Author: openjargon

New Hope Corp Ltd (ASX: NHC) and BHP Group Ltd (ASX: BHP) shares have not only smashed the benchmark returns over the past five years, they’ve also delivered some market-beating passive income.

Since 24 September 2021, the S&P/ASX 200 Index (ASX: XJO) has gained 19.4%.

Reflecting the importance of passive income, the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date, has gained 44.1% over this same period.

So, just how much would you have earned from a $5,000 investment in New Hope and BHP shares five years ago?

Let’s dig in.

Drilling into BHP shares for passive income

On 24 September 2021, you could have bought shares in the ASX 200 mining giant for $33.59 apiece. So, your $5,000 investment would have netted you 148 shares, with enough change left over for a cheeseburger.

Now you would have done quite well on the capital gains front alone. During the Wednesday lunch hour, BHP shares are changing hands for $62.11, up 84.9% in five years. And if you sold those 148 shares today, you’d receive $9,192.

As for that passive income, if you’d owned Australia’s largest mining stock – and now the biggest stock on the ASX – for the last five years, you would have received (or shortly will) the last 10 fully-franked dividends. BHP stock traded ex-dividend on 3 September. If you held the miner at market close on 2 September, you can expect to get paid today.

Turning to my trusty calculator, those 10 fully-franked dividend payouts work out to $13.583 a share.

So, the 148 BHP shares you bought for $5,000 five years ago would already have delivered $2,010 in passive income. And that’s atop those share price gains, not to mention the cheeseburger!

Which brings us to…

Tipping $5,000 into New Hope shares

Five years ago, New Hope shares were trading for $2.38 each. Meaning for $5,000, you could have bought 2,100 shares in the ASX 200 coal stock.

And you wouldn’t have regretted it.

At the time of writing, New Hope shares are trading for $5.89, up 147.5% since 24 September 2021. And those 2,100 shares you bought are now worth $12,369.

Over this time, you’d also have received (or shortly will) the last 10 fully-franked New Hope dividends. New Hope stock traded ex-dividend on Monday. If you owned shares in the Aussie coal miner at market close on Friday, you can expect to receive that passive income payout on 15 October.

All told, those last 10 New Hope dividend payments equate to $2.69 a share.

Meaning the 2,100 New Hope shares you picked up for $5,000 five years ago will already have paid out $5,649 in passive income, with tax benefits from those franking credits.

The post Bought $5,000 worth of New Hope and BHP shares 5 years ago? Guess how much passive income you’ve already earned! appeared first on The Motley Fool Australia.

More reading

• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• Soul Patts vs BHP: Which ASX share is best for beginners?
• How much passive income can I earn off an $800,000 superannuation balance?
• Are the BHP and CBA share price headed for parity?
• 3 reasons to buy BHP shares for 2027

Motley Fool contributor Bernd Struben 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) shares have fallen further into the red in Wednesday lunchtime trade.

At the time of writing, the ASX tech shares are down around 5% to a seven-year low of $58.28 a piece.

Today’s slide means the shares have now shed 34% of their value since spiking to a six-month high of $88.95 in August.

While it looked like the cloud-based accounting software company was finally rebounding from a huge share price crash in the second half of 2025, investor sentiment has reversed, and the shares have now dropped to a fresh multi-year low.

Xero shares are now down 48% year to date and 64% lower than 12 months ago.

What has happened to Xero shares over the past month?

Xero shares were caught up in a broad-based sell-off of technology shares earlier this year, when investors were spooked that AI could replace the core services of companies like Xero.

The shares rebounded strongly through July and most of August, driven by an investor rotation back into growth and technology stocks. It looks like investors started to become more confident that the company can keep growing revenue and become more profitable.

Xero’s most recent FY26 results, posted in May, confirmed that, too. The company reported a strong increase in its FY26 revenue, which it said was helped by subscriber growth and higher prices. 

There hasn’t been any price-sensitive news out of Xero to explain why the share price changed course over the past month.

It’s possibly the result of profit-taking investors taking their gains off the table after the July-August rally, combined with higher-than-expected inflation figures and news that the RBA could hike interest rates again next week. Investors have rotated away from growth stocks and into safer, more reliable assets amid fears of another spike in sharemarket volatility.

And this sentiment shift acts as a strong headwind for companies like Xero.

Is there any chance of a rebound?

According to the experts, yes, there’s a good chance that Xero shares will rebound over the next 12 months. And some expect the upside to be significant.

The company has sticky subscription revenue and huge potential for growth both into new markets and with new offerings.

Market Index data shows the majority of brokers have a buy rating on the shares. The $112 average target price implies that the shares could jump another 94%, at the time of writing.

Sentiment is just as positive on TradingView. Out of seven analysts, six have a buy/strong buy rating and one rates the shares as a hold. But they all agree there will be an upside ahead.

The average $111.25 target price implies a potential 92% upside, while the maximum $143.88 implies that Xero’s shares have the potential to rebound 149%, at the time of writing.

The post Down 5% today to a 7-year low: What is going on with Xero shares? appeared first on The Motley Fool Australia.

More reading

• Should I invest $5,000 into WiseTech and Xero shares?
• How to build a $50,000 passive income from ASX shares
• Do these ASX technology shares have too much upside to ignore?
• Xero shares crash to a 7-year low after a brutal sell-off
• Why brokers think Xero shares could surge 130% from here

Motley Fool contributor Samantha Menzies 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

National Australia Bank Ltd (ASX: NAB) has long been popular with income investors, much like the rest of the big four banks.

The combination of large profits and fully franked dividends has made the banking sector an obvious place to look for passive income.

So, with NAB shares well below their recent highs, is it one of the best ASX dividend shares to buy?

Why I like NAB for income

One reason I like NAB shares is the company’s strong position in business banking.

The bank has significant exposure to small and medium-sized businesses across Australia, giving it a slightly different earnings mix from some of its major rivals.

I think that is attractive over the long term. As Australian businesses grow, borrow, invest, and manage their finances, NAB has an opportunity to grow alongside them.

Of course, banking earnings can still be affected by interest rates, competition, bad debts, and economic conditions.

But NAB remains a highly profitable business, and that gives it the capacity to return a meaningful amount of cash to shareholders.

For an income investor, that is ultimately what I want to see.

What could the dividend look like?

The current dividend forecasts look good to me.

Consensus estimates point to fully franked dividends of $1.70 per share in FY26 and $1.72 per share in FY27.

With NAB shares trading around $38.47 on Wednesday, those forecasts translate into prospective dividend yields of approximately 4.4% and 4.5%, respectively.

Eligible Australian investors may also benefit from the attached franking credits.

Is the NAB share price attractive?

NAB shares are trading well below their 52-week high of $49.45 and are now closer to their 52-week low of $35.48.

Consensus forecasts suggest earnings per share of $2.38 in FY26, rising to $2.54 in FY27.

At today’s price, that puts NAB on a PE ratio of roughly 16 times forecast FY26 earnings and 15 times FY27 earnings.

I think that looks reasonable for a profitable major bank that is expected to grow earnings while continuing to pay substantial dividends.

The lower share price also means investors buying today are getting a better prospective yield than they would have received near the 52-week high.

What would I watch?

Competition remains one of the main risks.

Australian banks compete aggressively for both loans and deposits, which can put pressure on margins.

A weaker economy could also lead to higher bad debts, particularly if households and businesses come under more financial pressure.

Those are risks I would keep an eye on, but they do not change my overall view at the current price.

Foolish takeaway

I still think NAB is one of the better ASX dividend shares to buy.

At around $38.47, the valuation looks reasonable to me, while forecast fully franked dividends offer a dividend yield of roughly 4.4% to 4.5%.

For investors looking for income from the banking sector, NAB would remain high on my list.

The post Is NAB one of the best ASX dividend shares to buy? appeared first on The Motley Fool Australia.

More reading

• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• If I invest $5,000 in NAB shares, what passive income will I receive in FY27?
• Which big 4 bank stock will rise the most before the end of 2026?
• Sell alert! Why this expert is calling time on Tabcorp and NAB shares
• Buy, hold, sell: Coles, NAB, CSL shares

Motley Fool contributor Grace Alvino 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.

Exchange-traded funds (ETFs) can be a simple way to start investing without having to choose individual shares.

Betashares has plenty of funds available on the ASX, but I think these three are among the best to consider for beginners.

Here is why.

Betashares Diversified All Growth ETF (ASX: DHHF)

The DHHF ETF would be one of my first choices for someone who wants to keep things simple.

Rather than focusing on one country or sector, the fund invests across Australian and international shares.

That means a single investment can provide exposure to thousands of growth companies around the world.

I think this can be helpful for beginners because diversification is built into the fund. An investor does not need to decide how much money to put into Australian shares, US shares, or emerging markets and then continually rebalance everything themselves.

For someone investing with a long timeframe, I think the Betashares Diversified All Growth ETF offers a straightforward way to own a broad collection of businesses and benefit if global share markets grow over time.

Betashares Australia 200 ETF (ASX: A200)

The A200 ETF is another fund I think beginners could consider.

It tracks 200 of the largest stocks listed on the ASX, providing exposure to a large part of the Australian share market through a single investment.

That includes businesses operating across areas such as banking, resources, healthcare, telecommunications, retail, and technology.

I like how simple this makes investing, which is good for beginners. Instead of trying to decide which Australian shares will perform best, investors can own a broad selection and participate in the overall performance of the local market.

There is also an income angle. Many large Australian shares pay dividends, which means the fund can provide distributions alongside potential capital growth.

Betashares Global Quality Leaders ETF (ASX: QLTY)

For investors wanting more international exposure, I think the QLTY ETF is worth a look.

Rather than simply buying the world’s largest stocks, the fund looks for businesses displaying characteristics such as strong profitability, relatively stable earnings, and healthy balance sheets.

I like that approach because it focuses on companies that have already demonstrated financial strength.

The portfolio also gives Australian investors access to businesses and industries that are not well represented on the ASX. That can provide another source of long-term growth while reducing reliance on the Australian market.

For a beginner looking internationally, I think the Betashares Global Quality Leaders ETF provides an easy way to invest in a collection of established global businesses.

Foolish takeaway

I think all three of these Betashares ETFs make investing relatively easy.

The DHHF ETF provides broad diversification in one fund, the A200 ETF offers exposure to the Australian share market, and the QLTY ETF focuses on financially strong global businesses.

Overall, for a beginner, I think the most important thing is choosing an investment that makes sense to them and that they would be comfortable holding through the inevitable ups and downs of the share market.

The post 3 top Betashares ETFs for beginners to buy appeared first on The Motley Fool Australia.

More reading

• Where to invest $20,000 in ASX ETFs today
• ASX ETF market just surpassed $7 billion in net inflows – Here’s where the money is going
• 2 top ASX shares to buy and hold for the next decade
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• Are these 3 top Betashares ETFs a buy in September?

Motley Fool contributor Grace Alvino 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.

Fortescue vs Commonwealth Bank shares: Which is better for passive income?

If you’re hunting for passive income from ASX blue chips, Fortescue Ltd (ASX: FMG) and Commonwealth Bank of Australia (ASX: CBA) are both giants, yet offer quite different flavours of dividend investing. Let’s stack them up side-by-side to see which could make the better addition to a passive income-focused portfolio.

The case for Fortescue

Fortescue is one of the world’s largest iron ore miners, operating huge integrated sites across Western Australia’s Pilbara region. With a vast mining, rail, and port footprint, it’s a heavy-duty exporter to Asian steel mills. As of its recent company profile, Fortescue sits among the ASX’s top companies, having grown rapidly by tapping into surging global iron ore demand.

The key passive income drawcard? Fortescue’s outstandingly high, fully franked dividend yield — a juicy 6.46%. Fortescue has also consistently franked its dividends at 100%. Over recent years, it’s paid out generous half-yearly dividends, rewarding shareholders in good times.

However, iron ore mining is a cyclical game. The company’s YTD return sits at -19.1%, reflecting both volatility in iron prices and perhaps broader market caution toward commodity exposures.

Notable stats:

• Market cap: $51.48 billion
• P/E ratio: 12.74
• Dividend per share: $1.08 (latest full-year)
• Dividend yield: 6.46% (fully franked)

The case for Commonwealth Bank of Australia

Commonwealth Bank is Australia’s largest bank by market cap – a household name, and a top dividend payer for many years. Its sprawling operation covers retail, business and institutional banking, wealth, insurance and more – both here and overseas. As of its most recent public description, it’s regarded as a pillar of banking stability in Australia, with a reputation for conservative management and wide reach.

For passive income investors, CBA offers a much lower headline dividend yield than Fortescue – at 3.31%. But every dividend since at least 2003 has been fully franked, and CBA has a long track record of payout reliability and gradual growth, having increased its annual dividend steadily over the years.

CBA’s share price is also known for its relative stability compared to most mining stocks.

Key numbers:

• Market cap: $256.02 billion
• P/E ratio: 23.39
• Dividend per share: $5.05 (latest full-year)
• Dividend yield: 3.31% (fully franked)

Valuation comparison

Let’s compare the main passive income and valuation metrics side-by-side:

	Fortescue Ltd	Commonwealth Bank of Australia
Market Cap	$51.48 billion	$256.02 billion
P/E Ratio	12.74	23.39
Dividend Yield	6.46% (fully franked)	3.31% (fully franked)
Dividend per share	$1.08	$5.05
Year To Date Return	-19.1%	-1.9%

Worth noting: Fortescue trades on a much lower P/E than CBA, but mining and banking sectors normally have different valuation ranges. Both companies offer 100% franking.

Recent share price performance

Comparing the past month:

• Fortescue shares dropped from $17.93 on 24 August 2026 to $16.72 on 21 September 2026, a fall of about 6.7% over these four weeks. The YTD return stands at -19.1%.
• Commonwealth Bank shares fell from $156.88 on 24 August 2026 to $152.43 on 18 September 2026, a smaller drop of about 2.8% over this period. The YTD return is -1.9%.

Which is the better buy?

If I’m focusing purely on passive income, my pick would be Fortescue. The main appeal is that much higher, fully franked dividend yield – almost double CBA’s, according to the latest data. That’s hard to ignore for income investors, provided you’re comfortable with the big swings that come with mining stocks.

CBA is the safer, more stable option with an impressive record of steady payouts and lower price volatility. But for someone seeking immediate, generous passive income, Fortescue stands out. I’d stress, though, that Fortescue’s payout can be lumpy, as it’s closely tied to the iron ore price, so future yields may swing around more than CBA’s. If I wanted reliability above all else, I might still lean toward CBA, but on headline yield and franking, Fortescue clinches it for me right now.

The post Fortescue vs Commonwealth Bank: Which is best for passive income? appeared first on The Motley Fool Australia.

More reading

• Should I buy CBA shares before the end of September?
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
• 3 ASX dividend shares offering gross yields of 8% or more
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• How much passive income can I earn off an $800,000 superannuation balance?

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Official interest rates are almost certain to be raised when the Reserve Bank of Australia Board (RBA) meets next week, raising the question: what does that mean for your portfolio?

Canaccord Genuity has just released a research report looking into the sectors which tend to do well, and those that tend to suffer as interest rates increase.

Interest rate increase all but certain

The broking house said in its report that expectations for an interest rate hike had increased sharply over the past few months due to persistently high inflation, exacerbated by rising oil prices due to the conflict in the Middle East.

CG added:

The RBA is now very likely to hike the cash rate by 25bps later this month, and markets are also pricing in one to two further hikes beyond September. While accumulating evidence of a slowing economy may allow the RBA to hold rates after September, the policy outlook is nevertheless materially more restrictive than envisaged this time last year.

The broking house said upward pressure on interest rates, a deteriorating consumer backdrop, a softer housing market and slowing economic growth all presented headwinds for Australian shares from a valuation and earnings perspective.

They added:

These pressures have contributed to a ~5% pullback in the ASX 200 since early August, with outsized declines across the rate-sensitive Retail (-18%) and Real Estate (-13%) sectors, as well as growth sectors such as IT (-14%).

CG said the sectors with the strongest negative correlations with interest rates included real estate, retail and information technology.

CG added:

Recent trading updates have pointed to a softening consumer backdrop, with names such as JB Hi-Fi Ltd (ASX: JBH) reporting negative top-line growth in early FY27. Wesfarmers Ltd (ASX: WES) has also shown a negative correlation with short-term rates, consistent with its exposure to discretionary household spending and its sensitivity to the housing market through its Bunnings franchise.

CG said online classifieds companies such as Seek Ltd (ASX: SEK) and REA Group Ltd (ASX: REA) have in the past shown strong negative correlations with rate increases, which, “partly reflects the degree of cyclicality in their earnings, being tied to job ads and property listings, respectively, as well as the valuation impact of higher long-term yields on growth-orientated companies”.

Infrastructure owners such as Transurban Group Ltd (ASX: TCL) and APA Group Ltd (ASX: APA) were also sensitive to rate increases due to their reliance on debt funding.

Small ray of hope in energy

On the positive side of the ledger, CG said energy stood out as the one sector with a clear positive correlation, “with changes in both short-end rates and longer-term yields over the past three years”.

The post Where to invest as interest rates charge higher appeared first on The Motley Fool Australia.

More reading

• Buy, sell, hold: AMP, Wesfarmers, Woodside shares
• How much is needed in superannuation to target a $95,000 annual passive income?
• Is this ASX 200 share a bargain after crashing to $12?
• How to build a $50,000 passive income from ASX shares
• Buy, hold, sell: Regal Partners, HomeCo Daily Needs REIT, APA Group shares

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

WiseTech Global Ltd (ASX: WTC) and Xero Ltd (ASX: XRO) are two of the ASX’s most popular technology shares.

Both operate globally, both have large markets still to pursue, and both could look considerably bigger in another five or 10 years.

So, would I be comfortable putting $5,000 into these two ASX tech shares today?

WiseTech Global shares

I think WiseTech could be worth a look after the sharp fall in its share price.

The company is best known for CargoWise, the software platform used by logistics companies to manage increasingly complicated global supply chains.

What I like about this business is how deeply its software can become embedded in a customer’s operations. Moving freight around the world involves customs, warehousing, transport, compliance, and plenty of other moving parts. Once a logistics company is managing those processes through CargoWise, changing systems can be a major undertaking.

WiseTech also has plenty of room to keep expanding what customers do through the platform.

The e2open acquisition has significantly increased the size of the business and gives WiseTech more technology and customer relationships to work with. Successfully bringing everything together could create new opportunities across the global supply chain.

There is certainly uncertainty here. WiseTech still needs to integrate e2open effectively, while investors will want to see that its expected earnings growth actually arrives.

But I think the lower share price leaves plenty of upside if management delivers.

Xero shares

Xero offers a different type of technology opportunity.

Its accounting platform is used by millions of small businesses, accountants, and bookkeepers around the world.

The good news is I think the company still has a long way to grow. There are tens of millions of small businesses across markets such as the United States alone, while Xero had around 4.9 million subscribers globally at the end of FY26.

But it isn’t just about subscriber numbers. Xero can generate more revenue from each business by offering more services around accounting, payroll, payments, and other financial tasks. Its acquisition of Melio should also strengthen its position in payments and help Xero play a bigger role in how small businesses manage their money.

I also think artificial intelligence (AI) could make the platform more valuable over time by automating more of the repetitive work involved in running a small business.

Xero still has to execute well, particularly in the highly competitive US market, but I think the size of the opportunity makes it worth backing.

Would I invest $5,000?

Yes, I would be comfortable putting $5,000 into WiseTech and Xero shares.

WiseTech offers the possibility of a strong recovery if earnings grow as expected and confidence returns, while Xero gives me exposure to a business that is still expanding through a huge global small business market.

The post Should I invest $5,000 into WiseTech and Xero shares? appeared first on The Motley Fool Australia.

More reading

• How to build a $50,000 passive income from ASX shares
• WiseTech shares need more than a rebound. 3 things it must prove first
• WiseTech shares: 3 reasons to buy and 3 reasons to sell
• Could the WiseTech share price reach $50 in 2027?
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Motley Fool contributor Grace Alvino 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 WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Hub24 Ltd (ASX: HUB) shares are firmly in the line of fire. The ASX financial stock slipped another 1% on Wednesday to $69.31, extending a rough run that’s seen it fall 9% over the past month, 28% year to date, and a brutal 35% over the past 12 months.

For a stock once treated as an ASX tech darling, that’s a stunning reversal. So what’s actually driving the sell-off?

The real issue: flows are slowing

Here’s the crux of it. Investors are growing nervous about slowing net flows. In FY26, net inflows fell 4% year-on-year to $18.9 billion. That might not sound like a disaster, but for a stock priced for extremely high growth, any hint of deceleration is enough to trigger a serious re-rating.

The market’s question is simple but brutal: can Hub24 keep growing at the pace investors have paid up for? When a stock trades on lofty multiples built around rapid expansion, like Hub24 shares, even a modest slowdown can wipe out a huge chunk of the share price. And that’s exactly what’s playing out here.

Add in a broader wobble across the tech sector with investors reassessing valuations and grappling with how AI could reshape competitive dynamics, and growth stocks like Hub24 have been caught in the crossfire.

Markets tend to sell first and ask questions later, and even high-quality names can get dragged down in a broad de-rating cycle.

The numbers tell a different story

Strip away the flow concerns, and Hub24’s operational performance still looks genuinely strong. FY2026 delivered record results: group underlying EBITDA rose 30% to $211.4 million, underlying NPAT climbed 40% to $137.3 million, and total revenue grew 23% to $501.1 million.

This ASX tech stock continues to benefit from structural growth as more financial advisers adopt its platform. More than 5,200 advisers now use Hub24. One industry trend in particular is working in its favour: “platform monogamy,” where advisers consolidate client assets onto a single provider instead of spreading them across multiple systems.

That shift could help offset some of the flow slowdown as advisers prioritise efficiency, integration and scale.

A hidden growth engine

There’s also a less obvious driver worth watching: operating leverage. Platform businesses like Hub24 often see this play out strongly — once fixed costs are covered, additional funds flowing onto the platform can generate higher incremental margins.

That means earnings growth can outpace revenue growth over time, even if net inflows moderate from their previous blistering pace.

Brokers aren’t buying the pessimism

Analysts, for their part, seem largely unfazed. According to TradingView data, 14 of 18 brokers currently rate Hub24 a buy or strong buy. The average price target sits at $97.81, implying roughly 41% upside from current levels.

The most bullish target stands at $126, while the lowest sits at $71.40, still above today’s price. Citi has a buy rating with a $93.50 target, and RBC Capital sits at $91.00, pointing to roughly 30% upside.

The post Hub24 shares have crashed 35%. What’s actually going on? appeared first on The Motley Fool Australia.

More reading

• Hub24 shares have fallen 27% in 2026. Could they really rebound 38%?
• Netwealth Group vs HUB24: Which financial platform is better from an investor’s perspective?
• 3 ASX shares I think could return 10%+
• 3 ASX 200 shares I’d buy if I couldn’t sell for 10 years
• 4 high conviction ASX stock picks from Canaccord Genuity

Motley Fool contributor Marc Van Dinther 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 Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woodside Group Ltd (ASX: WDS) shares have tumbled into the red today while AMP Ltd (ASX: AMP) and Wesfarmers Ltd (ASX: WES) climb higher.

Lets find out which of the three major ASX 200 shares brokers rate a buy, a sell and a hold.

Brokers rate AMP shares a BUY

AMP shares are up around 2% to $2.57 at the time of writing on Wednesday morning. The financial services company’s shares are now up around 42% for the year-to-date.

The shares have climbed higher recently off the back of its strong first-half FY26 result in early-August. It looks like investors were pleased with the company’s 33% increase in underlying NPAT to $174 million. 

The result came within AMP’s boosted profit guidance of $170 million to $180 million and is hugely higher than the $131 million reported in the first half of FY25.

Brokers are pleased with the result too. According to TradingView data the majority have a buy/strong buy rating on AMP shares. But after today’s rally, the $2.57 target price implies around a 2% downside at the time of writing.

Brokers rate Woodside shares a HOLD

Woodside shares have dropped lower this morning, down around 1.5% to $31.22 per share. Despite today’s dip the ASX energy company is still trading around 32% higher than 12 months ago.

The company is likely tracking fluctuations in the price of oil over the past week. On the 15th of September the price of oil spiked to a four-month high of around US$106 per barrel. The price has slipped below $90 per barrel on Wednesday as signs of a potential peace agreement between the US and Iran look positive once again.

The experts are quite divided, however, about where the share price will travel to next. TradingView data shows the majority (eight out of 17) have a hold rating on Woodside shares, six have a buy/strong buy rating and three rate the oil and gas stock as a sell.

The average $33.25 target price implies a potential 6% upside, at the time of writing.

Brokers rate Wesfarmers shares as a SELL

Wesfarmers shares are climbing higher into the green this morning, up around 1% to $73.80 each at the time of writing. It’s been a difficult year of peaks and troughs for the conglomerate, though, and its shares are still around 10% lower for the year-to-date.

The shares have faced several headwinds this year, including inflation and interest rate pressures which have put broad pressure on consumer discretionary and retail stocks. There is also a question about how the business can continue growing in a weakening market.

Analysts have lost confidence too. TradingView data shows half (either out of 16) have a strong sell rating on Wesfarmers shares. The other eight experts are split between a sell and a buy/strong buy rating.

But after the latest share price decline, the average $76.59 target price implies a potential 4% upside ahead, at the time of writing.

The post Buy, sell, hold: AMP, Wesfarmers, Woodside shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Artificial intelligence (AI) is creating opportunities well beyond companies like OpenAI that are developing generative AI models.

These are two ASX shares I would buy for AI exposure.

NEXTDC Ltd (ASX: NXT)

NEXTDC is one of my preferred ways to gain exposure to the physical infrastructure needed for AI.

The company operates data centres across Australia and other parts of the Asia-Pacific region.

AI workloads require enormous amounts of computing power, but that also means they require electricity, cooling, and specialist facilities capable of housing increasingly powerful hardware.

That is where NEXTDC comes in. What I like is that the company is not simply building data centres and hoping customers eventually arrive.

The ASX artificial intelligence share has accumulated a substantial amount of contracted capacity and a large forward order book. To me, that provides evidence that customers are already committing to future infrastructure.

If AI continues driving demand for computing capacity, NEXTDC could have years of expansion ahead as it develops new facilities and brings contracted capacity online.

The main risk is the amount of capital required to fund that growth. Data centres are expensive to build, and projects can face delays around power, construction, and approvals.

Even so, I think NEXTDC is well placed to benefit as demand for digital infrastructure keeps growing.

Megaport Ltd (ASX: MP1)

Megaport is an ASX tech share that provides investors with a different type of artificial intelligence exposure.

Rather than owning the data centres themselves, Megaport helps businesses connect data centres, cloud providers, and other digital infrastructure through its software-defined network.

I think that becomes increasingly valuable as computing becomes more complex.

A business running AI workloads may use infrastructure across several locations and cloud platforms rather than keeping everything in one place. Those systems need fast and flexible connections between them.

Megaport allows customers to set up that connectivity without relying entirely on traditional physical network arrangements.

That gives the company an opportunity to benefit as businesses use more cloud infrastructure and move larger amounts of data between different locations.

I also like that Megaport can expand without needing to fund the same level of physical infrastructure as a data centre operator.

There will still be competition, and the company needs to keep growing customers and usage.

But I think greater demand for cloud and AI connectivity gives Megaport an attractive long-term opportunity.

Foolish takeaway

I think NEXTDC and Megaport offer two different ways to invest in the infrastructure supporting AI.

NEXTDC provides the physical space, power, and cooling needed for computing capacity, while Megaport helps connect that infrastructure together.

For me, both ASX shares could have plenty of growth ahead if artificial intelligence investment continues expanding over the coming years.

The post 2 of the best ASX artificial intelligence shares to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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. 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.