Category: Stock Market

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.

The accelerating shift toward digital transactions over the past year was a boon for PayPal Holdings (NASDAQ: PYPL). Its value more than doubled in 2020, and in the first half of 2021, its stock has already gained 23%.

The digital payments leader has experienced accelerating revenue growth over the last year. These three catalysts could keep the momentum going and push the stock even higher.

1. PayPal is launching a next-gen digital wallet

PayPal has been investing heavily in technology — $2.6 billion in 2020 alone — to develop new features for its growing base of active users — 392 million at last count. Earlier during the pandemic, those expenditures led to the release of a new QR code tool for contactless checkout at retail stores, and this year, PayPal introduced the ability to pay for purchases with cryptocurrency.

The company has been on a roll lately, and it’s not slowing down.

“We expect to roll out our next-generation digital wallet in Q3,” CEO Dan Schulman said during May’s first-quarter earnings call. He further described it as an “all-in-one personalized app” that will offer customized and unique shopping features, financial services, and new payment experiences.

“Our addressable market continues to significantly expand driven by accelerating secular trends and the proactive steps we are taking to become a full commerce and payments platform,” he said.

2. Crypto comes to Venmo

Venmo is on pace to generate $900 million in revenue this year, and while that’s less than 4% of PayPal’s business, the ability to pay using cryptocurrency via Venmo should be a huge catalyst for the peer-to-peer payments app’s growth heading into 2022.

PayPal launched “Checkout with Crypto” in the PayPal app at the end of March, and gave users the ability to buy, sell, or hold cryptocurrency in Venmo in April. During the Q1 earnings call, Schulman referenced the results of surveys that show 74% of millennials expect to use cryptocurrencies over the next few years in some way. Crypto buying has been a significant growth catalyst for Square‘s Cash app. Now, PayPal could see a similar result.

“About half of crypto users open their app every day,” Schulman said, signaling the impact this could have to turn Venmo into a “super app,” or the only financial app users need. With more than 300,000 business profiles on Venmo, PayPal sees big opportunities to further accelerate adoption of an app that posted $51 billion in payments last quarter — an increase of 63% year over year.

3. Earnings growth is accelerating

What’s most impressive about PayPal’s recent business performance is the improvement in its operating margin. In the first quarter, PayPal’s operating expenses increased at a much lower rate than revenue, which allowed more money to drop down to the bottom line. This was a key factor in its 84% year-over-year rise in adjusted earnings per share.

This isn’t just a temporary trend. PayPal’s transaction expense — the sum of the costs it incurs when a customer makes a payment — has declined as a percentage of total payment volume over the last three years. PayPal has also experienced slower growth in customer support expenses and has made significant headway on reducing credit losses, all of which have lowered its costs and firmed up its profits.

It’s remarkable that PayPal has been able to roll out so many new features — with more on the way — while posting healthy increases in margins and profits.

Schulman believes these trends are sustainable. “[W]e would expect transaction expense to remain at lower levels [than] pre-pandemic, which, again, gives us the just amazing leverage that we have on this platform,” he said. PayPal recently announced plans to raise its processing fees for some U.S. merchants starting in August, which will help it keep its operating margins up, and its earnings per share growing.

Why the stock is a buy

Analysts expect PayPal to report steady growth in operating margins over the next two years. And current estimates have PayPal posting EPS growth of 21.9% in 2021, 24.3% in 2022, and 24.6% by 2023.

Many tech companies sacrifice profitability to invest in growth initiatives, but not PayPal. That’s why this fintech stock is still a great buy as it inches toward new highs.

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

The post 3 catalysts that could send PayPal stock higher appeared first on The Motley Fool Australia.

More reading

• This ethical ASX ETF has doubled the ASX 200 in 2021 so far
• Why PayPal raised its processing fees — and why it could backfire
• Are Zip (ASX:Z1P) shares cheap enough to buy now?
• PayPal taking fight to Afterpay (ASX:APT) and ASX banks

John Ballard 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 PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. 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.

from The Motley Fool Australia https://ift.tt/3dG1ufG

The Caspin Resources Ltd (ASX: CPN) share price is plummeting lower this morning despite the company confirming primary sulphide platinum group elements mineralisation at its Yarawindah Brook Project.

Shares in Caspin are currently swapping hands for $1.10. That’s 43.59% less than they were trading for at market close on Friday.

The exploration company has an 80% interest in the Yarawindah Brook Project, located 100 kilometres northeast of Perth.

Let’s take a look at the news driving the Caspin share price today.

Assay results from Yarawindah Brook Project

The assay results released today are from drill holes at the project’s Yarabrook Hill and XC-29 prospects.

Drill holes at the Yarabrook prospect returned broad zones of anomalous platinum group element mineralisation. They also contained narrow intercepts of palladium, platinum, nickel, and copper. Some of the better assay results include:

• 4.4 metres at 0.78 grams of platinum group elements per tonne (0.52 grams of palladium per tonne, 0.26 grams of platinum per tonne), 0.43% nickel and 1.00% copper from only 66.2 metres
  • including 0.65 metres at 1.93 grams of platinum group elements per tonne (1.11 grams of palladium per tonne, 0.82 grams of platinum per tonne), 1.46% nickel and 1.60% copper from 67.75 metres.
• 0.2 metres at 4.17 grams of platinum group elements per tonne (0.95 grams of palladium per tonne, 3.22 grams of platinum per tonne), 3.49% nickel and 1.43% copper from 155.97 metres.
•  9.2 metres at 0.74 grams of platinum group elements per tonne (0.35 grams of palladium per tonne, 0.39 grams of platinum per tonne), 0.19% nickel and 0.24% copper from 300.85 metres,
  • including 0.7 meters at 4.10 grams of platinum group elements per tonne (0.77 grams of palladium per tonne, 3.33 grams of platinum per tonne), 0.56% nickel and 2.01% copper from 308.5 metres.

According to the company, some mineralisation at the Yarabrook prospect increased downhole. Caspin believes the downhole mineralisation defines a stratigraphic horizon that it plans to focus on in follow-up explorations.

At the XC-29 prospect, drill holes returned anomalous levels of platinum group elements, as well as nickel and copper.

Caspin’s next drilling program is set to begin in the coming weeks. It will involve 5,000 metres of reverse circulation drilling.

The company believes its ability to vector towards platinum group element-rich zones will increase as its exploration program continues.

Commentary from management

Caspin’s CEO Greg Miles commented on the results:

This is clearly the most advanced exploration prospect in the region outside Chalice Mining’s Gonneville Intrusion, with demonstrated basement platinum group element mineralisation and it’s still largely unexplored. It’s a fantastic opportunity.

Caspin Resources share price snapshot

Despite today’s tumble, the Caspin share price is having a good year on the ASX.

Right now, it’s 103% higher than it was at the beginning of 2021. It’s also gained 139% since this time last year.

The company has a market capitalisation of around $66 million, with approximately 64 million shares outstanding.

The post The Caspin Resources (ASX:CPN) share price tumbles 43% appeared first on The Motley Fool Australia.

More reading

• 3 catalysts that could send PayPal stock higher
• A turning point: Jeff Bezos steps down as Amazon (NASDAQ:AMZN) CEO
• Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher
• Why the BetMakers (ASX:BET) share price is up 5% at lunchtime
• Sydney Airport (ASX:SYD) jumps 37% on $22.6 billion buyout bid

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.

from The Motley Fool Australia https://ift.tt/3qNc8Xl

Well, today is a rather remarkable day in the history of capitalism. Jeff Bezos, founder and CEO of Amazon.com, Inc. (NASDAQ: AMZN) is about to step down as CEO of the company he founded back in 1994. He first announced his resignation back in February.

The end of Mr Bezos’ stewardship of Amazon, now one of the largest companies in the world, marks a turning point for the man. Amazon has made Bezos the richest person in the world, and by quite a mile. Today, according to Forbes, his net wealth stands at almost US$202 billion. That’s well in front of his next competitor in Bernard Arnault at US$189 billion, as well as from Tesla Inc (NASDAQ: TSLA) CEO Elon Musk at US$167 billion. Musk briefly overtook Bezos as ‘world’s richest person’ last year amid a soaring Tesla stock price.

But Bezos has since claimed back the mantle, and leaves Amazon back on the top of the global wealth pile. And that’s despite a highly-publicised divorce last year which saw his now ex-wife Mackenzie receive a quarter of Bezos’ Amazon shares. Bezos first became a billionaire in 1998, which Forbes points out was a year that saw an average Amazon share price of US$7.47. Today, those same Amazon shares are worth US$3,511 apiece.

So what now for Bezos and Amazon?

So what is Bezos up to now, since he is leaving running his ‘baby’? And who is in charge at Amazon now? After all, an Aussie who was born in the same year as Amazon entered this world would be 27 years old today. So this is quite a change. So here’s what Bezos said when he initially announced his resignation as Amazon CEO back in February:

Amazon is what it is because of invention. We do crazy things together and then make them normal… If you do it right, a few years after a surprising invention, the new thing has become normal. People yawn. That yawn is the greatest compliment an inventor can receive. When you look at our financial results, what you’re actually seeing are the long-run cumulative results of invention. Right now I see Amazon at its most inventive ever, making it an optimal time for this transition.

But Bezos is not leaving Amazon entirely. He is “transitioning” to the role of Executive Chair, a role with undoubtedly less ‘hands-on’ responsibility at the company, but still an important role nonetheless. His replacement as Amazon CEO is Andy Jassy, who, until now, was the chief executive of the company’s Amazon Web Services (AWS) division.

So what’s Bezos up to now? Well, according to Forbes, Bezos is now turning his time to his charities in the Bezos Day One Fund and the Bezos Earth Fund. He is also expected to be working at his other company – hopeful space explorer Blue Origin. In a tight race with Virgin founder Sir Richard Branson, Bezos is expected to go to space himself on 20 July. Perhaps his ambitions have exceeded what Earth, or Amazon, can offer him.

The post A turning point: Jeff Bezos steps down as Amazon (NASDAQ:AMZN) CEO appeared first on The Motley Fool Australia.

More reading

• Amazon’s biggest threat in e-commerce
• Wondering which US shares Aussies bought last quarter? Here’s the answer
• FANG+ ETF (ASX:FANG) tumbles 10% on ex-dividend day
• Tesla back on top as the most popular US share for ASX investors
• Facebook (NASDAQ:FB) joins US$1 trillion club as share price leaps

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2TslHib

The S&P/ASX 200 Index (ASX: XJO) is on course to start the week on a slightly positive note. In early afternoon trade, the benchmark index is up 0.1% to 7,316.1 points.

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

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up over 3% to $6.73. This follows news that the New Zealand Overseas Investment Office has issued its consent to the company’s proposed acquisition of a 75% interest in Mataura Valley Milk. Management expects the acquisition of the dairy nutrition business to provide A2 Milk with the opportunity to participate in nutritional products manufacturing and give it supplier and geographic diversification. It also expects the deal to strengthen its relationship with key partners in China.

Airtasker Ltd (ASX: ART)

The Airtasker share price is up 4% to $1.16. Investors have been buying the shares of the online marketplace for local services after it released a guidance update. According to the release, Airtasker achieved Gross Marketplace Volume (GMV) of $39.4 million in the fourth quarter. This represents a 39.1% increase compared to the prior corresponding period. In light of this strong quarterly performance, management expects to report GMV of $153.1 million for the full year. This exceeds both its prospectus forecast of $143.7 million and April’s upgraded guidance of $148 million to $152 million.

BetMakers Technology Group Ltd (ASX: BET)

The BetMakers share price has jumped 5% to $1.10. This follows news that Tabcorp Holdings Limited (ASX: TAH) intends to demerge its lotteries and Keno business. This will see two separate ASX-listed companies – Tabcorp and Lotteries & KenoCo. The former will retain its wagering, media, and gaming services businesses. The BetMakers share price had come under significant pressure since announcing a takeover offer for Tabcorp’s wagering and media assets. Investors appear relieved the deal will no longer go ahead.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

The Sydney Airport share price has rocketed 30% higher to $7.55. Investors have been scrambling to buy the airport operator’s shares after it received an $8.25 cash per share takeover offer from a consortium of infrastructure investors. This represents a 42% premium to its last close price. Sydney Airport is assessing the offer but notes that it has been made during a global pandemic, which has deeply affected the aviation industry and the Sydney Airport share price.

The post Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Why the BetMakers (ASX:BET) share price is up 5% at lunchtime
• Sydney Airport (ASX:SYD) jumps 37% on $22.6 billion buyout bid
• ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps
• Tabcorp (ASX:TAH) share price drops on demerger news
• Airtasker (ASX:ART) share price storms 5% higher after smashing FY 21 guidance

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 Betmakers Technology Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended A2 Milk and Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3jIyJCL

The BetMakers Technology Group Ltd (ASX: BET) share price opened 11.48% higher this morning to an intraday high of $1.165.

At the time of writing, shares in the betting technology company have pulled back to a gain of 5.26% or $1.10.

This follows an announcement out of Tabcorp Holdings Ltd (ASX: TAH), with intentions to demerge its lotteries and wagering businesses.

BetMakers released a subsequent response to the market outlining its plans moving forward.

What’s driving the BetMakers share price?

Back in late May, BetMakers submitted a proposal to acquire Tabcorp’s Wagering and Media business for an enterprise value of $4 billion.

Today, Tabcorp has decided to pursue a demerger of its lotteries and wagering business, instead of BetMakers’ acquisition proposal.

This move will see Tabcorp spin off its lotteries and wagering businesses into two standalone, ASX-listed companies with “distinct operating profiles, strategies and growth opportunities”.

With BetMakers’ acquisition plans coming to an end, this means the company has avoided the need to raise $4 billion to acquire Tabcorp assets.

The $4 billion would have otherwise come from $1 billion through debt financing and $3 billion worth of new BetMakers shares.

Pleasingly, BetMakers advised that it will continue discussions with Tabcorp regarding “commercial opportunities in international markets”.

In addition, BetMakers said that its “international growth plans have accelerated in recent weeks” underpinned by announcements including the progression of Fixed Odds betting in New Jersey and the completion of its Sportech acquisition.

What did management say?

In response to the announcement, BetMakers CEO Todd Buckingham said:

Having received clarity from Tabcorp regarding the planned direction for its Wagering and Media business, BetMakers will continue discussions with Tabcorp regarding international opportunities, and we believe these opportunities have the potential to be significant.

BetMakers remains firmly of the view that the Company’s opportunities in regulated wagering jurisdictions, and in particular Australia and the United States, are a clear priority and we will continue to explore all opportunities that can accelerate or capitalise on this foundation.

BetMakers share price snapshot

BetMakers’ ambitious offer to acquire Tabcorp assets took a significant toll on its share price, tumbling 34.5% to a low of $1.01 between 28 May and 7 June.

With the deal no longer progressing, the BetMakers share price is still down 30.6% from its record close of $1.60 on 27 May.

The post Why the BetMakers (ASX:BET) share price is up 5% at lunchtime appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Airtasker, BetMakers, & Sydney Airport shares are storming higher
• ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps
• Tabcorp (ASX:TAH) share price drops on demerger news
• BetMakers (ASX:BET) builds out tech with more acquisitions
• BetMakers (ASX:BET) share price lifts on wagering milestone

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. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3dGAVGU

The Sydney Airport (ASX: SYD) share price is rocketing this morning after the company announced that a consortium of infrastructure investors had proposed a $22.6 billion all-cash transaction for the buyout of Sydney Airport.

The Sydney Airport share price has started this morning’s session with a 37% jump into the green after the opening bell, before retreating slightly to the current price of $7.71, up 32.62%.

Let’s dive into what unfolded this morning.

What is the proposed deal?

In today’s release, the company advised that a consortium of infrastructure-focused investors from IFM Investors, Global Infrastructure Management and QSuper had offered $8.25 per share for a buyout of the famed Australian airport.

At these figures, the offer price represents a 42% premium on Sydney Airport’s closing price of $5.81 at the bell on Friday.

Sydney Airport also holds debt valued at close to $10 billion on its balance sheet — which the consortium must absorb — taking the company’s enterprise value to $30 billion and change.

The investor consortium mentioned its deal included a number of conditions. These included:

• UniSuper to reinvest its roughly 15% stake into the holding vehicle;
• Sydney Airport to provide access to the company books;
• A unanimous recommendation from the Sydney Airport boards that securityholders back the proposal; and
• Entry into a mutually acceptable scheme implementation deed between Sydney Airport and a company owned by the consortium members.

A move to proceed with the sale would align Sydney Airport with Australia’s other major airport operators, which are owned by consortiums of infrastructure investors.

What did Sydney Airport say?

Sydney Airport was quick to respond, claiming that the offer sat below its pre-pandemic share ranges when it hit a record high of $8.86 back in January 2020, before the COVID-19 pandemic took its toll on global travel.

In a release, it stated:

The boards are undertaking detailed analysis of, amongst other things, whether the proposal is reflective of the underlying value of the airport given its long-term remaining concession and the unexpected short-term impact of the pandemic.

At the time of writing, Sydney Airport is considering the proposal.

Sydney Airport share price snapshot

Today’s price action has catapulted the Sydney Airport share price into the green after closing in the red over the previous 5 days. Shares in the airport are now up 40.29% over the past 12 months and have lifted 20.44% year-to-date.

At a share price of $7.73, Sydney Airport has a market capitalisation of $15.7 billion and trades at a price-to-earnings ratio of 92.

The share price is trading near its 52-week high of $8.04, and has a 52-week range of $4.99 – $8.04.

The post Sydney Airport (ASX:SYD) jumps 37% on $22.6 billion buyout bid appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• Broker names 2 ASX dividend shares to buy
• 3 worst ASX travel shares of financial year 2021
• Temple & Webster share price surges with other ASX COVID winners

Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/36f91h6

At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a small gain. The benchmark index is currently up 0.1% to 7,314.4 points.

Here’s what is happening on the market today:

Sydney Airport receives takeover approach

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is rocketing higher today after receiving a takeover approach. The airport operator has received an unsolicited, indicative, conditional and non-binding proposal from a consortium of infrastructure investors to acquire it for $8.25 cash per share. Sydney Airport is assessing the offer but notes that it has been made during a global pandemic, which has deeply affected the aviation industry and the Sydney Airport share price. This offer represents a 42% premium to its last close price.

Tabcorp demerger

The Tabcorp Holdings Limited (ASX: TAH) share price is sinking on Monday after revealing plans to demerge its lotteries and Keno business. This will see two separate ASX-listed companies – Tabcorp and Lotteries & KenoCo. The former will retain its wagering, media, and gaming services businesses. This brings to an end the takeover approach by Betmakers Technology Group Ltd (ASX: BET).

A2 Milk receives acquisition approval

The A2 Milk Company Ltd (ASX: A2M) share price is charging higher today after providing the market with an update on its proposed acquisition of a 75% interest in Mataura Valley Milk. According to the release, the New Zealand Overseas Investment Office has issued its consent to the company’s proposed acquisition of the dairy nutrition business. As a result, completion of the transaction is now to set to occur with effect from the end of July.

Best and worst ASX 200 performers

The best performer on the ASX 200 by some distance is the Sydney Airport share price with a 30% gain. This follows the receipt of the aforementioned takeover approach this morning. The worst performer has been the Tabcorp share price following the announcement of its demerger plans. Its shares are down 5% at the time of writing.

The post ASX 200 up 0.1%: Sydney Airport takeover, Tabcorp demerger, a2 Milk jumps appeared first on The Motley Fool Australia.

More reading

• Tabcorp (ASX:TAH) share price drops on demerger news
• A2 Milk (ASX:A2M) share price on watch after acquisition update
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• 5 things to watch on the ASX 200 on Monday
• Why the Telstra (ASX:TLS) share price outlook suddenly improved last week

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.

from The Motley Fool Australia https://ift.tt/3qPNvt4

The Family Zone Cyber Safety Ltd (ASX: FZO) share price is rising. At the time of writing, shares in the cyber safety company are trading for 65 cents each – up 14.04%.

The massive price rise comes after the company announced “significant growth” and a “record quarter”.

Let’s take a closer look at today’s news.

Company Profile

Family Zone Cyber Safety is engaged in developing a universal cyber safety and parental control platform in the fast-growing cyber safety industry. Its platform allows for secure collaboration between “schools, parents, and cyber safety educators”.

Why the Family Zone share price is rising

In a statement to the ASX, Family Zone says its June quarter was a record for the company. There was 128% growth year-on-year (YoY) in student numbers to total 3 million. Around 2,000 schools were added to its platform, taking the total to 5,600 schools. The company now services approximately 5% of all US school districts.

In the last quarter, $5.8 million worth of contracts were signed plus an extra $1 million acquired through the purchase of NetRef. According to Family Zone, in annual value terms, this converts to roughly $3.3 million in contracts plus $630,000 through NetRef.

Investors are enjoying today’s news, judging by the rise in the Family Zone share price.

Management commentary

Family Zone Managing Director Tim Levy:

This was a breakthrough quarter. We added over 1 million students and 2,000 schools and now service more than 3 million students and 5% of US school districts. We broke sales records and most encouragingly ended the quarter with ~1,500 schools in trials.

Family Zone share price snapshot

Over the past 12 months, the Family Zone share price has increased by 120%. Last month, shares in the company jumped 7% on the news it had signed a contract with the largest school district in the US state of Texas.

Family Zone’s surge comes after its previous 52-week high achieved just 10 days ago on a capital raising announcement.

Family Zone has a market capitalisation of $273 million.

The post Family Zone (ASX:FZO) share price jumps 14% after record quarter appeared first on The Motley Fool Australia.

More reading

• 4 fast-growing ASX small cap shares that you may have overlooked
• Family Zone (ASX:FZO) share price jumps 8% after $23m capital raising

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.

from The Motley Fool Australia https://ift.tt/3hDxrWO

There are some good ASX share candidates that might be worth considering in July 2021.

We are already halfway through the 2021 calendar year. Share prices are changing all the time, so that can lead to different businesses being potential opportunities at different times.

The two ASX shares in this article are growing quickly and might be worth looking at for the longer-term:

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an electronic donation business. It processes electronic payments for large and medium US churches.

It has large long-term goals, but in FY21 it processed approximately US$7 billion (which was up 39%). This led to operating revenue increasing by 40%.

The company deliberately chose the best tools when it first set up its systems. Not only did that mean that clients get the best software to use, but it also meant Pushpay had very scalable technology. This is translating into operating leverage for the business.

In FY21 alone, the earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) increased by 133% to US$58.9 million. As readers will see, that growth was quite a bit more than the operating revenue growth. The EBITDAF margin increased from 22% to 34% over the financial year.

Pushpay is expecting more operating leverage and growth in the future.

It’s also pursuing growth in other areas.

The company said that it’s investing between US$6 million to US$8 million in FY22 in the Catholic segment. It’s focused on establishing relationships and increasing engagement with key stakeholders. Two thirds of that money will be spent on product design and development expense, with the rest spent on sales and marketing.

The ASX share has a goal of acquiring more than 25% of the Catholic church management system and donor management system market over the next five years.

Pushpay also pointed out that the Catholic church is closely associated with many education providers and non-profit organisations, which presents further opportunities within the US and other international jurisdictions.

Adore Beauty Group Ltd (ASX: ABY)

UBS is one of the brokers that likes Adore Beauty at the current share price. It has a price target on Adore Beauty of $5.60, which suggests a potential upside of around 20% over the next 12 months.

The broker points to growth themes and growing market share where the business can grow. Returning customers also helps things.

In May, the company announced its FY21 third quarter highlights, which included revenue growth of 47% to $39.4 million. Adore Beauty also reported “strong” retention and re-engagement rates for new customers acquired during the COVID-19 period. It also launched its loyalty program in March, with signups ahead of expectations.

The ASX share said it’s on track to achieve FY21 revenue growth of between 43% to 47%.

Adore Beauty is seeing a structural shift in consumer behaviour towards online retail, based on continued strong retention of customer acquired during the COVID-19 lockdown.

The company is continuing to pursue disciplined investment to drive revenue growth and expand its online position. Its FY21 EBITDA will reflect the company’s continued investment, including in marketing and advertising.

Adore Beauty is investing in things like its range, adjacency expansion opportunities and private label development.

The post 2 impressive ASX shares that could be buys in July 2021 appeared first on The Motley Fool Australia.

More reading

• 2 top small cap ASX shares that might be buys
• 3 exciting small cap ASX shares to put on your watchlist
• ASX 200 flat, e-commerce ASX shares soar, Metcash rises
• 2 ASX shares that could be worth looking at this weekend
• Sell Nuix, AMP, Pushpay before EOFY? Expert weighs in

45Motley 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 PUSHPAY FPO NZX. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3dFXQCw

The West African Resources Ltd (ASX: WAF) share price is climbing following a production update for the month of June.

During late morning trade, the gold miner’s shares are swapping hands for $1.03, up 1.98%.

How is West African Resources performing?

Investors are snapping up West African Resources shares after the company provided a strong result.

According to its release, West African Resources advised it achieved gold production of 63,610 ounces for the June quarter. This represents another record quarter for the company’s operations at the Sanbrado mine in Burkina Faso.

The increase is primarily from the company’s key M1 South underground mine, yielding 33,480 ounces of gold from 103,550 tonnes of ore. Pleasingly, the gold mined reflected a 116% increase on the previous March 2021 quarter.

West African Resources stated that 855 meters of horizontal development was completed, providing ore access on several levels. A 182-meter decline was also developed, increasing the vertical depth by 26 meters to 341 meters below the surface.

Open pit production for the quarter stood at 738,000 tonnes at 1.7 grams per tonnes for 39,790 ounces. This includes the company’s M5, M1 South and M1 North pits.

A maintenance shutdown and mill reline was also finished during the quarter.

West African Resources executive chair and CEO, Richard Hyde commented:

The Sanbrado mine completed another record quarter of production with 63,610 ounces of gold produced.

The underground ramp-up continued to plan, with gold mined up 116% from the previous quarter to 33,480 ounces of gold from 103,550t of ore.

Solid progress was also delivered by open pit mining and processing under pinning the quarterly production result.

The company will release its June Quarterly Activities Report with production cost information before the end of this month.

About the West African Resources share price

Over the past 12 months, West African Resources shares have moved in circles, posting a gain of 15%. However, for 2021 alone, the company’s share price is down around 3%.

At current, West African Resources shares are sitting in the middle of its 52-week range of 72 cents to $1.23.

West African Resources has a market capitalisation of roughly $891 million, with more than 883 million shares on its registry.

The post Why the West African Resources (ASX:WAF) share price is rising today appeared first on The Motley Fool Australia.

More reading

• Could Tesla build 1 million vehicles this year?
• Top broker tips REA Group (ASX:REA) share price to hit $198
• Why the Oil Search (ASX:OSH) share price is beating the energy index
• Tabcorp (ASX:TAH) share price drops on demerger news
• Airtasker (ASX:ART) share price storms 5% higher after smashing FY 21 guidance

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.

from The Motley Fool Australia https://ift.tt/36bLfCC