Category: Stock Market

Key Points

• Straker shares leap on strong revenue results
• Management noted the business is on track to hit milestone $100 revenue goal
• Margins expected to fall slightly in Q4 due to integration of IDEST

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The Straker Translations Ltd (ASX: STG) share price is rebounding sharply today following a trading update from the company.

At the time of writing, the translations company’s shares are rocketing 23.53% higher to $1.68 apiece.

Straker on track to meet revenue growth targets

Investors are snapping up Straker shares after the company revealed its FY22 revenue has ramped up significantly.

According to its release, Straker reported it has achieved revenues of $15 million for the third-quarter of FY22. This represents an increase of 99% over the prior corresponding period (pcp), and a 26% lift quarter-on-quarter (QoQ).

Management noted that the $60 million run-rate recorded indicated that Straker is on track to meet its $100 million revenue goal.

The roughly even split of organic and acquisition growth showed that the company has multiple growth opportunities.

Margins remained stable at 54%, however, this is expected to slightly decrease going into the fourth quarter of FY22. This is because the business will begin to include IDEST margins, dragging the over group margins lower.

Straker stated that over the next couple of quarters, margins may lift as it integrates IDEST onto the RAY platform. IBM integration with the vendor pool is also expected to continue.

At the end of the period, management declared a cash balance of $17.5 million, with no debt.

Straker CEO, Grant Straker touched on the company’s latest deal, saying:

We have market leading technology, a global footprint and offer our customers opportunities to automate and consolidate their global translation requirements with a single provider delivering significant productivity benefits and cost savings.

The upgrade to our guidance for FY2022 largely reflects stronger than expected organic growth but also the continued execution of the Company’s M&A strategy with the acquisition of IDEST positively impacting in the current Quarter. The demonstration of accelerating and profitable growth supported by a robust net cash balance sees Straker head into calendar 2022 in a very strong position.

Straker share price summary

Over the past 12 months, the Straker share price is down almost 7%, with these losses coming from in December. The company’s shares hit a 52-week low of $1.30 at the end of 2021.

Based on valuation grounds, Straker commands a market capitalisation of roughly $109.29 million, with 67.78 million shares outstanding.

The post Straker Translations (ASX:STG) share price surges 24% after company ‘achieves 99% revenue growth’ appeared first on The Motley Fool Australia.

More reading

• Why Brainchip, Pilbara Minerals, Straker, and Whitehaven Coal shares are pushing higher
• This just caused the Straker Translations (ASX:STG) share price to leap 9%

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 recommended Straker Translations. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. At the time of writing, the benchmark index is up slightly to 6,988.6 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are pushing higher:

Airtasker Ltd (ASX: ART)

The Airtasker share price is up 15% to 73.5 cents following the release of its second quarter update. That update revealed that its gross marketplace volume (GMV) rose 39% quarter on quarter to $48.6 million. Pleasingly, management appears confident its strong form can continue and has upgraded its second half guidance. It now expects second half GMV of $107 million to $110 million, up from $105 million previously.

ARB Corporation Limited (ASX: ARB)

The ARB share price has jumped 9% to $46.70. This follows the release of a first half trading update from the 4×4 parts manufacturer. ARB advised that it achieved unaudited sales revenue of $359 million for the half, representing growth of 26.5%. On the bottom line, the company expects to report a profit before tax of $90 million to $92 million.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 6% to 47.2 cents. Investors have been buying this infant formula company’s shares following the release of its second quarter update. That update revealed a strong rebound in daigou sales, which underpinned an 8% quarter on quarter and 56% year on year increase in quarterly sales revenue to $19.9 million.

Sezzle Inc (ASX: SZL)

The Sezzle share price is up 5% to $2.46. This follows the release of the buy now pay later provider’s fourth quarter update. Sezzle reported underlying merchant sales (UMS) growth of 74.9% to US$561 million (A$772.2 million). This was driven by a 76% increase in active merchants to 47,000 and a 51.5% jump in active customers to 3.4 million.

The post Why Airtasker, ARB, Bubs, and Sezzle shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• Why the Airtasker (ASX:ART) share price is rocketing 17% higher today
• Sezzle (ASX:SZL) share price higher after reporting 75% Q4 sales jump
• Bubs (ASX:BUB) share price jumps 14% amid strong daigou-fuelled Q2 growth
• Zip (ASX:Z1P) share price tumbles 10% as top broker questions possible Sezzle play
• 2 compelling ASX growth shares that are now great value: brokers

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 recommended Airtasker Limited. The Motley Fool Australia has recommended ARB Corporation Limited and BUBS AUST FPO. 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 seems Macquarie Group Ltd (ASX: MQG)’s stint as a big four ASX bank was not to last. Much was made of Macquarie’s (in hindsight, brief) ascension to the upper echelons of the ASX banking sector last year.

Back in November, Macquarie swept past Australia and New Zealand Banking Group Ltd (ASX: ANZ), becoming the ASX’s fourth-largest bank by market capitalisation in the process. Then, just a few weeks ago, it did it again, pipping Westpac Banking Corp (ASX: WBC) for the third spot.

But, alas, Macquarie’s fortunes have turned in the few weeks since then. Year to date, Macquarie shares have lost a painful 10.47% of their value. And since hitting a new record high of $217.32 a share on 5 January, the company is down by 15.4%. That’s going off of today’s pricing at $183.92 at the time of writing.

At this price, Macquarie is back to a market capitalisation of $70.55 billion. That means it is well and truly back to the ASX’s fifth-largest bank, seeing as Westpac’s market cap is today at $74.7 billion, and ANZ’s at $75.6 billion.

Ah well, I’m sure it was fun for Macquarie while it lasted.

But that brings us to a different topic. That of Macquarie’s dividend. Due to the steep share price drop the company has endured over the past month or so, its dividend yield has crept back up again. But is it big enough to rival those of Macquarie’s larger banking rivals?

How does Macquarie’s dividend measure up against the big four ASX banks?

Well, let’s take a look.

So Macquarie paid out two dividends last year. The first was a final dividend of $3.35 a share that was paid out in July. The second was an interim dividend of $2.72 per share that investors received in December. Both payments were partially franked at 40%.

On today’s pricing, that gives Macquarie shares a trailing dividend yield of 3.31%.

Unfortunately for income investors, that’s not quite large enough to take out even one of the big four banks. Commonwealth Bank of Australia (ASX: CBA) currently has the lowest trailing yield out of the big four banks. But it’s still offering investors a trailing, fully franked 3.72% yield right now.

National Australia Bank Ltd (ASX: NAB) is next up with its trailing yield of 4.67%.

ANZ breaches the 5% mark with its yield of 5.28% on current pricing.

And Westpac leads the charge with its 5.79% trailing yield today.

So, unfortunately, Macquarie’s dividends, while substantial, are still not quite in the leagues of the big four.

But, even so, with Macquarie’s past 5-year performance giving investors a 120% return, it’s probably not bothering investors too much.

The post How does the Macquarie (ASX:MQG) dividend compare to the big four banks? appeared first on The Motley Fool Australia.

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• Here’s why BHP shares are in the spotlight today
• Here’s what higher interest rates could mean for ASX bank shares
• What to expect from the NAB (ASX:NAB) Q1 update next month

Motley Fool contributor Sebastian Bowen owns National Australia Bank 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 recommended Macquarie Group Limited and Westpac Banking Corporation. 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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Key points

• The Tyro Payments share price is currently up 3.46%, trading at $2.25
• The gain follows the release of the company’s latest weekly trading update
• The broader ASX tech sector is also having a good session today, and payments-focused stocks are among its leaders

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The Tyro Payments Ltd (ASX: TYR) share price is in the green on Monday after the release of the company’s latest trading update.

The financial technology company facilitated around $648 million worth of transactions last week.

On top of today’s seemingly positive update, Monday is shaping up to be a great day for ASX tech shares.

At the time of writing, the Tyro share price is $2.25, 3.46% higher than its previous close.

Let’s take a closer look at what might be boosting the fintech’s stock today.

What’s driving the Tyro share price higher on Monday?

The Tyro share price is moving upwards today after the company released positive data on its recent transaction volumes.

Over the first four weeks of January, the company processed $2.443 billion worth of transactions – 36% more than it did over the same period in 2021.

In fact, over the course of January so far the company has, on average, processed approximately $610 million of transactions each week.

Additionally, it’s facilitated around $18.3 billion worth of transactions since the start of financial year 2022.

At this point of financial year 2021, the company had only put through approximately $13.9 billion of transactions.

The broader ASX tech sector is probably also buoying the Tyro share price today.

Right now, the S&P/ASX 200 Info Tech Index (ASX: XIJ) is the best performing sector on the S&P/ASX 200 Index (ASX: XJO), boasting a 3.93% gain. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) is up 3.29%.

The market is being boosted by Tyro’s fellow payment-focused companies Zip Co Ltd (ASX: Z1P), Block Inc (ASX: SQ2), and EML Payments Limited (ASX: EML). They are currently up 7.14%, 7.01%, and 4.2% respectively.

The tech sector’s gains are likely, in part, a response to the 3.13% increase achieved by the Nasdaq Composite Index (NASDAQ: .IXIC) on Friday.

Unfortunately, despite today’s gains, the Tyro share price is still 22% lower than it was at the end of 2021.

It has also fallen 10% since this time last year.

The post Here’s why the Tyro (ASX:TYR) share price is having such a positive day appeared first on The Motley Fool Australia.

More reading

• 2 ASX fintech shares that could rocket this year
• Why is the Tyro (ASX:TYR) share price tumbling today?

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. owns and has recommended Block, Inc., EML Payments, Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended EML Payments. 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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Key points

• The Qantas share price is up more than 1% today
• The company’s shares have gained 5.27% since Thursday’s market close
• Qantas announced a new pilot training centre today

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The Qantas share price is climbing today but it’s not the only ASX travel share in the green.

The company’s shares are currently swapping hands at $4.79, up 1.27%. In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained just 0.1% at the time of writing.

Not only is the Qantas share price up today, it has increased 5.27% since market close on Thursday. Its ASX travel share peer Webjet Ltd (ASX: WEB) is also 3.59% higher today. Webjet’s share price has risen 6.29% since the January 27 close.

Meanwhile, Flight Centre Travel Group Ltd (ASX: FLT) has lifted 4.51% in today’s session so far. It’s up 7.74% since last Thursday’s close.

What is happening at Qantas?

Today, Qantas had news of its own. The company has opened a new pilot training centre at Brisbane Airport to train 900 pilots a year.

Commenting on the announcement, CEO Alan Joyce said:

Having simulators based in Brisbane is great news for our Queensland-based pilots and is a clear vote of confidence in the long term future of aviation in this country despite the challenges we’ve faced recently.

Qantas’ very first flying school was set up in 1927 in a tin shed at Eagle Farm, so we’ve clearly come a long way since then.

Meanwhile, Morgan Stanley has maintained a $7 price target and overweight rating on the Qantas share price, the Australian Financial Review reported this morning.

Analyst Andrew Scott said:

We believe investors may look through short-term disruptions forward to recovered earnings capacity, given the balance sheet strength.

Speculation international visitors could return to Australia in the next few months could also be helping travel shares.

On Friday, Prime Minister Scott Morrison told reporters international borders may fully open “before Easter”.

However, the boss of Brisbane Airport Gert-Jan de Graaff told The Age newspaper Australia is losing a race to connect with the rest of the world and it could take three to five years to recover. He said:

Most other countries are already open, so the airlines have already allocated some capacity and aircraft to those other markets. We’re one-nil behind.

Currently, Australia’s international borders are only open to vaccinated tourists from South Korea, New Zealand, Singapore, and Japan. Exemptions are also available to Australian citizens, permanent residents, and eligible visa holders.

Qantas share price snap shot

The Qantas share price has soared 6.44% in the past year. However, it’s fallen almost 4% in the past month, down more than 2% in the past week alone.

Meanwhile, the broader ASX index has returned roughly 5% over the past 12 months.

The company has a market capitalisation of around $9 billion based on its current share price.

The post Why is the Qantas (ASX:QAN) share price gaining altitude today? appeared first on The Motley Fool Australia.

More reading

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• Qantas (ASX:QAN) share price falls amid rollercoaster day for ASX travel shares
• 3 ASX shares to buy right now that are famous Aussie brands

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 Bitcoin (CRYPTO: BTC) price is in the red again.

The world’s biggest cryptocurrency by market cap is down 3% over the past 24 hours, currently trading for US$36,967 (AU$52,752).

While that’s an improvement from last Tuesday’s lows of US$33,317, the Bitcoin price remains down 22% so far in 2022. And it’s down 46% from its 10 November all-time high.

With investors selling down most risk assets in preparation for likely interest rate hikes from the US Fed and, further down the road, the Reserve Bank of Australia (RBA), the question now is, where will it find support?

How low could it go?

There’s nothing written in stone – or binary – that guarantees the Bitcoin price won’t go to zero.

However, some industry experts believe it’s unlikely to fall below (or much below) the levels it was trading at following China’s crypto ban in May. Namely right around US$30,000. Which would see any crypto investors who bought into the token near its November highs nursing more than 50% losses.

According to Simon Peters, markets analyst at multi-asset online trading platform eToro (quoted by Bloomberg):

A 50% fall down is not as significant as what we have seen in previously years gone by, but it’s significant now so it’s more of a concern. The real support level seems to be around the $30,000 level, where we tested back in May after the Bitcoin mining ban in China.

Explaining the causes of the deflating Bitcoin price alongside the host of altcoins, Avi Felman, a portfolio manager at BlockTower added:

Crypto market capitalizations across the board became hugely inflated and priced in a tremendous amount of growth due to a dovish Fed, and the tightening path the Fed is pursing is bringing liquidity out of the system and resetting outlandish valuations that weren’t keeping up with true usage.

How has the Bitcoin price been tracking?

In an indication of the continuing volatility in the crypto sphere, over the past 12 months the Bitcoin price has traded as low as US$28,894 and as high as US$68,790.

Investors who bought into the token at this time last year, when the Bitcoin price stood at US$33,500 will be sitting on virtual gains of some 10%.

The post Bitcoin price sinks again. Here’s where it could find support: expert appeared first on The Motley Fool Australia.

More reading

• Has the case for Bitcoin as an inflation hedge crumbled?
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• What? 2 days of gains for Bitcoin, Ethereum, and Dogecoin?
• Bitcoin and Ethereum are at 6-month lows. Is now the time to pounce?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin. The Motley Fool Australia owns and recommends Bitcoin. 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 Rio Tinto Limited (ASX: RIO) share price is under pressure today despite iron ore prices holding firmly at US$135.50 per tonne.

At the time of writing, shares in the world’s second-largest metals and mining company are fetching $111.24, down 2.22% from its previous close. Accounting for today’s move to the downside, the mining giant’s share price is now 19% off of its 52-week high.

The sluggish start to the week for the Rio Tinto share price comes amid a renewed focus on the miner’s unresolved royalty dispute with Traditional Owners.

A $400 million weight hanging over Rio’s head

In July 2020, Rio Tinto discovered and informed the Gumala Aboriginal Corporation (GAC) of an underpayment in relation to the Yandicoogina mine in Western Australia. According to Rio Tinto, these underpayments pertaining to its Land Use Agreement amounted to $40 million.

However, upon conducting a forensic audit, GAC believes the underpayment is $400 million. This is an order of magnitude more than Rio’s estimate.

Fast forward more than 18 months, ASX-listed Rio Tinto is still yet to settle its dispute with GAC. The unresolved matter risks overshadowing Rio Tinto’s 25th anniversary of its royalty agreement with Traditional Owners in March.

For Rio Tinto, this would only add to its tarnished reputation following the destruction of the culturally significant Juukan Gorge in May 2020.

In an attempt to resolve the underpayment dispute, Rio Tinto is believed to have offered $150 million. The amount is substantially more than the original $40 million offered by the mining company. Although, it is still less than half of what GAC believes to be the rightful figure.

The grey area surrounding the Yandicoogina agreement arises from a difference in how the royalty is determined. Unlike modern arrangements, the much older agreement with GAC is based on the amount of ground disturbance. How ‘disturbance’ is defined is at the core of this unresolved matter.

Due to these issues, ASX-listed Rio Tinto and GAC are also in the process of negotiating new terms for the agreement. This could see GAC paid based on iron ore sales instead of ground disturbance. In addition, GAC is fighting for part of future royalties to be paid in Rio Tinto shares.

Unearthing Rio Tinto share price performance

The performance of the Rio Tinto share price is flat over the last 12 months. Shares in the mining giant have tumbled in tandem with iron ore prices.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 4.8% in the past year. This means ASX-listed Rio Tinto has underperformed the market by ~5%. However, it has provided a better return than other iron ore peers. An example is Fortescue Metals Group Limited (ASX: FMG), which is down 13% in the last year.

The post Rio Tinto (ASX:RIO) vs Traditional Owners: $400m battle continues appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Corporate Travel Management Ltd (ASX: CTD)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $28.00 price target on this corporate travel specialist company’s shares. The broker appears to have had a bit of push back from investors in respect to its recommendation previously. However, its analysts are holding firm and believe the future is bright for Corporate Travel Management due to industry consolidation and its forecast for higher margins. The Corporate Travel Management share price is trading at $21.27 on Monday afternoon.

NEXTDC Ltd (ASX: NXT)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $14.40 price target on this data centre operator’s shares. This follows the announcement of a lift in contracted utilisation to 81MW following new contract wins. While this is in line with the broker’s estimates, it believes it should be a boost to investor sentiment and calm any concerns heading into earnings season. The NEXTDC share price is fetching $10.71 today.

ResMed Inc (ASX: RMD)

Analysts at Citi have upgraded this medical device company’s shares to a buy rating with a $38.00 price target. According to the note, Citi made the move on valuation grounds following recent share price weakness. It notes that ResMed’s shares are trading at a discount to historic multiples. In addition, the broker believes ResMed will still deliver strong growth in FY 2022 despite facing supply chain challenges. The ResMed share price is trading at $31.85 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Ansell crushed, ResMed upgraded
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Motley Fool contributor James Mickleboro owns NEXTDC 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 recommended Corporate Travel Management Limited and ResMed Inc. 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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Key points

• BrainChip shares have been bid notably higher this year
• It isn’t just retail investors that are buying
• BrainChip has a large amount of institutional money invested in its shares

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The BrainChip Holdings Ltd (ASX: BRN) share price is pushing higher on Monday.

In afternoon trade, the artificial intelligence technology company’s shares are up 2.5% to $1.42.

While the BrainChip share price is trading well off its highs for the month, it is still up a very impressive 80% since the start of the year.

Who is buying BrainChip shares?

Although BrainChip shares have become a favourite with day traders and a small pocket of retail investors, they are not the only ones that have been buying.

When the company released its quarterly update last week, it also released an update on its top 20 shareholders.

Management commented: “Given the recent volume of share-trading activity, the Company believes it is appropriate to provide investors with an update of our Top 20 Shareholder List.”

Who’s in the top 20?

The company’s largest shareholder remains its Founder and Chief Technology Officer, Peter Van Der Made, with 160.3 million shares. This equates to an interest of 9.351% in the company.

After Van Der Made, the share registry is dominated by a host of investment banks. Merrill Lynch Australia is one of the largest shareholders with a 6.429% stake, as is HSBC Australia with its separate 4.748%, 3.678%, and 1.45% stakes. Another notable shareholder is Citicorp with an interest of 4.227%.

These shareholders are listed as custody nominees, which usually means that they are investing these funds on behalf of institutional clients.

Among the other largest shareholders are BNP Paribas, JP Morgan, Comsec, UBS, LDA Capital, and its former CEO, Louis Dinardo. Despite Mr Dinardo’s unceremonious exit from the company last year, he hasn’t sold any of his shares. The former CEO still owns 11.8 million shares, which equates to a 0.687% stake.

Time will tell whether these investments generate strong long term returns for their holders.

The post Own BrainChip (ASX:BRN) shares? Here’s some of the institutional investors which have also bought up big appeared first on The Motley Fool Australia.

More reading

• Why is the BrainChip (ASX:BRN) share price storming 12% higher?
• What happened to ASX tech shares today?
• Why Accent, BrainChip, Fortescue, and Novonix shares are sinking
• Is BrainChip (ASX:BRN) the real deal?
• Why are BrainChip (ASX:BRN) shares smashing ASX 200 trading volumes 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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Key points

• The Telstra share price is see-sawing despite the company building strength in the Internet of Things through 2 new acquisitions
• The telco will purchase Australia’s Aqura Technologies and Brisbane-based Alliance Automation
• The acquisition of Aqura Technologies alone will cost Telstra $30 million

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The Telstra Corporation Ltd (ASX: TLS) share price is wobbling today as the company boosts its Internet of Things (IoT) credentials.

The telecommunications giant’s technology services leg Telstra Purple will acquire Aqura Technologies for $30 million and is also forking out to buy Australian industrial automation service provider Alliance Automation.

At the time of writing, the Telstra share price is $3.94, 0.38% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.21% right now.

Telstra bolsters IoT capabilities through 2 new acquisitions

Owners of Telstra shares are likely chuffed as 2 new acquisitions are set to position the company as an industry leader in the IoT space.

For those who aren’t across the IoT, it’s a network of physical objects each with sensors and software allowing them to communicate with other devices and systems.

In its latest push into the space, Telstra Purple will acquire Aqura Technologies from Veris Ltd (ASX: VRS).

Telstra Purple has also agreed to buy Brisbane-based independent provider of IoT industrial automation solutions and control systems Alliance Automation.

The company states its purchase of Aqura Technologies will see it able to deliver industrial-grade wireless and fixed networks in remote and underground operations.

Meanwhile, acquiring Alliance Automation will expand the company’s abilities in digital transformation, industrial automation, digital twins, smart spaces, and cyber security.

Telstra Purple boss Christopher Smith said the acquisitions – Telstra Purple’s 10th and 11th – are “important building blocks of our T25 strategy” and a testament to the company’s growth strategy. Smith continued:

Both companies have demonstrated consistent historical growth, close customer and vendor relationships, backed up by a deep pool of specialist talent with a strong pipeline and growth outlook. We were impressed by their people, expertise and capabilities and believe they will be very valuable additions to the Telstra Purple team.

Telstra Purple’s acquisition of Aqura Technologies is expected to be finalised in late February.

Telstra share price snapshot

Despite the exciting news, the Telstra share price has continued to struggle through 2022 so far.

Since the final close of last year, its stock has slumped 5.6%. Though, it’s still 26% higher than it was this time last year.

The post Telstra (ASX:TLS) boosts IoT cred with new acquisitions appeared first on The Motley Fool Australia.

More reading

• Here’s why the Telstra (ASX:TLS) share price could be an opportunity: analysts
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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 owns and has recommended Telstra Corporation 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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