Category: Stock Market

ASX uranium shares are again finding a footing on Friday after rallying to multi-year highs in mid-September.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), opened 5.63% higher to 75 cents before its gains faded to a rise of 1.69%, or 72 cents.

Emerging producer Boss Energy Ltd (ASX: BOE) is catching bids today. It was up 4.26% to 24.5 cents in early trade before slipping back slightly to 24 cents.

Explorers including Peninsula Energy Ltd (ASX: PEN), Lotus Resources Ltd (ASX: LOT) and Vimy Resources Ltd (ASX: VMY) are also trading higher, up 4.76%, 2%, and 7.5% respectively.

Advanced uranium explorer Deep Yellow Limited (ASX: DYL) fell slightly before bouncing back to 93 cents, up 2.2%. However, recently listed 92 Energy Ltd (ASX: 92E) is down 2.13% to 69 cents.

Upbeat news for ASX uranium shares overnight

The Global X Uranium exchange-traded fund (ETF) rallied strongly overnight, up 3.9%.

The uranium ETF provides investors with access to a broad range of global companies involved in uranium mining and the production of nuclear components.

Another likely catalyst for the rise in ASX uranium shares on Friday was an announcement out of the world’s largest physical uranium fund, the Sprott Physical Uranium Trust (SPUT).

The fund actively invests in physical uranium. It takes supply off the spot market and stores it in secured locations with highly reputable uranium operators.

On 17 September, the fund had accumulated 27.7 million pounds of uranium. By comparison, uranium investment firm Yellow Cake PLC reported total spot volume for 2020 of 92.2 million pounds.

This morning, Sprott’s Twitter revealed the fund had exceeded the 30 million pounds mark.

Sprott Physical Uranium Trust exceeds 30 MILLION pounds of physical #Uranium!

300k lbs added today and 11.8 MILLION lbs added since August 17! #SPUT $U.UN $U.U $SRUUF #Lowcarbon #Nuclear

For more information and disclosures, please visit https://t.co/PcaG53VfN5 pic.twitter.com/l3JTNeewkv

— Sprott Asset Management (@Sprott) October 7, 2021

https://platform.twitter.com/widgets.js

Sprott’s buying frenzy has been viewed as the catalyst that pushed uranium prices from US$30/lb in mid-August to 9-year highs of approximately US$50/lb by 17 September.

Uranium prices have since cooled off, trading around US$40/lb.

Morgan Stanley isn’t convinced the supply-demand fundamentals have changed in a manner to justify the recent price rise.

While experts are divided on current uranium prices, there’s no denying that more countries are showing interest in nuclear reactors.

The post Why ASX uranium shares are bouncing back on Friday appeared first on The Motley Fool Australia.

More reading

• What’s going on with the Deep Yellow (ASX:DYL) share price today?
• Boss Energy (ASX:BOE) share price wobbles after operational update
• Deep Yellow (ASX:DYL) share price slides 4% despite major ore reserve milestone
• Which ASX 300 shares are on the move for the start of the week?
• Which ASX shares are set to finish the week as the top movers on the ASX 300?

Motley Fool contributor Kerry Sun 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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It was a mottled start to the new financial year for the ASX-listed fintech shares. Many outperformed the S&P/ASX 200 Index (ASX: XJO) over the 3-month period. However, some went on a wayward path that led investors to no avail.

Many so-called ‘fintechs’ are categorised by the Australian Stock Exchange as either information technology shares or financial shares. Taking a look at both these sectors, these two dominant sectors were the third and fifth-best performing at the end of the first quarter — delivering 4.1% and 3.4% respectively.

Hence, it is worth a closer inspection to understand where the winners and losers were located.

Winning ASX fintech shares in the first quarter

Let’s start off with the good news — there were plenty of market-beating returns to be had across the sector. Potentially investors are gearing up for the reopening of the economy as vaccination targets draw closer.

As more money circulates through the economy, many fintech companies will be clipping the ticket on transactions. This brings us to the top-performing ASX fintech share during the quarter — EML Payments Ltd (ASX: EML).

Shares in the payments company rallied through August following an update on its regulatory concerns. EML disclosed it had reached an agreement on a remediation plan to address the discrepancies present in PFS Card Services (Ireland) Limited (PCSIL).

This gave shareholders reassurance during the quarter that the worst may be behind it. Although, an announcement released late yesterday afternoon indicates that the Central Bank of Ireland has proposed certain limits to PCSIL programs.

Moving along, the second-best performing ASX fintech share in the first quarter was none other than Tyro Payments Ltd (ASX: TYR). The payment company, which specialises in payment terminals, delivered a record full-year result in August.

In FY21, Tyro processed a record $25.5 billion in transactions across its network. Meanwhile, revenue increased 13% year on year to $238.5 million. This milestone achievement resonated well with investors, resulting in the Tyro share price being bid up.

Losers of the first quarter

It appears the last quarter was a challenging one for the buy now, pay later (BNPL) sector. Out of all the fintech shares in the All Ordinaries Index (ASX: XAO), two of the worst performing were Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL).

Firstly, it was a volatile quarter for the Afterpay share price. The biggest BNPL company on the ASX endured erosion to its value throughout July. That was until it announced Square Inc‘s (NASDAQ: SQ) plan to acquire the ASX fintech share. In turn, the company’s share price rebounded to finish the quarter 1.91% higher.

On the other hand, US-based payment company Sezzle suffered a deep drop in its share price throughout the first quarter. In August, the Sezzle share price took a dive following the release of its half year report.

Investors were unimpressed with the company’s net loss of US$30.4 million. This was more than triple of FY2020’s first half loss, putting a dent in sentiment.

The post How did ASX fintech shares perform in the FY22 first quarter? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• EML Payments (ASX:EML) share price on watch with CBI update
• Here’s why ASX 200 tech shares are surging today
• Which ASX 300 shares are the biggest winners and losers on Thursday?
• Why Collins Foods, Pilbara Minerals, Sezzle, & Super Retail are pushing higher

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO and EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, EML Payments, and Tyro Payments. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and 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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The BHP Group Ltd (ASX: BHP) share price is in the green this morning after the company’s boss outlined its future plans yesterday.

BHP’s CEO Mike Henry reportedly told a conference the company expects big things for its future trade with China.

Additionally, Henry revealed the company hopes to expand its activities into new jurisdictions in a quest for more nickel, copper, and potash.

At the time of writing, the BHP share price is $37.41, 2.1% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.77% this morning.

While the effect of the news on the BHP share price is likely negligible, it’s an interesting insight into what BHP’s business may look like by the end of the decade.

Let’s take a closer look at the revelations reportedly made by BHP’s CEO.

Will these changes drive the future BHP share price?

The BHP share price is gaining today amid reports of Henry’s optimistic comments. The BHP boss made the comments at yesterday’s Financial Times’ 2021 Mining Summit.

According to the Australian Financial Review (AFR), Henry told the conference the “complementarity” between the economies of Australia was strong. Therefore, he believes recent political tensions between both nations will dwindle in the future.

Further, he noted the relationship between BHP and its Chinese suppliers and customers is better than ever. Finally, Henry reportedly said: “We do believe that there is a pretty strong growth outlook for China.”

Additionally, the Financial Times has reported Henry used the conference to comment on the company’s expansion plans.

He is said to have outlined his hopes that half of BHP’s revenue will come from future-facing commodities by 2030.

To reach that goal, BHP will look at growing into “tougher jurisdictions” in an attempt to seek out more of the commodities. However, the Financial Times quoted Henry as saying:

I want to be clear, we don’t see exploration success as being confined to moving into new jurisdictions. We know there is more copper to be found in the areas we like but it is going to be harder to find and perhaps deeper, which is going to bring different technological and financial challenges.

The company already mines minerals for the future economy, notably nickel and copper. In fact, just yesterday the Motley Fool Australia reported BHP recently signed another agreement to supply nickel for electric vehicle batteries.

Henry’s comments are unlikely to be the cause of the BHP share price gains on Friday. Still, they may have pricked the ears of investors interested in BHP’s future.

The post BHP (ASX: BHP) share price gains amid CEO’s ‘strong growth outlook for China’ appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) warns iron ore price will fall by 27% in the next year
• Own BHP shares? Here’s the latest on the miner’s nickel and EV battery play
• What is the BHP (ASX:BHP) share price outlook?
• These were the 5 worst performing ASX shares in September
• Why is the BHP (ASX:BHP) share price trading at 10-month lows?

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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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is having a mixed morning on Friday.

In morning trade, the banking giant’s shares are up ever so slightly to $27.83.

This compares to a 0.7% gain by the S&P/ASX 200 Index (ASX: XJO).

Why is the ANZ share price underperforming the ASX 200?

The ANZ share price isn’t the only one in the banking sector underperforming the ASX 200 today.

Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) shares are actually dropping today despite the market’s solid gains.

This mirrors what happened on Wall Street overnight. Although the Dow and Nasdaq stormed higher, the financial sector acted as a drag on proceedings.

BNPL news

Not even the announcement of plans to take on Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) in the buy now pay later (BNPL) market has been able to boost the ANZ share price higher.

This morning ANZ announced that it will partner with Visa to launch a new feature for credit card customers.

Once it is launched in 2022, the new Visa Instalments feature will provide ANZ credit card customers with an option at the checkout or online to make purchases through interest free instalments across a wide range of terms.

ANZ’s Head of Cards and Personal Lending, Mike Shurlin, said: “We want to provide our customers with flexibility in how they manage their purchases, which is why we are pleased to work with Visa on launching this new feature.”

“We know many of our customers will use this option for certain purchases while choosing a standard credit card transaction for other items. Having that choice with no need for additional steps means they have a simple and secure feature through their existing card.”

“We have partnered with Visa many times in the past and share a focus on building features that make customers’ lives easier while maintaining high security standards,” he concluded.

The ANZ share price is up 21% in 2021.

The post ANZ (ASX:ANZ) share price flat despite BNPL plans appeared first on The Motley Fool Australia.

More reading

• What to expect from the ANZ (ASX:ANZ) FY 2021 result this month
• What happened for the ANZ share price in the FY22 first quarter?
• ASX 200 bank shares fall flat amid flurry of new regulations
• Why the ANZ (ASX:ANZ) share price has lagged the ASX 200
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. 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 Starpharma Holdings Limited (ASX: SPL) share price is on course to end the week on a positive note.

In morning trade, the dendrimer products developer’s shares are up 4.5% to $1.25.

Why is the Starpharma share price rising?

The catalyst for the rise in the Starpharma share price on Friday has been the release of an announcement relating to its Viraleze antiviral nasal spray.

According to the release, the company has signed a sales and distribution agreement for Viraleze with Admenta Italia Group. It is a leading pharmaceutical retail and wholesale distribution company in Italy.

The company notes that the Italian over the counter (OTC) pharmaceutical market is the third largest in Europe after Germany and the UK. Admenta is a leader in the market operating over 260 pharmacies under its LloydsFarmacia brand, including 13 parapharmacies and 50 franchising pharmacies.

The release explains that the Viraleze product is expected to be available to Italian consumers in stores and via LloydsFarmacia’s online platform this quarter. Under the agreement, Starpharma will supply Viraleze and Admenta will be responsible for distribution, sales, and marketing of the product in the country.

What is Viraleze?

Viraleze is a broad-spectrum antiviral nasal spray which is applied in the nose to provide a physical barrier between viruses and the nasal mucous membrane. The product traps and irreversibly inactivates virus, including SARS-CoV-2.

Positively, the antiviral agent in Viraleze, known as SPL7013, has been shown in laboratory studies to have potent antiviral and virucidal activity in multiple respiratory viruses and multiple variants of SARS-CoV-2. This includes the inactivation of >99.9% of the highly infectious Delta variant.

Starpharma’s CEO, Dr Jackie Fairley, commented: “We are very pleased to have partnered with Admenta in Italy and we look forward to having Viraleze available soon to Italian consumers, through pharmacies as well as through the leading LloydsFarmacia online platform.”

The post Here’s why the Starpharma (ASX:SPL) share price is charging 4% higher today appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX biotech shares in September
• Starpharma (ASX:SPL) share price surges 5% on United States patent news
• Why Accent, Calix, Pilbara Minerals, & Starpharma shares are racing higher

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 shares of and has recommended Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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 choppy week is coming to a bright conclusion as the Woolworths Ltd (ASX: WOW) dividend will reach the accounts of shareholders on Friday.

The Woolworths share price closed at $39.70 on Thursday, down around 5.5% since its late-August highs of $42.3.

What happened to the Woolworths share price?

The recent weakness behind the Woolworths share price is broadly in line with the volatile S&P/ASX 200 Index (ASX: XJO).

Market moving headlines such as China’s Evergrande crisis, tumbling iron ore prices, rising inflation and United States’ debt ceiling has weighed on the broader market and investor sentiment.

As such, the ASX 200 has slipped 4.8% since mid-August all-time highs of 7,633.

Despite the shortcomings of the Woolworths share price, the company delivered a well-rounded FY21 performance following its successful divestment of Endeavour Group Ltd (ASX: EDV). 

Its full-year results highlighted a 5.7% increase in group sales to $67.278 million, a 22.9% jump in net profit after tax to $1.972 million and a final dividend of 55 cents.

The overall Woolworths dividend for FY21 came in at 108 cents per share, up 14.9% on FY20.

Looking ahead, the company said that it experienced strong sales growth in the first eight weeks of FY22, increasing 4.5% against the prior corresponding period.

It flagged that Big W sales have been impacted by COVID-19 restrictions, and expects earnings before interest and taxes (EBIT) in the first half to be materially below 1H FY21.

Group COVID-related costs were also creeping up slightly, increasing to 0.5% of sales in the first eight weeks of FY22.

What else do investors need to know about the Woolworths dividend?

The default option for dividends is a cash payment.

But for investors that elected to participate in Woolworths’ dividend reinvestment plan, the new shares will be priced at $39.63.

The new shares are expected to be issued to participants on Friday.

The post The final Woolworths (ASX:WOW) dividend will be paid today. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 3 ASX shares protected from rising inflation and interest rates
• 5 defensive ASX shares to guide you through the market correction
• What happened for the Woolworths (ASX:WOW) share price in the FY22 first quarter?
• Woolworths (ASX:WOW) share price struggles amid staff shortages

Motley Fool contributor Kerry Sun 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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ASX investors are readying up for the final trading day this week, with ASX futures indicating a further rise in the benchmark index. This follows strength in the US stock market overnight amid a short-term debt limit extension deal being reached.

At the time of writing, futures are suggesting a 0.53% bump in the S&P/ASX 200 Index (ASX: XJO) at the open.

What happened on the US stock market overnight?

The US market swiftly ascended in the early moments of trade last night. Pivotally, lawmakers in the United States senate revealed a proposed agreement to quell the debt defaulting fears. According to the Financial Times, the proposal would see the debt limit raised by $480 billion. In turn, the government would have enough funds to get itself through to early December.

Across the market, investors witnessed a 0.83% climb in the S&P 500 Index (SP: .INX). Meanwhile, the Dow Jones Industrial Average Index (DJX: .DJI) gained 0.98% to 34,754.94 points. However, the standout was the Nasdaq Composite (NASDAQ: .IXIC), as it rallied 1.05% during the Thursday night session.

Some of the best performers overnight included Twitter Inc (NYSE: TWTR), Advanced Micro Devices Inc (NASDAQ: AMD), and Cisco Systems Inc (NASDAQ: CSCO). These companies gained 4.4%, 2.7%, and 2.0% respectively.

Commenting on the US stock market developments last night, chief investment officer at UBS Global Wealth Management Mark Haefele said:

A temporary deal should help reduce debt-ceiling related market volatility over the next few weeks as attention shifts toward December.

All in all, 10 out of the 11 industry sectors across the US market finished higher last night, setting a positive tone for Australian shares on Friday.

Ahead on the ASX today

Many investors will be watching the energy sector closely today after oil prices got a boost overnight. According to Bloomberg, the price of crude oil rose 1.8% to US$78.84 a barrel. As a result, the likes of Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be in for a green session today.

In some not-so-positive news, EML Payments Ltd (ASX: EML) will have shareholders on the edge of their seats at the open on Friday. The payments company released an announcement late yesterday afternoon indicating further potential implications from the Central Bank of Ireland. This is in regards to the company’s Prepaid Financial Services (Ireland) Limited business.

Finally, ASX-listed tech shares will be front of mind today. This is on the back of the strong showing by tech names on the US stock market last night.

The post What happened on the US stock market last night? appeared first on The Motley Fool Australia.

More reading

• October is ‘crash’ month: Will history repeat for the ASX 200?
• CBA (ASX:CBA) warns iron ore price will fall by 27% in the next year
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• ASX 200 (ASX:XJO) midday update: Pilbara Minerals jumps, Whitehaven Coal sinks

Motley Fool contributor Mitchell Lawler owns shares of Advanced Micro Devices and EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Advanced Micro Devices, EML Payments, and Twitter. The Motley Fool Australia owns shares of and has recommended EML 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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The A2 Milk Company Ltd (ASX: A2M) share price has been under pressure this week.

Over the last two trading sessions, the embattled infant formula company’s shares have fallen 9%.

This follows news that the company has been hit with a class action.

Is the A2 Milk share price in the buy zone?

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

The note reveals that the broker has retained its buy rating and $7.70 price target on its shares.

Based on the current A2 Milk share price of $5.92, this implies potential upside of 30% over the next 12 months.

What did the broker say?

Bell Potter has been looking at industry data and was happy with what it saw.

Its analysts highlight that infant formula exports to China rose 5% during August.

The broker commented: “Industry volumes rose +5% YOY in Aug’21, the second positive YOY outcome in the past four months. Volumes have been volatile in recent months, but in general terms are demonstrating signs of picking up from the lows seen in 2Q-3Q20. On a R3M basis, volumes are up +42% from the Jan’21 low.”

It was a similar story for exports from Christchurch to China, which recorded a 6% increase in August. This is a positive as historically there has been “a high correlation between the value of exports to China ex-Christchurch (CHC) and A2M reported PRC revenues.”

The broker also looked at infant formula imports into China from key markets and believes that things are improving.

Its analysts said: “The largest exporters of IMF to China are the EU, NZ and Australia. We view movements in volumes to China from these markets as indicative of overall market activity, with the R3M average removing monthly noise. While volumes continue to demonstrate double digit YOY declines (-28% YOY in Jul’21), sequentially volumes look to have formed a bottom in recent months, up +12% from Jan’21 lows.”

Undemanding valuation

In light of the above, no changes have been made to its forecasts and Bell Potter continues to see value in the A2 Milk share price.

It concluded: “There is no change to our Buy rating, earnings forecasts or A$7.70ps target price. In recent months we have seen a bottoming in trade flows into China and closer alignment of trade flows into and out of Australia. Trading at 14.3x FY22e EBITDA exMVM/US losses we don’t see A2M as particularly demanding relative to other China facing FMCG entities.”

The post Top broker tips A2 Milk (ASX:A2M) share price to jump 30% appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Magellan, Santos, & Whitehaven Coal shares are falling
• Why A2 Milk, CBA, Flight Centre, & Magellan’s shares are sinking
• Which ASX shares are leading the way in the ASX 300 today?
• Leading brokers name 3 ASX shares to sell today
• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound

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 Aurizon Holdings Ltd (ASX: AZJ) share price has been a disappointing performer so far this year.

Since the start of the year, the rail freight operator’s shares have fallen 0.5%.

This compares unfavourably to an 8.5% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the Aurizon share price?

The good news is that one leading broker believes the Aurizon share price could be heading higher from here.

According to a note out of Morgans from last month, the broker has upgraded the company’s shares to an add rating with an improved price target of $4.14.

Based on the current Aurizon share price of $3.90, this implies potential upside of 6% over the next 12 months before dividends.

In addition, Morgans is forecasting a 28 cents per share dividend in FY 2022. Including this, the potential total return stretches to 13%.

What did the broker say?

Morgans noted that it was hard to ignore the potential returns on offer based on the Aurizon share price at the time.

It commented: “We upgrade to ADD, given improved return potential at current prices. This includes c.7% dividend yield and c.9% upside [at the time] to our revised target price of $4.14.”

The broker also likes Aurizon due to its defensive qualities and strong capital position.

Morgans said: “AZJ’s revenue protections and the essential and long-dated nature of its assets make its earnings less correlated with the business cycle, providing a defensive element to a portfolio. Also, its strong cashflows and debt capacity give it flexibility to pursue growth investment and/or undertake capital management initiatives.”

And while its analysts acknowledge that there are ESG and sustainability concerns, it “would expect AZJ’s cash yield (7.5%) and cheap trading multiples (7x EV/EBITDA, 13x PER) to attract value investors tolerant [of this].”

The post Why a top broker upgraded the Aurizon (ASX:AZJ) share price to a buy appeared first on The Motley Fool Australia.

More reading

• 2 highly rated ASX dividend shares to buy
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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 recommended Aurizon Holdings 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 Zip Co Ltd (ASX: Z1P) share price had a bumpy first quarter for FY22.

Kicking off the new year at $7.57, shares in the Buy Now, Pay Later (BNPL) company accelerated to nearly $9 by mid-July. By the end of the quarter, Zip shares fell by 6.87% to $7.06 apiece. For context, the S&P/ASX 200 Index (ASX: XJO) actually ended the quarter 0.26% higher.

There’s been a few stories that have had a material impact on Australia’s second-largest BNPL provider during that time.

Let’s take a closer look.

Zip’s FY21 full year results

The Zip share price crashed in late August when the company released its full-year results for FY21. That’s despite the company posting the following, positive numbers:

• Revenue of $403.2 million, up 150% year on year (FY20 $161 million)
• Transaction volumes of $5,8 billion, up 178.5% (FY20 $2.1 billion)
• Transaction numbers of 41.3 million, up 293% (FY20 10.5 million)
• Active customers at 7.3 million, up 247.5% (FY20 2.1 million)
• Active merchants at 51,300, up 109.4% (FY20 24,500)
• Cash gross profit of $198 million, up 147% (FY20 $80.1 million)

Looking forward, Zip management said it did expect FY22 to be a “bumper year” for the company. The company noted that global market entries and investments are contributing meaningful total transaction volumes (TTV) in the new financial year.

What else has affected the Zip share price?

Other big moves by the BNPL provider include its strategic entering into the Indian market and its partnership with technology giant Microsoft Corporation (NASDAQ: MSFT).

On the former, Zip said in a media release it had agreed to make a “strategic” US $50 million investment in India-based BNPL operator ZestMoney.

ZestMoney currently has 11 million registered users, over 10,000 online merchants on the platform, and a point of presence in over 75,000 physical stores.

Management advised that this investment is consistent with its strategy to build a truly global BNPL business. And one that supports regional and global partners in multiple markets, providing everyone, everywhere with access to fair and transparent payment products. The Zip share price rose on the news.

On the latter, Zip says it will integrate its technology into the shopping experiences within Microsoft Edge. In turn, shoppers using the web browser will be able to use a digital payment option provided by Zip.

The integration into the company’s web browser will begin rolling out in the United States first. Microsoft is the second-largest company on the planet by market capitalisation. This news was a big deal for Zip. It is not uncommon for momentum from material developments to carry on for days afterwards.

Zip share price snapshot

Over the past 12 months, the Zip share price has decreased by about 6%. Year-to-date, however, shares in the company are up by roughly 22%. Its 52-week high is $14.53 per share and its 52-week low is $4.96 per share.

Zip has a market cap of approximately $3.9 billion.

The post How did the Zip (ASX:Z1P) share price perform last quarter? appeared first on The Motley Fool Australia.

More reading

• Why the Zip (ASX:Z1P) share price is storming 5% higher this Thursday
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Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Marc Sidarous 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 Microsoft and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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