of $1.07 per share, which brought its full 2018 financial year dividend to $1.67 per share.

Flight Centre has not paid a dividend since the onset of the COVID crisis saw travel grind to a halt in early 2020.

How has the ASX 200 travel share faired recently?

While the Flight Centre share price is well off its all-time highs from August 2018, shares are up 27% over the past 12 months. That compares quite favourably to the 3% loss posted by the ASX 200 since this time last year.

However, some analysts are now cautioning that ASX travel shares look fully valued at current prices under current market conditions.

According to Neil Margolis, lead portfolio manager at Merlon Capital Partners (courtesy of the Australian Financial Review): “While pent-up demand might result in super-profits for travel stocks, most of this is already reflected in the share prices.”

The post When was the best ever day on the Flight Centre share price chart? appeared first on The Motley Fool Australia.

More reading

• Unprecedented: Does this event mean we’re now in a bear market?
• Leading brokers name 3 ASX shares to buy today
• Are ASX 200 travel shares already fully valued in May?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to sell next week

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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What a rollercoaster year it has been for the Zip Co Ltd (ASX: ZIP) share price.

From reaching an all-time high of $14.53 around 12 months ago to bottoming out to a multi-year low of 97 cents today.

To save you doing the math, that represents a fall of almost 94% if you invested at the peak. Which means, the Zip share price will need to rocket more than 900% to recover from the above losses.

Although the buy-now pay-later (BNPL) company’s shares have staged a mini comeback in the last hour, they are still 75% down compared to pre-pandemic levels.

What’s going on with Zip shares?

At the time of writing, Zip shares are down by 2.45% to 99.5 cents following turmoil across global markets.

The old age saying, “When America sneezes, Australia catches a cold” couldn’t be more right.

Over the last few days, Wall Street losses have heavily impacted the ASX. The S&P/ASX 200 Index (ASX: XJO) is down over 5% for the past week alone.

Investors have pulled out of their investments over fears about rate hikes kicking off a global economic slowdown.

In particular, the S&P/ASX All Technology Index (ASX: XTX) has been hit hard, down roughly 10% since this time last week.

This has also put a squeeze on other similar companies such as mobile payment provider Block Inc CDI(ASX: SQ2), Splitit Payments Ltd (ASX: SPT), and Humm Group Ltd (ASX: HUM).

The Reserve Bank of Australia (RBA) lifted its official cash rate by 0.25% earlier this month.

Notably, this is the first time the RBA has increased its rates since the Julia Gillard era in November 2010.

While the official cash rate stands at 0.35%, it is widely expected there will be further rate hikes to come.

The RBA is using its tools to curb inflation which has risen 5.1% on an annualised basis.

What this means is that consumers are less likely to spend on discretionary items when interest rates are picking up. The cost of debt such as credit cards as well as personal loans will require extra payments, affecting consumer spending habits.

Zip share price summary

Over the past 12 months, the Zip share price is down 87%, with year to date down more than 77%.

Based on the current Zip share price, the company has a market capitalisation of around $670.08 billion.

The post It’s happened: Zip share price tumbled below $1 for first time since 2018 appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Over 20 million new Zip shares will soon be available to trade. What does this mean for the share price?
• Why is the Zip share price making a partial recovery this afternoon?
• Why ARB, AVZ, Temple & Webster, and Zip shares are sinking
• The Zip share price is plunging 9% today. Here’s why

Motley Fool contributor Aaron Teboneras 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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX growth shares that are increasing revenue, achieving higher profit margins, and growing their scale could be potential investment options to consider.

The current volatility may be opening up the opportunity to look at some businesses which are now at a cheaper value than at the start of 2022.

With that in mind, here are two ASX growth shares:

Lovisa Holdings Ltd (ASX: LOV)

The company describes itself as a “fast fashion” jewellery business. It has around 590 global stores across 22 markets.

Lovisa says it is investing in its structures to support future growth. It’s seeing “strong” digital growth and it’s going to keep investing in its digital operations. The company boasts about having a strong balance sheet, with no debt.

It’s going to keep expanding in its current markets such as the US and Europe. During the first half of FY22, it opened 42 net new stores. HY22 also saw sales growth of 36%. It sees opportunities to expand into new markets.

In the first half of FY22, the ASX growth share’s revenue rose by 48.3%, while gross profit increased 50.5% and net profit after tax (NPAT) jumped 70.3%. Lovisa said it has a strong focus on efficiencies while building structure to support the next stage of growth.

Growth has continued into the second half of FY22. Comparable store sales were up 12.1% in the first eight weeks of the second half, but total sales were up 61.7%.

The Lovisa share price closed is currently $14.97, 25% lower than it started the year.

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is a retailer that describes its purpose as to support new and expectant parents in the early years of parenthood.

The company has more than 60 stores. It is aiming for at least 100 stores in Australia and at least 10 stores in New Zealand. In the first half of FY22, it opened four new stores.

Baby Bunting sees private label and exclusive products as a way to attract customers as well as achieve a higher gross profit margin. In the first half of FY22, private label and exclusive products made up 44.5% of total sales.

Online sales are also responsible for a long and growing number of sales. First-half online sales increased by 32.6% to $56.8 million, accounting for 23.8% of total sales.

The company continued to grow and achieve operating leverage. Total sales increased 10%, gross profit increased 15.6%, and pro forma net profit after tax rose by 16.5% to $12.5 million. Its market share continues to grow, according to the company. The company also recently opened a new national distribution centre, helping it with costs and becoming more efficient.

The ASX growth share said it is assessing the broader $5.1 billion baby goods market “for future long-term growth opportunities”. It is also investing in its online offering and expanding its online range. It’s also reviewing its network plan to assess opportunities “given its sustained market share growth”.

Using the last two declared dividends, Baby Bunting has a trailing grossed-up dividend yield of 5.2%.

At the time of writing, the Baby Bunting share price is $4.13, 26% lower than at the start of 2022.

The post Are these 2 top ASX growth shares buys right now? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• What’s pushing the Lovisa share price higher on Thursday?
• 3 stellar ASX growth shares analysts are tipping as buys this month
• 2 excellent ASX shares to buy and hold for a decade
• Here are 2 top ASX dividend shares analysts are tipping as buys

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting and Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Bitcoin (CRYPTO: BTC) price cratered over the past 24 hours, sinking 10%.

The world’s biggest crypto by market cap is currently worth US$30,732 (AU$44,048), having dipped as low as US$30,516 overnight.

Why the selloff?

The latest selloff puts the Bitcoin price down 35% since 1 January. It’s now down 55% from the all-time highs hit on 10 November last year, when the token reached US$68,790.

The rout comes following another brutal day on US markets, which saw the tech-heavy Nasdaq close down 4.3%.

In a further demonstration that cryptos are trending in lockstep with risk assets like high-growth tech shares, every one of the top-100 cryptos (save the stablecoins) is deep into the red today, according to data from CoinMarketCap.

What the experts are saying about the Bitcoin price

Commenting on the sliding Bitcoin price, head of derivatives at Genesis Global Trading Josh Lim said (as quoted by Bloomberg):

We’re seeing a slow motion meltdown, partially because it’s mostly been long holders selling [instead of levered liquidations]. Now that some corporate treasuries are hovering near their cost basis, markets are waiting and watching to see if shareholders will force some de-risking.

CEO of Galaxy Digital Holdings Michael Novogratz added:

Crypto probably trades correlated to the Nasdaq until we hit a new equilibrium. My instinct is there’s some more damage to be done, and that will trade in a very choppy, volatile and difficult market for at least the next few quarters before people are getting some sense that we’re at an equilibrium.

Senior research analyst at Cumberland DRW Steven Goulden is among those who’ll be vigilantly watching the upcoming Bitcoin price moves (from Bloomberg):

We’re watching carefully to see how the market fares over the next 24 hours. Including whether mechanisms being introduced to help increase reliance, such as LFG lending out Bitcoin to OTC trading firms, will be enough to hold in times of deep stress or if we need additional stabilisation mechanisms.

CEO of Mudrex Edul Patel believes that with investors nervous about fast-rising interest rates, the Bitcoin price could have further to slide, potentially below US$30,000.

“The downward trend is likely to continue for the next few days,” he said.

The post ‘Slow motion meltdown’: How low will the Bitcoin price sink? appeared first on The Motley Fool Australia.

More reading

• Bitcoin just fell 10% in a day: Time to strike?
• First-ever Aussie Bitcoin and Ethereum ETFs finally launch this week
• Bitcoin price slumps to 4-month lows. Now what?
• Bitcoin price plunges 11%. What’s going on?
• Here’s why the Bitcoin price surged 6% overnight

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australia’s economic position has experienced a notable shift over last few weeks and the nation’s stock market appears to have shifted in turn. Understandably, many of those invested in ASX shares are likely worried the recent downturn could spell a stock market crash.

Rest assured, the ASX doesn’t appear to be ‘crashing’ right now. Though, it’s not off the cards.

Let’s look at what a stock market crash is and how far away the ASX might be from experiencing one.

Is this the beginning of an ASX stock market crash?

The exact definition of a stock market crash is subjective. Though, the consensus appears to be that ASX shares must tumble more than 20% over a short period of time for a stock market crash to be declared.

While the market has displayed plenty of volatility this year, it hasn’t quite reached ‘crash’ levels.

The ASX experienced a correction earlier this year. The S&P/ASX 200 Index (ASX: XJO) dropped 9.9% between 4 January and 27 January ­– a plunge lasting slightly more than three weeks.

The tumble came amid concerns of rising inflation and resulting interest rate hikes – fears which have recently been realised.

Australia saw the inflation rate surpass 5% late last month and the Reserve Bank of Australia increased interest rates for the first time in more than a decade last week.

However, the ASX 200 is currently only 8.43% lower than the near-all-time high it reached on 21 April.

Worryingly, it’s not such a pretty picture overseas. As many market watchers will know, ASX shares tend to move in line with their US-based counterparts – and those counterparts are struggling.

The S&P 500 (SP: .INX) is now nearly 14% lower than its March high. Its latest tumble appears to have been driven by the US Federal Reserve’s recent decision to hike interest rates once more.

Meanwhile, the Nasdaq Composite (NASDAQ: .IXIC) is now officially in stock market crash territory. It’s plummeted 20.5% from the high it recorded six weeks ago.

The tech-heavy index fell more than 4% while most of Australia slept through the US’s Monday session.

Perhaps in reaction, the ASX 200 is in the red on Tuesday, slumping 1.9% at the time of writing. But not all is lost.

Here at The Motley Fool Australia, we like to take a ‘glass half full’ approach.

As our chief investment officer Scott Phillips said during January’s correction: “The ASX has never yet failed to regain, and then surpass, its previous highs … I have a high degree of confidence that history will be a good guide.”

The post ASX shares are tumbling, but is it an actual stock market crash? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• ‘Do not panic’: Experts explain how to stay calm and carry on investing amid rising interest rates
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Macquarie share price tumbles 4% to 9-week low. Is it time to pounce?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The small side of the market has been a difficult place to invest this year. Due to a sudden disdain for loss-making tech shares, the market has punished a number of highly promising small cap shares.

While this is disappointing, it could be an opportunity for patient, long-term focused investors.

Here are two small cap ASX shares that brokers rate as buys and are forecasting huge growth in the future:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share to look at is Hipages. It is a leading online platform provider that provides job leads to tradies from homeowners and organisations looking for qualified professionals.

In addition, the company’s Tradiecore software helps tradies with job management, understanding profitability, and to create a smoother experience for both them and their customers.

Goldman Sachs is a very big fan of Hipages and believes it has enormous potential. In fact, the broker has likened the company to Carsales.com Ltd (ASX: CAR) and REA Group Limited (ASX: REA) in the early days.

The broker commented: “In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries. […] HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia.”

The broker currently has a buy rating and $2.50 price target on its shares.

Nitro Software Ltd (ASX: NTO)

Another small cap that is highly rated is Nitro Software. It is the document productivity software company behind the Nitro Productivity Suite that is driving digital transformation in organisations around the world.

Bell Potter is very positive on Nitro. It currently has a buy rating and $2.50 price target on its shares.

It said: “[Nitro] Remains a key pick despite not reporting last month but looking value for a high quality, mid cap tech stock on FY22 EV/EBITDA and PE ratios of c.22x and 40x and we also expect a good 1HFY22 result in May with, in particular, strong SaaS ARR growth.”

The post 2 highly rated small cap ASX shares that analysts say have huge potential appeared first on The Motley Fool Australia.

More reading

• Analysts say investors should buy these top ASX shares
• Why Nitro, PointsBet, Sezzle, and Siteminder shares are racing higher
• Nitro share price storms 23% higher on record quarter
• Analysts name 3 small cap ASX shares to buy
• Goldman Sachs says these small cap ASX shares can double in value

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 Hipages Group Holdings Ltd. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Bank shares on the S&P/ASX 200 Index (ASX: XJO) delivered a decent set of profit results this month, but investors shouldn’t bank on more good times ahead, according to experts.

The sombre outlook comes as the big four ASX banks delivered a 5.1% increase in operating cash profit to $14.4 billion, according to KPMG’s analysis that was reported in The Australian.

ASX 200 bank shares deliver earnings bounce

This should be great news for the Commonwealth Bank of Australia (ASX: CBA) share price, Westpac Banking Corp (ASX: WBC) share price, National Australia Bank Ltd (ASX: NAB) share price and Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.

After all, their profit growth puts them at just 0.4% below their pre-COVID-19 earnings. The growth in their latest half-year results is a function of continued strong demand for both residential and business loans.

The value of mortgages improved 2.5% to $1,812 billion, although business lending growth is the highlight as that expanded 4.8% to $1,077 billion, reported The Australian.

Why the good times for banks are under threat

This isn’t the time for investors in ASX 200 bank shares to get complacent though. It’s like the fine print you see in financial services ads: past performance shouldn’t be used as a guide for future performance.

That’s the verdict by analysts quoted in the article. KPMG’s head of banking Steve Jackson warned, “with uncertainty ahead, it will be interesting to see how they maintain their current momentum’’.

Cost savings lever is harder to pull

Further, ASX 200 bank shares have limited ability to leverage on cost savings, according to KPMG and EY. Cost-cutting is one of the key features of Westpac’s bullish profit results released yesterday.

This is because bank margins will continue to be squeezed by the jump in inflation and intense competition from non-bank lenders.

EY’s banking and capital markets leader, Tim Dring, believes that margin headwinds will continue into the second half of the year. But the outlook is brighter because of the RBA’s recent larger-than-expected cash rate rise.

Rising interest rates are a double-edged sword

“While margin compression is likely to continue in the short term, the rising interest rate cycle should ease NIM [net interest margin] pressures and lead to improved profitability for the banks over the medium term,’’ Dring said.

“However, ongoing economic risks point to continued uncertainty for the banking sector’s outlook.”

Rising interest rates are a double-edged sword for ASX 200 bank shares. While it will enable banks to charge more for loans, it also could lead to a deterioration in asset quality and slow loan growth.

ASX 200 bank shares running out of growth options

The positive assessment of the banks’ results was echoed by PwC Australia, which noted they delivered the “cleanest result in years”. But PwC too warned that the momentum could fade.

While there was a general absence of significant one-off charges, such as write-downs and restructuring costs, as banks streamlined and downsized, growth will be harder to come by due to the simplification strategy.

The post What’s the outlook for ASX 200 bank shares amid rising interest rates? appeared first on The Motley Fool Australia.

More reading

• Looking to secure the latest NAB dividend. Here’s what you need to do
• Is the ANZ share price a buy and a dividend opportunity?
• Here are the top 10 ASX shares today
• 3 ASX All Ordinaries shares that managed to post decent gains on Monday
• Why BrainChip, PolyNovo, TPG, and Westpac shares are pushing higher

Motley Fool contributor Brendon Lau has positions in Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investors endured another round of selling in the stock market, piling on after last week’s turbulent performance. For six months now, major market benchmarks like the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) have consistently lost ground. The S&P is inching closer toward joining the Nasdaq in bear market territory with a 17% drop from its highs at the beginning of the year.

Index	Daily Percentage Change	Daily Point Change
Dow	(1.99%)	(654)
S&P 500	(3.20%)	(132)
Nasdaq	(4.29%)	(521)

Data source: Yahoo! Finance.

One area that has been hit especially hard lately is the e-commerce industry. Companies thrived in 2020 and 2021 as consumers had to resort to internet-based shopping during pandemic-related lockdowns. Now, though, reopening trade has many investors feeling like the heyday of these stocks is over. Moreover, with geopolitical pressures emerging onto the global scene, some believe that the factors that made e-commerce as lucrative as it was could be fading. Below, we’ll look at some of the stocks seeing big losses and assess their longer-term prospects.

Big losses in internet retail

Today’s session had some big losses, but many of the bottom performers were in the global e-commerce arena. Consider the following:

• Latin America’s MercadoLibre (NASDAQ: MELI) fell 17%.
• In Singapore, Sea Limited (NYSE: SE) was down more than 15%.
• E-commerce supporter and buy now/pay later specialist Affirm Holdings (NASDAQ: AFRM) gave up more than 17% of its value.
• Canadian e-commerce platform provider Shopify (NYSE: SHOP) fell 10%.
• Online auto specialist Carvana (NYSE: CVNA) was down around 16.5% on the day.
• South Korea’s Coupang (NYSE: CPNG) was one of the biggest losers, falling more than 22%.

As you can see, the selling was relatively indiscriminate and worldwide in scope. Even giants in the industry saw sizable declines, with Amazon.com (NASDAQ: AMZN) falling 5% and China’s Alibaba Group (NYSE: BABA) posting a nearly 6% drop.

Most of these declines merely added to much more extensive drops over the past several months. The six stocks in the bullet points above are all down between 60% and 90% from their best levels over the past year, and even Amazon and Alibaba have fallen 40% to 60%.

The long-term picture for e-commerce

E-commerce has made itself an integral part of the overall retail industry, and its long-term prospects remain favorable. Industry watchers see e-commerce continuing to gain market share from brick-and-mortar stores, with one analyst seeing $17.5 trillion in global digital commerce taking place by 2030, up from just over $4.2 trillion in 2020.

But just because there’s more e-commerce activity doesn’t automatically mean that investing in the space will be equally lucrative. Greater competition could drive margins down, while higher logistics costs could weigh on profitability as well. However, if retailers try to take back some of the features that have made e-commerce popular, such as fast shipping at little or no cost, it could set back prospects for internet retail growth.

The wild card in e-commerce is the extent to which the industry has relied on functional global supply chains. If the free flow of goods comes to a halt, it will have ramifications for the entire retail industry, but e-commerce in particular could see its anticipated higher growth rates come to a standstill.

Lastly, investors need to remember that despite their recent drops, most of these stocks are still sporting solid gains. Amazon has doubled since late 2017, while MercadoLibre and Shopify have tripled and Sea is up nearly 300%. Those huge swings serve as a reminder that the price of extremely high returns from high-growth stocks can be massive volatility, making it essential to find the best stocks earlier rather than later.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is global e-commerce really at risk? appeared first on The Motley Fool Australia.

More reading

• Why Amazon stock tanked today
• What Apple and Amazon said after hours Thursday
• Have ASX tech shares finally reached the bottom?
• The world’s most valuable companies from 2000 to 2022
• Beers and planes: 3 ASX shares killing it right now

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dan Caplinger has positions in Amazon, MercadoLibre, and Shopify. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Affirm Holdings, Inc., Amazon, MercadoLibre, Sea Limited, and Shopify. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The value of Bitcoin (CRYPTO: BTC) just plummeted more than 10% over the past 24 hours, but one expert reckons this merely presents a great chance to buy.

In line with growth stocks, the flagship cryptocurrency is feeling the wrath of investors wanting to shift away from so-called “risk assets”.

The 24 hours ending Tuesday morning Australian time was the largest one-day plunge since January, according to Bloomberg.

Bitcoin has now lost almost 34% of its value so far this year and has halved since November.

But DeVere Group chief Nigel Green forecasts that large Bitcoin investors, dubbed “whales”, will take the chance to buy more on the current dip.

“This is because the robust fundamentals of the world’s largest cryptocurrency — including being a digital, borderless, viable, decentralised, tamper-proof, unconfiscatable monetary system — remain the same.”

Bitcoin’s bull case

Green also predicted a significant milestone this week would pique the interest of whales and institutional investors.

“Strike, a fintech payment processor for the Bitcoin Lightning Network, is now integrating with BlackHawk Network, the largest payment processor in the world,” he said.

“This allows Bitcoin to enter the physical locations of retail outlets and hospitality venues, which make up 85% of all US transactions.”

This deal would prompt large investors to increase their Bitcoin exposure, according to Green.

“As typically happens with price dips, they will shrug off concerns about dips, using them as buying opportunities, and focus on long-term trends,” he said.

“Institutional investors and well-resourced individuals will be moving to buy what they are currently regarding as ‘discounted’ Bitcoin.”

Bitcoin’s bear case

Not every expert is as upbeat about Bitcoin as Green.

Michael Novogratz is the founder and chief executive of Galaxy Digital Holdings Ltd (TSE: GLXY), which invests in digital assets.

In an earnings call overnight, he forecast that more pain would come for crypto owners before valuations settle down.

“My instinct is there’s some more damage to be done,” he said, according to Bloomberg.

“And that will trade in a very choppy, volatile, and difficult market for at least the next few quarters before people are getting some sense that we’re at an equilibrium.”

The post Bitcoin just fell 10% in a day: Time to strike? appeared first on The Motley Fool Australia.

More reading

• First-ever Aussie Bitcoin and Ethereum ETFs finally launch this week
• Bitcoin price slumps to 4-month lows. Now what?
• Bitcoin price plunges 11%. What’s going on?
• Here’s why the Bitcoin price surged 6% overnight
• Another country adopts Bitcoin as legal tender. What does this mean for investors?

Motley Fool contributor Tony Yoo has positions in Bitcoin and owns shares in Galaxy Digital Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Meta Platforms (NASDAQ: FB) took a hit on Monday, declining as much as 3.7%. But as of 1:30 p.m. ET, the stock was down 2.1%. The stock’s decline worsens a sharp year-to-date decline as investors worry about the social media company’s ability to return to strong revenue growth rates.

While this theme could be behind some of the stock’s pullback on Monday, it was likely mainly driven by bearishness in the overall market.

So what

Highlighting what a brutal year it’s been for the parent company of Facebook, Instagram, and WhatsApp, shares have cratered more than 40% year to date as of this writing. However, the stock is notably up from levels in April, before the company impressed investors with better-than-expected earnings per share. 

The stock’s move lower on Monday comes as the overall market tumbles with investors worrying about the impact of inflation and rising interest rates on the economy and on an already uncertain operating environment for many companies. Capturing the broader market drawdown on Monday, as of this writing, the S&P 500 is down about 2.6% and the Nasdaq Composite is down 3.5%.

Now what

Meta grew its revenue just 7% year over year in the first quarter as the company faces off against tough year-ago comparisons and continues to deal with Apple‘s recent changes to ad tracking and measurement on iOS, its mobile operating system.

Looking ahead, management expects continued headwinds. While the company is making progress on addressing challenges presented by iOS, Meta isn’t fully out of the woods yet. In addition, the company’s year-ago comparison in Q2 is particularly tough. To this end, management guided for second-quarter revenue to come in at $28 billion to $30 billion, compared with $28.6 billion in the year-ago quarter. The low end of this guidance range, therefore, would notably translate to a year-over-year decline.

Of course, Meta hopes that, as it works through its tough year-ago comparisons in the first half of the year and solves challenges associated with iOS, revenue growth can reaccelerate.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Meta Platforms Stock Dipped on Monday appeared first on The Motley Fool Australia.

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• Why Meta Platforms stock charged sharply on Thursday
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• Where will Meta Platforms be in 5 years?

Daniel Sparks has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Meta Platforms, Inc. The Motley Fool Australia has recommended Amazon and Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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