Category: Stock Market

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are in a trading halt today after the company requested a pause during late morning trade.

The halt comes as EOS prepares a response to a report released by US-based short seller Grizzly Research.

According to the ASX notice, trading will remain halted until EOS releases its response or until the market reopens on Tuesday, 10 February, whichever comes first.

EOS shares are currently frozen at $6.00, after plunging roughly 33% over the past week. That sharp fall has erased a large chunk of the stock’s recent gains and reset expectations after an extraordinary run higher earlier this year.

What triggered the trading halt?

At a high level, the Grizzly report questions how EOS has described parts of its recent disclosures. It does not point to a single accounting error or regulatory breach.

The report focuses on 3 main areas.

First, it raises concerns around the size, timing, and profitability of some recently announced contracts, particularly the US$80 million South Korean high-energy laser contract announced late last year. Grizzly argues that parts of this contract may be conditional and that revenue may take longer to flow than some investors expected.

Second, the report focuses on EOS’s recent acquisition of European command-and-control business MARSS, questioning whether the acquired company’s historical revenue base can realistically support the growth targets outlined by EOS management.

Third, it highlights cash flow pressure and past funding activity, suggesting EOS has relied heavily on asset sales and financing to fund operations while scaling new technology platforms.

EOS has not yet responded publicly to these claims, which explains the trading halt. The company is expected to address the report directly in its upcoming announcement.

What EOS actually does well

Despite the controversy, it is important to remember why EOS attracted investor attention in the first place.

The company designs and manufactures advanced defence technology, including remote weapon systems, counter-drone solutions, and high-energy laser platforms. Demand for these systems has surged as global defence spending accelerates.

In its last update, EOS reported a contract backlog of $459 million, providing visibility into revenue over the next few years. That backlog, combined with growing global interest in counter-drone and laser defence technology, supports the company’s longer-term growth outlook.

Risk versus reward at $6

Short sellers profit when share prices fall, so Grizzly’s report is written from a deliberately bearish perspective. That does not mean its claims should be ignored, but it does mean investors should wait for EOS’s response before drawing conclusions.

The steep sell-off suggests the market has already priced in much of the bad news. If EOS can clearly explain its contracts, acquisitions, and cash position, confidence could stabilise quickly once trading resumes.

Foolish takeaway

EOS shares have been extremely volatile, but the long-term defence growth drivers have not disappeared.

With the share price frozen at $6, attention now turns to EOS’s response. That update will play a key role in how investors judge the recent sell-off once trading restarts.

The post Why EOS shares are halted today after a sharp sell-off appeared first on The Motley Fool Australia.

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• What is driving today’s sell-off in ASX defence tech stocks?
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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 Electro Optic Systems. 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.

South32 Ltd (ASX: S32) shares are trading in the red on Friday afternoon. At the time of writing, the shares are down 4.35% to $4.40 a piece.

For the year-to-date, the miners’ shares have jumped 23.94% and they’re also trading 26.8% above levels this time last year. The share price dropped to a four-year low in September but quickly recovered, soaring 72.55% higher over the past five months alone. It was also one of the best performers on the ASX 200 index in January. 

What pushed South32 shares so high?

A broad metal and mining market rally, particularly for copper and silver, has flowed through to mining stocks and their shares. 

Strong central bank buying, falling US interest rates, and dwindling expectations for the US dollar’s outlook are driving investors to safe-haven commodities like gold and silver.

Meanwhile, there is strong demand for copper due to its use in green energy technologies. Copper is used in wiring, electric vehicles (EVs), wind turbines, solar energy systems, telecommunications, and electronic products.

The prices of copper, silver and gold have reached all-time highs this year. This momentum has helped pull South32’s shares up toward a multi-year high last month. 

South32 mines and produces commodities, including bauxite, aluminium, copper, silver, lead, zinc, nickel, manganese, and metallurgical coal, so it is well positioned to absorb excess demand across several minerals and metals.

But it wasn’t just the commodities boom driving South32’s shares higher. The miner has also posted some fantastic financial results over the past six months. 

In October, the miner released its quarterly report for the three months to September. Its production highlights included a 12% increase in payable copper at Sierra Gorda and a 33% uplift in manganese volumes. Its FY26 production guidance was unchanged across all operations.

The good news also flowed through to the December quarter. Last month, the miner announced that it had exceeded expectations for first-half production. Alumina production was up 3% in the first half; aluminium production was up 2%; zinc was up 13%; and manganese was up 58%. Overall, the company’s results were ahead of consensus. And investors were delighted with the news.

What do the experts expect from South32 shares this year?

Analysts are pretty bullish on the outlook for S32 shares. And it looks like it’s not too late for investors to get in on the action either.

TradingView data shows that 11 out of 15 analysts have a buy or strong buy rating on the stock. The average target price is $4.66 a piece, which implies a potential 6.06% upside at the time of writing. But some think the shares could climb another 20.05% to $5.28 this year.
The team at Morgans have a buy rating and $5.00 price target on South32 shares. The broker said it was pleased with the miner’s latest results and thinks it is well-placed to benefit from strong commodity prices.

The post South32 shares rocket 70% higher. Is it too late to buy? 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 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.

Shareholders in Treasury Wine Estates Ltd (ASX: TWE) would be smarting at the moment, with the shares down more than 50% over the past 12 months.

The question is: can new-ish chief executive officer Sam Fischer turn the ship around, or are the headwinds the company faces just too strong?

The analyst team at UBS is not convinced and has slapped a sell recommendation on the stock. More on that later.

For his part, Mr Fischer has not wasted any time in getting the message out to the market that he’s there to make changes, announcing in mid-December that the company would look to strip $100 million per annum in costs out of the business as part of its so-called “TWE Ascent” transformation program.

The company also cancelled its $200 million buyback at the time, in a bid to increase flexibility and lower debt levels.

Mr Fischer had this to say on the outlook at the time:

We are currently experiencing category weakness in the US and China, two of our key growth markets, which will impact our business performance in the near-term. Maintaining the strength of our brands and the health of their respective sales channels is of critical importance to our Management team and our Board as we navigate through the current environment. TWE is a high-quality business with strong foundations in place for sustainable, profitable growth. Our powerful portfolio of brands, leading market positions in attractive growth markets, unparalleled supply chain and highly engaged, capable team are all considerable strengths that position us strongly to deliver sustainable, profitable growth over the long-term.

Treasury does have some elements in its favour, not least the powerhouse wine label Penfolds.

Buyer in the wings?

The company also welcomed French billionaire Olivier Goudet to the share register as a significant shareholder in December, prompting questions about whether he could make a bid for the company.

Mr Goudet is well known in European business circles as the former head of JAB Holding, which managed the wealth of Germany’s Reimann family.

While in that role, Mr Goudet spearheaded the takeover of companies including Krispy Kreme and Pret a Manger, and according to a report in The Australian, he also personally bought a chateau in Bordeaux with his wife in 2021.

Mr Goudet, who was also the former Chief Financial Officer at Mars, stepped down from JAB Holding in 2023.

Shares not looking cheap

Despite these tailwinds, the UBS team is not convinced and has downgraded its price target on Treasury shares from $5.25 to $4.75, with a sell recommendation.

Treasury shares are currently changing hands for $5.01.

UBS said that, in terms of headwinds, there was a significant change in consumer behaviour, with young people drinking less than their older counterparts, an effect keenly felt in the key US and China markets.

Within alcohol, wine has underperformed other drinks, such as spirits and ready-to-drink brands, UBS said.

UBS added that the once large China market is potentially oversupplied with Penfolds.

Treasury was valued at $4.45 billion at the close of trade on Thursday.

The post Why UBS says it’s time to sell Treasury Wine Estates shares appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares

Motley Fool contributor Cameron England 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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Life, as they say, is what happens when you’re making other plans.

Which is why, a couple of weeks ago, I wrote about choosing the right Super fund, and told you I’d be back soon with the second part of that story. But…

‘Soon’, as it turns out, isn’t as soon as I wanted it to be, but at least we finally made it back.

Last time, I ran through both ‘pooled’ Super funds (Retail and Industry Funds) and SMSFs, with some thoughts as to when each might be worth considering, based on the financial circumstances and interests of the member.

And, as I said last time, choosing the Super fund is like choosing a house to buy. The next step is choosing the furniture.

Where am I going with that clumsy metaphor? Well, the Fund gives you the structure. The next step is to choose how the money inside the fund will be invested.

Choice can, of course, be wonderful, but it can also be incredibly difficult and make life much more complex.

There are scores of choices right across the Superannuation spectrum, but we can break them down to only a few major categories, and that’s what I’m going to help you work through today.

Now, when you join a Superannuation fund, if you don’t make a choice, you’ll be put into the fund’s MySuper option. That’s generally what they call a ‘balanced’ option which has a mix of Australian shares, international shares, property, bonds, cash – pretty much the plain vanilla, don’t-scare-the-horses, option.

No surprises, lower volatility, and a pretty good, if not great, potential return.

Then there are other pre-mixed options, the most common of which will be ‘conservative’ or something similar, and ‘growth’ or ‘aggressive’.

The idea is that a so-called conservative investment option won’t be anywhere near as volatile, and will probably be in positive territory most of the time, but also probably won’t give you the best long-term return.

High growth or aggressive, on the other hand, will likely be far more volatile, at least compared to the conservative option. The thing is, by being concentrated in growth assets like Australian and international shares, for example, you also should expect a much better return over the long term.

Essentially, the options that are provided give you a trade-off – even if you don’t realise it – between the size of your long-term return and the degree to which any individual month or year varies significantly from the average; and even how frequently your overall Superannuation balance goes down.

So there are two parts to choosing the right option within Superannuation: the first is the sort of return you’re aiming for, and the second is your ability to sleep at night.

In fact, they probably should be considered the other way around.

The thing about investing is that unless you can stay the course, you’re probably not going to get the best returns. That means some people should probably make a more conservative choice so they can sleep at night… and not sell in a panic next time the market swoons. The trade off? You probably end up with lower overall returns.

Conversely, the best long-term returns are probably going to come from taking a little more perceived risk: embracing a little more volatility. But doing so by investing in assets – usually shares – that are going to give you a superior long-term performance.

At this point, I want to remind you about life expectancy.

No, I’m not going to get macabre, in fact, exactly the opposite.

Too many people, when they think about Superannuation, think about retirement day. Maybe you’re 25 or 40 or 55, and you’re counting the years between now and when you stop working, and you think about your Superannuation balance in the same context: “I will get my Super when I retire” is often the perspective most people bring to their investing.

The thing is, if you’re 40 today, there’s every chance, according to the actuaries, that you’ll be retired for longer than you have left to work. In other words, retirement is not the end of your Superannuation journey.

In fact, it may not even be halfway between now and when you finally shuffle off this mortal coil, and your Superannuation has to last you for that whole time.

Don’t get me wrong, this is not a suggestion that you don’t spend money in retirement.

You absolutely should. You’ve worked hard and saved hard for what you want to get out of that retirement.

Instead, my reminder is that if you are to maintain your Super for years after you retire, you need to think about that as a growth period as well as a drawdown period. You want compounding to be working for you so you can generate the income you need, to let you live a comfortable retirement life.

Now there’s no single answer and no silver bullet. Everybody’s temperament, risk tolerance, circumstances, Superannuation balance, and life expectancy will be different and largely unknowable, at least in advance.

But the framework I’m suggesting hopefully puts you on the right path: that is, think about how many years you have between now and when you’re likely to take your last breath. Again, not to be macabre, but exactly the opposite: to maximise your ability to enjoy your life to its fullest between now and then.

Let’s go back to temperament first. If you are someone who simply can’t stomach volatility, you probably shouldn’t be investing your Superannuation in growth options. Now let’s be clear, you’re giving up some potential return in doing so, but at least you’re not going to get scared and sell everything at exactly the wrong time: when the market has an occasional unfortunate, but real, dip from time to time.

I’m not doing you any favours by trying to encourage you to get a better return if you can’t actually follow through.

But let’s say you can. Let’s say you can maybe even comfortably put up with it. What should you do?

Well, I’m not allowed to give you personal advice, but in general, if you’ve got 40, 50, 60 years left of life – not of work, of life – then I reckon most people should be thinking about investing in growth options within their Superannuation to maximise the returns over that long term.

Yes, the returns in any given year might be more volatile, but overall, I fully expect – there are no guarantees, but I fully expect – you will do well… and much better if you take a little bit more risk and invest in assets whose value grows over time.

Here’s how to think about it: few people are going to retire, access their Super, sell everything, and go on the pension on the same day. If you are, then knowing how much you’ve got at 65 or 67 is really important.

But if you’re going to slowly draw down your Super over your retirement years – and remember that could be 20, 30, or 40 years–then your investment horizon is far, far longer than you may realise or have really internalised.

If you’re 40 and likely to live to 100, you have 60 years of investing ahead of you – probably three times as much to come as you have had so far.

In that case, isn’t your investment horizon much longer than otherwise might seem at first blush?

Now, in retirement you might still prioritise having some income from that portfolio or changing at some point how much of your money is invested in growth assets.

But given that timeframe, I hope it might also make you rethink how you’re structuring your investment choices, over both your working life and your retirement years.

So, depending on your temperament, growth probably should be the default for almost everybody, unless you need to draw down the capital – not just income, but the capital itself – from your Super upon retirement.

I should say here, by the way, that the usual disclaimer applies, both ethically and legally: past performance is no guarantee, and I can’t promise what the future will look like either. All I can tell you is that my Super remains in growth assets, and before my wife converted her Superannuation to our SMSF, her Industry Superannuation was invested under a growth strategy.

Are we good so far? Excellent. Stick with me… we’re almost there.

Now that I have you thinking about growth, I’m going to add one more option, and then we’ll wrap this up.

You don’t have to accept any or all of the pre-mixed options inside Superannuation.

The problem with the funds management industry in general, including Superannuation, is that there are plenty of snouts in this particular trough. It’s not even necessarily people doing the wrong thing, they just are all extracting their fees for the work that they’re doing, and you’re paying the bill.

So yes, if you don’t want to choose, or don’t know how to choose, how your Super is invested, these pre-mixed options are good choices. However, you can generally get a very good, and very likely better, outcome by making a few simple choices yourself.

Rather than accepting a relatively high-fee growth option, for example, most Superannuation providers will allow you to select specific Exchange Traded Funds (ETFs). So, for example, rather than choosing the ‘growth’ option inside your Superannuation, you could choose to invest your Super in an Australian shares ETF, a US shares ETF, and/or a global shares ETF.

Again, you have to decide what’s right for you, but you’ll find the fees are almost certainly far lower in that circumstance than accepting one of the pre-mixed options – because those pre-mixed choices are usually invested with other fund managers who take their clip of the ticket. By self-selecting low-fee ETFs, you still pay an investment fee, but it’s incredibly tiny. You’re not paying for a fund manager to make those decisions on your behalf.

Now, if a fund manager can beat the market, they might be worth the fees you will pay. But in a pre-mixed option, are you likely to beat the market? If not – or if you don’t know – you may find that self-selecting some very low-fee ETFs is a much better way to go.

So let’s bring this to a close.

If you want to have an SMSF and choose your own stocks or indeed assets outside the share market, go for it. If you’re built for that and think you can do it successfully, an SMSF can be a great tool.

If not, here’s what I reckon probably presents the best long-term return for people who have the ability to stay the course:

If I wasn’t going to pick stocks, I would have my Superannuation in a large, low-cost, not-for-profit Superannuation fund, either an Industry fund or another not-for-profit Super fund.

And if my money was in that not-for-profit fund and I wanted a pre-mixed option, I would choose growth.

If I was comfortable to not go with a pre-mixed option – because I wanted to maximise my chance of the best return while keeping my fees low – I would direct my Super fund to invest my Super in a few low-cost, broad-based index ETFs: Australian, US and Global shares.

And that’s as simple and as hard as it needs to be.

Keep your fees low, choose short-term volatility as the price of (likely) higher long-term returns, add regularly, and invest right through your working life and keep investing through your retirement.

For many people, perhaps most, that probably means choosing plain vanilla index ETFs inside not-for-profit Superannuation funds.

Phew, this was long. So was the last one. And believe it or not, both were as simple and as short as I could make them without only giving you part of the story.

Remember, it’s not a prescription. I hope what I’ve given you instead is a way to think about making sure your Super is in the best fund and invested in the options that make most sense to you based on your circumstances, including your tolerance and comfort with volatility. And I hope I’ve encouraged you to be a lifetime investor, not just a working-life one.

After all, that’s what good investing is.

Fool on!

The post How is your super actually invested? appeared first on The Motley Fool Australia.

More reading

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• 3 ASX 200 stocks jumping higher in this week’s falling market
• Why EOS shares are halted today after a sharp sell-off
• South32 shares rocket 70% higher. Is it too late to buy?
• Why UBS says it’s time to sell Treasury Wine Estates shares

Motley Fool contributor Scott Phillips 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.

Ugh — it’s been another shocker for ASX 200 tech shares this week.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently 13.07% down over the past five days of trading.

And that’s no anomaly.

The new year has basically been a bin fire for ASX 200 tech stocks so far.

Check out this year-to-date (YTD) performance for the 11 ASX 200 market sectors.

S&P/ASX 200 market sector	YTD performance
Energy (ASX: XEJ)	7.1%
Materials (ASX: XMJ)	5.2%
Consumer Staples (ASX: XSJ)	2.4%
Healthcare (ASX: XHJ)	0.3%
Financials (ASX: XFJ)	0.1%
Consumer Discretionary (ASX: XDJ)	(1.9%)
Industrials (ASX: XNJ)	(2.6%)
Utilities (ASX: XUJ)	(3.2%)
Communications (ASX: XTJ)	(5.7%)
A-REIT (ASX: XPJ)	(5.8%)
Information Technology (ASX: XIJ)	(20.5%)

Oh, the pain for those of us invested in tech stocks!

Meantime, the benchmark S&P/ASX 200 Index (ASX: XJO) has increased by 0.2% YTD.

So, why are ASX 200 tech shares in the trash?

Let’s review.

Why are ASX 200 tech shares in the trash?

Tech company valuations have been a concern for a while, particularly in the US, following another strong year for the sector in 2025.

A small group of large US-listed companies, including the Mag Seven, has driven extraordinary gains for the US market for a few years.

Now, investors are worried about the incredible volume of money that these companies are ploughing into artificial intelligence (AI), and whether the pay-off will be worth it.

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.

This week, the Nasdaq Composite Index (NASDAQ: .IXIC) fell to its lowest point since November after Google parent company, Alphabet Inc, said it may spend as much as $US185 billion in capex this year.

Bank of America forecasts that overall AI capex will quadruple to $1.2 trillion by 2030.

Investors are also worried that AI itself will end up being a competitor to tech companies, especially software-as-a-service (SaaS) firms, if it can deliver similar services in the future.

Everything that happens in the US tech sector affects ASX 200 tech shares, as our market tends to follow the US every day.

In terms of local factors dragging ASX 200 tech shares down, an interest rate hike in Australia this week did no favours for the sector.

Additionally, some of the big players in ASX technology have come under share price pressure due to valuation concerns this year.

There have also been governance issues with the sector’s largest company, WiseTech Global Ltd (ASX: WTC).

On top of all that, mining shares have become the hottest trade in town, and this has diverted investors’ attention away from tech.

Impact on ASX 200 tech shares

Here is a sample of ASX 200 tech shares and how they are travelling in the YTD.

The WiseTech share price is $46.76, down 6.3% today and down 32% YTD.

The Xero Ltd (ASX: XRO) share price is $79.65, down 3% on Friday and down 29% YTD.

TechnologyOne Ltd (ASX: TNE) shares are $21.89 apiece, down 4.9% today and down 21% YTD.

Nextdc Ltd (ASX: NXT) shares are $12.43, down 6% today and down 0.9% YTD.

Megaport Ltd (ASX: MP1) shares are $9.97, down 8.8% today and down 19% YTD.

The post Why are ASX 200 tech shares diving 13% this week? appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of Motley Fool Money. 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 Alphabet, Megaport, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Alphabet and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares are sinking today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $39.91. During the Friday lunch hour, shares are changing hands for $39.56 apiece, down 0.9%.

It’s not just Westpac under pressure today. The ASX 200 is down a sharp 1.9% at this same time following the overnight sell-off in US stock markets.

Despite today’s slide, Westpac shares remain up 16.4% over the past 12 months, smashing the 2.4% one-year gains delivered by the benchmark index.

Atop those capital gains, Westpac also paid out two fully franked dividends over this period, totalling $1.53 a share. The ASX 200 bank stock currently trades on a fully franked trailing dividend yield of 3.9%.

Looking to the months ahead, however, Morgans’ Damien Nguyen sees headwinds building for the bank (courtesy of The Bull).

Time to sell Westpac shares?

“Weaker consumer sentiment in an uncertain policy environment cloud the earnings outlook,” said Nguyen, who has a sell recommendation on Westpac shares.

“Recent economic commentary highlights creeping pessimism among Australian consumers,” he noted. “Uncertainty around interest rate expectations creates a challenging setting for major banks to profitably grow credit.”

According to Nguyen:

Westpac’s long-term projections show acceptable returns. However, in our view, near term momentum appears constrained by operational adjustments, margin pressure and a more cautious economic tone.

Mguyen concluded, “Given limited earnings catalysts on the horizon, we see better opportunities elsewhere.”

What’s been happening with the ASX 200 bank stock?

Westpac reported its full year FY 2025 results (covering the 12 months to 30 September) on 3 November.

Westpac shares closed up 2.8% on the day, with the bank reporting a 3% year-on-year lift in its net interest income to $19.5 billion. The bank’s total loans were up 6% from FY 2024 to $851.9 billion, with customer deposits increasing by 7% to $723 billion.

But with operating expenses also up 9% to $11.9 billion, Westpac’s full year net profit after tax (NPAT) declined by 1% year-on-year to $6.99 billion.

“This has been a solid year at Westpac, and I’m pleased with the result we are delivering today,” Westpac CEO Anthony Miller said following the results release.

Miller added:

With a very strong balance sheet and momentum in our target segments, the opportunity to deliver more for our customers, people and shareholders is exciting…

We’ve managed margins in a competitive environment, and our capital position is strong, providing us with plenty of flexibility as we execute our strategy.

The post Sell alert! Why this expert is calling time on Westpac shares appeared first on The Motley Fool Australia.

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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 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 S&P/ASX 200 Index (ASX: XJO) is having a difficult finish to the week. In afternoon trade, the benchmark index is down 1.9% to 8,721.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price was down 16% to $6.03 before being placed in a trading halt. This has been driven by a short seller report from Grizzly Research. The short seller has concerns over a Korean contract announcement. It said: “We find the statements that EOS made in the investor call dedicated to the new Korean contract announcements aggressively misleading, and sometimes bordering on outright lies.” It also has doubts over a recent acquisition, adding: “Our research in the acquisition of MARSS by EOS in January 2026 uncovers a multitude of issues. We believe management has lied about past revenues and is misrepresenting the economic opportunity of this acquisition.”

Lotus Resources Ltd (ASX: LOT)

The Lotus Resources share price is down 27% to $2.11. This morning, this uranium producer announced the completion of a $76 million institutional placement. These funds are being raised at $2.15 per new share, which represents a 25% discount to its last close price. The proceeds will be used to support the execution and completion of the acid plant and grid connection projects, which will optimise operating costs.

REA Group Ltd (ASX: REA)

The REA Group share price is down 9% to $165.58. Investors have been selling the property listings company’s shares after its half-year result fell a touch short of expectations. REA posted a 5% increase in revenue to $916 million and a 9% lift in net profit after tax to $341 million. This was driven by a 14% increase in yield, partially offset by a 6% decline in national listings.

Web Travel Group Ltd (ASX: WEB)

The Web Travel share price is down 29% to $2.98. This follows news that the Special Delegation of the Balearic Islands of the Spanish Tax Agency has commenced an audit of Web Travel’s Spanish subsidiary. It notes that the audit is reviewing the direct taxes paid and owed between April 2021 to March 2024, as well as indirect taxes for the period between January 2022 to December 2025. Whether this warrants such a sharp decline, time will tell.

The post Why EOS, Lotus Resources, REA, and Web Travel shares are dropping today appeared first on The Motley Fool Australia.

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UBS has increased its lithium price outlook by 74% as a result of an “extensive review” of global electric vehicle and energy storage demand, it said in a research note released this week.

The analyst team at UBS noted that prices of lithium have been strong, rallying 65% since their last update, but they said there would be continued strong demand from the electric vehicle sector, with EVs close to reaching so-called “triple parity”.

This meant that EVs were becoming competitive across cost, range, and charging time when compared with traditional internal combustion engines.

The UBS team said it expects lithium demand to increase 14% in 2026 and 16% in 2027.

They said further:

We continue to be positive long-term and see demand volumes 2x by 2030 to 3.4Mt (vs 1.7Mt in 2025e). We see the market growing at a 13% CAGR through to 2035.

UBS is expecting EV sales to reaccelerate over the medium term, and it expects global EV penetration of 58% by 2035.

With regard to battery energy storage systems (BESS), UBS said new policy moves in China led it to upgrade its 2035 outlook by 30% to 53%.

Supply not meeting demand

On the supply side, UBS said primary supply grew at 18% in 2025, or closer to 23% once recycling was factored in, which was short of demand growth of 29%.

UBS added:

This resulted in a market deficit and inventory drawdown through the year. For 2026, we assess risk-weighted supply as likely to grow by about 14% (excluding recycling). By country, China, Australia, Argentina and Zimbabwe lead the pack for growth in risk weighted supply from 2025 to 2027.

On the price front, UBS has upgraded its price outlook by 74%.

The broker said:

We are wary of the difficulties of picking a suitable price level when spot prices have historically been more than eight times higher than long-term incentive prices and with converter margins historically poor in providing guard rails around reasonable feedstock pricing. However, from a qualitative perspective, we note that our current price forecasts remain well within historical range and note i) for EVs, automakers have previously been able to adapt with modest impacts on overall demand, and ii) for BESS, that material costs are less significant (vs. module/battery costs).

UBS now has a forecast spodumene price of US$3,131 per tonne, up from its previous price target of US$1,800.

The forecast will be good news for Australian companies such as IGO Ltd (ASX: IGO), Mineral Resources Ltd (ASX: MIN), and Core Lithium Ltd (ASX: CXO), with the latter looking to bring its Finniss operations in the Northern Territory back online if lithium prices are high enough.

The post The lithium price could increase by how much! appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

For investors who don’t already have meaningful exposure to Australian banks, choosing where to start can feel surprisingly difficult. On paper, the major banks all look similar. They operate in the same market, face the same regulators, and are exposed to the same economic cycles.

But when I look at them through a long-term lens, the differences matter more than the similarities.

If I had to choose between Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) today, I would side with CBA, even though it trades at a premium valuation.

What Westpac offers investors

Westpac has done a lot of hard work over the past few years to stabilise its business. Cost control has improved, balance sheet metrics are sound, and capital levels remain strong. From an income perspective, it continues to offer an attractive dividend yield, which will appeal to investors focused primarily on income.

However, when I step back, Westpac still feels like a turnaround story rather than a compounding one. Revenue growth has been modest, return on equity lags CBA, and the business has struggled to consistently execute at the same level as the sector leader.

That doesn’t make Westpac a bad investment. I just think it makes it less compelling for someone looking to build a core position in the banking sector.

Why CBA stands apart

CBA is in a different category.

It consistently generates the highest returns on equity among the major banks, benefits from a dominant retail banking franchise, and leads the sector in digital capability. Its app engagement, customer data, and technology platform create efficiencies that competitors still struggle to match.

What really stands out to me is execution. CBA has shown time and again that it can grow earnings through the cycle, manage credit risk conservatively, and invest in technology without losing focus on profitability.

Yes, CBA shares trade at a premium multiple. But that premium reflects real advantages, not hype. Investors are paying for predictability, scale, and a business that keeps widening the gap between itself and the rest of the sector.

Valuation versus quality

The biggest objection to buying CBA shares is always the same. It looks expensive.

I understand that concern. But in my experience, avoiding high-quality businesses purely because they trade on higher multiples often leads to missed opportunities. CBA has earned its valuation by delivering superior outcomes for shareholders over long periods, not just in favourable conditions.

For investors with little or no bank exposure, I would rather start with the best operator in the sector than try to squeeze extra yield or short-term value out of a weaker franchise.

Paying up for quality is not always comfortable, but it is often rewarding.

Foolish Takeaway

Westpac is a solid bank and may suit investors chasing yield or betting on a turnaround. But if I’m choosing one bank to anchor a portfolio that currently lacks exposure to the sector, I would pick Commonwealth Bank of Australia.

The valuation is higher, but so is the quality.

For me, owning the best business in the sector and letting it compound over time is a far more comfortable strategy than settling for second best and hoping the gap closes.

The post Westpac vs CBA shares, which is the better buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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 Bitcoin (CRYPTO: BTC) price is under heavy selling pressure again today.

And volatility is spiking to levels that certainly aren’t for the faint-hearted.

Over the past 24 hours, the world’s first and biggest crypto by market valuation has traded at highs of US$73,162 before crashing to a low of US$60,074. That’s a 17.9% price fall within a single day, according to data from CoinMarketCap.

And this for an asset with a market cap of US$1.23 trillion.

In late morning trade on Friday, the Bitcoin price has clawed its way back to US$61,352, leaving it down 13.8% since this time yesterday.

That sees the virtual token down a painful 51.4% since notching a record high of US$126,198 on 7 October.

And investors won’t have found any safety in Ethereum (CRYPTO: ETH) of late either.

The world’s second-largest crypto has tumbled 13% over the past 24 hours, currently trading at US$1,856. That’s up from US$1,749 just a few hours ago.

But the Ethereum price has a long way to go before recouping the 63.6% losses it suffered since hitting its own record highs of US$4,954 on 25 August.

So, where are crypto markets getting hammered?

What’s pressuring the Bitcoin price?

Commenting on the world’s top crypto sinking to one-year plus lows, Emir Ibrahim, analyst at Zerocap, said, “The move lower in Bitcoin overnight reflects a violent leverage unwind rather than a deterioration in fundamentals.”

He added:

Thin order books combined with elevated positioning saw forced liquidations cascade through the market, briefly pushing BTC into the low US$63,000 mark, as the market worked through a multi-billion-dollar reset in leverage.

Ibrahim noted that the selling pressure isn’t just impacting the Bitcoin price.

“This event was not isolated to crypto,” he said.

Indeed, the Nasdaq Composite Index (NASDAQ: .IXIC) closed down 1.6% overnight. The tech-heavy index is now down 4.5% since Monday’s close.

According to Ibrahim:

Risk assets sold off in tandem, with a tech-led drawdown in equities and sharp reversals in commodities pointing to a broader ‘dash for cash’ environment.

In crypto specifically, derivatives markets moved rapidly into short-gamma territory, with volatility bid aggressively and downside skew widening as late long positioning capitulated.

Joel Kruger, markets strategist at LMAX Group, said the tumbling Bitcoin price is pulling down investor sentiment in the broader crypto space.

“Price action across crypto has been undeniably heavy over the past 24 hours, with Bitcoin acting as the primary drag on broader sentiment,” he said (quoted by The Australian Financial Review).

“That said, many of the hallmarks of capitulation are now in place: daily technicals are deeply oversold, the fear and greed index has slipped to extreme lows,” Kruger added.

The post The Bitcoin price has now halved since October. What’s going on? appeared first on The Motley Fool Australia.

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