Category: Stock Market

The Playside Studios Ltd (ASX: PLY) share price is jumping after entering into a fixed price work-for-hire development agreement with Shiba Inu Games.

Playside Studies is Australia’s largest publicly listed video games developer. PlaySide describes Shiba Inu Games as one of the many projects established by the cryptocurrency community to create great games.

Playside Studios agreement with Shiba Inu Games

Under this agreement, Playside will provide production, design, engineering, art, user interface and experience development services to Shiba Inu Games on a new game title during the 8-month term of the agreement.

The development of the game will draw from the art of the Shiba token’s ‘Shiboshi’ NFT (non fungible tokens) and will feature card collection, strategy and battle mechanics.

The multiplayer collectible card game is planned to be launched on multiple platforms with a proposed launch date in the first quarter of FY23.

Playside disclosed this is a fixed-price development agreement and does not include a revenue share. The ASX share will be paid in US dollars and will not trade or participate in cryptocurrency as part of this agreement.

What does Playside like about the deal?

The market seems to like this agreement, with the Playside share price up around 5% at the time of writing.

But in explaining the rationale for this deal, the company said it wants to “collaborate with strategic partners to develop games using the latest trends that are shaping the future of the gaming industry”.

Playside likes the deal because there are new opportunities in games, like this one, that take advantage of booming global trends such as the metaverse, cryptocurrencies, non-fungible tokens and blockchain gaming.

The continuing and rapid evolution of new businesses within the industry increases the demand for games and provides “significant opportunities” for the company. It will allow the business to showcase its capabilities in a new area of gaming.

Playside said this will show off its credentials as a global premier game developer.

CEO commentary

Gerry Sakkas, the CEO of Playside, said:

Playside continues to demonstrate its capability to partner with leaders across a range of fields within interactive entertainment including leading influencers and global gaming brands. To add a new games client that has emerged from the popular NFT, token and decentralised cryptocurrency industry is very exciting for us.

Emerging technologies continue to gather pace, and this is an ideal opportunity for Playside to collaborate in this field, expand our skill base and showcase our development abilities.

The scale of the agreement with Shiba Inu Games is also significant and highlights the depth of our capabilities as we continue to grow our business.

Playside share price snapshot

Whilst the shares are up 5% today at the time of writing, it has gone up by 115% since 6 October 2021, meaning it has outperformed most other ASX shares over the last couple of months.

The post Playside (ASX:PLY) share price surges on Shiba Inu Games deal appeared first on The Motley Fool Australia.

More reading

• What are Metaverse stocks and why is everyone talking about them?
• Why the PlaySide Studios (ASX:PLY) share price is winning today
• Here’s why the PlaySide Studios (ASX:PLY) share price clocked it this morning
• PlaySide (ASX:PLY) share price on watch after landmark agreement with video game giant

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

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

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

What happened

As of 2:30 p.m. ET, Crypto.com Coin (CRYPTO: CRO) was up 11.7% over the past 24 hours. A leader in crypto-based mobile payments, Crypto.com token has surged in interest among investors looking for ways to not only trade, but also generate yield from their crypto investments.

Today’s rise is substantially higher than the move of the overall crypto market, up approximately 4% over the past 24 hours.

In fact, this token is the fastest-rising top-15 cryptocurrency by market capitalization at the time of this writing. Investors seeking momentum have that in Crypto.com token today. Most cryptocurrencies, such as rival Shiba Inu, are up, but not to this degree.

So what

Holding today’s growth rate for Crypto.com Coin and Shiba Inu steady, CRO could theoretically pass Shiba Inu in value in three days. This is a fast-growing token that has generated a lot of attention of late. As far as momentum goes, Crypto.com Coin appears to have the upper hand over Shiba Inu and most large-cap tokens right now.

Since the beginning of September, Crypto.com Coin is a three-bagger. Shiba Inu’s performance has been less impressive, with this token losing nearly half its value over this time frame. 

Now, there are a number of catalysts investors point to when it comes to Crypto.com Coin’s outperformance. Crypto.com has been one of the leaders in marketing in the crypto space, securing a massive $700 million naming rights deal for what’s now known as the Crypto.com Arena (formerly the Staples Center). Other high-profile marketing deals in F1 and UFC have provided impressive name recognition for this token. Additionally, Matt Damon is doing television advertisements on behalf of Crypto.com, suggesting this is a cryptocurrency that’s not afraid to pull out all the stops to make as much noise as possible.

Investors like the mobile payments functionality (crypto-based debit cards and financial services), as well as the yield farming capabilities Crypto.com provides, courtesy of its CRO token. Some may come for the marketing and stay for the yield. In either case, Crypto.com Coin is a token that’s certainly outperforming right now.

Now what

It’s clear Crypto.com Coin is making a tremendous amount of buzz right now. In the crypto space, filled with flashy tokens and moonshot meme bets, this has turned out to be a good thing. Investors know the Crypto.com name, and are investing in this token. 

There’s some functionality to Crypto.com Coin, and a reason for investors to hold this token. Those in the yield farming space will note that Crypto.com is a renowned platform that’s gaining a lot of traction right now. Sure, there’s competition, and the landscape is always shifting. However, this token is also one with a lot of marketing behind the name.

As with any cryptocurrency investment, buying a given token based on the marketing or pizzazz underpinning a name isn’t a prudent idea. However, this token is garnering attention among those sophisticated investors as well. Accordingly, this may be a token worth looking at right now, relative to meme coins such as Shiba Inu. 

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

The post This crypto token could be 3 days away from passing Shiba Inu appeared first on The Motley Fool Australia.

More reading

• Why the Price of Shiba Inu is down today
• 3 cryptocurrencies that crushed Shiba Inu in November
• You could’ve made $1 million investing less than $1,500 in these 3 cryptocurrencies
• Shiba Inu soars and crashes, but it’s still holding up this week
• Here’s how these 4 top traded cryptos performed in November

Chris MacDonald 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.

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 has been an exceptionally strong performer in 2021.

Since the start of the year, the lithium explorer’s shares have risen a remarkable 250% to $9.72.

This is despite the company being targeted by a short seller in recent months.

Can the Vulcan Energy share price keep rising?

One leading broker isn’t worried by the short seller attack and continues to tip the Vulcan Energy share price to rise further.

According to a recent note out of Canaccord Genuity, its analysts have retained their buy (speculative) rating and $21.00 price target on the company’s shares.

Based on the current Vulcan Energy share price, this implies potential upside of 116% for investors over the next 12 months.

What did the broker say about this lithium share?

Canaccord Genuity notes that the company has just signed a binding offtake agreement with automotive giant Stellantis.

Stellantis is the name behind popular car brands including Peugeot, Citroen, Fiat, Chrysler, Jeep, Abarth, Alfa Romeo and Maserati.

The broker commented: “Vulcan has announced that it has signed a binding offtake agreement with Stellantis for 81-99kt of lithium hydroxide over five years from 2026. We believe this is the largest hydroxide offtake agreement by tonnage signed globally to date and represents a significant step in Vulcan securing its customer pipeline with tier 1 customers.”

What else?

Outside this latest development, Canaccord Genuity is positive on the Vulcan Energy share price due to the company’s potential to supply the European market with lithium.

The broker explained: “We reiterate our support for the [Zero Carbon Lithium] project given its potential to: supply lithium to the European market; fundamentally shift the lithium industry carbon cost curve; and produce high quality lithium products at low unit costs.”

The post Top broker tips Vulcan Energy (ASX:VUL) share price to more than double appeared first on The Motley Fool Australia.

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• Why Domino’s, Healius, Kogan, and Vulcan shares are pushing higher
• Vulcan (ASX:VUL) share price falls 6% despite auto giant agreement
• Vulcan Energy (ASX:VUL) share price leaps 10% on new lithium deal
• Vulcan (ASX:VUL) share price on watch following Renault agreement
• Vulcan (ASX:VUL) share price falls despite acquisition update

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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Last month was a big one for Afterpay Ltd (ASX: APT), though, the excitement wasn’t enough to save its share price.

The soon-to-be acquired buy now, pay later (BNPL) provider’s stock tumbled 11.71% over the course of November.

As of the month’s end, its shares were swapping hands for $108.85. That’s despite finishing October trading at $123.29 apiece.

And, so far, December hasn’t proven to be any better. At the time of writing, the Afterpay share price is $95.73.

Let’s take a look at what drove the BNPL giant’s stock last month.

What moved the Afterpay share price in November?

The Afterpay share price was given a temporary boost in early November when the company announced that Square Inc (NYSE: SQ) shareholders had voted in favour of a major condition of the upcoming takeover.

The payment provider’s investors voted to issue new stock (and underlying CHESS depository interests) for the all-scrip transaction.

Afterpay’s stock gained 2.3% on the back of the news but fell 5.5% the following day.

The BNPL company also set the date on which its own shareholders were expected to vote on the merger.

Originally, investors were to go to the polls on 6 December. However, that’s been pushed back to 14 December due to a delay by the Bank of Spain.

The company also achieved several non-price sensitive milestones in November.

It launched its new app, Money by Afterpay, which operates like a bank. The offering allows users to access a debit card, digital wallet, and open up to 15 savings accounts.

The BNPL company also broke into the hospitality sector in November, partnering with Australian Venue Co to launch its service in 160 pubs, restaurants, and venues.

Finally, Afterpay’s suitor’s performance might have weighed on its own shares last month.

The share price of Square – soon to be dubbed Block – tumbled 18.14% over the course of November. It ended the month trading at US$208.33.

As the seemingly impending takeover deal is all-scrip, the Afterpay share price tends to be dictated by that of Square.

While November wasn’t a great month for the BNPL giant, it still landed among the top performing BNPL shares of the month.

The post Why did the Afterpay (ASX:APT) share price go backwards in November? appeared first on The Motley Fool Australia.

More reading

• Why did ASX BNPL shares get hammered today?
• Afterpay (ASX:APT) share price in focus as Square vote confirmed for next week
• These were the worst performing ASX 200 shares last week
• Why Afterpay, Liontown, Northern Star, and Xero shares are falling
• ASX 200 (ASX:XJO) midday update: Afterpay sinks, Woolworths bids for API

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 shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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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The Woodside Petroleum Limited (ASX: WPL) share price had a disappointing run in the first few days of December.

Since the beginning of the month, the energy producer’s shares have been trading flat. Except for yesterday when, following the upbeat sentiment of the day, the Woodside share price rose 1.95% to $21.94.

In contrast, the S&P/ASX 200 Energy Index (ASX: XEJ) climbed 3.56% over the same timeframe.

Let’s take a closer look at what may have caused Woodside shares to struggle until now.

What’s happened to Woodside shares?

A number of events have led Woodside shares to falter in recent times.

First and foremost, the Omicron coronavirus variant caused widespread fear that the global economy would be halted again. Travel restrictions to southern Africa and reports that the virus had spread to Europe and Asia weighed on investor confidence.

However, as more news comes to light, it appears the Omicron virus is not as severe as previously thought. The symptoms are said to be mild as compared with the more deadly Delta virus. This could lead to countries reopening their borders and recommencing the global recovery.

In addition, the price of oil had slumped for six weeks in a row across both benchmarks. This relates to the West Texas Intermediate (WTI) and more expensive alternative, Brent Crude.

Although, renewed optimism from the Organisation of the Petroleum Exporting Countries (OPEC) has led it to increase oil supply. The intergovernmental organisation will expand monthly supply by 400,000 barrels per day from January.

Since 1 December, the WTI has surged from trading around US$65.57 per barrel to now US$72.32 per barrel. This represents an increase of about 10.2% over the past few days.

Lastly, Woodside has been busy fighting a legal challenge against the Conservation Council of Western Australia (CCWA).

The $16.5 billion Western Australian Pluto LNG project remains at stake given the carbon footprint it will produce when online. While it’s still up in the air, for now, investors have been paying close attention to the ongoing developments.

Woodside share price summary

The Woodside share price is down 5% over the last 12 months, and is 2.8% lower year to date. The company’s shares took a dive to $14.93 when COVID-19 put the global economy at a standstill. Since then, its shares have traded sideways arounds the low $20 mark.

Woodside commands a market capitalisation of roughly $21.27 billion, with 969.63 million shares on its registry.

The post Why has the Woodside (ASX:WPL) share price had such a slow start to December? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why did the Woodside (ASX:WPL) share price go backward in November?
• 5 things to watch on the ASX 200 on Tuesday
• Own Woodside (ASX:WPL) shares? Why this expert is watching LNG demand in Asia
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Aaron Teboneras owns shares of Woodside Petroleum Ltd. 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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If you’re wanting some exposure to the resources sector, then the Rio Tinto Limited (ASX: RIO) share price could be one to consider.

That’s the view of the team at Goldman Sachs, which has just reiterated its buy rating.

What does the broker think about the Rio Tinto share price?

According to a note out of the investment bank this morning, its analysts have retained their buy rating and $121.00 price target on the mining giant’s shares.

Based on the current Rio Tinto share price of $94.65, this implies potential upside of 28% for investors over the next 12 months.

But it gets better! Goldman also expects an US$8.10 per share fully franked dividend to be paid to shareholders in FY 2022. This equates to a ~12% yield at current levels and exchange rates.

What did Goldman say?

Goldman recently attended a briefing with Rio Tinto’s Chief Executive of Aluminium, Ivan Vella.

The note reveals that the broker left the briefing feeling just as bullish on the company’s aluminium operations as before.

It commented: “RIO continues to see a favourable outlook for the Aluminium market. As outlined at its recent Capital Markets Day (CMD), Rio expects Al demand growth of 3.3%/yr from 2020-2030 (vs. GSe c. 3%), and on supply, Rio expects 5.5% growth in scrap and 2.3% growth in primary production, with growing differentiation in production costs between hydro and coal powered smelters, with coal-powered smelter cash costs doubling to 2030 under a US$100/t carbon price, with nuclear power for smelting viewed as expensive.”

Why does the broker like Rio Tinto?

Goldman’s buy rating on the Rio Tinto share price is predicated on four key factors.

These are its valuation (0.82x NAV), strong free cash flow and dividend yield, its return to production growth in FY 2022, and its compelling low emission aluminium exposure.

In respect to the latter, the broker said: “In addition to copper production growth, Rio has one of the highest margin, lowest carbon emission aluminium businesses in the world, with over 2.2Mt of Ali production powered by hydro, and we think ELYSIS inert anode technology could be worth billions of $. Aluminium will contribute 20% of RIO’s group EBITDA in 2022 on our estimates.”

The post Why the Rio Tinto (ASX:RIO) share price could be a bargain buy appeared first on The Motley Fool Australia.

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

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The A2 Milk Company Ltd (ASX: A2M) share price is having a year to forget.

Since the start of 2021, the embattled infant formula company’s shares are down a disappointing 52%.

Is the A2 Milk share price weakness a buying opportunity?

According to a note out of Bell Potter, its analysts remain positive on the A2 Milk share price.

This morning the broker retained its buy rating and $7.70 price target on the company’s shares.

Based on the current A2 Milk share price of $5.61, this implies potential upside of 37% over the next 12 months.

What did the broker say?

Bell Potter has been looking at industry and export data and remains positive.

The broker highlights that Australia-China exports, which are a daigou proxy, were up 8% in October. And while it notes that Christchurch exports to China were down 33% year on year in October, they remain up 10% year to date over the same period last year.

Commenting on the latter, its analysts said: “Based on the four month lead time in shipments to revenues, early indicators of 2H22e would imply activity ~7% higher than 1H22 levels.”

Finally, Bell Potter notes that overall China infant formula imports continue to demonstrate double digit year on year declines, with volumes falling 21% year on year in September. However, it feels that volumes may have formed a bottom, and is encouraged by a noticeable spike in export to Hong Kong (CBEC). The broker feels this is “notable and coincides with a similar notable uptick in volumes moving into China from Hong Kong.”

Remaining buy-rated

In light of the above, Bell Potter is holding firm with its buy rating on the A2 Milk share price.

The broker concluded: “There is no change to our Buy rating. We see the scope for EPS to double by FY26e, if A2M can execute on the China offline expansion strategy, while recovering 50% of the lost sales (from FY20-21) in English label IMF. Exiting the loss making US assets or navigating a turnaround at the MVM asset would likely accelerate this turnaround. We do not see the current share price as reflecting this potential.”

The post This broker thinks the A2 Milk (ASX:A2M) share price is heading to $7.70 appeared first on The Motley Fool Australia.

More reading

• How the A2 Milk (ASX:A2M) share price tanked 5% in November
• Down 50% in 2021, is the A2 Milk share price a cheap buy?
• Top brokers name 3 ASX shares to buy next week
• Are A2 Milk (ASX:A2M) and this beaten down share bargain buys?
• A2 Milk (ASX:A2M) share price dips on news of a second class action

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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 AMP Ltd (ASX: AMP) share price continued its downward trend last month, falling to a low of 97 cents. Investors dumped the financial services company’s shares following a busy month of announcements from the company.

For the month of November, the AMP share price recorded a loss of around 4.17%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) also ended November in the red, shedding 1.56% over the same timeframe.

At market close on Tuesday, AMP shares finished flat for the day at 92 cents apiece. It’s worth noting the company’s share price is nearing its multi-decade low of 88.5 cents reached in September.

What’s happened to AMP recently?

Last month, AMP provided an update regarding its planned demerger for AMP Limited and AMP Capital’s Private Markets business (PrivateMarketsCo).

The company noted that it is making strong progress on the operational separation of PrivateMarketsCo. The demerger is expected to occur during the first half of 2022.

Furthermore, AMP advised that a clear perimeter has been set with the agreed sale of the Global Equities and Fixed Income (GEFI) business. This will see the transfer of the Multi-Asset Group (MAG) to AMP Limited.

Creating a more simplified company is expected to improve efficiency, as both businesses operate in very different markets. The demerger will enable AMP to accelerate the growth strategies for each and focus on servicing the diverse customer base.

On the back of the release, investors pushed up the AMP share price by 3% to $1.035 on the day. However, this was short-lived as the company’s shares fell by 10% over the following two days.

Investment house Macquarie believes AMP shares are trading at attractive levels. While cutting its outlook by 1.8% to $1.10, the broker still sees value in the company.

Swiss investment bank UBS had a different approach though, reducing its rating by a sizeable 21% to 90 cents. UBS also downgraded its view to “sell” from the previous “neutral” stance. The broker appears reserved on AMP demerger plans. It believes the company won’t unlock any near-term value for shareholders.

It appears investors are taking on UBS’s advice, leaving the company’s shares to hover around the 90-cent mark.

AMP share price snapshot

Over the last 12 months, the AMP share price has moved almost 50% lower with year-to-date down by more than 40%.

On the other hand, the S&P/ASX 200 Financials Index (ASX: XFJ) has gained 15% from this time last year and is up 18% year-to-date. The sector also registered a 52-week high of 6,956.4 points in late October.

Undoubtedly, AMP shares are lagging the Financial Index which has continued to accelerate since March 2020.

On valuation grounds, AMP presides a market capitalisation of roughly $3 billion, and has approximately 3.27 billion shares outstanding.

The post November was a rollercoaster month for the AMP (ASX:AMP) share price. Here’s why appeared first on The Motley Fool Australia.

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• Own AMP shares? Here’s why the company could be looking to raise capital
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• Are AMP (ASX:AMP) shares priced as though ‘the situation is worse than it is’?
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a select number of ASX shares out there that are growing very quickly and might be impressive buys in December 2021.

Businesses that are growing their revenue and/or profit at a very fast pace give themselves a good chance of generating pleasing shareholder returns thanks to the power of compounding.

With that in mind, here are two ASX shares that are very intriguing:

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is an investment business that partners with investment managers, which it calls affiliates, that can demonstrate growth potential and whose management teams have strong track records.

Its latest move has been to acquire (convertible redeemable preference) shares that would give Pinnacle a 25% stake in the Australian-based private equity Five V Capital for an investment of $65 million. Pinnacle says that Five V Capital has a high-quality investment team.

In FY21, the business saw aggregate affiliate funds under management (FUM) rise 52% year on year to $58.7 billion, with net inflows of $16.7 billion, of which $4.5 billion was retail. The FUM growth helped net profit after tax (NPAT) increase by 108% to $67 million in FY21.

Pinnacle says that it has an excellent platform in place for sustained growth. It thinks that it has the potential for both organic and acquisition-based growth, both domestically and offshore.

The ASX share is currently rated as a buy by the broker Ord Minnett, with a price target of $17. The Pinnacle share price is valued at 33x FY23’s estimated earnings. Its shares have fallen by 13% over the last month.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster describes itself as Australia’s leading online retailer of furniture and homewares.

It sells over 200,000 products from hundreds of suppliers. It operates a drop-ship model where products are sent directly to customers by suppliers which helps with faster delivery times and reduces the need to hold inventory, allowing for a larger product range.

Temple & Webster also has its own private label range, which is sourced directly by Temple & Webster from overseas suppliers.

The ASX share continues to grow very quickly. Year on year revenue growth for the period of 1 July 2021 to 27 August 2021 was 49%.

Management say the business is benefiting from a number of trends including the ongoing adoption of online shopping due to structural and demographic shifts. The COVID-19 pandemic has seemingly accelerated these trends.

Not only is Temple & Webster rapidly growing its active customer base (up 62% year on year to 778,000), but those customers are spending more as well. In FY21, revenue per active customer increased 12% year on year.

The ASX share is expanding its spending on advertising to increase its customer awareness as well as increase the number of returning customers.

Temple & Webster is investing in a number of areas to make itself more efficient, profitable and/or attractive for customers. For example, it has increased its investment into an artificial intelligence interior design service start-up in Israel after a successful pilot of the service.

It’s currently rated as a buy by Credit Suisse, with a price target of $15.89.

The post Are these 2 impressive ASX shares buys in December 2021? appeared first on The Motley Fool Australia.

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• What do Wesfarmers (ASX:WES) and Amazon.com have in common?
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• 3 key reasons why the Temple & Webster (ASX:TPW) share price is compelling
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PINNACLE FPO and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Temple & Webster Group 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 Telstra Corporation Ltd (ASX: TLS) share price will be one to watch on Wednesday.

This follows the release of an announcement by the telco giant this morning.

Why is the Telstra share price on watch?

Investors may want to keep an eye on the Telstra share price today after it released an announcement relating to mobile spectrum.

According to the release, Telstra has invested $616 million to secure 2x10MHz in the Australian Communications and Media Authority’s 850/900 MHz band auction.

This represents the maximum amount of low band spectrum Telstra was allowed to bid for under the competition limits set by the Government.

The telco giant believes this is a win for its Telstra customers, especially for the people, businesses and communities of regional and rural Australia.

Telstra’s Chief Financial Officer and Group Executive, Strategy & Finance, Vicki Brady, explained: “We now hold 2x40MHz of low-band spectrum in the major cities and 2x45MHz in regional and remote areas. This is more than any other carrier, which is important given our larger customer base, and will help us continue to provide the best mobile coverage and service.”

“Mobile and wireless broadband are key components of a successful digital economy, and this low band spectrum will help us support Australia’s digital economy ambitions which is critical to our nation’s pandemic recovery. The spectrum is essential for carrying mobile data, particularly 5G, over the vast distances needed across regional and remote areas and also enables us to provide better coverage indoors and other difficult to reach places in metro locations,” she added.

5G coverage expansion

At present, Telstra’s 5G network extends to more than 4,000 sites across the country, reaching 75% of the population. This new spectrum will help the company meet its T25 commitment of providing 5G coverage to 95% of the population by 2025.

It also extends its lead over rivals by an unthinkable amount.

Ms Brady explained: “Over the seven years to end FY22, we will have invested $11 billion in our mobile network nationally with $4 billion of this invested in our regional mobile network. Because of this our mobile network now covers one million square kilometres more than any other telco – that’s the size of New South Wales and Victoria combined.”

But it won’t stop there. Telstra advised that it will keep investing to ensure it maintained its leading mobile coverage and helped regional and remote communities fully participate in the digital economy.

Payment for the 20-year licences is not expected until shortly before they commence in mid-2024.

The post Why the Telstra (ASX:TLS) share price is on watch on Wednesday appeared first on The Motley Fool Australia.

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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 owns shares of 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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