Month: October 2022

This year has been rough on ASX tech shares, with inflation and rising rates taking their toll on many of the market’s favourites.

While the S&P/ASX 200 Index (ASX: XJO) has dumped 11% year to date, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has tumbled 36%.

The broader S&P/ASX 200 All Technology Index (ASX: XTX), meanwhile, has fallen 35% in 2022.

If there was ever a time to remind market watchers of the winners that can be found in the sector, this would be it.

Here’s how an ASX investor could have turned $1,000 into nearly $50,000 in just 10 years by investing in ASX tech shares.

3 ASX tech shares that turned $1,000 into $50,000

If an investor split $1,000 between these three ASX tech shares 10 years ago, investing $333 in each, here’s how their buy would have turned out.

ASX tech company	Gains over the last decade	Recent value of $333 invested	Dividends paid per share
HUB24 Ltd (ASX: HUB)	3,242%	$11,129	45.1 cents
Altium Limited (ASX: ALU)	4,534%	$15,431	$2.48
Nearmap Ltd (ASX: NEA)	6,533%	$22,089	–

All in all, an initial $1,000 investment in these ASX tech shares would have returned a total of $49,868 as of yesterday’s close. That’s certainly nothing to scoff at.

The biggest gain in that time was posted by the only stock not to pay a dividend.

Nearmap shares were trading at just 3 cents this time 10 years ago. They closed Wednesday’s session at a whopping $1.99.

Meanwhile, shares in Altium were swapping hands for 79 cents this time last decade. They’re now worth $36.61 apiece.

The company has also offered a shareholder who bought $333 worth of its stock in October 2012 a total of $1,044 worth of dividends over the life of their investment. Though, it didn’t pay out its first fully franked offering until this year.

Finally, the HUB24 share price lifted from 76 cents this time last decade to trade at $25.40 as of Wednesday’s close.

Someone who bought $333 worth of the ASX tech favourite’s shares back then would have received around $197.50 in dividends since then, the majority of which were fully franked.

And, of course, if they had chosen to reinvest those dividends, they would have been even better off due to the compounding effect.

The key takeaway

While times are tough in 2022, particularly for tech shares, there will likely always be winners hidden on the ASX. The trick is to know where to look.

The post 3 ASX tech shares that have managed to turn a $1,000 investment into $50,000 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 4 ASX tech shares with ‘long runways for growth at valuations rarely seen’: expert
• Why Hub24, Sezzle, Telix, and Westpac shares are rising
• Guess which ASX 200 tech share is surging 14% following a $3 billion quarter
• If I’d invested $5,000 in these 5 ASX shares five years ago, here’s what I’d have now

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 positions in and has recommended Altium, Hub24 Ltd, and Nearmap Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has recommended Nearmap 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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Winner

The Woodside Energy Group Ltd (ASX: WDS) share price has gained $1.65 or 5.1% to $34.20 in Thursday morning trade after the oil and gas producer reported record third-quarter production, sales volume and revenue, up 52%, 59% and 70% respectively for the previous quarter.

Strong operational performance across the combined portfolio allowed Woodside to upgrade its full-year production guidance by around 5%.

Woodside shares trade on a trailing fully-franked dividend yield of around 9%, making them one of the highest-yielding ASX 200 stocks. On top of that, the company trades on a forward forecast price-to-earnings (P/E) ratio of under 9 times earnings.

Woodside is a beneficiary of the high oil and gas prices, and the lower Aussie dollar. It’s hard to imagine a better macroeconomic environment, yet at the same time, it’s equally hard to imagine what could derail the Woodside juggernaut.

In August, the company said the upheavals in global and Australian energy markets have shone a spotlight on the importance of gas in the world’s energy mix, underscoring the company’s confidence in the longer-term demand outlook for gas, which makes up 70% of Woodside’s portfolio.

Sinner

The Megaport Ltd (ASX: MP1) share price plunged 22% to $6.61 yesterday after the network-as-a-service provider released a lacklustre first-quarter trading update. 

Once a tech stock darling, Megaport shares have fallen almost 70% from their 52-week high, with the company now valued at just over $1 billion.

The company is a high-profile holding in the Firetrail Australian Small Companies Fund, and in June this year, amid an earnings miss, the fund said it “has added capital to the Megaport position on the back of the share price weakness and our conviction in the medium-term outlook for the company”.

In its September update, Firetrail said an analyst report highlighted that Megaport’s first mover advantage continues to widen, the fund also saying “pricing across the sector has started to increase which, combined with a falling AUD, should benefit the company in the short term”.

I don’t get it with Megaport. For the month of September, its reported monthly recurring revenue increased by $913,000 quarter on quarter. That’s chicken feed for a company with a market capitalisation of over $1 billion, and one which saw its cash balance fall in the quarter to $69 million.

With highly valued tech stocks, even if they are loss-making, I like to see them growing revenues like gangbusters, allowing them to grow into their valuation. No such joy at Megaport, where revenue for the quarter grew 10% quarter on quarter to just $34 million. At this rate of progress, it’s going to take a very long time for Megaport to grow into its still lofty valuation.

The post Winner and Sinner: Woodside stock looks dirt cheap, whilst Megaport shares could have even further to fall appeared first on The Motley Fool Australia.

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More reading

• Woodside share price jumps 5% on record Q3 performance
• 5 things to watch on the ASX 200 on Thursday
• Why did the Megaport share price crash 22% today?
• Why GQG, Megaport, Melbana Energy, and St Barbara shares are dropping today
• Why is the Woodside share price having such a stinker this week?

Motley Fool contributor Bruce Jackson 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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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 Novonix Ltd (ASX: NVX) share price is having a sensational day after returning from a trading halt.

In morning trade, the battery materials and technology company’s shares are up 26% to $2.68

Why is the Novonix share price rocketing higher?

Investors have been scrambling to buy Novonix and a couple of other US-based battery material shares on Thursday after they awarded a major US government grant.

This morning Novonix, Piedmont Lithium Inc (ASX: PLL) and Syrah Resources Ltd (ASX: SYR) were all individually selected to enter negotiations to receive grant funding from the U.S. Department of Energy (DOE) to strengthen the North American battery supply chain amid surging demand and growing calls to onshore these critical industries.

According to the release, in respect to Novonix, its Anode Materials division was selected to enter negotiations to receive US$150 million (A$240 million) in grant funding from the US DOE. Under the terms of the grant, the government funds must be at least matched by the recipient.

Management notes that these funds would be dedicated to the construction of a 30,000 tonnes per annum (tpa) U.S. manufacturing facility, including site selection, plant layout, and engineering design with capability for additional expansion.

Proud and ready

Novonix co-founder and CEO, Dr Chris Burns, was delighted with the news. He said:

We are proud to have been selected to negotiate this funding in recognition of our readiness to accelerate the domestic battery supply chain and meet growing global demand from the electric vehicle and stationary grid storage markets.

Since inception, our mission has been to enhance batteries through innovation and pave the way for the clean energy transformation. We are excited to partner with the DOE to further our mission of establishing a domestic supply chain for synthetic graphite used in lithium-based batteries and creating long-term sustainable value for our stakeholders.

The post Novonix share price rockets 26% on $240m US Government grant news appeared first on The Motley Fool Australia.

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More reading

• Why is the Novonix share price stuck on standby today?
• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price rocketing 15% today?
• The Novonix share price has just capped off a shocker first quarter. What’s next?
• Why did the Novonix share price crash 27% in September?

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 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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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.

It’s no surprise that 2022 has been a volatile year for both the capital and crypto markets. The days of meme stocks and mooning assets seem so long ago. Since its public debut in April 2021, Coinbase (NASDAQ: COIN) has been one of the most scrutinized stocks on the Nasdaq. It’s become challenging to keep up with the company’s developments amid increasing regulatory concerns over the crypto markets and waning investor enthusiasm.

Yet despite all of this turbulence, Coinbase has managed to make some significant progress. In this article, we are going to discuss how Coinbase has started laying the foundation to become a full-spectrum crypto conglomerate and mature beyond simply a trading exchange.

Big tech follows Wall Street 

Over the summer, Coinbase announced that it had partnered with asset-management firm BlackRock. More specifically, the partnership revolves around BlackRock’s proprietary risk-management software called Aladdin. At a high level, Aladdin’s software is leveraged by hedge funds and other financial institutions to process analytics across stocks, bonds, and foreign exchange currencies as well as derivatives and alternative assets. While that is an impressive roster of asset classes, do you see anything missing? Coinbase did.

According to a press release on Coinbase’s blog, BlackRock selected the exchange to serve as its integrator to provide “crypto trading, custody, prime brokerage, and reporting capabilities to Aladdin’s Institutional client base who are also clients of Coinbase.” 

While this partnership is nascent, it is probably not a surprise that other large companies, albeit in different industries, took notice. Just last week, Internet behemoth Alphabet announced a strategic partnership with Coinbase. Let’s explore why this is a big step forward for Coinbase and the crypto economy. 

Is this partnership a big deal?

There are a lot of moving pieces in Alphabet’s deal with Coinbase, and both companies are well-positioned to benefit. 

Essentially, Alphabet has decided that it will allow its cloud customers to pay for its services in Bitcoin, Ether, or Dogecoin should they choose. Coinbase will be the technology powering these payments via its Coinbase Commerce offering. This is an interesting position for Coinbase because as Alphabet’s cloud platform continues to grow, there is an argument to be made that Coinbase’s infrastructure will power more transactions. The two biggest variables in question are the pace at which adoption of crypto payments moves, and the increasing number of crypto tokens supported by Google Cloud.     

While this is exciting for Coinbase, this is also a big win for Alphabet. While Amazon and Microsoft dominate cloud computing, Alphabet’s platform, Google Cloud, is quickly gaining market share. According to the terms of the partnership, Coinbase “selected Google Cloud as a strategic cloud provider to build advanced exchange and data services. In addition, Coinbase will use Google Cloud’s powerful compute platform to process blockchain data at scale, and enhance the global reach of its crypto services by leveraging Google’s premium fiber-optic network.” 

According to CNBC, Coinbase will move some of its existing applications away from Amazon’s cloud platform, AWS. This is a huge deal for Alphabet. While it is still early innings, Coinbase’s management has not allowed the crypto winter to deter its vision. Despite cratering asset prices and lower trading volumes, Coinbase’s leadership has focused relentlessly on the wider adoption of crypto, especially with large institutions. 

Keep an eye on valuation

Owen Lau is an equity research analyst with Oppenheimer. He currently has a Buy rating on the stock and a projected price target of $107. During a recent interview, he was asked about the implications of this partnership and what it could mean for Coinbase.

Interestingly, although not surprising, Lau did not explicitly state whether this deal would impact Coinbase stock in the short term. Instead, his rationale is that since the markets are still operating in a crypto winter, investors are best served acting with caution.

Coinbase is slated to release third-quarter 2022 earnings on November 3. While there may be some near-term volatility leading up to earnings, prudent investors should wait until after the earnings release to make a decision about the stock. While Coinbase is trading well-off its highs, it is still very much a speculative stock to own. It is highly likely that investors will learn more about the company’s progress with BlackRock, Alphabet, and any other potential partnerships during the call. 

One thing that is highly likely is that crypto is here to stay one way or another. Its role in the larger economy and financial markets will certainly evolve. However, investors should feel encouraged that the world’s largest financial and technology firms are not only involved with crypto but are also partnered with Coinbase specifically. Coinbase could be a good stock to own for investors with a long-term market outlook. 

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

The post This crypto stock just got a huge nod of approval appeared first on The Motley Fool Australia.

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More reading

• Here’s what one billionaire thinks about crypto right now

Adam Spatacco has positions in Alphabet (A shares), Amazon, Coinbase Global, Inc., and Microsoft. Suzanne Frey, an executive at Alphabet, 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, Microsoft, Alphabet (A shares), Alphabet (C shares), Bitcoin, Coinbase Global, Inc., and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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 Zip Co Ltd (ASX: ZIP) share price is charging higher in morning trade.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up 13% to 72.5 cents.

Why is the Zip share price charging higher?

The catalyst for the rise in the Zip share price today has been the release of the company’s first quarter update.

Here’s how it performed compared to the prior corresponding period:

• Transaction volume up 15% to $2.2 billion
• Transaction numbers up 33% to 19.6 million
• Revenue up 19% to $163.2 million
• Cash transaction margin steady at 2.2%
• Customer numbers up 50% to 12 million
• Active customers up 17% to 7.4 million
• Merchants up 70% to 94,100

What happened during the quarter?

For the three months ended 30 September, Zip reported a 15% increase in transaction volume to $2.2 billion and a 19% lift in revenue to $163.2 million. The latter reflects flat year on year revenue of $66.9 million in the US despite currency tailwinds and a 29% increase in ANZ revenue to $83 million.

Zip’s growth was underpinned by a 17% increase in active customers to 7.4 million, a 33% jump in transaction numbers to 19.6 billion, and a steady revenue margin of 7.4%.

As you might have noticed above, Zip has now split its customer numbers into two groups. An active customer is one that has transacted within the last 12 months, whereas a regular customer is one that has an open account. They may not have transacted in the last 12 months, but they still have the ability to do so.

Another positive is that the Zip US business saw credit loss rates decrease to 2.4% of total transaction value from 2.7% in the previous quarter. It also exited the quarter with an expected loss rate of below 2% for the September cohort, in line with target levels.

Finally, at the end of September, Zip had available cash and liquidity of $140.7 million. Management believes this will be sufficient to support the company through to cash EBTDA profitability.

Management commentary

Zip’s co-founder and Global CEO, Larry Diamond, was pleased with the progress the company is making. He said:

We are pleased to deliver another solid set of numbers as Zip resets and moves toward positive cash flow, taking control of our future. During the quarter we made great progress on our refreshed strategy to deliver sustainable growth, right-size our global cost base and accelerate our path to profitability.

With a more focused strategy on our core markets ANZ and the US, we substantially lowered credit losses, repaid $40m of debt, and completed an upsized $300m receivables funding transaction, demonstrating the resilience of the business model in the face of ongoing external volatility.

Mr Diamond also highlights that the cost of living crisis has supported demand for its offering. He said:

We continue to add new customers to the platform and provide increased benefits to both customers and merchants as they navigate a rising cost environment.

The underlying business remains strong, and with the simplification of the business following adjustments to strategy, we are well funded and positioned to execute ahead of seasonal peak volumes and beyond into H2 FY23. Zip’s simple, fair and easy to use product is becoming even more important to customers and we are well on our way to disrupting the traditional credit card model and providing people with control of their financial lives.

The post Zip share price charges 13% higher on Q1 update appeared first on The Motley Fool Australia.

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More reading

• Has ‘growth at all costs’ been the undoing of Zip shares and what now?
• If I’d bought $1,000 of Zip shares at their all-time high, here’s how much I’d have left
• After a horror year, what’s next for ASX BNPL shares in the new quarter?
• ‘Significant opportunity’ Zip share price turns red as CEO packs his bags for the United States
• Macquarie says Zip share price has further to fall

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 ZIPCOLTD FPO. 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 Santos Ltd (ASX: STO) share price is gaining on Thursday after the company revealed a record third quarter.

Shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas giant are currently trading for $7.56, 2.44% higher than their previous close.

Santos share price rises on US$1b of free cash flow

Here are the key takeaways from the company’s September quarter:

• Production reached 26.1 million barrels of oil equivalent – up 2% quarter on quarter
• Sales revenue lifted 15% to US$2.15 billion
• Year to date sales revenue reached a record US$5.9 billion – up 86% year-on-year
• Free cash flow came in at a record US$1 billion for the quarter
• Year to date, free cash flow sits at US$2.7 billion – a 194% year-on-year improvement
• Sales volumes lifted 9% quarter-on-quarter to 29.9 million barrels of oil equivalent

Higher commodity prices and strong third quarter production saw Santos post record quarterly free cash flow and sales revenue. Higher LNG and domestic gas prices were partially offset by lower oil prices over the period.

Its average realised LNG price came in at US$16.76 per million barrels of oil equivalent and its realised price for domestic gas reached US$5.97 a gigajoule. Looking at crude oil, the company’s average realised price was US$108.21 a barrel last quarter.

The quarter’s record free cash flow saw the company’s gearing reduced to 20.8%.

Its Cooper Basin third-party oil volumes slipped last quarter after revised crude oil processing agreements were implemented. Though, that was offset by increasing east coast sales gas purchases.

Production was boosted due to an increase in Western Australia domestic sales gas customer nominations and higher PNG production, partially offset by wet weather impacts in the Cooper Basin and Queensland.

What else happened in the September quarter?

The quarter just been was a rough one for the Santos share price. It dumped 4.45% over the period.

The company also received an offer from a party looking to acquire a 5% stake in PNG LNG for an asset value of US$1.4 billion.

Meanwhile, its Barossa drilling operations were suspended following a Federal Court decision to set aside the regulator’s approval of the environmental plan. Santos is appealing the decision.

The company also revealed the final investment decision for the Pikka Phase 1 project in Alaska in August. Drilling at the project is expected to begin in the June quarter.

What did management say?

Santos managing director and CEO Kevin Gallagher commented on the update driving the company’s share price today, saying:

Energy security is a top priority for countries in our region. Given the ongoing strong customer demand for our product now and into the future, Australia’s role as a major energy-producing nation has never been more important.

As the world sees strong demand for our products, we continue to focus on the critical dual purposes of delivering the energy the world needs while investing to decarbonise the energy supply chain.

What’s next?

The company also updated its 2022 guidance today.

Its production guidance was dropped to between 103 million barrels of oil equivalent and 106 million barrels of oil equivalent.

The company’s sales volume guidance was also lowered to between 110 million barrels of oil equivalent and 114 million barrels of oil equivalent. That’s due to the implementation of revised Cooper Basin crude oil processing agreements. Santos assures the change won’t impact profits or cash flow.

Finally, the company’s major project’s capital expenditure guidance was lowered to between $1.15 billion and $1.25 billion.

Santos share price snapshot

The Santos share price has been outperforming so far this year.

It has gained 14% since the start of 2022. It’s also trading around 4% higher than it was this time last year.

Meanwhile, the ASX 200 has dumped 10% year to date and 8% over the last 12 months.

The post Santos share price lifts following US$1 billion quarter appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Santos share price getting left behind the ASX 200 today?
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Morgans names the best ASX resources shares to buy now

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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Lake Resources N.L. (ASX: LKE) shares have been up and down in the past year. But overall, they have soared ahead.

Lake shares have risen nearly 68% from 64 cents at market close on 19 October 2021 to $1.075 at market close yesterday.

So if I had invested $1,000 in this ASX lithium share 52 weeks ago, how much would I have now?

Is the Lake Resources share price a good investment?

Imagine if I had invested $1,000 in Lake Resources shares at 64 cents a year ago. I would have pocketed 1,562 shares with 32 cents left over.

Now, the Lake Resources share price is fetching $1.075. So my investment would be worth $1,679.15.

Taking a look at the year in more detail, the Lake Resources share price hit a high of $2.45 on 4 April this year.

At this time, my $1,000 investment would have been looking very good. I would have had $3,826.90.

However, on 14 July, Lake Resources shares were fetching just 60.5 cents a piece. At this point, I would have been behind, with $945.01 left from my $1,000 investment.

Overall, if I had bought $1,000 Lake Resources shares a year ago and held onto the shares through the highs and lows, I would be happy with my investment.

What else is happening?

Earlier this week, Lake advised it has created a new role on its executive team. Scott Munro will take on the position of senior vice president, technology, strategy and risk.

Commenting on this appointment, executive chairman Stuart Crow said:

This role will lead technology engagement for the company as it transitions towards development of resources and will support the continuing evolution of Strategy and Risk processes in support of long-term value creation for stakeholders.

This is part of Lake’s aspirational target to produce 100,000 tpa of high purity lithium; underpinning Lake’s aim to become a leading lithium producer globally.

Lake Resources has also recently signed an offtake agreement with SK On for supply of up to 25,000 tpa [tonnes per annum] of battery-grade lithium from the Kachi Project in Argentina.

Lake Resources share price snapshot

Lake Resources shares have climbed 6.44% in the year to date, while they have risen 2.87% in the past month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed 8.66% in the year to date.

Lake has a market capitalisation of nearly $1.5 billion based on the current share price.

The post If I’d bought $1,000 of Lake Resources shares a year ago, I’d be one happy investor today appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Is ASX 200 lithium player Lake Resources profitable?
• Here are the top 10 ASX 200 shares today
• Why are these ASX 200 lithium shares smashing it on Monday?

Motley Fool contributor Monica O’Shea 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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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 Netflix (NASDAQ: NFLX) charged sharply higher on Wednesday, surging as much as 15.9%. As of the market’s close, the stock was still up 13.09%.

The catalyst that drove the streaming pioneer higher was the company’s financial results, which held good news on multiple fronts.

So what

Much to the delight of shareholders, Netflix reported that its subscriber growth turned positive in the third quarter, after two consecutive quarters of declines. Perhaps as importantly, it did so in grand fashion, with 2.4 million net additions, far exceeding its own guidance — and Wall Street’s expectations — of 1 million new subscribers. “Thank God, we’re done with shrinking quarters,” said co-founder and co-CEO Reed Hastings on the earnings webcast to discuss the results.

Netflix generated revenue of $7.9 billion, which rose 5.9% year over year. Excluding the impact of exchange rates, revenue grew 13%. The currency challenges continued to the bottom line, as its earnings per share (EPS) of $3.10 dipped slightly.

However, both numbers easily cleared expectations, with analysts’ consensus estimates calling for revenue of $7.8 billion and EPS of $2.14.

Now what

Netflix management discussed the company’s upcoming ad-supported service at great length. The “basic with ads” tier will launch in 12 countries and is set debut on Nov. 3 at $6.99 per month. The service will include four to five minutes of commercials per hour, with ads of 15 to 30 seconds in length. The price is also $1 less than competing ad-supported services by Disney+ and Hulu.

Co-CEO Ted Sarandos said, “Our basic with ads tier is going to help us open up Netflix to a whole new audience of folks who are attracted to all that great content at an even lower price point.” Chief Operating Officer Greg Peters chimed in, saying the tier will “bring in a lot more members, and we’re quite confident in the long term that this will lead to a significant incremental revenue and profit stream.”

Add in mega hits like Stranger Things 4, Monster: The Jeffrey Dahmer Story, and The Gray Man, and Netflix has once again proven its ability to bounce back in the face of adversity. That’s why the stock is a buy. 

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

The post Why Netflix stock rocketed higher Wednesday appeared first on The Motley Fool Australia.

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Danny Vena has positions in Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. 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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With the market starting to rebound, now could be an opportune time to look at buying some beaten down ASX shares.

Two that could be worth considering are listed below. Here’s what you need to know about them:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first beaten down ASX share to look at is Domino’s.

It is of course one of the world’s largest pizza chain operators with restaurants across the ANZ, Asia, and European markets.

After losing half of its value in 2022, the team at Citi believe investors should be snapping up shares with a long term view. So much so, the broker has recently reaffirmed its buy rating with a $84.40 price target. This implies potential upside of 39% for investors over the next 12 months.

Citi commented:

We remain positive on the medium term outlook given same store sales appear on track to turn positive and some inflationary headwinds are moderating. The longer term store rollout opportunity has grown supported by the recent Asian acquisition. We also see further upside potential from additional acquisitions. Maintain Buy.

Life360 Inc (ASX: 360)

Another ASX share that has been smashed in 2022 is Life 360.

It is a location technology company that operates in the digital consumer subscription services market with its Life360 app. This hugely popular app has 40 million active users and offers families features such as communications, driver safety, and location sharing.

Goldman Sachs is very bullish on the company due to its massive market opportunity. The broker currently has a buy rating and $7.50 price target on the company’s shares, which implies potential upside of 17%.

It commented:

We estimate Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.

The post 2 beaten down ASX shares with plenty of upside potential: analysts appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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If you’re looking for dividend shares to buy, then you may want to check out the two listed below.

These ASX dividend shares are ones that Morgans rates among the best on the market this month. Here’s what the broker is saying about them:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The first ASX dividend share to look at is this coal terminal operator.

Morgans is very positive on the company and is expecting big dividend yields in the coming years. It commented:

DBI holds the 99 year lease to the 85 Mtpa Dalrymple Bay Coal Terminal, of which c.80% of throughput is metallurgical coal (used in steelmaking). DBCT offers the cheapest export route-to-market for users within its Bowen Basin catchment region. DBCT is fully contracted from 2023 to 2028. In the current low interest rate environment, income-oriented investors will be attracted to DBI’s high cash yield and commitment to 1-2% [now 3% to 7%] pa DPS growth

As for dividends, Morgans is forecasting dividends per share of 21 cents in FY 2022 and 21.5 cents in FY 2023. Based on the latest Dalrymple Bay Infrastructure share price of $2.49, this will mean yields of 8.4% and 8.6%, respectively.

The broker currently has an add rating and $2.67 price target on the company’s shares.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend share that Morgans rates as a buy is Jumbo Interactive. It is the company behind the OzLotteries website/app and the Powered by Jumbo software-as-a-service (SaaS) platform.

Morgans is positive on the company’s outlook. In fact, it is forecasting an earnings per share compound annual growth rate of 20.8% over the next two years. It said:

We believe JIN offers excellent strategic growth opportunities, both in Australia and overseas, supported by a steadily expanding domestic market for digital lottery retailing. The business is cash generative and has a low requirement for ongoing capex. Lottery sales are resilient to economic cyclicality. They do not represent a large proportion of the personal budgets, hovering around 0.5% of household discretionary income in Australia.

In respect to dividends, the broker is forecasting fully franked dividends per share of 47 cents in FY 2023 and 57 cents in FY 2024. Based on the latest Jumbo share price of $12.75, this will mean yields of 3.7% and 4.5%, respectively.

Morgans has an add rating and $17.50 price target on the company’s shares

The post Morgans names 2 of the best ASX dividend shares to buy now appeared first on The Motley Fool Australia.

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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 Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive 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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