Author: openjargon

S&P/ASX 200 Index (ASX: XJO) tech stocks, including software-as-a-service provider TechnologyOne Ltd (ASX: TNE) and business and accounting software provider Xero Ltd (ASX: XRO), have had a rough start to the new year.

How rough?

Well, as at market close on Tuesday, the ASX 200 has gained a solid 2.81% year to date.

As for ASX 200 tech stocks, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 20.53% so far in 2026.

Xero shares have performed even worse, down 31.15% year to date, while the TechnologyOne share price has slumped 22.32%.

Online real estate advertising company REA Group Ltd (ASX: REA) also hasn’t escaped the selling pressure. REA shares are down 11.43% this calendar year.

Of course, that will sound pretty good to shareholders of health imaging company Pro Medicus Ltd (ASX: PME). The Pro Medicus share price is down a precipitous 42.97% year to date. That’s despite Pro Medicus reporting all-time high half-year profits last week, with underlying net profit up 29.7% year on year to $67.3 million.

Indeed, the sharp sell-down has little (or in some cases seemingly nothing) to do with these companies’ recent performance.

Rather, investors appear to have been favouring their sell buttons amid concerns that rapidly advancing artificial intelligence tech could breach these stocks’ defensive moats and eat their proverbial lunches.

But has the selling been overdone?

Could these ASX 200 tech stocks get an AI boost?

Ten Cap portfolio manager Jun Bei Liu isn’t binning her fund’s holdings in REA, Pro Medicus, TechnologyOne, or Xero shares.

While Liu has cut the Ten Cap Alpha Plus Complex ETF (ASX: TCAP)’s exposure to a number of ASX 200 tech stocks amid weak market sentiment and a surge in ASX mining shares, she’s holding onto these four.

Why?

According to Liu (courtesy of The Australian Financial Review):

These companies will continue to deliver multi-year growth. AI will actually increase cost efficiencies, and their client base is extremely sticky compared to other software businesses that have been sold off.

Commenting on the past months’ selling pressure on most every ASX 200 tech stock, Liu added:

Some of these growth businesses that have been sold off on fear are going to keep delivering results, and if they do, the market will eventually realise they have been oversold… We are seeing an incredible amount of opportunities in some of those companies whose valuation have come down to multi-year lows; to us, these are very rare.

The post Why this top fundie is doubling down on ASX 200 tech stocks like TechnologyOne and Xero shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why are ASX 200 tech shares down 43% in six months?
• 3 ASX shares smashed in the sell-off to buy this week
• Pro Medicus shares rally off recent lows. Time to chase?
• Where to invest $10,000 in ASX shares right now

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

When I think about blue-chip investing, I’m not chasing excitement. I’m looking for durability. Businesses with scale, strong balance sheets, and advantages that don’t disappear just because sentiment shifts.

There are plenty of quality names on the ASX, but if I were adding established leaders to my portfolio today, these three would be high on my list.

Commonwealth Bank of Australia (ASX: CBA)

I know CBA isn’t cheap on traditional metrics. It rarely is. But I think that premium exists for a reason.

Australia’s biggest bank has built structural advantages that are hard for competitors to replicate. Its deposit base is deep and sticky. Its technology platform continues to set the standard domestically. And its ability to consistently generate strong returns on equity is unmatched among rivals.

What I like most is the predictability. Even in more challenging economic periods, CBA tends to manage margins and credit quality better than peers. That reliability is valuable, especially for long-term investors who want both income and capital preservation.

Fully franked dividends add to the appeal. While I wouldn’t expect explosive growth from here, I do believe CBA can continue delivering steady, compounding returns over time. For me, that’s what a blue chip should do.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of those ASX shares I’m always comfortable owning. Yes, it’s often discussed as a retail conglomerate, but I see it more as a disciplined capital allocator with a portfolio of high-quality assets. Bunnings remains a dominant force in Australian hardware and DIY. Kmart continues to prove that scale and cost discipline can coexist with value positioning.

What I particularly respect about Wesfarmers is management’s willingness to reshape the portfolio. It has exited businesses that no longer met return thresholds and reinvested into areas with better long-term potential. That flexibility matters more than you might think.

To me, Wesfarmers represents controlled growth. It has defensive earnings characteristics through its core operations, but also optionality from strategic investments and new verticals. Over a decade or more, I think that balance can be very powerful.

Rio Tinto Ltd (ASX: RIO)

While resources can be cyclical, I see Rio Tinto as more than just an iron ore producer.

Iron ore still underpins earnings, but what excites me longer term is copper. Electrification, renewable energy, grid upgrades, and electric vehicles all require significant amounts of copper. Global supply growth has struggled to keep pace with projected demand.

Rio Tinto has been investing to expand its copper footprint, and I believe that positions it well for structural trends rather than just short-term commodity cycles.

On top of that, the blue-chip ASX share typically runs a strong balance sheet and generates substantial free cash flow in favourable pricing environments. That supports dividends and gives management flexibility during downturns.

For investors who want exposure to global infrastructure and electrification themes, I think Rio Tinto is one of the cleaner ways to access it on the ASX.

Foolish takeaway

For me, blue-chip ASX share investing is about backing businesses with staying power.

Commonwealth Bank offers consistency and income. Wesfarmers brings disciplined capital allocation and resilient cash flows. Rio Tinto provides global scale and exposure to long-term resource demand.

I don’t expect any of them to double overnight. But I do believe each has the qualities that can help build wealth steadily over time.

The post 3 high-quality blue-chip ASX shares I would buy right now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Where to invest $10,000 in ASX shares right now
• ASX recap: 5 most traded shares last week
• What have we learned from earnings season so far?
• Here’s the earnings forecast out to 2030 for CBA shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. 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.

Reaching $100,000 invested sounds like a big milestone. But the truth is, it doesn’t require winning the lottery or picking the next market darling. With consistency, patience, and compounding, investing $500 a month in ASX shares can get you there.

Here’s how it works in four steps.

Step 1

The most important ingredient isn’t timing the market. It’s committing to investing every month.

At $500 per month, you’re investing $6,000 per year. That might not seem life-altering at first, but what matters is how those contributions grow over time.

Assuming an average annual return of 9%, which is broadly in line with long-term historical share market returns, though never guaranteed, your portfolio starts to accelerate as compounding kicks in.

Step 2

Here’s roughly what the journey could look like at a 9% average return:

After 5 years, you would have contributed $30,000, but your portfolio could be worth around $37,000.

After 10 years, you would have invested $60,000, and your portfolio could grow to approximately $95,000.

Somewhere before the 11-year mark, you would cross the $100,000 milestone.

But you don’t have to stop there. After 15 years, your portfolio would be worth roughly $185,000, and after 20 years, it could be worth roughly $320,000 if everything went to plan.

Notice what happens over time. Compounding really starts to show its power the longer you make it work.

Step 3

To aim for long-term returns, the focus should be on quality ASX shares and exchange-traded funds (ETFs) rather than high-risk speculative stocks.

That could mean global leaders like ResMed Inc. (ASX: RMD), infrastructure-backed names like Goodman Group (ASX: GMG), or dominant platforms such as Xero Ltd (ASX: XRO). Alternatively, broad ETFs such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard MSCI International Index Shares ETF (ASX: VGS) can provide diversified exposure in a single trade.

The key is to invest in businesses or funds with competitive advantages and long growth runways.

Step 4

Reinvesting dividends can meaningfully boost long-term returns. It increases the number of shares you own, which then generates even more income and capital growth over time.

Just as importantly, avoid the temptation to stop investing during market downturns. Periods of weakness often provide opportunities to buy quality assets at lower prices.

Foolish Takeaway

Building $100,000 with $500 a month is about discipline.

By investing consistently, targeting quality ASX shares or ETFs, and allowing compounding to work over a decade or more, that six-figure milestone becomes far more achievable than it first appears. The sooner you start, the easier it gets.

The post How to make $100,000 with just $500 a month in ASX shares appeared first on The Motley Fool Australia.

More reading

• 3 amazing ASX ETFs for beginners to buy
• Here are the top 10 ASX 200 shares today
• BHP share price breaks records on US$4.3b silver agreement
• Why are ASX 200 tech shares down 43% in six months?
• 3 ASX shares smashed in the sell-off to buy this week

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 Goodman Group, ResMed, Xero, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended Goodman Group, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

You don’t need a large portfolio or years of experience to start investing.

In fact, one of the smartest moves a beginner can make is to keep things simple. Instead of trying to analyse income statements or forecast earnings, exchange traded funds (ETFs) allow you to gain exposure to entire sectors or global leaders in a single trade.

If you’re new to the market and want growth-focused exposure without stock picking, here are three amazing ASX ETFs to consider.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The first ETF that every beginner should know about is the Betashares Nasdaq 100 ETF.

This fund tracks the Nasdaq 100, which is packed with some of the world’s most influential technology and growth companies. Holdings include Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Amazon (NASDAQ: AMZN).

Rather than betting on one tech stock, the Betashares Nasdaq 100 ETF gives investors exposure to an entire ecosystem of innovators across software, semiconductors, ecommerce, and artificial intelligence.

For beginners who believe technology will continue shaping the global economy, this fund offers a straightforward way to participate.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

If you’d prefer to keep some exposure closer to home, the BetaShares S&P/ASX Australian Technology ETF is worth a look.

This fund focuses on leading Australian technology companies. Its holdings typically include names like WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and Life360 Inc. (ASX: 360).

This ETF provides exposure to software, digital platforms, and tech-enabled services listed on the ASX. For beginners who want to back local innovation without choosing a single stock, the BetaShares S&P/ASX Australian Technology ETF offers a clean and targeted solution.

It can be more volatile than the broader market, but that volatility comes with long-term growth potential. It was recently recommended by analysts at Betashares.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

The third ASX ETF is a little more thematic. The VanEck Video Gaming and Esports ETF focuses on shares involved in video gaming and esports. This includes global names such as Nintendo, Electronic Arts (NASDAQ: EA), and Advanced Micro Devices (NASDAQ: AMD), which supplies chips powering gaming hardware.

Gaming is no longer a niche hobby. It is a multi-billion-dollar global industry spanning consoles, PC gaming, mobile apps, and competitive esports tournaments.

For beginners who want exposure to a specific structural trend rather than the broader market, the VanEck Video Gaming and Esports ETF offers a way to invest in digital entertainment’s continued expansion. It was recommended by analysts at VanEck recently.

The post 3 amazing ASX ETFs for beginners to buy appeared first on The Motley Fool Australia.

More reading

• Which is the better buy: the NDQ ETF or the VAS ETF?
• Should you just forget ASX tech stocks after the AI selloff?
• The ASX ETFs I think could beat the Australian share market over the next 5 years
• How ETFs can help investors build significant passive income
• How to go from zero to $50,000 with ASX shares

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Life360, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Amazon, Apple, BetaShares Nasdaq 100 ETF, Life360, Microsoft, Nvidia, Tesla, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Electronic Arts. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, Life360, WiseTech Global, and Xero. The Motley Fool Australia has recommended Advanced Micro Devices, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• BHP share price breaks records on US$4.3b silver agreement
• 3 ASX shares smashed in the sell-off to buy this week
• Pro Medicus shares rally off recent lows. Time to chase?
• Sell alert! Why this expert is calling time on Pro Medicus shares
• Contact Energy completes NZ$450m share placement for growth plans

Motley Fool contributor Sebastian Bowen 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 DroneShield, Lovisa, PEXA Group, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended PEXA Group. The Motley Fool Australia has recommended BHP Group, Lovisa, Pro Medicus, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BHP Group Ltd (ASX: BHP) share price has been getting a lot of attention today.

The mining giant’s shares surged after delivering a stronger-than-expected half-year result.

But that isn’t the only thing that the company announced today.

What else did BHP announce?

This morning, BHP announced that it has entered into a long-term streaming agreement with Wheaton Precious Metals Corp. (NYSE: WPM).

A stream is a long-term contract under which the purchaser, in exchange for an upfront payment, acquires the right to receive a percentage of future precious metal production, calculated by reference to underlying production from a mine subject to the agreement.

BHP notes that ongoing payments to the seller are typically structured either as a fixed price per ounce or as a fixed percentage of the prevailing spot price at the time of delivery.

What is this agreement?

According to the release, under the agreement, BHP will receive an upfront payment of US$4.3 billion at completion.

In exchange, the Big Australian will deliver silver to Wheaton calculated by reference to its share of silver produced at the Antamina mine in Peru.

Management highlights that the agreement represents the most valuable streaming transaction to date based on the upfront consideration received.

It also points out that, supported by strong silver market conditions, the agreement maximises shareholder value by unlocking capital from a non-core commodity that can be reallocated to BHP’s high-return growth projects and shareholder returns. This is consistent with its capital allocation framework.

The transaction is not expected to increase BHP’s reported debt levels, and will allow BHP to realise the value of silver as a by-product at Antamina and retain full exposure to all copper, zinc, and lead production from its share of this large-scale, long-life asset.

Commenting on the deal, BHP’s CEO, Mike Henry, said:

We are pleased to partner with Wheaton – a global leader in precious metals streaming. BHP’s investment in Antamina has delivered value to investors through strong copper production performance, and this agreement further unlocks additional value from the asset in an innovative and disciplined way.

The company’s CFO, Vandita Pant, added:

Today’s announcement is a further example of our active capital management in action, and focus on strategically unlocking value from our portfolio. The Upfront Consideration compares favourably with the consensus estimates of our entire share of Antamina. Together with the recent transaction with Global Infrastructure Group and subject to closing of both transactions, we expect to unlock over $6 billion of cash to strengthen our balance sheet flexibility, support long-term value creation and enhance BHP’s shareholder value.

The post BHP share price breaks records on US$4.3b silver agreement appeared first on The Motley Fool Australia.

More reading

• Here’s everything you need to know about the latest BHP dividend
• Why BHP, JB Hi-Fi, Judo Capital, and PEXA shares are storming higher today
• ASX recap: 5 most traded shares last week
• BHP shares jump 8% on strong half-year result and big dividend increase
• BHP Group posts 28% profit jump and higher dividend in half-year earnings

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

ASX 200 tech shares are trailing the market on Tuesday, down 0.72% while the S&P/ASX 200 Index (ASX: XJO) is up 0.3%.

We’re in the midst of a significant tech sector downturn.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 43% over the past six months.

US tech stocks are still travelling well; however, some big players have seen dramatic share price falls in the new year.

The NASDAQ-100 Index (NASDAQ: NDX) is up 4% over the past six months, but down 2% in the year to date (YTD).

Let’s dig deeper.

What’s driving ASX 200 tech shares down?

The chief concern among tech investors worldwide centres around how the artificial intelligence (AI) revolution will play out.

Firstly, there’s concern about US tech stock valuations after strong earnings growth pushed them higher in 2025.

Luke Yeaman, Chief Economist at Commonwealth Bank of Australia, said:

2025 marked the transition from AI expectation to AI impact, helping the global economy shrug off the tariff hit.

But have investors put too much money into US tech stocks and created a bubble that is yet to burst?

The Mag Seven stocks all gained value in 2025, but all of them have fallen in the new year to date (YTD).

The worst performers are Microsoft Corp (NASDAQ: MSFT), down 17%, and Amazon.com Inc (NASDAQ: AMZN), down 14%.

Global X Fang+ ETF (ASX: FANG), which incorporates the Mag 7 plus three others, paints the group picture for us: it’s down 16% YTD.

Yeaman says:

Fears of an “AI bubble” are not irrational — equity valuations are stretched, market concentration is historically high, and expectations for monetisation are demanding.

However, today’s AI-leaders are highly profitable, debt-light and have clear monetisation pathways, unlike their dot-com equivalents.

We expect gains to continue, punctuated by periodic technical corrections to valuations, rather than a major ‘bust’ or GFC style crisis.

Capex gone crazy?

Investors are also concerned about whether massive investment in AI will actually lead to stronger shareholder returns.

Analysis by CBA shows US ‘hyperscalers’ will spend more than US$500 billion per year from this year on AI infrastructure and chips.

In its Global Market Outlook for 2026, State Street Investment says:

… the US remains the epicenter of the AI trade with Magnificent 7 share price gains fueled by AI spending expectations.

Capital spending by this cohort is expected to grow to about $520 billion in 2026, or over 30% year-on-year.

SaaS on the way out?

The third concern plaguing ASX 200 tech shares is whether AI will replace, or degrade the value, of software-as-a-service companies.

If agentic AI and generative tools, like Anthropic’s Claude and OpenAI’s Codex, can custom-write software, why would companies buy proprietary SaaS products?

Portfolio manager Ron Shamgar from Australian fund manager, Tamim, explains it:

The core fear: AI agents could replace human workflows, eroding seat-based/per-user pricing models that underpin SaaS giants.

One AI agent might handle tasks previously requiring multiple licensed users, enabling in-house builds or cheaper alternatives. 

The big SaaS companies listed in the US include Salesforce, Adobe, Intuit, and ServiceNow.

Check out what’s happened to their share prices over the past six months.

Locally, the biggest ASX 200 tech share in the SaaS space is logistics management platform provider, WiseTech Global Ltd (ASX: WTC).

There’s also accounting services provider Xero Ltd (ASX: XRO) and enterprise resource planning provider TechnologyOne Ltd (ASX: TNE).

We also have family location app provider Life360 Inc (ASX: 360) and hotel bookings management platform, Siteminder Ltd (ASX: SDR).

Look what has happened to these ASX 200 tech shares over the past six months.

In a recent article, Shamgar calls the market’s fear over SaaS models the ‘Ozempic moment for Saas’.

He’s referring to the valuation plummet for sleep apnea device maker Resmed CDI (ASX: RMD) in 2023.

The Resmed share price crumbled because investors feared the impact of GLP-1 medicines for obesity, like Ozempic and Mounjaro.

The market reaction was brutal.

ResMed’s shares plunged roughly 30-40% in the second half of 2023 (from highs around $33-34 AUD to lows near $21), with some periods seeing over 25% drops tied directly to GLP-1 headlines.

As it turns out, investors overreacted.

The initial panic proved exaggerated; the disruption was real but incremental and slower than feared, with adaptation (e.g., hybrid treatments) preserving demand.

Other factors contributing to rotation out of tech

Other factors impacting ASX 200 tech shares include the interest rate hike in Australia this month and expectations of another to come.

There’s also been US President Donald Trump’s surprising choice for the next Fed Chair, Kevin Warsh.

The market considered Warsh the more hawkish choice, in contrast with Trump’s preference for lower rates.

Higher interest rates tend to weigh on tech shares because they reduce the present value of future earnings.

They also increase borrowing costs, making growth and expansion more expensive for tech companies to fund.

On top of that, we have a global debasement trade underway.

Investors have become much more interested in hard assets, like metals, as the US dollar has weakened.

This has created boom conditions for mining shares and commodities, distracting attention away from tech companies.

ASX 200 mining stocks returned a staggering 36% last year, with most of that accumulating in the second half.

The post Why are ASX 200 tech shares down 43% in six months? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Adobe, Amazon, Intuit, Life360, Microsoft, ResMed, Salesforce, ServiceNow, SiteMinder, Technology One, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool Australia has positions in and has recommended Life360, ResMed, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has recommended Adobe, Amazon, Microsoft, Salesforce, ServiceNow, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Recent reporting season volatility has created sharp pullbacks across parts of the ASX. While some falls are justified, others look more like sentiment swings than structural problems.

Here are 3 ASX shares that have been heavily sold in the past month but could be worth a closer look.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price has fallen about 43% in the past month, though it has bounced 8.03% to $126.36 today.

The sharp drop came after the company released its latest half-year result. The numbers were strong on paper, with revenue and profit rising again. But expectations were sky high going into the announcement.

Despite the heavy selling, the business itself has not materially changed. Pro Medicus continues to win large imaging contracts in North America and generates high margin, recurring revenue through its Visage platform. Its balance sheet also remains in a net cash position.

Broker consensus still leans positive, with more ‘buy’ ratings than ‘sells’ at present. Even so, the stock trades on a premium valuation compared to the broader market, which helps explain why it has been so volatile.

After such a steep correction, the risk and reward profile looks very different to what it did a month ago.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is down roughly 12% over the past month and is currently trading around $20.13, down slightly again today.

Iron ore weakness and broader commodity volatility have weighed on sentiment. That said, Fortescue remains one of the lowest cost producers globally and continues to generate strong cash flow at current prices.

Another factor is its push into copper. Recent updates on its copper growth plans show management is looking beyond iron ore. Copper is widely viewed as a key metal for electrification and renewable energy infrastructure, giving Fortescue exposure to demand drivers outside its traditional iron ore base.

Broker consensus is more cautious here, with a mix of ‘hold’ and ‘sell’ ratings. The dividend yield remains attractive relative to the ASX 200, but earnings are still heavily tied to iron ore pricing.

At these levels, the stock may appeal to investors seeking yield and willing to accept commodity price swings. However, it remains a cyclical business and sentiment can shift quickly if iron ore prices move.

Cochlear Ltd (ASX: COH)

The Cochlear share price has fallen about 25% in a month, including a sharp drop of roughly 19% on Friday following its HY26 result. The stock is now sitting around $200.83, modestly higher today.

The result disappointed the market, with softer profit growth and a cautious guidance weighing on sentiment.

Despite this, Cochlear remains the global leader in implantable hearing solutions, backed by decades of operating history and a strong brand. Demand is supported by ageing populations and improving diagnosis rates across key markets.

Broker consensus currently shows a ‘buy’ skew, with more positive than negative recommendations. That suggests some analysts see the sell-off as overdone relative to long-term fundamentals.

The recent weakness may prompt some investors to take a fresh look at the company.

The post 3 ASX shares smashed in the sell-off to buy this week appeared first on The Motley Fool Australia.

More reading

• Pro Medicus shares rally off recent lows. Time to chase?
• Sell alert! Why this expert is calling time on Pro Medicus shares
• ASX recap: 5 most traded shares last week
• What is Morgans saying about Cochlear, Deep Yellow, and Webjet shares?
• Buy, hold, sell: Orica, Origin Energy, and Pro Medicus shares

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

Botanix Pharmaceuticals Ltd (ASX: BOT) shares are having a difficult session on Tuesday.

At the time of writing, the ASX 300 stock is down 41% to 6.5 cents.

Why is this ASX 300 stock crashing?

The catalyst for today’s decline has been news that the dermatology company is raising capital.

According to the release, Botanix has received firm commitments for a ~$40 million two-tranche placement. It was strongly supported by existing and new institutional and sophisticated investors, with the second tranche subject to shareholder approval.

The ASX 300 stock also intends to offer existing eligible shareholders the opportunity to partake in a security purchase plan underwritten up to $5 million (before costs), with the ability to accept oversubscriptions, subject to shareholder approval.

Why is it raising funds?

The release notes that proceeds from the placement and the security purchase plan are intended to be used towards active pharmaceutical ingredient (API) purchases and manufacturing components, alternate API supplier setup, advertising and marketing initiatives, operating expenses, and working capital and transaction costs.

It believes this strengthens its position to deliver on its strategic initiatives, including delivering continued Sofdra growth, adding new products to the fulfilment platform to accelerate growth and profitability, and elevating its value proposition for mergers and acquisitions.

Commenting on the capital raising, the ASX 300 stock’s executive chair, Vince Ippolito, said:

We were pleased to close the bookbuild for this Placement with strong support from our existing and new institutional shareholders, following a successful first year on the market and with continuing strong demand for Sofdra. As we have seen, the Company is experiencing strong quarter on quarter growth since launch.

We are excited by the potential of the recently hired additional 27 sales professionals, bringing our combined sales force to 50 sales professionals. Over the coming quarters we look forward to seeing their impact on the volume of Sofdra prescribed and we are incredibly excited for the future of Sofdra and the Company.

Ippolito also notes that the capital raising will derisk its supply chain. He adds:

We expect the targeted funds raised will allow us to derisk our supply chain, secure API under our current supply contract and put us in a more favourable financial position. The Company is at an exciting stage of development and we look forward to our shareholders’ continued support under the security purchase plan and we welcome all the new investors to our register.

The post Why is this ASX 300 stock crashing 40% today? 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 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.

Normally, I don’t like buying ASX shares that are up 40% in six months. As a value investor at heart, I try (with varying degrees of success) to follow Warren Buffett’s playbook of buying high-quality companies at cheap prices.

However, I can make exceptions. And I am seriously considering making one when it comes to the L1 Global Llog Short Fund Ltd (ASX: GLS).

The L1 Global Long Short Fund is a listed investment company (LIC) that has quite an interesting history. In fact, not too long ago, it had a different name and a different manager. Yep, the L1 Global Fund was formerly known as Platinum Capital Ltd. However, the manager of this LIC had been struggling for a number of years, and decided to accept a takeover offer from L1 Group Ltd (ASX: L1G). Upon the completion of this takeover, the L1 Global Long Short Fund was born.

L1 was already famous for its L1 Long Short Fund (ASX: LSF) LIC, which, despite a rocky start, has gone on to become one of the ASX’s best-performing managed investments. That fund has an ASX-focused mandate, though. L1 wanted to build a fund that was unconstrained in its scope, and we have it here on the ASX today with the L1 Global Log Short Fund.

Like its locally-focused Long Short Fund, the L1 Global Fund employs both traditional ‘long’ investing alongside short-selling in order to make returns. This makes it quite unique on the ASX, which only has a handful of funds that employ both strategies. Whilst risky, using both can enable this LIC to profit in both bull and bear markets.

Is this ASX share a no-brainer buy in 2026?

Now, the L1 Global Long Short Fundhas several traits that would normally put me off buying it. For one, it uses short-selling, which is a tactic I don’t usually like to see in my investments. For another, it charges a steep management fee of 1.44% per annum (plus a performance fee).

However, I can’t ignore the numbers. As we covered a few months ago, L1’s team trialled the strategy that it now uses for the Global Long Short Fund. This trial saw L1 record a return of 67.5% between January and October. Since the start of October, this LIC has risen by almost 35%.

If this breakneck performance can be maintained over a number of years and all economic and market cycles, it could mean L1 Global Long Short Fund is one of the best shares on the ASX.

So I’ll be keeping a close eye on this investment. If management keeps making the right calls, I might have to buy some shares of my own.

The post This ASX share is up 40% in 6 months and I want to buy it appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.