Category: Stock Market

The Element 25 Ltd (ASX: E25) share price is soaring today. The move comes after the Australian miner announced a promising development regarding its Butcherbird manganese project this morning.

At the time of writing, the Element 25 share price is up 17.5% at $1.41, having hit a high of $1.49 this morning.

New development in manganese project

In case you haven’t heard of it, manganese is a fairly comment element found around the world. However, it is critical to the production of steel and batteries.

And as batteries and renewable energies become more and more popular, the need for manganese is becoming ever more demanding.

The Australian miner holds the biggest onshore resource in the country — the Butcherbird manganese project in Pilbara, Western Australia.

This morning, the company proudly announced it was back on its feet and running after conducting logwasher repair and engineering modification tasks that were scheduled for late last month.

The company reported a failure in the logwasher shaft on 18 November last year, which affected production.

Production levels above normal

The miner also reported an increase in production since the repair halt, hitting a daily production record of 1,209 tonnes on Monday.

Modifications for plant efficiency were also undertaken during the halt, including improved access to the plant (for future maintenance and operations), reducing noise and dust pollution, and managing over-wear of the key components of the plant.

Looking ahead, Element 25 is focused on delivering continued manganese production through Q1 FY22.

Element 25 share price snapshot

The Element 25 share price was fairly quiet up until the beginning of the pandemic.

In just one year, shares jumped from 11 cents to $2.68 — an increase of 2,336%.

The miner’s share price dropped back to a 52-week-low of $1.01 last month but has since rebounded by more than 40%.

The company has a market capitalisation of $183 million.

The post Here’s why the Element 25 (ASX:E25) share price is rocketing 18% today appeared first on The Motley Fool Australia.

More reading

• Can Bitcoin (CRYPTO:BTC) steal gold’s safe haven shine to top US$100,000?
• Own Coles (ASX:COL) shares? The retailer is warning of ‘difficult weeks’ ahead
• ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise
• Afterpay (ASX:APT) share price tumbles 11% in massive one-day loss
• Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?

Motley Fool contributor Alice de Bruin 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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Bitcoin (CRYPTO: BTC) to US$100,000?

With the token currently trading for US$43,550, down 5% in the past 24 hours, that may sound like a bit of a stretch.

But then don’t forget that only 2 years ago, on 6 January 2020, one Bitcoin was worth a mere US$7,770. And this time last year it was trading for US$36,820 before rocketing to new all-time highs of US$68,790 on 10 November.

So, what could help propel Bitcoin beyond its previous record high and onto US$100,000?

Bitcoin as a store of value

That price target comes from none other than global investment advisor, Goldman Sachs.

According to Goldman’s analysts, the Bitcoin price could soar if the digital asset takes on a larger share from gold of what’s known as the store of value market.

As Bloomberg reports:

Goldman estimates that Bitcoin’s float-adjusted market capitalization is just under $700 billion. That accounts for 20% share of the ‘store of value’ market which it said is comprised of Bitcoin and gold. The value of gold that’s available for investment is estimated at $2.6 trillion.

According to Zach Pandl, Goldman Sachs’ co-head of global FX and EM strategy, the Bitcoin price could top US$100,000 over the next 5 years if its share of the store of value market were to increase from the current 20% to 50%. From today’s prices that works out to a compound annualised return of 17–18% over the 5 years

Watch the volatility

Bitcoin is a newcomer when it comes to haven assets, or a place to store value. While it’s certainly outpaced inflation, the price volatility is far higher than what we see with gold.

The yellow metal is currently trading for US$1,811 per ounce. Looking back over the past 12 months, gold reached lows of US$1,684 on 8 March and a high of US$1,908 on 2 June.

Bitcoin, on the other hand, dropped as low as US$29,807 on 20 July before then going on to hit US$68,790 on 10 November.

Investors seeking a new store of value to guard against government money printing and other global economic uncertainties will need to keep those Bitcoin price swings in mind.

The post Can Bitcoin (CRYPTO:BTC) steal gold’s safe haven shine to top US$100,000? appeared first on The Motley Fool Australia.

More reading

• Investing in Bitcoin? Here’s what the crypto experts are predicting for 2022
• 3 more countries to make Bitcoin legal tender this year: expert
• 3 big reasons crypto sceptics are WRONG
• How interest paying crypto accounts could be a gamechanger
• Why is the BetaShares Crypto Innovators ETF (ASX: CRYP) share price leaping higher today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 Coles Group Ltd (ASX: COL) share price is seesawing on Thursday. This comes as the supermarket operator faces a challenging period ahead, with the latest COVID-19 outbreak causing supply issues.

At the time of writing, Coles shares are swapping hands for $17.67 apiece, down 0.23%. However, they have been as low as $17.61 and as high as $17.77 during morning trading.

In contrast, the broader the S&P/ASX 200 Index (ASX: XJO) is trading at 7,478.6 points, down 1.15%.

Coles reintroduces product limits amid staff shortages

Investors don’t appear unduly concerned by the negative news surrounding the supermarket giant, with the Coles share price holding its own.

A strong rise in COVID-19 cases has forced thousands of people to isolate at home while waiting for their results. This has created a huge disruption to Coles’ supply chain as a majority of its staff are reportedly obeying stay-at-home orders.

Notably, Coles shelves have been laid bare across thousands of stores in Australia. In response, the company has brought back product limits on certain meats as well as rapid antigen tests.

According to media outlets, the company is operating on skeleton staff at its distribution centres.

Coles chief operations officer Matt Swindells commented:

It’s probably going to take a few weeks for us till we fully recover. What we really need to do is make sure that the team members that are isolating are able to get tested, to get checked and then to safely return back to work quickly.

The latest COVID-19 figures have continued to surge with more than 207,600 active cases in New South Wales and 61,100 cases in Victoria. This is a sharp increase from this time last year when the country had been effectively managing the pandemic.

About the Coles share price

It’s been a rollercoaster ride for the Coles share price over the last 12 months, posting a loss of around 4%.

Based on today’s price, Coles commands a market capitalisation of roughly $23.6 billion, with approximately 1.33 billion shares on hand.

The post Own Coles (ASX:COL) shares? The retailer is warning of ‘difficult weeks’ ahead appeared first on The Motley Fool Australia.

More reading

• What’s dragging on the Coles (ASX:COL) share price this week?
• Analysts name 2 top ASX dividend shares to buy now
• Here are 2 ASX dividend shares to buy in 2022
• Top ASX shares to buy in 2022
• The ASX share market coverage that captivated readers in 2021

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 owns and has recommended COLESGROUP DEF SET. 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 tumbling lower. The benchmark index is currently down 1.2% to 7,477.2 points.

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

Tech shares sold off

It has been a brutal day for the tech sector on Thursday with heavy declines being seen across the board. This follows a tech selloff on Wall Street which led to the Nasdaq index having its worst day in almost a year. Among the worst performers are Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) shares. The former was down as much as 11% at one stage.

Mining giants rise

It has been a much better day for mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO). Both miners are pushing notably higher today after the benchmark iron ore price continued its ascent. According to CommSec, the spot iron ore price rose by US$2.45 or 2% to US$125.35 a tonne.

South32 to restart Brazilian aluminium operation

The South32 Ltd (ASX: S32) share price is trading largely flat today despite announcing the restart of its 40%-owned Brazilian aluminium operations after a pause of over six years. The diversified miner also revealed that it will be powering its share of the operations by 100% cost efficient renewable power. This will place the smelter in the second quartile of the global aluminium site cost curve.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Clinuvel Pharmaceuticals Limited (ASX: CUV) share price with a 2.5% gain on no news. However, the biopharmaceutical company’s shares have fallen by 33% over the last two months, so bargain hunters could be swooping in today. The worst performer has been the Afterpay share price with a decline of almost 10%. This follows another heavy decline by the Block share price overnight.

The post ASX 200 (ASX:XJO) midday update: Afterpay sinks again, BHP and Rio rise appeared first on The Motley Fool Australia.

More reading

• Afterpay (ASX:APT) share price tumbles 11% in massive one-day loss
• Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021?
• Is the party over for ASX BNPL shares?
• Why the South32 (ASX:S32) share price is pushing higher again today
• ASX 200 tech shares on watch after Nasdaq selloff

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 Afterpay Limited and Altium. The Motley Fool Australia owns and has recommended Afterpay 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 S&P/ASX 200 Index (ASX: XJO) has opened this Thursday on a rather negative note. The ASX 200 is currently down a nasty 1.11% and is going at 7,482 points at the time of writing. But that’s nothing compared to the Afterpay Ltd (ASX: APT) share price. Afterpay shares have been savaged today. At the time of writing, the buy now, pay later (BNPL) pioneer has lost a demoralising 9.5% and is sitting at $72.86 a share. That comes after it fell as low as $71.65 a share just after market open (down 10.7%).

That’s the largest one-day drop for Afterpay since at least the gyrations we saw back in February last year. And possibly since the COVID-induced market crash back in early 2020. As it stands today, Afterpay has now lost more than 22% of its value over the past month alone, and more than 45% since early August.

So what’s behind this apparent collapse in investor sentiment today?

Why is the Afterpay share price getting hammered today?

Well, we can’t say for sure. But it appears a sharp drop in the US markets overnight may have had something to do with it. Last night saw many prominent US tech shares’ share prices massacred following some hawkish comments from the US Federal Reserve. As we covered in depth earlier this morning, the Fed’s latest minutes reveal that the Bank is considering bringing forward a ‘tightening’ of US monetary policy. That could mean higher interest rates sooner. As well as a ‘tapering’ of its quantitative easing programs.

Many tech shares’ valuations are particularly vulnerable to tighter monetary policy due to their debt burdens and (in many cases) pre-profit growth stages.

And one of the tech shares caught up in the US sell-off was none other than Block Inc (NYSE: SQ). Block is the US payments giant formerly known as Square that is lining up to acquire Afterpay in full. Since the Afterpay-Block deal announced back in August is an all-scrip one (0.375 shares of Block for every Afterpay share owned), the Afterpay share price now has a direct link to that of Block.

And last night, Block stock was hammered. It fell a nasty 8.2% and finished up very close to its new 52-week low at US$143.49 a share. That means the value of the Block shares that Afterpay shareholders will receive if this deal reaches the finish line also fell by 8.2%. So it’s perhaps no surprise that Afterpay shares are getting a drilling today.

At the current Afterpay share price, this BNPL share has a market capitalisation of $21.64 billion.

The post Afterpay (ASX:APT) share price tumbles 11% in massive one-day loss appeared first on The Motley Fool Australia.

More reading

• Is the party over for ASX BNPL shares?
• ASX 200 tech shares on watch after Nasdaq selloff
• 5 things to watch on the ASX 200 on Thursday
• Why Afterpay, Kogan, Premier Investments, and Pro Medicus shares are dropping
• Why are ASX 200 tech shares getting hammered today?

Motley Fool contributor Sebastian Bowen owns Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited and Block, Inc. The Motley Fool Australia owns and has recommended Afterpay 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 Rio Tinto Limited (ASX: RIO) share price came crashing down in 2021, despite a positive start to the year.

The mining company’s share price fell from $113.83 to $100.11 during the year, shedding 12%. In comparison, the S&P/ASX 200 Index (ASX: XJO) gained around 13%.

Let’s examine what may have impacted this ASX 200 share in 2021.

Iron ore prices

The Rio Tinto share price recorded gains in the first half of the year before collapsing from August to November. The company’s share price then picked up in late November to finish the year off in style.

In the first six months of the year, Rio Tinto shares gained nearly 12%. Shares in the mining giant climbed 15% between market close on 5 February and 25 February. Strong iron ore prices, a record dividend payout from the company, and positive financial results all weighed positively with investors.

The company reported a 3% increase in sales revenue to US$44,611 million and a 13.4% boost in iron revenue. Rio Tinto also rewarded shareholders by declaring a fully franked final dividend of US$4.02 (A$5.19) per share.

March to May also saw the company’s share price explode on the back of record iron ore prices and well-received first-quarter production results. In the first quarter of FY 2021, the company shipped 77.8 million tonnes of Pilbara iron ore, a 7% increase. Rio Tinto shares surged more than 24% between 22 March and 10 May.

However, from August to November the Rio Tinto share price came crashing down to earth. As Motley Fool Australia noted at the time, investors were selling down the mining company’s shares due to falling iron ore prices.

The company also downgraded its production targets for 2021. A third-quarter trading update in mid-October slightly pushed the share price down, with the Covid-19 virus impacting production results. Between market close on 4 August and 5 November, the Rio Tinto share price dropped 30%. Iron ore prices fell 48% in this same time frame.

Then came the bounce back. The Rio Tinto share price recovered nearly 12% between 18 November and 31 December. The iron ore price increased nearly 31% during this same time period, likely impacting investor sentiment.

The company also announced two major lithium projects. Rio Tinto will acquire the Rincon lithium project in Argentina for $1.15 billion and the Jadar project in Serbia for $3.3 billion.

Rio Tinto share price snapshot

In the past month, the company’s shares have gained around 7%, while they are up 2% this week. At the time of writing, they are trading at $102.23, up 1.74%.

Looking ahead, as my Foolish colleague James reported this week, opinion on the outlook for the company’s share price is divided.

Macquarie Group Ltd (ASX: MQG) has a $135 price target, while Morgans has a hold rating and a $104 price target.

The company has a mammoth market capitalisation of nearly $37 billion based on its current share price.

The post Why did the Rio Tinto share price (ASX:RIO) have such a lousy 2021? appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with yields of more than 8%
• How the Pilbara Minerals (ASX:PLS) share price surged 268% higher in 2021
• Here’s what brokers are saying about the Rio Tinto (ASX:RIO) share price
• Here’s why ASX 200 mining shares could be in for a boost in 2022
• How the Macquarie (ASX: MQG) share price went in 2021

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

Wall Street remained somewhat choppy on Wednesday morning, as investors remained divided in their views of the prospects of various industries within the stock market. As of 10 a.m. ET, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 18 points to 36,817, which would be a new record high if it holds onto those gains. However, the S&P 500 (SNPINDEX: ^GSPC) had fallen 3 points to 4,791, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had lost 67 points to 15,555.

Evidence of a market rotation continues to pile up, and one of the clearest signs of the possible ascendancy of value investing came from Omaha, Nebraska. Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) shares were up another 2% on Wednesday morning, bringing its gains in the first two and a half trading days of the year to nearly 5% and representing a record stock price level for Warren Buffett’s company. Given the gains that other stocks have seen, some investors wonder if Berkshire could finally make its way into the $1 trillion market capitalization club sometime in 2022.

A tough few years

Some investors in Berkshire Hathaway have been disappointed with the stock’s performance in recent years. A persistent preference from investors for higher-growth companies has contributed to underperformance from Berkshire stock, with its 91% total return over the past five years trailing the S&P 500’s 130%.

Berkshire has also had its share of miscues. Buffett’s decision to sell out of airline stocks near their lows in March and April 2020 received widespread criticism, as it seemed to resemble a panic-driven sale and was soon followed by a massive rebound in the airline industry. Meanwhile, the stock didn’t seem to get much credit for Berkshire’s massive holding in shares of Apple, which have skyrocketed over the period.

Growth-oriented investors also question why Berkshire keeps so much cash on hand. Even with the company making increasingly substantial repurchases of its own stock, Berkshire had nearly $150 billion in cash on its balance sheet as of its most recent quarterly report. That cash on the sidelines earning next to nothing was arguably a big drag on potential investment performance.

Seeing value

More recently, though, investors have seemed to recognize the intrinsic value of Berkshire’s businesses. Wholly owned companies in areas like energy and transportation are starting to show signs of strength, and even with Buffett having dramatically cut exposure to the banking sector, Berkshire’s holdings there are benefiting from the prospects for rising long-term interest rates that could bolster net interest income.

Perhaps most importantly, many shareholders see Berkshire as a counter-trend play that offers portfolio diversification when combined with higher-growth stocks. Despite some recent purchases of positions in companies like data warehousing specialist Snowflake, Buffett’s conservative style is likely to remain in place at Berkshire even once he’s no longer able to lead the company.

Is $1 trillion within reach?

Berkshire’s market capitalization just topped the $700 billion mark, so it’d take a better-than-40% gain from here to reach $1 trillion. That’s a tall order for Berkshire in 2022 even after years of underperformance. However, some of the trends that have created big headwinds for the insurance conglomerate appear to be shifting, and that suggests that even if it doesn’t happen this year, Berkshire could put together the gains necessary to join the trillion-dollar club before too much longer. 

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

The post Is Berkshire Hathaway headed for $1 trillion? appeared first on The Motley Fool Australia.

More reading

• How the Vulcan (ASX:VUL) share price almost quadrupled in 2021
• Is the party over for ASX BNPL shares?
• Is the Fortescue (ASX:FMG) share price on track to reach $50?
• What’s happening with the IAG (ASX:IAG) share price today?
• Why the South32 (ASX:S32) share price is pushing higher again today

Dan Caplinger owns Apple, Berkshire Hathaway (B shares), and Snowflake Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 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 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 Vulcan Energy Resources Ltd (ASX: VUL) share price was one of the best performers on the Australian share market in 2021.

Over the 12 months, the lithium developer’s shares rose a massive 277%.

This was despite the Vulcan share price ending the year at $10.36, which is almost 38% lower than its 52-week high of $16.65.

Why did the Vulcan share price almost quadruple in 2021?

Investors were buying Vulcan and other lithium shares last year amid the increasingly positive outlook for the battery making ingredient. This is due to the insatiable demand for the white metal from electric vehicle battery and renewable energy markets which is expected to significantly outstrip supply in the coming years.

And while Vulcan is not yet producing lithium, it has signed away a large portion of its future production to automakers. This gives investors good visibility on its future earnings.

Among the companies that have signed offtake agreements for lithium from the Zero Carbon Lithium Project in Germany are Renault, Volkswagen, and Stellantis. The latter may not be a familiar name, but its car brands will be. Stellantis is the world’s fourth largest automaker and the name behind brands including Alfa Romeo, Chrysler, Citroen, Fiat, Jeep, Maserati, and Peugeot.

Where next for its shares?

Incredibly, despite the Vulcan share price rocketing 277% higher in 2021, one leading broker believes it can more than double in 2022.

A recent note out of Canaccord Genuity reveals that its analysts have retained their speculative buy rating and $21.00 price target on the company’s shares.

This could make it well worth keeping a close eye on Vulcan’s shares again in 2022.

The post How the Vulcan (ASX:VUL) share price almost quadrupled in 2021 appeared first on The Motley Fool Australia.

More reading

• The 5 best ASX lithium stocks of 2021
• Here’s why the Vulcan (ASX:VUL) share price is charging 6% higher today
• Broker tips Vulcan (ASX:VUL) share price to double in 2022
• The Vulcan Energy (ASX:VUL) share price is down 12% this week. What’s happening?
• Vulcan (ASX:VUL) share price storms higher after receiving short seller apology

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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Tumbling share prices and industry consolidation: this probably isn’t how most ASX buy now, pay later (BNPL) investors pictured it playing out. In 2021, ASX BNPL shares such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) severely underperformed the broader Aussie market — so is the party over?

The days when Australia’s BNPL companies were the market darlings of the ASX seem a distant memory now. Rather than gaining more excitement in the last year, the sector attracted heightened scepticism.

For investors, the last year marked a clear shift in sentiment towards the once idolised credit disruptors. Afterpay recorded its first negative share price return since being listed, falling nearly 30%. Similarly, the Zip share price dealt shareholders their first negative return since 2017, shaving off 18%.

What could be ahead for ASX BNPL shares?

Despite the pullback in share prices, there are a number of experts who still aren’t so keen on ASX BNPL shares. This would suggest these companies remain stuck in a more pessimistic light currently.

Morgans analyst Richard Coles is one of the numerous spectators that envisions tougher times ahead for BNPL companies. In a broker note, the analyst outlines several risk factors to Afterpay specifically. These include slowing sales momentum, margin compression from competition, overseas expansion risk, bad debts, increased funding costs, and regulatory pressure.

For these reasons, Morgans slashed its price target on Australia’s biggest BNPL company to $91.49 from $132. Likewise, the broker revised its Zip price target to $7.54 from $8.56 on lower earnings per share (EPS) expectations.

These concerns mirror those of payments industry expert Gran Halverson. As we covered back in December, the founder of payments consultancy company McLean Roche is mindful of a bumpy path ahead for ASX BNPL shares. In turn, Halverson suspects another challenging year for the payment companies in 2022.

On the flip side

According to a forecast published by Juniper Research, the long-term picture for ASX BNPL shares may not be so much doom and gloom. In its June 2021 Buy Now Pay Later: The Future of Ecommerce whitepaper, the research firm estimates that fixed instalment plans and flexible credit accounts will reach $995 billion globally in 2026. At present this figure sits around $266 billion.

Unlike Coles and Halverson, Juniper believes regulations won’t stifle the appeal or growth of BNPL platforms. In fact, the whitepaper highlights that an expected 24% of global eCommerce transactions for physical goods will be conducted via BNPL services by 2026.

At the time of writing, Afterpay shares are down 9.4% to $72.94. This follows an 8.2% fall in the Block Inc (NYSE: SQ) share price overnight.

The post Is the party over for ASX BNPL shares? appeared first on The Motley Fool Australia.

More reading

• ASX 200 tech shares on watch after Nasdaq selloff
• 5 things to watch on the ASX 200 on Thursday
• Why Afterpay, Kogan, Premier Investments, and Pro Medicus shares are dropping
• Why are ASX 200 tech shares getting hammered today?
• ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise

Motley Fool contributor Mitchell Lawler owns Afterpay Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Block, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Afterpay 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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One fund manager believes the Fortescue Metals Group Limited (ASX:  FMG) share price could have a 145% upside if the company is successful in its current endeavours.  

Its foray into green hydrogen, through its renewable energy leg Fortescue Future Industries (FFI), teamed with its position as one of Australia’s largest iron ore producers could see its stock continuing to boom into the future.

At the time of writing, the Fortescue share price is $20.28, 1.6% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.83% right now.

Let’s take a look at what the portfolio manager of Tribeca Investment Partners’ Global Natural Resources Fund, Ben Cleary, thinks might be in store for the iron ore giant.

Could the Fortescue share price have a 145% upside?

Cleary recently told the Australian Financial Review (AFR) that, right now, Fortescue shares are coming with a free side of hydrogen, one that might be particularly valuable in the future. The AFR quoted him as saying:

Fortescue is well ahead of peers in terms of hydrogen and ammonia production, and this could be worth $50 a share or more if they execute.

However, what’s truly got Cleary bullish on ASX 200 giant is its iron ore business.

The fundie is positive the price of iron ore will have another good year in 2022, and it might bring the Fortescue share price along with it. Cleary commented on his expectations for the coming 12 months:

I think iron continues to rally in the first quarter to $US150 a tonne or higher, well above current consensus expectations of $US100 a tonne.

China’s credit impulse is starting to expand after mostly contracting in 2021 and infrastructure demand for iron ore should be particularly strong.

According to data from CNBC, iron ore is currently going for US$124.14 a tonne. That’s despite it reaching record highs of more than US$200 mid-last year.

The commodity’s tumble might explain why the Fortescue share price fell 18% over the course of 2021. Still, it has gained 233% over the last 5 years, leaving long-term investors well and truly in the green.

The post Is the Fortescue (ASX:FMG) share price on track to reach $50? appeared first on The Motley Fool Australia.

More reading

• Would you like cheese with that? A look at some of Twiggy’s highest profile ASX investments of 2021
• These were the 5 worst performing ASX hydrogen shares of 2021
• Here’s why ASX 200 mining shares could be in for a boost in 2022
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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 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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