Category: Stock Market

The BlueBet Holdings Ltd (ASX: BBT) share price is flat this afternoon after posting strong gains early in the session.

BlueBet shares caught a bid at the open and soared 8% following the release of the company’s quarterly results for the period ended 30 June 2022.

However, the BlueBet share price has since retreated and is now back to where it ended Thursday’s session — at 59.5 cents.

BlueBet revenue, net win gains year on year

Key takeouts from the quarter for the sports betting company include:

• Revenue up 31.3% to $126.7 million, driven by strong customer and Betcount growth
• Net win up 27.3% to $12.8 million
• Net win margin 10.1% in Q4 and 10.7% for FY22
• Total 53,328 active customers at the end of June, up 64.2% on the prior corresponding period (PCP)
• Rolling 12-month first-time depositors (FTD) up 60.8% on PCP in Q4
• Cost per FTD (CFTD) of $386 being 2.7x annual customer value
• Corporate cash balance at the end June of $43.7 million

What else happened this quarter for BlueBet?

The company secured its fourth US market access agreement, partnering with Caesars Entertainment Inc on a 10-year term.

It will operate a new business-to-consumer (B2C) online sportsbook in Indiana under the recently announced ClutchBet brand.

This marks the first stage of BlueBet’s two-stage “capital lite” strategy for US entry — that being to launch ClutchBet and “demonstrate the capability of its technology and team to run profitable sportsbooks in the US”.

The company also left the quarter with 53,328 active customers, representing a 64% increase on the PCP.

Within this group, average annual customer value is above $1,000, “providing a 2.7x return on our marketing investment to acquire these customers,” BlueBet says.

What’s next for BlueBet?

With the first stage of its capital light strategy nearing completion, it can now focus on looking ahead. It said:

While there remains significant opportunity for B2C expansion into other target U.S. states, BlueBet’s focus and capital will now be directed towards executing in each of the four initial states, alongside seeking partners nationwide for the launch of its white-labelled Sportsbook-asa-Solution B2B offer, the second stage of its US entry strategy.

BlueBet is ready to go-live in Iowa under the ClutchBet brand pending final approvals. With platform testing successfully completed and final certification from GLI to shortly follow, the final step before receiving licence approval from the Iowa regulator is to complete geo-location testing. Once complete, the company expects to have its license approved in the coming weeks.

In the last 12 months, the BlueBet share price is down more than 73%. It has also fallen around 60% this year to date.

The post BlueBet share price leaps 8% before flatlining following robust quarter appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 BlueBet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Origin Energy Ltd (ASX: ORG) share price is in the green today amid the release of the company’s quarterly report.

The energy provider is also in the headlines today amid news its $17 million fine made up the bulk of penalties handed out by the Australian Energy Regulator (AER) in 2021-2022.

After opening 1.5% higher at $5.79, the Origin share price has continued on the up-and-up. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) energy provider’s stock is swapping hands at $5.895. That marks a 3.42% gain.

Origin share price gains on ‘extraordinarily challenging quarter’

• Australia Pacific LNG (APLNG) revenue increased 6% on that of the March quarter to reach $2.58 billion
• Domestic gas sales lifted 4% quarter-on-quarter
• APLNG’s realised oil price excluding hedging came to $117 a barrel last quarter
• North Asian LNG market prices delivered averaged US$31 per million British thermal units (mmbu)
• APLNG average realised gas price was $16.43 per gigajoule
• Energy Markets non-cash impairment of $2.2 billion recognised

The company revealed a $2.2 billion write down for financial year 2022. It was due to a $4.4 billion increase in the value of associated in-the-money Energy Markets derivative assets in financial year 2021.

The value of the business is assessed independently and doesn’t consider hedging benefits.

Origin said the impairment will only impact goodwill, bring no tax impact, and doesn’t reflect the business’ performance of future value.

The company also revealed it received $1.6 billion of cash distributions from APLNG last financial year. It expects its full year revenue to lift 103% on higher commodity prices.

What else happened in the June quarter?

The major news from the company last quarter came when it scrapped financial year 2023 guidance for its Energy Markets business, citing extreme volatility. The Origin share price fell 14% on the back of the announcement.

Origin was also fined after it was found to have breached its hardship policies. Today, the AER revealed it only secured around $35 million of fines in 2021-2022. The ASX 200 energy retailer received the bulk of such penalties with its $17 million fine.

And of course, the company pushed through a dramatic June as the Australian Energy Market Operator (AEMO) switched off the energy spot market in all regions of the National Electricity Market in a bid to avoid blackouts.

The company said the average spot electricity price for the June quarter was $276 per megawatt hour. That was up from $91 per megawatt hour in the March quarter.  

What did management say?

Origin CEO Frank Calabria commented on the results driving the company’s share price today, saying:

In an extraordinarily challenging quarter for the energy industry globally and in Australia, with elevated commodity prices and significant power supply challenges across the NEM, I’m very pleased with how the business has helped meet the energy needs of customers.

Australia Pacific LNG has continued to play an important role in providing secure supply to customers on Australia’s east coast, increasing gas supply to the domestic market by 4% in the June quarter.

What’s next?

Origin hasn’t provided any new earnings guidance today. However, it did note progress on coal contracting to Eraring Power Station for financial year 2023.

The company has now contracted 3 million tonnes of its target of 5 million to 6 million tonnes.

It’s also on track to migrate all electricity and gas customers to the Kraken platform by the end of the year.

Origin share price snapshot

The Origin share price has been outperforming in 2022 so far.

It has gained 9% year to date, leaving it outperforming the ASX 200 by 17%.

It has also lifted 31% over the last 12 months while the index has dumped 6%.

The post ‘Extraordinarily challenging quarter’: Origin share price lifts despite $2.2b write down appeared first on The Motley Fool Australia.

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More reading

• These were the best (and worst) performing ASX 200 sectors of FY22
• Own ASX 200 energy shares? Retailers could hit back on AEMO fees

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

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The Mosaic Brands Ltd (ASX: MOZ) share price is soaring today after the company delivered its fourth-quarter trading update.

Within the first hour of market open, the specialty fashion retailer’s shares hit an intraday high of 29 cents — a gain of almost 35% on Thursday’s closing price.

However, some profit taking from investors has led its shares to retreat to 23 cents at the time of writing, up 6.98% on the day.

What did Mosaic report for Q4 FY22?

Here’s a brief recap of how the company performed for the three months that ended 3 July 2022.

• Operating cash inflow of $57 million, up by $4 million on Q4 FY21
• Year-to-date cash inflow of $44.6 million
• Online sales grew to $223 million, up 7% on Q4 FY21 – representing 39% of group sales
• Management continues to focus on cost and stock inventory
• Closing net cash position estimated to be at $9.5 million

What happened during the quarter?

In a boost to the Mosaic share price, the ASX retail share stated that its “recovery from two years of restricted trading conditions continues”.

This comes on the back of the ongoing COVID-19 impact as well as strong inflationary movements.

Nonetheless, the group’s sales performance has improved week-on-week following weakened trading conditions early in the third quarter.

Mosaic is forecasting earnings before interest, taxes, depreciation and amortisation (EBITDA) to come in at a $16 million loss for FY22.

In addition, net cash is expected to be a positive $9.5 million – in line with the ordinary cash inflow cycles.

While retail headwinds are expected to continue into FY23, the group is seeing a return of its core customers week by week. In particular, June proved to be the strongest month of the second half.

The positive trend is also continuing into July.

With a clean stock position to maximise the year ahead, Mosaic is projecting a return to profitability in FY23.

It noted that “in an inflationary environment it is strongly positioned to achieve growth and accelerate its recovery”.

Mosaic share price review

Since the start of 2022, the Mosaic share price has declined by more than 60%.

Strong market volatility and a gloomy economic outlook appear to have weighed down this ASX retail share this year.

Mosaic has a price-to-earnings (P/E) ratio of 4.86 and commands a market capitalisation of roughly $20.44 million.

The post ‘Recovery continues’: Why this ASX retail share surged 35% in morning trade appeared first on The Motley Fool Australia.

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More reading

• Inflation is on the rise, so why isn’t the gold price?
• Why is the BrainChip share price sinking 11% on Friday?
• ‘Not immune’: How Rio Tinto shares are feeling the sting of inflation
• Is the ANZ share price an ASX banking buy for the next 12 months?
• ASX 200 midday update: Zip crashes, PointsBet tumbles

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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Many ASX investors might be disappointed with the performance of ASX gold shares in recent months. Take the ASX’s largest gold miner, Newcrest Mining Ltd (ASX: NCM).

Newcrest shares are today going for $18.95 each, up a healthy 1.77%. However, that still leaves the Newrest share price down 11.82% over just the past month alone. As well as by a painful 22.6% year to date in 2022 so far.

As a gold miner, the Newcrest share price largely rises and falls on the back of the gold price itself. After all, any mining company is only as valuable as the commodities it digs out of the ground. And over 2022 thus far, we have seen gold sink from around US$1,832 an ounce at the start of the year to the US$1,758 or so it is asking today.

So that explains the rough road the Newcrest share price has been on this year so far.

But wait, hasn’t inflation spiked this year, not just here in Australia, but around the world? And isn’t gold the traditional ‘inflation hedge‘ that outperforms other assets in times of rising prices?

Well, yes and yes. We found out just this week that Australian inflation is running at an annualised rate of 6.1%. And gold has always been held up as an effective protection against inflation, thanks to its static supply and inability to be ‘printed’.

Why has gold fallen in the face of rising inflation?

So why then has gold had such a shocker of a year? Well, it might be too simplistic to just declare gold as an inflation hedge, destined to rise in lockstep alongside inflation.

A recent article from CNBC explains this well, laying the blame on aggressive interest rate hikes. The article stated that “rising U.S. interest rates reduce the appeal of non-yielding gold, even though it is considered a hedge against inflation”.

This makes sense. Another way to protect one’s wealth against inflation is securing yield on one’s capital. This yield can come in the form of dividends from shares, interest from loans and bonds, or rent from assets. Gold bullion provides none of these income streams.

So even though gold is viewed as an effective inflation hedge, it still gives off no yield, which can make it unattractive to hold, in an environment of sharply rising interest rates, at least in the short term.

So this is what could be holding the gold price back in 2022 so far. And ASX gold shares like Newcrest, by extension. As such, it will be interesting to see what the rest of 2022 holds in store for the gold price and ASX gold shares.

The post Inflation is on the rise, so why isn’t the gold price? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• What’s the outlook for Newcrest Mining shares in FY23?
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The BrainChip Holdings Ltd (ASX: BRN) share price is on course to end the week in a disappointing fashion.

In afternoon trade, the semiconductor company’s shares are down 11% to $1.13.

What’s going on with the BrainChip share price today?

Investors have been selling down the BrainChip share price today despite there being no news out of the company.

However, it is worth noting that a number of tech shares that have been rallying inexplicably higher over the last couple of weeks have come under pressure along with BrainChip. For example, the Zip Co Ltd (ASX: ZIP) share price is down 20% at the time of writing.

This appears to have been driven by profit taking from some investors or traders.

The good news for shareholders is that the BrainChip share price is still up materially since this time two weeks ago despite this decline.

Two Friday’s ago, the company’s shares ended the week at 87 cents. This means BrainChip’s shares are trading a sizeable 30% higher than this level currently.

It also means the company still has a market capitalisation of $2 billion. That’s despite its latest quarterly update revealing sales receipts of just US$1.2 million.

The post Why is the BrainChip share price sinking 11% on Friday? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Alcidion, Betmakers, BrainChip, and Zip shares are racing higher
• BrainChip share price powers ahead amid quarterly update
• BrainChip share price leaps again, up 40% this week
• Why is the BrainChip share price storming 9% higher?

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

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The Rio Tinto Limited (ASX: RIO) share price is in the spotlight this week after the ASX mining share revealed its FY22 first half result.

There were plenty of different elements to look at from the announcement.

But there were a few interesting comments made about inflation and what this could mean for the company’s outlook.

As a commodity business, Rio Tinto’s level of revenue is predominately decided by two things: how much stuff it produces and the price it can sell those resources for.

However, net profit after tax (NPAT) and cash flow are obviously impacted by the costs a business faces as well. Profitability can have an important influence on the Rio Tinto share price.

Inflation bites

According to the company, inflation is impacting the business. On a call, the Rio Tinto chief financial officer (CFO), said:

Higher rates of inflation increased closure liabilities, resulting in a $400 million pre-tax, non-cash charge to underlying earnings. We expect a similar impact in the second half under our existing policy if current rates of inflation persist.

As you would expect, we are not immune to inflation… With CPI, rising energy costs largely attributed to diesel and higher market-linked prices for raw materials and aluminium all having an impact. In aggregate, these factors lower earnings before interest, tax, depreciation and amortisation (EBITDA) by $1.5 billion.

Rio Tinto attributed a US$595 million fall in the FY22 first half’s underlying EBITDA to “general inflation”. Average movements in energy prices compared to HY21 reduced underlying EBITDA by $560 million, “mainly due to higher diesel prices” for trucks, trains and ships.

However, Cunningham said that “other impacts were relatively well contained”, which demonstrated the “resilience” of its operations.

In the Rio Tinto half-year result, it said that underlying EBITDA fell by 26% to US$15.6 billion compared to HY21. However, it still represented a 62% rise compared to HY20.

Rio Tinto’s ordinary dividend was reduced by 29% year on year and free cashflow fell 30% to US$7.1 billion.

Is the Rio Tinto share price an opportunity despite the inflation?

UBS has a ‘neutral’ rating on Rio Tinto, with a price target of $90. It thinks that the iron ore price is headed downward, capital expenditure is expected to rise and higher costs are probably going to be around for a while.

However, the broker Macquarie currently rates Rio Tinto as a buy with a price target of $120. That implies a possible rise of around 20%. The movement in commodity prices will be a key influence on what happens next. Macquarie thinks Rio Tinto is going to pay a grossed-up dividend yield of 14.4% in FY23.

The post ‘Not immune’: How Rio Tinto shares are feeling the sting of inflation appeared first on The Motley Fool Australia.

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More reading

• Broker tips 26% upside for Rio Tinto share price post-results
• ASX 200 midday update: Rio Tinto drops, tech shares jump, Macquarie impresses
• Did the Rio Tinto interim dividend really just tumble 52%?
• Why is the Rio Tinto share price underperforming today?
• 5 things to watch on the ASX 200 on Thursday

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

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has been a bit of a disappointing performer in recent months and years. ANZ shares are currently going for $22.83 each, up 0.55% for the day so far this Friday.

But that still leaves the ANZ share price down a painful 18% over 2022 thus far. ANZ shares have also lost 17% over the past 12 months, and remain down by 22% over the past five years.

This performance has notably lagged some of ANZ’s big four banking peers. Take the largest ASX bank share, Commonwealth Bank of Australia (ASX: CBA). CBA shares have only lost 1.6% this year to date. This ASX bank is also up almost 25% over the past five years.

That’s obviously a fairly disappointing comparison for ANZ, which has gone backwards by almost as much as CBA has risen.

So could this mean ANZ shares are primed for a comeback? Could today be a chance to jump into ANZ shares before a dramatic recovery over the coming 12 months?

Well, that is indeed the view of one ASX broker. As my Fool colleague James reported last week, broker Citi has come out with a fresh analysis of ANZ following its recently announced merger with the banking division of Suncorp Group Ltd (ASX: SUN).

Is the ANZ share price an ASX 200 banking buy today?

Citi currently rates the ANZ share price as a buy, with a 12-month share price target of $29. If that came to pass, it would represent a potential upside of more than 27% from where the shares stand today.

This ASX broker reckons the Suncorp deal will give ANZ shares a boost if the merger goes ahead without a hitch. It noted that the deal represents “fair value” for ANZ, with the potential of “substantial cost synergies… funding cost benefits… and lower capital intensity… over time”.

Another broker who has recently weighed in on ANZ shares is Goldman Sachs. Earlier this month, we covered how Goldman maintained a neutral rating on the ANZ share price. Even so, it still came out with a share price target of $27.44. That implies a potential upside of more than 20%.

Goldman is a little more sanguine than Citi on ANZ’s Suncorp acquisition. It noted that:

Strategically, the proposed acquisition somewhat improves ANZ’s relative lack of scale in domestic retail/commercial banking. Based on APRA’s monthly ADI statistics, ANZ’s market share should increase c.2% in home lending and c.3% in retail deposits…

We see operational risk as elevated, given i) management’s expected A$260 mn of pre-tax synergies largely rely on getting SUN’s 1.2 mn customers on to its still yet to be completed ANZ Plus platform, and ii) potential competition concerns.

This synergy assumption looks high versus previous in-market financial transactions, which tend to see 25-30% of the target’s cost base as synergies.

But it seems both brokers agree that ANZ shares are heading north over the coming year. We’ll just have to see what happens here. But this will no doubt come as music to ANZ shareholders’ ears.

In the meantime, the current ANZ share price gives this ASX 200 bank share a market capitalisation of $68.16 billion, with a dividend yield of 6.31%.

The post Is the ANZ share price an ASX banking buy for the next 12 months? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Zip crashes, PointsBet tumbles
• 5 things to watch on the ASX 200 on Friday
• Fundie reveals best ASX 200 sector to ‘generate defensive growth and help future proof portfolios’
• Pilbara Minerals share price lifts amid 50% quarterly production boost
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is on track to end the week on a high. The benchmark index is currently up 0.9% to 6,951 points.

Here’s what is happening on the ASX 200 today:

Zip shares sold off

The Zip Co Ltd (ASX: ZIP) share price rally has well and truly run out of steam on Friday. The buy now pay later provider’s shares have crashed lower despite there being no news out of it. Nevertheless, even with a 20% decline today, the Zip share price is still up over 150% since this time last month.

PointsBet tumbles

The PointsBet Holdings Ltd (ASX: PBH) share price has taken a tumble on Friday. This follows the release of the sports betting company’s fourth quarter update. PointsBet revealed that its total net win increased 41% year-on-year to $85.8 million for the quarter. This was driven by solid growth in both the Australian and US markets. It appears as though the market was expecting even stronger growth.

AVZ shares remain suspended

AVZ Minerals Ltd (ASX: AVZ) shares didn’t return to trade as planned this morning. Instead, the embattled lithium developer’s suspension has been extended for a further two and a bit weeks. This will mean that they have been suspended for over three months if they emerge from their lengthy hiatus next month on 15 August. AVZ is battling legal action from a Chinese company that claims it owns a stake in the Manono Lithium project.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the EML Payments Ltd (ASX: EML) share price with a gain of 7%. This payments company’s shares are rebounding after being smashed this week. The worst performer has been the Zip share price with a 20% decline on no news. This appears to be due to profit taking after some very strong gains.

The post ASX 200 midday update: Zip crashes, PointsBet tumbles appeared first on The Motley Fool Australia.

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More reading

• The big dipper: Zip share price dives 24% in wild end-of-week ride
• Pointsbet share price tumbles 12% despite reported net-win improvements
• Is the AVZ share price still suspended?
• 5 things to watch on the ASX 200 on Friday
• Fundie reveals best ASX 200 sector to ‘generate defensive growth and help future proof portfolios’

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 EML Payments, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Weebit Nano Ltd (ASX: WBT) share price is all over the map today.

The ASX tech share, which develops next generation computer memory technology for the global semiconductor industry, is currently down 1.8% after posting gains of more than 4% in early morning trade.

So, what’s going on with the Weebit Nano share price?

Well, the company released two separate price-sensitive announcements today. Namely, its quarterly results for the three months ending 30 June, as well as a report that its demonstration chips have been released to manufacturing.

Weebit Nano share price fails to lift off on tape-out of demonstration chips

Turning to the demo chips first, Weebit reported it had taped-out (released to manufacturing) demonstration chips integrating its embedded Resistive Random-Access Memory (ReRAM) module to SkyWater Technology’s foundry.

The company labelled this first tape-out of demo chips as “a major milestone toward commercialisation”.

Commenting on the milestone, Coby Hanoch, Weebit Nano CEO said:

This successful tape-out concludes the technology transfer to SkyWater’s US production fab, and once the chips are back from the fab, we will proceed with technology qualification. We’re in discussions with early-adopter customers looking to leverage our faster, more efficient memory technology to increase their competitiveness in the market.

Thomas Sonderman, SkyWater CEO added:

Weebit ReRAM is a rich building block our customers can leverage to create innovative, highly differentiated SoC designs. Given the technology’s ultra-low power consumption and integration flexibility, we are already seeing enthusiastic interest from customers in areas such as IoT, power management and mixed-signal designs.

What results were reported for Q4 FY22?

Turning to the quarterly results that look to be sending the Weebit Nano share price on a bit of a rollercoaster today, atop the taped-out demo chips, the ASX tech share reported:

• Its demonstration chips completed functional testing
• The company publicly demonstrated its ReRAM IP module for the first time
• It commenced technology qualification at Leti with very good initial results
• Weebit continued bolstering its marketing and sales activities

Commenting on the Q4 results, Hanoch said:

Weebit Nano achieved several significant technical milestones during the quarter and is steadily progressing towards volume production at SkyWater and first customer orders…

Our ReRAM will first be available on SkyWater’s 130nm CMOS process and discussions with additional fabs are ongoing. Our technology also has the capability to scale to smaller geometries for more advanced applications, having already demonstrated production level parameters at 28nm. We continue to work on scaling to 22nm as well as other development priorities that include a solution for the discrete memory market.

Fourth quarter research and development expenses came in at $1.8 million.

Looking ahead the company said by the end of December it’s on track to receive the wafers from SkyWater and progress with technology qualification, as well as continuing to scale its embedded ReRAM to 22nm.

Weebit Nano share price snapshot

Over the past 12 months, the Weebit Nano share price has outperformed the benchmark, gaining 5% compared to a 7% loss posted by the All Ordinaries Index (ASX: XAO).

The post ‘Major milestone’: What’s with the Weebit Nano share price on Friday? 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.

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What a rollercoaster it has been for the Zip Co Ltd (ASX: ZIP) share price.

After hitting a four-month high of $1.72 at market open today, shares in the buy-now, pay-later (BNPL) company are now being heavily sold off.

It was only late last month when Zip shares hit a multi-year low of 43.5 cents before rocketing by more than 300%. That included gains of around 20% on each of the previous three trading days this week.

However, in late morning trade, the share is trading at $1.15 – down 24.34% for the day.

Let’s take a look at what could be weighing on the company’s share price.

What’s dragging Zip down?

It appears the Zip share price is cooling off after unusually strong sector moves over the past week.

BNPL peers Splitit Ltd (ASX: SPT) and Openpay Group Ltd (ASX: OPY) are down 5.77% and 23.6%, respectively.

Sezzle Inc (ASX: SZL) has endured a similarly tough day to Zip. Its share price jumped 46% in early trading following the release of the company’s second-quarter update but has since slumped and is now 0.98% in the red.

Overnight data from the Federal Reserve could be sparking the sell off.

The release of the latest GDP readings showed that the US economy had shrunk by 0.9% in the second quarter.

Following the 1.6% contraction in the prior period, this now marks an ‘unofficial recession’ in the world’s largest economy.

While the US government has insisted the US is not in recession, it seems investors aren’t taking this lightly.

Technically, the National Bureau of Economic Research has the last say in declaring whether or not the US is in a recession.

It is worth noting though that if consumer spending does dry up then the BNPL industry would feel the impact. Discretionary purchases such as electronics, furniture, and clothing are likely to be the first to go.

For Zip to prosper in a gloomy economic environment, minimising credit risk is becoming a top priority. Especially, as bad debts continue to rise across the sector.

Zip share price snapshot

Over the past 12 months, the Zip share price has plummeted 82% and is currently down 71% year to date.

This is a massive difference from when its shares reached an all-time high of $14.53 in February 2021.

Based on today’s price, Zip presides a market capitalisation of around $853.04 million.

The post The big dipper: Zip share price dives 24% in wild end-of-week ride appeared first on The Motley Fool Australia.

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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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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