Author: openjargon

Block Inc (ASX: XYZ) shares closed on Monday trading for $97.65 apiece.

This sees shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) company, which acquired Afterpay in January 2022, up 11.42% over 12 months.

That’s more than four times the 2.6% one-year gains delivered by the ASX 200.

And according to Andrew Dale, a partner and portfolio manager at ECP Asset Management, the BNPL giant still looks to be trading for a bargain (courtesy of The Australian Financial Review).

Should you buy Block shares today?

Asked which stock his fund holds that he believes is the most undervalued by the market, Dale pointed to Block shares.

According to Dale:

We believe Block – a financial technology company which owns Afterpay – is underappreciated and is a top position in the fund. In its most recent update, it demonstrated progress on its operational efficiency initiatives.

And unlike many tech focused company’s, Dale said that artificial intelligence systems are supporting the stock’s performance.

“The sustained focus on cost discipline and the deployment of AI-enhanced productivity tools supported margin expansion across both the Cash App and Square business units,” he noted.

Summarising his bullish outlook on Block shares, Dale concluded:

With the company executing towards its upgraded guidance and maintaining steady growth in gross sales, its medium-term earnings trajectory and improving product launch velocity paints a bullish picture.

What’s the latest from the ASX 200 BNPL stock?

Block reported its first-quarter (Q1 2026) results on 8 May.

Highlights include net quarterly revenue of US$6.06 billion, with the company achieving a gross profit of US$2.91 billion, up 27% from Q1 2025.

However, impacted by US$852 million in restructuring and legal costs, Block reported a Q1 operating loss of US$172 million.

Following the strong first-quarter performance, the company increased its full calendar year 2026 gross profit guidance to US$12.33 billion, up 19% from 2015. Block expects to achieve a full-year adjusted operating income margin of 27%.

As for the AI-enhanced productivity tools that Dale mentioned above, Block CEO Jack Dorsey said, “We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers.”

Dorsey noted:

Our roadmap is differentiated because it connects AI directly to the financial decisions customers and sellers already make every day. Internally, AI is helping us move faster and improve quality. Externally, it is helping us build products that act earlier for customers and sellers.

Block shares closed up 4.8% on the day of the results release.

The post Why Afterpay owner Block shares are looking undervalued appeared first on The Motley Fool Australia.

More reading

• Why these ASX tech stocks could be no-brainer buys
• Here are the top 10 ASX 200 shares today
• Why Block, News Corp, REA Group, and TechnologyOne shares are storming higher today
• Why QBE, Block and Macquarie shares are grabbing headlines on Friday
• Afterpay and Square owner Block shares jump 6% on strong results

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 Block. 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.

Term deposits are looking more attractive than they have for a long time.

With interest rates rising, investors can now earn a respectable return from cash without taking on share market risk. For income investors with a low risk tolerance, I think term deposits can make a lot of sense.

But they are not the only option.

For investors who can handle some risk, ASX income stocks may offer something more powerful: attractive dividends plus the potential for capital growth.

That is important when inflation is high. A term deposit may help preserve purchasing power, but it is unlikely to grow wealth meaningfully after inflation and tax. Quality dividend shares can offer income today and the chance of a higher portfolio value over time.

Three ASX income stocks I would consider are named in this article.

Telstra Group Ltd (ASX: TLS)

Telstra is one of the first ASX income stocks I would look at.

The telecommunications giant provides mobile, broadband, and network services that remain essential for households and businesses.

I like this defensive quality. Even when consumers are under pressure, most people will not cancel their mobile phone or internet connection. That gives Telstra a more resilient earnings base than many cyclical businesses.

The other attraction is its dividend profile.

Telstra has been working through a long period of simplification and network investment, and I think the business now looks better placed to deliver steady income growth for shareholders.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT is another income option I like.

This property group owns convenience-based assets such as neighbourhood retail, large format retail, and health and services properties.

That mix is attractive to me because many of its tenants are linked to everyday needs rather than luxury spending.

The portfolio includes exposure to supermarkets, pharmacies, healthcare services, pet supplies, and other essential or regular-use categories. This can support rental income even when household budgets are stretched.

There are risks. REITs can be sensitive to interest rates, debt costs, and property valuations. But if rates eventually stabilise and demand for convenience-based retail property remains solid, I think the income and capital growth potential could be strong.

BWP Group (ASX: BWP)

BWP Group is another ASX income stock that could appeal to investors looking beyond term deposits.

It owns a portfolio of large-format retail properties, with a strong connection to Bunnings Warehouse sites.

That gives it exposure to a tenant base and property type that has historically been attractive for income investors.

I like the simplicity of the model. BWP owns properties and collects rent from tenants, with the aim of turning that rental income into distributions for investors.

The link to large-format retail can also provide some inflation protection if leases include rental increases over time.

BWP is also not risk-free. Property values can move, interest rates can affect sentiment, and tenant concentration needs to be considered. But for income investors willing to take on some market risk, I think it remains a quality ASX property income option.

Foolish takeaway

Term deposits are a good choice for investors who want certainty and have little tolerance for share market volatility.

But for those who can accept some ups and downs, ASX income stocks may offer a stronger long-term outcome.

Telstra, HomeCo Daily Needs REIT, and BWP Group all provide income potential from different parts of the market. They also offer something term deposits cannot: the chance for capital growth over time.

The post Why these ASX income stocks could be better than term deposits appeared first on The Motley Fool Australia.

More reading

• 136,191 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
• How to generate $20,000 a year in passive income on the ASX
• How to build a passive income stream with ASX shares
• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• CGT tax changes may encourage investors into ASX dividend shares: Expert

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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Some ASX shares could have the potential to deliver significant returns according to analysts.

Brokers are always on the lookout for opportunities that could be substantially undervalued.

We’re going to look at two businesses that could be among the most compelling ideas right now, if analysts end up being right. But, price targets are not guarantees that positive returns will become reality.

Siteminder Ltd (ASX: SDR)

This ASX tech share provides software to hotels to help them operate and generate revenue.

Siteminder has generated significant revenue growth in the last few years and it continues to do so. Analysts have put exciting price targets on the business, which suggest it could deliver great returns in the year ahead.

According to CMC Invest, of 11 recent analyst ratings, the average price target is $5.99, implying a possible rise of 111% from the current level, at the time of writing.

The company is rolling out its smart platform to subscribers, who may see a significant rise in revenue and efficiencies if they sign up for certain tools, while Siteminder gains significantly more revenue.

In the FY26 half-year result, Siteminder said channels plus grew to around 7,000 hotels, with ongoing progress in inventory optimisation and expanding distribution use cases. Dynamic revenue plus saw accelerating adoption, with over 20,000 rooms now under management, while the smart distribution program “broadened its impact across distribution partners”.

On top of all of the above, along with its normal organic client wins, it saw annualised recurring revenue (ARR) grow 29.7% to $280.3 million.

The business is also seeing rising profit margins, which bodes very well for the future, in my view.

Xero Ltd (ASX: XRO)

Another ASX share I’ll highlight is Xero, an accounting software and business operations company.

It recently announced its FY26 half-year result, which included a 27% decline of net profit partly due to Melio acquisition costs.

Other metrics were positive, including 31% operating revenue growth, 37% annualised monthly recurring revenue (AMRR) growth and 24% growth of operating profit (EBITDA).

The ASX share is investing heavily in AI features for subscribers, which could be key for maintaining and winning additional customers to its subscriber base.

While it may take some time for Melio to be embedded into the business, it could be essential if Xero is to succeed in the US.

According to CMC Invest, there have been nine recent ratings on the business, with an average price target of $124.52. That implies a possible rise of around 60% within the next year, at the time of writing.

The post 2 ASX shares tipped to grow 50% or more in the next 12 months appeared first on The Motley Fool Australia.

More reading

• How to generate $20,000 a year in passive income on the ASX
• What on earth’s going on with Xero shares?
• Could Xero shares really go that high? 3 brokers weigh in
• Top brokers name 3 ASX shares to buy next week
• 3 excellent ASX ETFs to buy and hold for 10 years

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

Last week was a tough week for GrainCorp Ltd (ASX: GNC) shares.

The agribusiness and grain handling giant saw its shares crash on Thursday following the release of its half-year results, extending its year-to-date decline.

The stock now sits well below where it traded this time last year.

So what went wrong, and is the damage done?

What the numbers showed

GrainCorp reported underlying EBITDA of $136 million for the six months to 31 March 2026, down 33% from $202 million in the prior corresponding period.

Underlying net profit after tax fell 52% to $33 million, while reported NPAT collapsed to just $5 million.

The Agribusiness division saw EBITDA drop 26% to $104 million, reflecting weaker conditions on Australia’s east coast.

Total grain handled came in at 26.5 million tonnes, down from 29.5 million tonnes a year ago, as a lower carry-in position and reduced grower selling activity weighed heavily on volumes and pushed export margins to multi-year lows.

The Nutrition and Energy segment also disappointed, with a $12 million EBITDA timing impact from derivative mark-to-markets dragging on the result, though management expects that to unwind in the second half.

What management said

GrainCorp CEO Robert Spurway did not sugarcoat the result.

He said:

GrainCorp’s 1H26 result reflects a disciplined performance in a challenging global grain market. Oversupply of grain and associated low pricing have compressed margins across the supply chain and reduced grower selling activity, limiting available volumes and increasing competition for grain brought to market. Against this backdrop, we are tightly focused on cost management, capital discipline and portfolio optimisation.

On a more positive note, Spurway confirmed minimal impact from the Middle East conflict, stating:

We have experienced minimal impact from the Middle East conflict to date, with our supply chain continuing to operate as normal.

What brokers think

Neither Bell Potter nor Morgans saw the result as a buying opportunity.

Bell Potter retained its hold rating and cut its price target to $5.90 from $6.80, warning that global production forecasts for 2026/27 remain elevated at around 2% above the five-year average, suggesting grain trading margins will stay tight.

Morgans also downgraded GrainCorp to a hold with a $5.62 price target, noting:

GNC’s 1H26 result was weak but broadly in line with consensus at the NPAT level. The era of special dividends now appears to be over.

Is there any good news?

GrainCorp reaffirmed its FY2026 earnings guidance of underlying EBITDA between $200 million and $240 million and underlying NPAT between $20 million and $50 million, implying a significantly stronger second half.

The board also declared a fully franked interim ordinary dividend of 14 cents per share, payable on 16 July 2026.

The balance sheet remains solid, with a core cash position of $163 million and an ongoing share buyback program that has deployed $38 million of its $75 million authorisation to date.

Weather across east coast Australia has been broadly supportive for the upcoming winter crop, with favourable soil moisture conditions across Victoria and southern New South Wales.

Foolish takeaway

GrainCorp is a cyclical business and this is clearly a down cycle.

With global grain oversupply showing little sign of easing and both major brokers sitting on hold ratings, investors may want to be patient.

However, patient investors with a contrarian mindset may see value at current prices for Graincorp shares.

The post Why GrainCorp shares sank 15% last week and what it means for investors appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: GrainCorp, Treasury Wine, and Xero shares
• 5 ASX shares downgraded by brokers this week
• Down 30%: Is this ASX 200 stock a buy after its crash?
• 5 things to watch on the ASX 200 on Friday
• Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today

Motley Fool contributor Mark Verhoeven 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.

The Technology One Ltd (ASX: TNE) share price is in focus after Australia’s largest SaaS ERP company delivered its 17th consecutive record first-half profit, with annual recurring revenue (ARR) jumping 17% and profit before tax up 9% for the half year ended 31 March 2026.

What did Technology One report?

• Profit before tax of $89.1 million, up 9% year-on-year
• Profit after tax of $66.8 million, up 6%
• Annual recurring revenue (ARR) of $598.0 million, up 17%
• Net revenue retention of 114%
• Record interim dividend of 8.0 cents per share, up 21%
• SaaS and recurring revenue of $299.2 million, up 13%

What else do investors need to know?

Technology One’s results reflect the strong momentum behind its SaaS+ strategy and recently launched AI products. The company saw significant growth in the UK (ARR up 23%) and strong wins across local government and education sectors, including major contracts with prominent Australian councils and universities.

Investment in research and development (R&D) increased 22% to $84.1 million, representing 26% of total income, as Technology One continues to innovate in AI and expand its product suite. Cash and investments rose 16% to $245.5 million, underpinning the company’s ongoing investment capability with no debt on the balance sheet.

What did Technology One management say?

Technology One CEO and Managing Director Ed Chung said:

There is huge momentum and confidence in the business today, in our strategy of SaaS+, which is fuelling the results we delivered today, and allows us to continue to invest into the future. Now with our AI strategy, the adoption of AI and the feedback we are receiving is surpassing our expectations. All of this also gives us confidence in our pipeline and we don’t guide up unless we see it day in and day out.

What’s next for Technology One?

The company reaffirmed upgraded FY26 guidance, targeting 18–20% profit growth and 16–18% ARR growth for the full year, with a goal of $1 billion+ ARR by FY30. Management confirmed guidance includes all current investments, such as AI, SaaS+ and new initiatives like Showcase.

With its transition to SaaS+ and continued rollout of next-generation AI ERP products, Technology One expects improved margins and sustained double-digit growth, focusing on expanding in both domestic and overseas markets, particularly local government and higher education.

Technology One share price snapshot

Over the past 12 months, Technology One shares have declined 13%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period. 

View Original Announcement

The post Technology One posts 17th consecutive record first-half profit, AI drives FY26 guidance appeared first on The Motley Fool Australia.

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• Buy, hold, sell: ResMed, Sigma, and TechnologyOne shares

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 positions in and has recommended Technology One. The Motley Fool Australia has recommended Technology One. 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 summary of the company announcement. 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.

Exchange traded funds (ETFs) can be a simple way to invest in powerful global trends.

Instead of trying to choose the winning company in a fast-moving sector, investors can use ETFs to spread their money across a group of businesses operating in the same space.

Here are three ASX ETFs for smart investors to take a closer look.

Betashares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to look at is the Betashares Global Cybersecurity ETF.

Cybersecurity has become one of the non-negotiable costs of doing business. Every company with customer data, cloud systems, online payments, or remote workers needs protection.

That makes this a spending category that is unlikely to disappear, even when economic conditions become more uncertain.

The Betashares Global Cybersecurity ETF provides exposure to global companies involved in cybersecurity software, hardware, and services. Its holdings include Zscaler (NASDAQ: ZS), Check Point Software Technologies (NASDAQ: CHKP), and Gen Digital (NASDAQ: GEN).

For investors wanting exposure to a technology theme with a clear real-world need, it could be an ETF to watch.

Global X Artificial Intelligence ETF (ASX: GXAI)

Another ASX ETF that could be worth looking at is the Global X Artificial Intelligence ETF.

Artificial intelligence is no longer just a story about chatbots or chip demand. It is becoming a layer of technology that can be built into software, healthcare, finance, manufacturing, logistics, and customer service.

The Global X Artificial Intelligence ETF gives investors access to companies that could benefit from the development and use of AI across different industries.

Its holdings include SK Hynix (NYSE: JNSB), Advanced Micro Devices (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO).

This gives the fund exposure to the hardware that supports AI workloads, as well as the broader ecosystem developing around data processing and automation.

Overall, the Global X Artificial Intelligence ETF provides smart investors with a basket of companies positioned around one of the biggest technology shifts of the decade. It was recently recommended by analysts at Global X.

Global X Semiconductor ETF (ASX: SEMI)

A third ASX ETF worth considering is the Global X Semiconductor ETF.

Semiconductors sit underneath almost every major technology trend. Smartphones, electric vehicles, cloud computing, automation, gaming, defence systems, and artificial intelligence all need chips to function.

The Global X Semiconductor ETF provides exposure to global companies involved in semiconductor design, manufacturing, equipment, and related supply chains.

Its holdings include Taiwan Semiconductor Manufacturing Company (NYSE: TSM), ASML Holding (NASDAQ: ASML), and Qualcomm (NASDAQ: QCOM).

This gives investors access to different parts of the chip industry rather than relying on a single company or one part of the supply chain.

Demand can be cyclical, and the sector can be volatile. But over the long term, the world is becoming more chip-intensive. The Global X Semiconductor ETF offers a direct way to invest in that shift through the ASX. It was also recently recommended by the team at Global X.

The post Here are 3 ASX ETFs for smart investors to buy appeared first on The Motley Fool Australia.

More reading

• Why US earnings is good news for artificial intelligence ETFs: Expert
• 3 ASX ETFs for investors chasing long-term growth
• Why Aussie investors are pouring into international ASX ETFs
• 5 of the best ASX ETFs to buy and hold in 2026
• 3 ASX ETFs that have raced ahead this year

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 ASML, Advanced Micro Devices, BetaShares Global Cybersecurity ETF, Broadcom, Check Point Software Technologies, Qualcomm, Taiwan Semiconductor Manufacturing, and Zscaler. The Motley Fool Australia has recommended ASML and Advanced Micro Devices. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian Age Pension is one of the most generous in the world, though there are a few high-yield ASX dividend stocks I’d rather rely on for income, such as Telstra Group Ltd (ASX: TLS).

Some businesses look compelling to me as options because of their resilience and their ability to deliver passive income growth that outpaces inflation.

Telstra is best known as the leading telecommunications business in Australia with its mobile, broadband, enterprise and infrastructure divisions.

If we’re looking at the Age Pension in terms of an income target, it’s approximately $28,600 annually with the maximum basic rate for a single person.

With that goal in mind, let’s take a look at the potential dividend income from the high-yield ASX dividend stock that I want to point out.

Dividend projections

The most important metrics that investors may want to know relate to the dividend.

I’m going to look at analyst projections for Telstra for the 2026 financial year.

According to the projection on Commsec, the high-yield ASX dividend stock is forecast to pay an annual dividend per share of 21 cents per share in FY26.

If the company does pay that dividend, it would represent year-over-year growth of 10.5%, which I’d say is a very pleasing increase.

At the time of writing, the current Telstra share price could yield approximately 5.3%, including franking credits. In my view, that’s a great starting point, and the business could continue hiking its annual dividend for the foreseeable future.

Currently, the projection on CommSec implies the high-yield ASX dividend stock could grow its FY27 payout by another 2.4% to 21.5 cents per share.

I should note that the business could deliver its pleasing dividend while continuing to invest in its mobile network.

How many Telstra shares are needed?

To generate $28,600 of annual grossed-up dividend income (excluding franking credits) based on the FY26 annual dividend, an investor would need 136,191 Telstra shares.

That would be a major investment, so I’d really suggest investors not to put all of their portfolio money into Telstra shares. Diversification is an important element for a dividend portfolio.

Why I’d buy Telstra shares for passive income

Telstra is the clear market leader in Australia, and this gives the ASX dividend stock both a strong pull for new subscribers and the ability to raise prices that other Australian telcos are not able to do as easily.

Australia is becoming increasingly digital and many of these devices need an internet connection, which is a strong long-term tailwind. Australia’s growing population is another tailwind.

I think its track record this decade gives me confidence that the company will deliver more growth than the Age Pension over the rest of the decade.

The post 136,191 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

More reading

• Why these ASX income stocks could be better than term deposits
• How to generate $20,000 a year in passive income on the ASX
• How to build a passive income stream with ASX shares
• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• CGT tax changes may encourage investors into ASX dividend shares: Expert

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

ASX tech stock Hub24 Ltd (ASX: HUB) started the week in the red, slipping 1% to $79.66.

That leaves the ASX tech stock down around 17% in 2026.

But while the sell-off may look ugly on the surface, the recent weakness appears driven more by macro fears and sector sentiment than company-specific problems.

And for long-term investors, that could create an interesting opportunity.

Caught in a sector sell-off

The broader technology sector has been under pressure as investors reassess valuations and try to understand how artificial intelligence (AI) could reshape competitive dynamics.

Growth shares have been hit particularly hard. That is not unusual during periods of uncertainty. Markets often sell first and ask questions later. Even high-quality ASX stocks can get caught in broad-based de-rating cycles.

Importantly, Hub24’s operational performance still looks strong. The ASX tech stock continues to benefit from structural growth as more financial advisers adopt its platform.

In its latest quarterly update, Hub24 reported net inflows of $4 billion. Total funds under administration climbed to $151.7 billion, up 22% year-on-year. Those are not the numbers of a business losing momentum.

Platform monogamy

The platform also continues to gain traction across the advice industry. More than 5,200 advisers now use Hub24, and industry trends appear to be working in its favour.

One of the biggest is platform consolidation. More advisers are moving toward “platform monogamy,” where they consolidate client assets onto a single provider rather than spreading them across multiple systems.

That trend could become a major tailwind for the ASX tech stock as advisers prioritise efficiency, integration, and scale.

Strong operational leverage

And there may be another powerful growth driver hiding beneath the surface. Platform businesses often benefit from strong operating leverage.

In simple terms, once fixed costs are covered, additional funds flowing onto the platform can generate higher incremental margins. That creates the potential for earnings growth to outpace revenue growth over time. That is one of the more interesting parts of the investment case right now.

The market may be focusing heavily on short-term sentiment, valuation concerns, and AI disruption fears. But internally, Hub24 could still be building a much stronger earnings engine as it scales.

AI uncertainty

The AI debate also deserves some perspective. Technology is evolving rapidly, and AI will almost certainly change parts of the financial services industry over time.

But Hub24 is not simply a basic software product. The ASX tech stock operates a deeply integrated ecosystem connecting advisers, clients, compliance, reporting, and investment administration.

Those ecosystems tend to be sticky. In fact, AI could potentially strengthen platforms like Hub24 rather than disrupt them. Automation and smarter tools may improve efficiency and client servicing without replacing the underlying platform infrastructure.

That distinction matters.

What do the experts think?

Analysts also appear increasingly optimistic despite the recent share price weakness.

According to TradingView data, most brokers currently rate Hub24 shares as a buy.

The average broker price target sits at $105.96, implying potential upside of roughly 33% from current levels. The most bullish target stands at $132.10, while the lowest target is $66.20.

Jarden is among the more positive brokers on the ASX fintech stock. It currently has a buy rating and a $115.30 price target on Hub24 shares.

The post Why this struggling ASX tech stock could surprise investors appeared first on The Motley Fool Australia.

More reading

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• 3 high-quality ASX 200 shares for beginners to buy and hold
• 3 amazing ASX growth shares to buy in May with $20,000
• Generation Development Group completes $1.8bn client migration

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.

Some ASX tech stocks have been hit hard over the past year.

In some cases, I think the sell-off has gone too far.

The two shares in this article are down almost 30% and almost 70% from their highs. Those are significant declines, and they show just how much sentiment has shifted.

But I do not think the long-term growth stories have disappeared.

For patient investors, this kind of share price weakness can create the chance to buy high-quality technology businesses at far more attractive prices than before.

Block Inc (ASX: XYZ)

Block is a much broader business than many investors may realise.

This ASX tech stock owns Cash App, Square, Afterpay, and a number of financial tools that connect consumers, sellers, payments, lending, and commerce.

I like Block because it sits on both sides of the transaction.

Cash App gives it a large consumer finance platform. Square gives it relationships with sellers. Afterpay gives it exposure to buy now, pay later and consumer lending. Put together, Block has the chance to build a more connected financial ecosystem than a traditional payments company.

The company is also leaning heavily into artificial intelligence (AI).

Block is using AI internally to improve engineering speed and product development, while also adding smarter tools into Cash App and Square. Its Moneybot and Managerbot products are designed to help customers and sellers identify useful actions, such as managing spending, spotting business cost changes, or improving financial habits.

That is where I think the long-term opportunity becomes interesting.

Block is not just trying to process payments. It is trying to make its platforms more useful, proactive, and embedded in daily financial decisions.

There are risks, of course. Lending growth needs to be managed carefully, competition is intense, and regulation is always worth watching in financial services.

But if Block keeps improving Cash App, Square, Afterpay, and its AI tools, I think the company could be far more valuable in the future.

The Block share price is down almost 30% from its high.

WiseTech Global Ltd (ASX: WTC)

WiseTech is another beaten-down ASX tech stock I would be happy to buy for the long term.

The company is building software for one of the most complicated parts of the global economy: trade and logistics.

That may not sound as exciting as consumer apps or artificial intelligence, but global trade is filled with complexity. Goods need to move across countries, ports, warehouses, customs systems, transport networks, and compliance regimes.

That complexity creates demand for specialist software.

WiseTech’s CargoWise platform already plays a key role for freight forwarders and logistics companies. The company serves more than 22,000 logistics companies and industry participants across 193 countries, including many of the world’s largest freight forwarders and third-party logistics providers.

I think that gives WiseTech a powerful starting point.

The company is also expanding beyond logistics through areas such as trade, supply chain, customs, trade finance, and verified identity and data. That could turn WiseTech into a much broader operating system for global trade.

AI could make that opportunity larger. Logistics involves a lot of manual data entry, document checking, compliance work, and exception management. If WiseTech can use AI to automate more of those tasks, its software could become even more valuable to customers.

The stock is not without risk. WiseTech has faced questions around valuation, acquisitions, leadership, and execution. But the market it serves is enormous, and its software is deeply tied to customer workflows.

The WiseTech share price is down almost 70% from its high.

Foolish Takeaway

Block and WiseTech face different questions, but both still have market positions that could become more valuable over time. 

One is building deeper financial relationships with consumers and sellers. The other is becoming more embedded in the systems that keep global trade moving.

Share price weakness does not remove the risks. But when quality tech businesses fall this far, I think long-term investors should at least be asking whether the market has become too pessimistic.

The post Why these ASX tech stocks could be no-brainer buys 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 Block and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Whitehaven Coal Ltd (ASX: WHC) share price has been one of the better performers within the S&P/ASX 200 Index (ASX: XJO) in the last 12 months.

It’s understandable that ASX coal shares have not been popular investments in the last few years because of environmental concerns.

But, it’s hard to ignore the fact that coal has been an excellent investment in the past year.

In the past year, the Whitehaven Coal share price has risen around 50%, meaning $10,000 is now worth approximately $15,000, at the time of writing.

A company’s latest result usually has the most material impact on its valuation. But, for a mining business, the commodity price can also be crucial.

Let’s look at what has helped the Whitehaven Coal Ltd (ASX: WHC) share price in recent times.

Stronger commodity price

The business reported that in the three months to 31 March 2026, it saw both metallurgical and thermal coal prices improve, with the prices up 18% and 11% respectively, quarter-on-quarter.

The price of the commodity is particularly important for a miner because of the operating leverage that the business has. Operating costs don’t typically change much month to month, so any increase in the resource price that boosts revenue dollars largely falls straight to the bottom line, aside from paying more to the government.

Whitehaven explained what’s driving the coal prices in the short-term:

The PLV HCC Index strengthened through the quarter reflecting tighter supply due to wet-season disruptions in Queensland, highlighting the current finely balanced market conditions for metallurgical coal.

The gC NEWC Index also appreciated in the quarter reflecting geopolitical developments in the Middle East from late February. Tightening LNG supply and the potential of gas‑to‑coal switching by end users underpinned the March increase in the gC NEWC Index. Energy markets remain volatile during this period of uncertainty. Whitehaven’s NSW thermal portfolio is well positioned to benefit from upward movements in the gC NEWC index.

It also gave some thoughts on the longer-term outlook too:

The expected structural shortfall in global metallurgical coal production, particularly the long-term depletion of HCC from Australian producers combined with increased seaborne demand from India, is anticipated to drive higher metallurgical coal prices over the long-term. Whitehaven’s metallurgical coal portfolio is expected to benefit from these supply constrained market dynamics.

Long-term demand for seaborne high CV thermal coal, together with a structural supply shortfall from underinvestment in new mines and depletion of existing supply, remains a driver for longer-term price support for high CV thermal coal. In developing economies, thermal coal continues to play a critical role in delivering affordable and reliable access to electricity. This focus on energy security is expected to further support long-term demand for high-quality thermal coal. Disruptions are likely to continue to impact supply across the global energy complex for a period following cessation of Middle East tensions.

I’d also suggest that if energy demand by data centres continues to grow, a certain portion of it may end up being fulfilled by coal.

Higher production

It’s also worth noting that the company’s production of coal is increasing compared to the previous financial year.

In the financial year to March 2026, managed saleable coal production was up 9% year-over-year. Equity saleable coal production was also up 9%.

Higher production combined with higher coal prices is a powerful combination.

But, seeing as the coal price has already risen, there may be better opportunities out there.

The post $10,000 invested in Whitehaven shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.