Category: Stock Market

Economic uncertainty is hanging heavy over consumers, but there are three ASX retail shares that are likely to outperform, according to a top broker.

Never mind the invasion of Ukraine, inflation pressure and the prospect of rising interest rates. This isn’t the time to be avoiding the consumer discretionary sector.

Why some ASX retail shares will outperform in 2022

If anything, ASX retail shares have delivered pretty good profit results last month. Morgans noted that the companies in the sector that it covered delivered earnings that were on average 5.7% above its forecasts.

“In an environment of waning consumer confidence, the winners in the retail space are likely to be those that can achieve profitable growth through the expansion of their network (or digital presence),” said Morgans.

“Or a move into adjacencies that increase the size of their total addressable market.”

The top 3 ASX retail shares to buy in this environment

For this reason, the Lovisa Holdings Ltd (ASX: LOV) share price is among the broker’s top picks for the sector.

Morgans believes the costume jewellery retailer may prove to be one of the biggest success stories in Australian retail.

“With ambitious (and financially wellincentivised) new leadership in place, we think now is the time for LOV to step up to become a global force,” said Morgans.

“Investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the returns could be stellar.”

Cost pressure not a big risk

Another ASX retail share on the broker’s top buy list is the Universal Store Holdings Ltd (ASX: UNI) share price.

The broker believes it has a strong competitive advantage in youth fashion apparel. It is also relatively resilient against rising costs.

“Margins are likely to benefit from the rising proportion of private label products in store as well as, in due course, operating efficiencies from the growth of the network and the launch of a new distribution centre,” said Morgans.

More defensive than most

Finally, the Baby Bunting Group Ltd (ASX: BBN) share price is another on Morgans’ best buy list.

Baby Bunting is the only national specialist baby retailer and it has less than 10% of the $5.1 billion market.

Morgans believes it is well placed to take market share thanks to its strong brand equity. It’s also worth noting that baby products are more defensive than many other consumer goods.

The post Morgans picks its top 3 ASX retail shares to buy today appeared first on The Motley Fool Australia.

More reading

• Here’s why the Lovisa (ASX:LOV) share price is sliding 5% today
• 2 quality ASX dividend shares this broker rates as buys
• Lovisa (ASX: LOV) share price falters 10% but brokers still say buy
• Why Morgans rates this ASX lithium share and this retail share as buys
• Here’s why analysts rate these ASX dividend shares as buys

Motley Fool contributor Brendon Lau 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 Baby Bunting and Lovisa Holdings 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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It’s a common misconception among ASX investors that all exchange-traded funds (ETFs) are index funds. When the ETF first came to the ASX a few decades ago, this was pretty much true. But these days, it most certainly is not. Sure, there are still a plethora of index funds out there. Indeed, the most popular ASX ETFs among investors remain index funds for the most part. But the popularity of active ETFs is also on the rise and investors need to make sure they know the difference.

Tha’s because many of the features that attract investors to index funds are not present in many active ETFs. Active ETFs tend to have significantly higher management fees. They also tend to be far less diversified than traditional index funds.

Active funds are NOT index funds

The primary difference between an active ETF and an index fund is how they invest. An index fund blindly mirrors an index. Thus, it is compelled to invest in whatever its parent index dictates. Most indexes are simple structures that choose their shares based purely on size. For example, the S&P/ASX 200 Index (ASX: XJO) holds the 200 largest companies on the ASX, ranked by market capitalisation. Thus, the larger companies have a higher weighting in the index than the smaller ones.

Active ETFs on the other hand can be thought of as a rough equivalent to a managed fund. They will typically have a fund manager and a team of analysts that actively choose which shares to include. The difference between a managed fund and an active ETF is simply how the shares, or units, can be bought or sold. A managed fund is typically unlisted, which means investors have to trade units with the fund directly. An active exchange-traded fund allows its units to be traded on the share market instead.

So are active ETFs even worth investing in?

When is an active ETF a good choice?

Chris Meyer, of Pinnacle Investment Management, recently shared some thoughts on this matter for Livewire. Here’s some of what he had to say:

Active ETFs don’t have the same low-cost benefits as passive ETFs, but there are times when paying an active manager to add some human common sense amidst the noise of choppy markets is valuable.

The real enduring benefit of the ETF vehicle (active and passive) to investors, however, is their ease of use. Simply buy and sell them like a share by punching in the ticker into your broking account.

Meyer also argues that the active structure more or less retains the benefits of a managed fund (the “human common sense”, for example), without some of the drawbacks. Those would include the illiquid nature of trading unlisted units, as well as pricing delays that this process inevitably carries with it.

Another benefit, especially relevant to younger investors, is the absence of minimum investment thresholds. It’s not uncommon for a managed fund to have a minimum investment of $20,000 or greater. That obviously puts it out of reach for many investors. But an active ETF’s minimum is the same as buying any other share on the market.

So there are still fundamental differences between active ETFs and index fund ETFs. But Meyer argues that if an investor wants to choose between an active ETF and a managed fund, an active fund could be a better choice for many investors.

The post Are active ASX ETFs worth the extra management fees? appeared first on The Motley Fool Australia.

More reading

• Why the Qantas (ASX:QAN) share price is leaping 5% today
• Here’s why the Appen (ASX:APX) share price is up 6% today
• What’s causing the Sezzle (ASX:SZL) share price to sizzle on Thursday?
• Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound

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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The Qantas Airways Limited (ASX: QAN) share price is up 5.3% in early afternoon trade.

Qantas shares closed yesterday at $4.66 and are currently trading for $4.91.

Other S&P/ASX 200 Index (ASX: XJO) travel shares are also helping to boost the index today.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is up 7%; and Webjet Limited (ASX: WEB) shares have gained 4.7%.

The Qantas share price is joining a wider global equities rally that saw the US S&P 500 Index gain 2.6% and Germany’s DAX Index charge 7.9% higher yesterday (overnight Aussie time).

And with travel demand surging, Qantas CEO, Alan Joyce is optimistic about the year ahead.

Travel demand is on the up

Surging travel demand could offer more tailwinds to the Qantas share price.

Speaking at The Australian Financial Review Business Summit on Tuesday, Joyce highlighted the difficult year Qantas underwent in 2021.

With COVID-19 hobbling international and domestic travel throughout much of the year, Joyce said Qantas only had 18% of its total operations running. But now the airline is seeing “a surge in demand”.

Joyce said (quoted by the AFR): “Domestic leisure is up over 100%. With Jetstar for a number of weeks now we’re seeing this really strong demand coming through. We plan to get Jetstar to 120% by the middle of the year.”

As for international markets, Joyce said:

What we’re seeing internationally is when the borders are opening up, we’re getting a massive bill. London is now ahead of the pre-COVID levels. It’s been open since November. We’ve got more demand in London than we had before COVID. In LA more demand than before COVID.

The Qantas boss is thrilled that all state borders have finally reopened, with Western Australia the last state to rejoin the nation.

“The reunification of Australia – who thought that would be a thing? And it’s fantastic. That’s actually what has happened,” he said.

Qantas share price snapshot

Despite today’s bounce, the Qantas share price remains down 4.8% since the opening bell on 4 January. By comparison, the ASX 200 is down 6.1% year to date.

The post Why the Qantas (ASX:QAN) share price is leaping 5% today appeared first on The Motley Fool Australia.

More reading

• ASX travel shares rebound despite rising oil prices
• Own Qantas (ASX:QAN) shares? This may be the airline’s next CEO
• Qantas (ASX:QAN) shares have slumped 17% in a month. So how is the airliner responding to rising oil prices?
• Why Block, GQG, Qantas, and Unibail-Rodamco-Westfield are sinking today
• Why is the Qantas (ASX:QAN) share price diving 7% today?

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 Flight Centre Travel Group Limited and Webjet 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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The Appen Ltd (ASX: APX) share price is storming higher on Thursday.

In afternoon trade, the artificial intelligence (AI) data services company’s shares are up 3.5% to $7.13.

At one stage, however, the Appen share price was up over 6% to $7.32.

Why is the Appen share price climbing higher?

Investors have been bidding Appen’s shares higher today amid a rebound in the tech sector. For example, at the time of writing, the S&P ASX All Technology index is up a sizeable 3.3%.

This follows a strong night of trade on Wall Street, which saw the tech focused Nasdaq index rise an impressive 3.6%.

Anything else?

Also potentially giving the Appen share price a boost today is news that its Chair, Richard Freudenstein, has been topping up his holding.

According to a change of director’s interest notice, on Tuesday Mr Freudenstein picked up 14,975 shares at an average of $6.6796 per share. This equates to a total consideration of $100,000 and lifts the Chair’s holding by 50% to 44,975 shares.

One broker that is likely to approve of this purchase is Citi. Last month its analysts responded to Appen’s full year results by retaining their buy rating but trimming their price target to $9.15. This is notably higher than where its shares trade today.

The post Here’s why the Appen (ASX:APX) share price is up 6% today appeared first on The Motley Fool Australia.

More reading

• Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead
• Glitch! Why are ASX tech shares getting hammered on Monday?
• ASX 200 (ASX:XJO) midday update: AGL rejects new takeover offer, Appen makes strategic investment
• Appen (ASX:APX) share price fails to lift off on strategic investment
• These were the worst performing ASX 200 shares in February

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. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen 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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The Sezzle Inc (ASX: SZL) share price is on fire today. Technology shares are in the green, and the company had a positive update for the market.

The buy now, pay later (BNPL) share is currently trading at $1.58, a 7.85% gain. In comparison, the S&P/ASX All Technology Index (ASX: XTX) is also up 3.37% at the time of writing.

Let’s take a look at what’s happening today.

Workforce reduction

The Sezzle share price is soaring after the company revealed today it will carry out a workforce reduction. The goal is to position the company for long-term growth and on the road to profit.

The company estimates these cuts will lead to $10 million in cost savings per year. In North America, 20% of positions will be lost.

Commenting on the change, CEO and executive chair Charlie Youakim said:

Sezzle has experienced significant growth in its history and is now at an important juncture, as we look to take decisive steps toward profitability and free cash flow.

Sezzle’s growth prospects remain unchanged, and these actions position the company to maximize its long term success. These decisions are not easily made as we greatly value our team members. We thank our team for their efforts during this process.

In late February, Sezzle agreed to a takeover proposal from Zip. The Sezzle and Zip boards of directors have recommended the proposed transaction.

If the deal is approved, Sezzle shareholders would receive 0.98 Zip shares for each Sezzle share owned.

The Sezzle share price may be up today, but it is not the only BNPL share on the rise.

The Zip Co Ltd (ASX: Z1P) share price is also jumping 7.36% today, while Block Inc CDI (ASX: SQ2) shares are surging 8.22%.

Sezzle share price snapshot

The Sezzle share price has descended 80% in a year, while it has lost 48% this year to date. It is also down 25% over the past month. For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned around 6% over the past year.

The company has a market capitalisation of about $308 million.

The post What’s causing the Sezzle (ASX:SZL) share price to sizzle on Thursday? appeared first on The Motley Fool Australia.

More reading

• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Has Zip (ASX:Z1P) got this key metric wrong in the Sezzle takeover?
• Why did the Block (ASX:SQ2) share price sink 9% today?
• Zip (ASX:Z1P) shares have tumbled 14% since the merger news. Top brokers offer possible reasons why
• ‘Strategic sense’: What brokers are saying about the Zip (ASX:Z1P)-Sezzle deal

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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After a sustained period of selling, ASX tech shares are beginning to give their tested shareholders some hope.

This follows a flood of green across technology stocks on Wall Street last night, leading to the biggest percentage gain in a single session for the S&P 500 since June 2020.

At present, information technology is the best performing sector on the ASX today. With not a single ASX tech share constituent in the red, the sector is up by more than 4%. Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) is up a lesser 1.09%.

Are buyers beginning to sweep in?

There’s no doubt about it, the past few months have been a difficult time for tech investors. The once-booming sector began to fall away as inflation fears entered the fray late last year. Since then, the situation has only worsened.

In turn, it is estimated that around 70% of US tech shares have fallen by more than 20% — entering a bear market. Even bleaker, approximately a third have sunk more than 50% from their recent highs. The rapid south trajectory has shown a lack of willing buyers.

Simultaneously, an energy shortage — that has only been amplified by the circumstances surrounding Russia — has led to a rejuvenation in sentiment towards oil and gas companies. As such, the performance of ASX tech shares and US tech shares has been the polar opposite of the energy sector, as shown in the chart below.

However, with oil prices retreating by 12.8% overnight to US$107.64, the market is deliberating over whether the impacts are starting to be overblown.

Which ASX tech shares are winning today?

Simply put, all of the tech names inside the ASX 200 are riding the wave higher today. Though, here are the five best performing shares in the sector on Thursday:

• Appen Ltd (ASX: APX) up 4.2%
• Wisetech Global Ltd (ASX: WTC) up 3.9%
• Codan Limited (ASX: CDA) up 3.8%
• Life360 Inc (ASX: 360) up 3.6%
• Tyro Payments Ltd (ASX: TYR) up 3.4%

Notably, US-based digital payments giant Block Inc CDI (ASX: SQ2) is trading 7.8% higher after gaining 11.3% overnight.

The post Tech-tonic shift? ASX tech shares rally following Nasdaq’s lead appeared first on The Motley Fool Australia.

More reading

• Why did the WiseTech (ASX:WTC) share price jump 6% today?
• 3 beaten-up ASX tech shares that ‘tick all the boxes’: fundies
• The Tyro share price (ASX:TYR) has crashed 45% in 2022. Here’s why this fundie says ‘the future could look quite different’
• Time is running out to lock in the WiseTech (ASX:WTC) dividend. Here’s why
• Broker names the 3 best ASX tech shares to buy today

Motley Fool contributor Mitchell Lawler owns Appen Ltd and Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., Life360, Inc., Tyro Payments, and WiseTech Global. The Motley Fool Australia owns and has recommended Appen Ltd, Block, Inc., and WiseTech Global. The Motley Fool Australia has recommended Tyro Payments. 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and is charging higher. The benchmark index is currently up 1% to 7,122.8 points.

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

Rio Tinto shares tumble

The Rio Tinto Limited (ASX: RIO) share price has come under pressure on Thursday and is tumbling notably lower. This decline has been driven by the mining giant’s shares trading ex-dividend this morning for its enormous $6.63 per share fully franked final dividend. Eligible shareholders can now look forward to receiving this payout next month on 21 April.

Gold price weigh on the ASX 200

Gold miners Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) are falling today after a sizeable pullback in the gold price overnight. This was caused by investors switching back to risk assets after investor sentiment improved. It isn’t just Newcrest and Northern Star that are falling. The S&P/ASX All Ords Gold index is down 3% at the time of writing.

Tech and travel rebounds

The beaten down tech and travel sectors have been on form on Thursday after investor sentiment improved following a pullback in oil prices. This has led to shares such as Flight Centre Travel Group Ltd (ASX: FLT) and Zip Co Ltd (ASX: Z1P) charging higher today. In respect to the tech sector, the S&P ASX All Technology index is up an impressive 3.4%.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Block Inc (ASX: SQ2) share price with an 8% gain. This follows a similarly strong gain by its US listed shares overnight. The worst performer has been the Nickel Mines Ltd (ASX: NIC) share price with an 11% decline. This morning Credit Suisse downgraded the company’s shares to a neutral rating and cut its price target to $1.34. It suspects that investor sentiment may suffer due to its relationship with the embattled Tsingshan.

The post ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound appeared first on The Motley Fool Australia.

More reading

• Here’s why the Rio Tinto (ASX:RIO) share price is sliding 7% today
• Here’s why the Newcrest (ASX:NCM) share price is in the red today
• Why did the Flight Centre (ASX:FLT) share price have such a volatile time in 2022?
• Warning: Only 4 ASX shares just added to ASX 300 are profitable
• Is the Nickel Mines (ASX:NIC) share price chaos a buying opportunity?

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. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended Flight Centre Travel 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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The Bitcoin (CRYTPO: BTC) price is up 8.3% since this time yesterday.

The world’s original crypto is currently trading for US$41,975 (AU$57,425). That brings its market cap back up to some US$790 billion, according to data from CoinMarketCap.

Mind you, though, that’s still well below the US$1.2 trillion market valuation it had back in November.

So, why did the Bitcoin price leap overnight?

Why did the Bitcoin price just leap 8%?

It looks like there are 2 factors that really offered some healthy tailwinds for the Bitcoin price.

First, Bitcoin has tended to track alongside risk assets over the past months. And share markets across Europe and North America leapt higher yesterday (overnight Aussie time).

In the United States, the tech-heavy Nasdaq closed up 3.6%. In Europe, Germany’s DAX led the charge, closing up an eye-popping 7.9%.

The Bitcoin price also looks to have gotten a healthy push after US President Joe Biden signed an executive order relating to crypto regulation. That order will impose greater oversight on crypto markets.

It will also see US government agencies, including the Commerce Department and Treasury Department, look into the potential of creating a digital dollar via the Federal Reserve.

Commenting on the executive order, Hany Rashwan, CEO of crypto exchange traded product provider 21Shares, said (quoted by Reuters):

At 21Shares, we’ve always believed that the best way to introduce and expose investors to crypto is through a safe and regulated approach. Today’s action will help the US establish itself as a leader in crypto for years to come.

Have other cryptos benefited too?

It’s not just the Bitcoin price that’s logged some hefty gains in the past 24 hours.

Ethereum (CRYPTO: ETH), the second largest crypto by market valuation is up 5.2% over that same time.

In fact, running the slide rule over the top 100 cryptos, only 7 are in the red since this time yesterday.

The post The Bitcoin price is rocketing 8% today. What’s going on? appeared first on The Motley Fool Australia.

More reading

• Will soaring commodity prices hold back the Bitcoin price in 2022?
• 52% of Aussies will never put money in this investment
• How might Visa and Mastercard’s Russia ban impact the Bitcoin price?
• Why the Bitcoin price should surge to US$50,000 in March: expert
• Considering adding crypto to your super? Read this

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns 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 Bruce Jackson.

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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.” 

——-

The Woodside Petroleum Limited (ASX: WPL) share price is falling today after oil prices crashed overnight.

Global oil prices nosedived after the United Arab Emirates (UAE) expressed support for increasing output into the market.

A report on CNN said the UAE intended to encourage the Organization of the Petroleum Exporting Countries (OPEC) to ramp up supply.

As a result, the Brent crude oil price fell 13.16% to US$111.14 a barrel, according to Bloomberg. The drop was the ‘worst one-day decline since 21 April 2020’, a report on NAB trade stated.

Woodside shares are currently trading at $31.75, a 4.3% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1% today.

Meanwhile, Woodside CEO Meg O’Neill has shared her insights into the global energy market.

Like the 1970s oil crisis, says Woodside boss

O’Neill says the shift in global energy dynamics due to the Ukraine war felt like a change “that will be with us for decades”.

Speaking at yesterday’s Australian Financial Review Business Summit in Sydney, O’Neill added:

Maybe the analogy is the 1970s oil crisis, which was a real wake-up call for the world that being highly dependent on energy from one particular nation, whose values may not be well aligned with yours, was a huge risk.

And so I think the world is going to have some real sober reflection on the pathway to diversify energy supply, and will look to countries like the US and like Australia, to see how they can support like-minded countries in providing their energy.

The NAB trade report said the US is in discussions about relaxing oil sanctions on Venezuela. This would be conditional on Venezuela shipping oil directly to the US.

Woodside share price snapshot

The Woodside share price has rocketed 27% over the past year. In 2022, it is up 40%.

In the past month, Woodside shares have gained 19% as the war in Ukraine creates global fear about energy supply.

Woodside has a market capitalisation of about $32.19 billion based on its current share price.

The post Woodside (ASX:WPL) share price tumbles but boss sees ‘a change with us for decades’ appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Record $36bn in dividends could help ASX share market recovery
• Up 48% in 2022, why this ASX 200 energy giant is gaining again today
• Why Bapcor, GQG, Smartgroup, and Woodside shares are dropping
• Woodside (ASX:WPL) share price slips for first time in 7 days

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 BrainChip Holdings Ltd (ASX: BRN) share price has been a strong performer on Thursday.

In morning trade, the artificial intelligence technology company’s shares are up 8% to $1.14.

Why is the BrainChip share price shooting higher today?

The gain by the BrainChip share price today appears to have been driven by a rise in its US listed shares overnight in response to a press release.

According to the release from Wednesday morning Australia-time, the company has signed new sales partnerships in Europe and Israel that will further expand the commercial reach of its Akida neuromorphic computing platforms.

The release explains that BrainChip has partnered with Eastronics, a large, high-tech distributor in Israel, and SalesLink, a technology solutions provider in Europe.

Management believes these relationships serve as a gateway for introducing Akida technology to customers looking to leverage BrainChip’s IP across a wide range of applications. These include industrial Internet of Things (IoT), cybersecurity, autonomous vehicles, and smart sensors that can detect and act on visual features, sound, touch, smell, and taste.

It believes that Eastronics is ideally suited to benefit BrainChip’s global expansion in terms of customer presence and broad reach. This is from verticals such as medical, military, and industrial IoT markets, in the Israeli territory.

Whereas SalesLink has a broad reach that management believes will be instrumental in the building of BrainChip’s ecosystem and the go-to-market IP licensing plan in the Central Europe region.

BrainChip’s CEO, Sean Hehir, commented: “Partnerships with region and domain-focused sales organizations like Eastronics and SalesLink extend our reach to meaningful geographies and commercial opportunity.”

“We look forward to working closely with Eastronics and SalesLink, as well as developing relationships with other organizations in key territories, as we continue to deploy our commercialization plan for our revolutionary technology,” he added.

The post Why is the BrainChip (ASX:BRN) share price jumping 8% today? appeared first on The Motley Fool Australia.

More reading

• Brainchip (ASX:BRN) share price sinks 7% as ‘Most successful year in history’ comes at a cost
• Why is the Brainchip (ASX:BRN) share price tumbling 6% on Monday?

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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