Category: Stock Market

The De Grey Mining Ltd (ASX: DEG) share price is backtracking today despite announcing ‘impressive’ infill drilling results at Brolga.

At the time of writing, the gold and mineral exploration company’s shares are fetching for $1.35, down 2.88%.

What were the results?

Investors are dumping De Grey shares regardless of the positive results obtained from its RC drilling campaign.

According to its release, De Grey advised it has identified new resource definition results. These include:

• 193 metres @ 1.7 grams per tonne (g/t) of gold (Au) from 40 metres in HEDD218
• 123 metres @ 1.9g/t Au from 33 metres in HMRC054
• 140.2 metres @ 1.3g/t Au from 35.7 metres in HEDD302
• 136 metres @ 1.2 g/t Au from 38 metres in HMRC055
• 128 metres @ 1.2g/t Au from 94 metres in HMRC065
• 90 metres @ 1.1g/t Au from 106 metres in HMRC138

De Grey stated that the drilling is being conducted as part of the prefeasibility study (PFS) of its Mallina Gold Project in the Pilbara region of Western Australia.

Conducting resource definition drilling allows more of the Brolga resource to be classified as JORC indicated mineralisation.

In turn, this increases the potential production target and ore reserve for the PFS and provides increased confidence in the project’s projected cash flow.

Furthermore, De Grey highlighted other higher-grade resource definition results at Brolga, which are as follows:

• 54 metres @ 2.6g/t Au from 45 metres in HEDD300
• 20 metres @ 5.1g/t Au from 212 metres in HMRC131
• 19 metres @ 3.7g/t Au from 36 metres in HMRC139
• 19.3 metres @ 2.5g/t Au from 35.7 metres in HEDD302
• 24.5 metres @ 2.5g/t Au from 91 metres HEDD302

Management commentary

De Grey general manager of exploration Phil Tornatora commented:

These new resource definition drilling results at Brolga, including 193m @ 1.7g/t Au in diamond drill hole HEDD218, successfully demonstrate the continuity of mineralisation within the proposed Brolga Stage 1 starter pit and reduce project risk associated with early production.

Resource extension drilling to the southwest of the proposed Brolga starter pit is in progress.

Exploration drilling continues across both Greater Hemi and Regional areas. Resource definition drilling is nearing completion and rigs will then be targeting further resource extensional and discovery drilling within the Greater Hemi region.

About the De Grey share price

The De Grey share price has accelerated by 37% since this time last year following gold’s meteoric price rise on commodity markets.

In particular, the company’s shares have shot up around 13% in the past month alone.

On valuation grounds, De Grey commands a market capitalisation of about $1.88 billion, with more than 1.4 billion shares on hand.

The post De Grey (ASX:DEG) share price slides despite ‘impressive’ drill results appeared first on The Motley Fool Australia.

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• Why the De Grey Mining (ASX:DEG) share price is shooting 12% higher today
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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 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 Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Warren Buffett has said that when he evaluates companies for investing, he stays within a circle of competence — meaning he evaluates companies in areas that he fully understands. That’s why before becoming an investor in the company hosting the largest e-commerce platform in the world, he originally missed out. A similar story is behind his investment in the company which stands — at 43.7% — as the largest holding in Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) portfolio. 

These companies are two of the largest in the world by market cap and are led by innovative visionaries developing devices and platforms that are likely to expand and continue to grow profits based on business models that generate recurring revenue that should keep investors happy for the long haul. 

1. A golden, delicious Apple

To truly understand the magnitude of Apple‘s (NASDAQ: AAPL) innovations and the gains it has brought investors, it’s important to understand from the beginning of the climb to where we are now. Steve Jobs was the CEO of Apple from 1997 to 2011. During that time, the company developed the Apple Store, iMac, iPad, iPod, and iPhone. The stock was at a split-adjusted $0.19 in August 1997 before climbing 7,132% to $13.74 by August 2011, just prior to Tim Cook taking over the helm for his friend and colleague.

Since Cook has taken over, the company has continued on its visionary path, rewarding investors along the way with over 1,000% stock price growth. The company has provided consumers with upgrades on the devices Jobs oversaw, while also developing new products and services, including AirPods, Apple Watch, Apple Music, and Apple TV+. And dare I say, in the next few years we may see an Apple Car.

One of the biggest investors being rewarded is Warren Buffett. Some might say Buffett was a bit late to the game since Berkshire didn’t start gobbling up shares of Apple until 2016. But be that as it may, the stock price has grown by 500% since then, and Apple stands far above the rest of his Berkshire portfolio holdings at nearly 44% of the total value, followed by Bank of America at 13%, and Coca-Cola — which Buffett claims he will never sell a share — at 7% of the portfolio. 

Cook has said that the company is run for the long term and identifies Buffett as the ultimate long-term investor. That longevity certainly seems to be paying off for Buffett, not only in terms of share price but also in reaping the rewards of dividends. In 2021 Buffett soaked in over $3 billion in dividends alone, led by each of his three top holdings, which average a 1.9% dividend yield, topping the 1.27% yield of the S&P 500 as of Dec. 31 and above the long-term average for the S&P 500 yield of 1.86%.

Perhaps one takeaway from Buffett’s late foray into Apple is that the best is yet to come for investors, which we are already seeing hints of. Quarterly services revenue is growing at record pace; a new mid-tier 5G iPhone is coming; Apple is cranking out its own M1 chips, with performance improvements being developed to go along with its new Mac Studio desktop; and Apple TV+ is bringing on live sports events. With all of these developments to go along with an iPhone ecosystem that Buffett refers to as sticky, it seems that it’s never too late to invest in Apple. 

2. Amazon just gave investors 20 more reasons to buy

A topic repeatedly talked about but rarely acted on, is a stock split for Amazon (NASDAQ: AMZN). Now, investors are rejoicing at the news of a pending 20:1 split. But before we go there, let’s take a look at why Amazon was already a Buffett holding for the long haul.

Berkshire Hathaway invested in Amazon in two waves during 2019, but it wasn’t Buffett who made the purchase, it was one of his Berkshire partners. So if you took a pass on Amazon earlier on, don’t feel too bad. It happens to literally the best.

Since the time Berkshire jumped in on Amazon in 2019, the stock has grown roughly 52%. To look at in dollars, a $10,000 investment would be worth $15,000 today — less than three years later.

Amazon grew net sales in 2021 by 22% year over year, resulting in a net income increase of 55% driven by a growing and successful pipeline. The company’s products include virtual assistant technology, home security, a leading e-commerce platform with recurring Prime subscriptions, video streaming, grocery, healthcare, and web services, which has grown exceptionally well at 40% year over year.

As we end the first quarter amid a broader market decline, Amazon appears focused on its stock price and expanding its pipeline. The company announced that it is buying back $10 billion of its stock, which can signify that the company believes its stock is at a discount to its true value. It can also boost investors’ confidence, resulting in a quick spike in the stock price. 

Another action that causes a quick spike is a stock split. In fact, the day after announcing the buyback and a 20:1 split — its first split since 1999 — the stock price jumped by 5.5% overnight.

Now the company is moving forward with new entertainment, including movies, series, and an 11-year contract to stream a full slate of the NFL’s Thursday Night Football, which is expected to bring in hundreds of millions of dollars from new Prime subscriptions, subsequent member purchases, and ad revenue.

It also puts Amazon in a position to take over the full Sunday NFL ticket as more and more cable and satellite TV subscribers switch over to streaming services.

Buffett may not have been the one to pull the trigger on purchasing shares of Amazon for Berkshire, but he does know a great company when he sees one. Even after a recent pop in stock price to $2,936 per share, investors still have an opportunity to buy shares in this revolutionary company at a 43% discount to analysts’ average 12-month price target. Better late than never. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 Buffett stocks to buy for the long haul appeared first on The Motley Fool Australia.

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• Is Amazon stock a buy now before the 20-for-1 stock split?
• Amazon makes its case to join the Dow
• Amazon (NASDAQ:AMZN) announces US$10b share buyback and 20-for-1 split

Jeff Little owns Amazon and Apple. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon, Apple, and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The S&P/ASX 200 Index (ASX: XJO) is giving back some of yesterday’s gains. The benchmark index is currently down 0.6%.

With crude oil prices down sharply overnight, ASX 200 shares in the energy sector are seeing even greater selling pressure today.

The Woodside Petroleum Limited (ASX: WPL) share price, for example, is down 3.79% in afternoon trading. Meanwhile, Santos Ltd (ASX: STO) shares are down 4.77% while the Beach Energy Ltd (ASX: BPT) share price has dropped 3.89% today.

All told the S&P/ASX 200 Energy Index (ASX: XEJ) is down 3.45% at the time of writing. That’s more than five times the loss being experienced by the ASX 200.

Why are crude oil prices falling?

Brent crude oil dropped 3.9% overnight to US$103 per barrel, according to data from Bloomberg.

That’s a big 24-hour fall. And Brent crude is now down almost 20% from the US$128 per barrel it was fetching this time last week.

That’s seen ASX 200 shares in the energy sector fall 7.2% over the past week, even as the ASX 200 gained 1.3%.

So, what’s causing the latest retrace in crude oil prices?

Firstly, news that Ukraine and Russia were engaged in a new round of ceasefire discussions looks to offer a glimmer of hope that the war may end sooner than later.

Oil-rich Russia’s invasion of neighbouring Ukraine caused crude oil prices to rocket, reaching 14-year highs earlier this month. Should negotiations prove successful, energy prices are likely to trend lower.

Adding to the pressure on crude oil prices is a resurgent outbreak of COVID-19 in China.

China is the world’s biggest importer of crude oil. It is also among the few nations still actively pursuing a zero-virus policy.

With numerous new COVID cases appearing, driven by the Omicron variant, China has locked down the city of Shenzhen and the province of Jilin. Should those lockdowns persist, or spread, it could have a major impact on energy demand and see further downward pressure on crude oil prices.

How have these 3 ASX 200 shares been performing?

Despite the big fall in crude oil prices over the past week, the three ASX 200 shares named above remain well up so far in 2022.

The Santos share price trails the pack with an 8.4% year-to-date gain. Beach Energy shares have gained 17% in that same time while the Woodside share price leads the pack, up 35% since the opening bell on 4 January.

For some context, the ASX 200 is down 6.5% in 2022.

The post Why is the crude oil price tumbling and which ASX 200 shares are being impacted? appeared first on The Motley Fool Australia.

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• Why is the Woodside (ASX:WPL) share price plunging today?
• 5 things to watch on the ASX 200 on Tuesday
• Woodside (ASX:WPL) share price slips but CEO says Ukraine puts ‘spotlight’ on natural gas
• 5 things to watch on the ASX 200 on Monday
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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 Bruce Jackson.

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The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has been on form on Tuesday.

In afternoon trade, the biopharmaceutical company’s shares are up 6% to $20.40.

Why is the Clinuvel share price jumping?

The catalyst for the rise in the Clinuvel share price on Tuesday has been the release of preliminary results relating to a pilot study.

According to the release, the company has achieved positive results from a pilot study (CUV801) evaluating afamelanotide in six adult patients with arterial ischaemic stroke (AIS) who were ineligible to receive standard treatment.

The release explains that the trial focused on the safety of multiple afamelanotide doses and patient recovery over 42 days. The latter was judged using the National Institutes of Health Stroke Scale (NIHSS) and brain imaging (CTP and MRI).

Importantly, the study shows that afamelanotide was well tolerated with no adverse side effects. But perhaps most encouraging, was that the analysis of the NIHSS scores up to day eight indicated that five of the six stroke patients showed neurological improvement and a strong degree of functional recovery.

Clinuvel’s Head of Clinical Operations, Dr Pilar Bilbao, commented: “This is the first time that a melanocortin has been administered to stroke patients. No adverse drug reactions were reported, and a meaningful improvement was seen in five of the six patients’ health by day 8.”

The company will now wait for the final results of the study once it reaches the 42-day mark.

Dr Bilbao added: “We are awaiting the results from the final evaluation of the patients at day 42, which will give us further data on afamelanotide as a possible treatment for this life-threatening disease.”

The Clinuvel share price is still down almost 30% in 2022 despite today’s solid gain.

The post Why is the Clinuvel (ASX:CUV) share price zooming 6% higher today? appeared first on The Motley Fool Australia.

More reading

• Why is the Woodside (ASX:WPL) share price plunging today?
• Are Cochlear (ASX:COH) shares worth buying for dividends?
• 2 metaverse stocks that could double, says Wall Street
• Zip share price down 6% to another 52-week low
• Why is the Yancoal (ASX:YAL) share price plummeting 17% today?

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

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The S&P/ASX 200 Index (ASX: XJO) is having a pretty dreary day so far this Tuesday. At the time of writing, the ASX 200 is down by 0.8% at just under 7,100 points. But that’s nothing compared to the woes of the Woodside Petroleum Limited (ASX: WPL) share price.

This ASX 200 energy share is vastly underperforming the index during today’s trading session thus far. As it currently stands, the Woodside share price has plunged by 4.26% and is currently sitting at $30.56 a share. That’s now down close to 10% from the new 52-week high that we saw only last week.

So what’s going on with Woodside?

Well, we can’t be certain, seeing as there is no official news or announcements that have come out of the company itself. But there is a strong possibility that this share price fall is related to the commodity that Woodside is in the business of extracting. That would be crude oil of course.

Woodside shares fall amid oil price plunge

As my Fool colleague James covered early this morning, global oil prices have taken a battering. According to Bloomberg, West Texas Intermediate (WTI) crude is down by more than 4% at under US$100 a barrel, going for US$98.69 at the most recent pricing. Brent crude has also fallen and is now at US$102.75.

That is a massive drop from the recent spikes we have seen that pushed Brent oil close to US$140 a barrel at one point. While that might be good news for motorists, it would certainly not be welcomed at Woodside.

These more recent moves down from the historical highs we saw earlier this month are probably responsible for the falls we have seen with Woodside and other ASX 200 energy shares over the past week or so.

Certainly Woodside isn’t the only energy share feeling the heat today. Beach Energy Ltd (ASX: BPT) shares are currently down by 4.98% at $1.525 each, while Santos Ltd (ASX: STO) has lost 5.3% at $7.15.

At the current Woodside Petroleum share price, this ASX 200 energy share has a market capitalisation of $29.6 billion, with a dividend yield of 5.85%.

The post Why is the Woodside (ASX:WPL) share price plunging today? appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble
• Cash machines: 6 ASX 200 shares with the highest dividend yields right now
• 5 things to watch on the ASX 200 on Tuesday
• Hero to Xero? The Xero (ASX:XRO) share price is now down 36% in 2022
• Why now is a great time to invest in ASX shares (even if you’re fearful of an uncertain world)

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

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Cochlear Limited (ASX: COH) may be amongst the S&P/ASX 200 Index‘s  (ASX: XJO) most prominent healthcare shares, with its long history and famous hearing aid products. The company has been a steady long-term grower too, putting on almost 70% over the past 5 years. But it’s fair to say that Cochlear shares are not well-known for their dividends.

At current pricing, Cochlear isn’t going to set any income investors’ hearts a-flutter with its trailing dividend yield of 0.93%. That yield doesn’t come with any franking credits either.

In saying that, Cochlear does have quite a strong dividend growth record, or at least it did until recently. Between 2014 and 2019, Cochlear grew its dividend payouts from $1.27 in dividends per share in 2014 to $3.30 in dividends per share in 2019, increasing them every year in between. That’s a compounded annual growth rate of more than 21% per annum over that span. All of those dividends came fully franked too. 

Is Cochlear an ASX dividend growth share?

But recent times have been hard for Cochlear in the dividends department. The company skipped paying a dividend entirely in 2020. And 2021 saw Cochlear pay out $2.55 in dividends per share, a big drop from 2019’s $3.30 per share. However, Cochlear did announce last month that its upcoming interim dividend for 2022 would come in at $1.55 per share, which equals 2019’s interim dividend. So perhaps the good times are back for Cochlear’s dividends…

One expert investor who thinks so is Michelle Lopez, head of Australian Equities at fund manager Abrdn. Here’s some of what Lopez told a recent Livewire Buy Hold Sell podcast about Cochlear and its dividend: 

It’s not often I talk to Cochlear as a dividend stock. It isn’t a high yielding stock, but what it is, is it’s a growth yield and a growth dividend. This is a company that is spinning off a lot of cash. They’re unwinding their CapEx programme. They’re at the tail end of that so the free cash flow that they’re spinning off is very high. They’ve got 500 million of net cash on their balance sheet. 

So I think there’s further growth in the dividend, but importantly, operationally, they’re just executing well. They’re super consistent in what they do. They’ve got a really clear strategy and invest for the future for growth. So that runway of growth, whether it’s earnings or whether it’s dividends, is very clear. So it’s a buy.

Well that’s how one investing expert is viewing Cochlear right now. If what Lopez predicts turns out to be accurate, perhaps Chochlear won’t have a 0.93% dividend yield for long. But we shall have to wait and see.

At the current Cochlear share price, this ASX 200 healthcare share has a market capitalisation of $14.62 billion. 

The post Are Cochlear (ASX:COH) shares worth buying for dividends? appeared first on The Motley Fool Australia.

More reading

• 2 of the best ASX healthcare shares to buy now, according to analysts
• You can’t pick the bottom, but these 4 ASX shares are already bargains: expert
• Why does this broker say to sell Cochlear (ASX:COH) shares in 2022?
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Social networking in the digital realm has evolved rapidly over the last 15 years. What began on our computer screens quickly found its way onto our smartphones, allowing us to connect with our family, friends, and colleagues anywhere, at any time. 

The next iteration of this networking is now in development. It’s called the metaverse, and it’s a virtual world (or worlds) accessible through more immersive devices that will take users to the next level within digital social networks and allow much more interaction than is currently possible.

It’s estimated that this exciting technology could be worth up to $1.6 trillion annually by the end of the current decade. It’s a sizable opportunity for the innovative companies developing the metaverse, with lots of entrants vying for a competitive edge. Wall Street is betting these two stocks could be at the forefront of this new competition.

1. Meta Platforms: Forecasted upside of 132%

Formerly known as Facebook, Meta Platforms (NASDAQ: FB) is by far the leader in the social media industry. With over 2.9 billion monthly active users, it’s arguably the best-positioned company to build the next generation of the digital social experience. And while that happens, investors get the benefit of owning highly profitable assets like Instagram, WhatsApp, and Facebook.

But it hasn’t been smooth sailing lately. Meta Platforms stock price has suffered a steep 41.2% decline since the company reported full-year 2021 earnings on 2 February. Meta is struggling to navigate user privacy changes by iPhone maker Apple (NASDAQ: AAPL), which have affected Meta’s ability to target advertising toward specific users. Meta estimates the changes could result in $10 billion in lost revenue in 2022, which has made investors nervous.

Meta’s Reality Labs segment, which is tasked with developing the metaverse, also raised eyebrows in the investment community after reporting a loss of $10 billion in 2021. But given the size of the opportunity ahead, that could prove to be a drop in the bucket over time. Meta is trying to build the foundations of this technology, which could give it control (and pricing power) over the transactions that occur within it. Owning the ecosystem in that fashion could be an enormous financial windfall, especially if the metaverse supports its own digital economy. 

That raises an important point: Analysts expect Meta to generate $132 billion in revenue during 2022, which would represent a compound annual growth rate of 38% over the last decade. Put simply, the company is a financial powerhouse, and its investments in Reality Labs so far certainly won’t break the bank. 

In light of the stock’s steep decline, Meta Platforms now trades at a price-to-earnings multiple of just 14, based on 2021 earnings per share of $13.77. That multiple is 55% cheaper than the multiple for the tech-centric Nasdaq 100 index, meaning Meta stock would have to more than double just to trade in line with the broader tech sector. 

That’s exactly what Wall Street investment bank UBS Group expects. It has assigned a $440 price target to Meta Platforms stock, representing a 132% upside from the current price.

2. Snap: Forecasted upside of 210%

Snap (NYSE: SNAP) is another major player in the social media space that’s turning its attention to the metaverse, albeit with a unique twist. Snap is the parent company of the Snapchat platform, which is heavily focused on camera technology to enhance its users’ experience. 

Unlike Meta Platforms, which is building virtual reality (VR) technologies as a base for the metaverse, Snap is developing augmented reality (AR) technologies. Where VR immerses the user entirely in the digital realm, AR weaves digital technology into the physical world to amplify everyday activities. 

A VR headset restricts the user to a single physical space, whereas Snap’s Spectacles glasses are designed to be worn everywhere, projecting digital experiences into the user’s vision. Snap believes this will foster human connection, rather than further isolating users, which has been a core complaint about social media platforms as they’ve soared in popularity. But it’s also great for the business case, because wearable technology that can be used anywhere is far more practical, and could help drive adoption.

In the here-and-now, Snap had one of its best years ever in 2021. It finally showed signs of beating its key rival in the social media space, Meta Platforms, as it appears to have successfully found a solution for the privacy changes at Apple that Meta is struggling with.

Snap generated a record $4.1 billion in revenue for the year, marking a tenfold increase since 2016, leading analysts to predict that 2022 could be the first year it delivers a profit.

Credit Suisse is one of the most bullish banks on Wall Street when it comes to Snap stock, betting its stock price could soar by 210% to $93 per share. And over the long run, if Snap’s approach to the next generation of social networking proves best, that might be a conservative target.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 metaverse stocks that could double, says Wall Street appeared first on The Motley Fool Australia.

More reading

• 2 Metaverse stocks of the future
• Here’s why Meta Platforms stock is down today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple and Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Zip Co Ltd (ASX: Z1P) share price is currently down 6% at the time of writing. This means the buy now, pay later (BNPL) player has hit another 52-week low.

Zip has seen its shares decline by 66% since the start of 2022. It has fallen more than 80% over the past year.

What’s going on with the Zip share price?

Zip has suffered a lot in recent months. Plenty of other ASX growth shares are also down heavily, though Zip has been one of the hardest hit.

For example, since the start of the year the Xero Limited (ASX: XRO) share price has fallen 36%. The Temple & Webster Group Ltd (ASX: TPW) share price has sunk 44% this calendar year. This year alone, the Appen Ltd (ASX: APX) share price has dropped around 40%.

There is a lot of chatter going on about strong inflation and the steps that central bankers will need to take to bring it into control.

Investors are also focused on the potential issues arising from the Russian invasion of Ukraine.

Sezzle Inc (ASX: SZL) takeover

Zip is also trying to buy the BNPL competitor Sezzle, which has a sizeable presence in the US.

Sezzle and Zip have entered into a definitive merger agreement, where Zip will buy all the shares of Sezzle. The deal has been unanimously recommended by the boards. Shareholders of Sezzle will be entitled to receive 0.98 Zip shares for every Sezzle share.

At the time of the offer, the Zip share price offer valued Sezzle at $491 million, or a 22% premium at the prices at the time of the announcement. However, the share prices have fallen since then.

Zip thinks that the merger will enhance the scale and product offering, with the capability to accelerate in the US.

Did the HY22 result affect the Zip share price?

Sometimes a result can impact the valuation as well.

For the six months to 31 December 2021, Zip said that its revenue was up 89% to $302.2 million whilst the revenue margin was 6.7%.

Zip said that Australia is generating positive cash flow, whilst the US is on a path to positive cash flow.

However, the overall company’s cash transaction margin declined to 2.1%, down from 3.7% in HY21, reflecting rising bad debts. The medium-term cash transaction margin is expected to be between 2.5% to 3%.

The post Zip share price down 6% to another 52-week low appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble
• These were the worst performing ASX 200 shares last week
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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. owns 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 Bruce Jackson.

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The Yancoal Australia Ltd (ASX: YAL) share price is having a treacherous day, sending investors to flee for the hills.

Just yesterday, the energy producer’s shares accelerated to a multi-year high of $5.39 on the back of positive investor sentiment.

However, Yancoal shares have backtracked to $4.32, down 16.92% at the time of writing.

Let’s take a look at what could be driving the company’s shares south today.

Why are Yancoal shares falling? 

Following the company’s full year results release on 28 February, investors are eyeing Yancoal shares as they go ex-dividend today.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

Furthermore, the sudden price weakness in coal has also attributed to the company’s share price being lower today.

It appears that even with the war between Russia and Ukraine, commodity prices have recently cooled off.

The latest price fetching for a tonne of coal is US$361.75, a drop of 1.87% for the day.

Although when comparing from 7 March record highs of US$435, coal has shed more than 14% in value.

What does this mean for Yancoal shareholders?

For those eligible for Yancoal’s final dividend, shareholders will receive a payment of 70.4 cents per share on 29 April. Although, the dividend is unfranked, which means investors won’t receive any tax credits from this.

Management reinstated the dividend due to the company’s strong cash earnings and lower gearing in FY21. This came on the back of record coal prices realised throughout the financial year.

The $930 million final dividend represents a payout ratio of 118% of profit after tax.

Yancoal share price snapshot

Since the beginning of 2022, the Yancoal share price has shot up by roughly 66%.

In the last 12 months, its shares have further accelerated, up around 83%.

Yancoal commands a market capitalisation of roughly $5.7 billion with roughly 1.32 billion shares on its books.

The post Why is the Yancoal (ASX:YAL) share price plummeting 17% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble
• These ASX 200 shares trade ex-dividend tomorrow. Here’s what you need to know
• Want to secure this monster ASX coal share dividend? Here’s what you need to do next week
• Why the Ukraine crisis is shining the spotlight on ASX coal shares
• Here are the top 10 ASX shares today

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 Bruce Jackson.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is under pressure and trading lower. The benchmark index is currently down 0.6% to 7,107.9 points.

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

Uniti rockets on takeover speculation

The Uniti Group Ltd (ASX: UWL) share price was rocketing higher on Tuesday morning before being placed into a trading halt. Investors were buying the telco’s shares amid speculation that it could be in exclusive takeover talks. Uniti has neither confirmed nor denied the speculation but will release an announcement relating to it tomorrow.

Rio Tinto falls despite acquisition news

The Rio Tinto Limited (ASX: RIO) share price is falling on Tuesday despite the mining giant announcing a non-binding proposal to acquire the remaining ~49% of the issued and outstanding shares of Turquoise Hill. Rio Tinto has made an all-cash offer of ~US$2.7bn. If the deal completes, Rio Tinto’s share of the Oyu Tolgoi copper operation in Mongolia will increase to 66%. The team at Goldman Sachs believes the miner would be getting a very good deal.

Healius announces buyback

The Healius Ltd (ASX: HLS) share price is pushing higher today. Investors have been buying the healthcare company’s shares after it announced a $100 million share buyback. The company notes that the buyback will be managed within the ‘10/12 limit’ permitted by the Corporations Act. As a result, it does not require shareholder approval.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Uniti share price with a 17% gain prior to its trading halt. This was in response to takeover speculation. The worst performer has been the Yancoal Australia Ltd (ASX: YAL) share price with a 16% decline. This is predominantly due to the coal miner’s shares trading ex-dividend this morning.

The post ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble appeared first on The Motley Fool Australia.

More reading

• Cash machines: 6 ASX 200 shares with the highest dividend yields right now
• Why the Uniti (ASX:UWL) share price jumped 17% before being halted
• Rio Tinto (ASX:RIO) share price tumbles despite Oyu Tolgoi transaction news
• These 2 compelling ASX shares are a buy: fund manager
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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