The S&P/ASX 200 Index (ASX: XJO) is having a strong start to the week. In afternoon trade, the benchmark index is up 0.8% to 7,786.8 points.

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

Cettire Ltd (ASX: CTT)

The Cettire share price is up 10% to $2.62. Investors have been buying this online luxury products retailer’s shares after it refuted allegations that it has fake products on its platform. The company commented: “Since commercial launch in 2017, Cettire has handled more than 2 million individual orders. There is not a single confirmed case of a non-genuine item being sold on Cettire’s platform.” Management also highlights that the negative media press has “sought to amplify the claims of parties who have openly taken short positions in Cettire shares and sought to profit from a short-term decline in the share price.”

Lendlease Group (ASX: LLC)

The Lendlease share price is up 10% to $6.47. This follows the release of a major strategy update this morning. The property developer revealed that it is aiming to simplify its global business and bring costs under control. This will see Lendlease exit its struggling international construction projects and focus on its integrated Australian real estate business with international investment management capabilities. These actions are expected to release $4.5 billion of capital from its offshore development projects and assets.

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is up 11% to $22.99. This has been driven by the release of a trial update. The top-line results from Neuren’s phase 2 clinical trial of NNZ-2591 in children with Pitt Hopkins syndrome (PTHS) delivered a “statistically significant improvement” across all four efficacy measures. Neuren CEO Jon Pilcher commented: “We are very excited about the results of this first clinical trial in Pitt Hopkins patients. This underserved community has such urgent unmet need and we can now continue towards our goal of developing a first approved treatment.”

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is up 7% to 4.5 cents. This morning, this lithium miner released the results from 94 new drillholes at its Moblan Lithium Project in Canada. Management highlights that the drilling result demonstrate the high grade nature of the highly strategic asset. Sayona’s Interim CEO, James Brown, commented: “We are delighted with the thick, high-grade drilling results at Moblan confirming it is one of the premier hard rock lithium deposits in North America. Most excitingly, it is clear there remains considerable potential for further expansion of the deposit which is open in all directions.”

The post Why Cettire, Lendlease, Neuren, and Sayona Mining shares are racing higher today appeared first on The Motley Fool Australia.

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• Lendlease share price leaps 9% on plans to bring $4.5 billion back home
• Here is the latest lithium price forecast through to 2027
• 5 things to watch on the ASX 200 on Monday

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 Cettire. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.75% to 7,784.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Genetic Signatures Ltd (ASX: GSS)

The Genetic Signatures share price is down 10% to 65.5 cents. This morning, this global molecular diagnostics company announced that it is concluding the development of the EasyScreen Essentials Respiratory Detection Kit for the US market. The company made the decision based on an internal assessment of the commercial landscape. CEO Neil Gunn said: “While it is disappointing to conclude the development of a key product at this late stage, we are very mindful that any investment we make in new products must continue to be aligned with a compelling commercial opportunity.”

Retail Food Group Ltd (ASX: RFG)

The Retail Food Group share price is down almost 3% to 6.8 cents. The quick service restaurant operator released an investor update this morning and revealed that retailing macroeconomic conditions remain weak. As a result, sales are flat year to date in FY 2024. The good news is that management expects “improvement in market conditions in FY25 as tax cuts, growth in real wages and population, and the potential for rate cuts are expected to allow some consumers to ditch frugality.”

Smartpay Holdings Ltd (ASX: SMP)

The Smartpay Holdings share price is down 2.5% to $1.19. This follows the release of the New Zealand based payments company’s full year results. Smartpay reported a 24% increase in revenue to NZ$96.5 million and a 29% jump in normalised profit before tax to NZ$9.8 million. It seems that some investors were expecting an even stronger performance from the company in FY 2024.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 17% to 23.2 cents. Investors have been hitting the sell button today after the gold miner released an update on its guidance for FY 2024. According to the release, the company’s Simberi’s gold operation has underperformed materially during the fourth quarter. This has been caused by the important Sorowar ore zone not being accessible until the next quarter, which has resulted in lower ore grades. As a result, full year production and cost guidance for FY 2024 is revised to 52,000 to 56,000 ounces (previously 60,000 to 70,000 ounces) at an all-In sustaining cost of A$3,700 to A$3,900 per ounce (previously A$3,200 to A$3,400).

The post Why Genetic Signatures, Retail Food Group, Smartpay, and St Barbara shares are tumbling today 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 Scott Phillips.

The All Ordinaries Index (ASX: XAO) has gained 24% over the past five years, with these three ASX All Ords stocks doing plenty of the heavy lifting.

As of the market close on 26 May 2019 (and based on today’s opening prices), the stocks have gained 3,223.1%, 3,471.4% and 3,575.9%, respectively.

Meaning a $500 investment in any of these three ASX All Ords stocks five years ago (well short of a decade) would have grown to more than $16,500 today.

Which fast-rising companies are we talking about?

Read on.

ASX All Ords stocks delivering supersized gains

First up, we have titanium products producer Iperionx Ltd (ASX: IPX).

The ASX All Ords stock hit all-time highs in February this year. Despite retracing 10% from those highs, the Iperionx share price remains up a whopping 3,223.1% over five years.

That’s enough to turn a $500 investment on 26 May 2019 into $16,615.50 today.

The Iperionx share price has continued to outperform in 2024, up 55.0% year to date at the time of writing.

On 15 May, the company successfully completed a $50 million capital raising to scale up the titanium manufacturing capacity at its operations in the US state of Virginia.

The second ASX All Ords stock that’s amply rewarded its longer-term shareholders is lithium explorer Wildcat Resources (ASX: WC8).

The Wildcat Resources share price has surged 3,471.4% over the past five years, which is enough to grow a $500 investment into $17,857.00.

While that’s a very tidy return, investors who sold their holdings in late November could have achieved almost double those returns! The Wildcat Resources share price has retraced by 47.3% since 24 November.

Atop ongoing weakness in lithium prices, Wildcat shares look to have come under pressure with recent drilling results at its Tabba Tabba lithium project in Western Australia apparently failing to meet investor expectations.

Which brings us to the top performer of our three rocketing ASX All Ords stocks, Vulcan Energy Resources Ltd (ASX: VUL).

The company’s primary focus is delivering the world’s first integrated renewable energy and zero-carbon lithium project.

And investors are clearly keen.

The Vulcan Energy share price has exploded by 3,575.9% in five years. Meaning a $500 investment on 26 May 2019 would now be worth an eye-watering $18,379.50.

Though well down from its September 2021 peaks, the ASX All Ords stock has been a strong performer in 2024, up 81% year to date.

Vulcan shares have enjoyed ongoing tailwinds this year amid strong financial support from strategic and financial investors. 2024 also saw Vulcan’s Lithium Extraction Optimisation Plant, located in Germany, commence production of its first lithium chloride product.

The post These 3 ASX All Ords stocks turned $500 into at least $16,500 in less than a decade! appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Scott Phillips.

Cettire Ltd (ASX: CTT) shares are having a very strong start to the week.

In afternoon trade, the ASX All Ords share is up over 8% to $2.58.

Why is this ASX All Ords share charging higher today?

Investors have been buying the online luxury products retailer’s shares today after it responded to another scathing media article in The Australian.

That article alleges that Cettire is selling non-genuine products on its platform and even delivered a customer an empty box.

However, Cettire has responded by stating that the media article “contains a number of claims and allegations that are untrue.”

The ASX All Ords share also highlights that in recent weeks it has been the “subject of negative press articles that have sought to amplify the claims of parties who have openly taken short positions in Cettire shares and sought to profit from a short-term decline in the share price.”

According to the most recent short seller data from ASIC, approximately 4.8% of Cettire’s shares were held short.

Response

Judging by the way the ASX All Ords share is rallying today, it seems that many investors are satisfied with Cettire’s response to the allegations.

Commenting on its supply chain and product quality, the company said:

Cettire has the utmost confidence in the sustainability of its supply chain and the authenticity of all products available and sold via its platform. […] Cettire only works with established distributors in the luxury supply chain. All of Cettire’s suppliers source products directly from luxury brands and are a core part of brands’ distribution channels.

The company highlights that it has not come across a single fake product from over 2 million orders placed on its platform. It adds:

Since commercial launch in 2017, Cettire has handled more than 2 million individual orders. There is not a single confirmed case of a non-genuine item being sold on Cettire’s platform. None of the examples presented to Cettire by The Australian contain any verifiable evidence that a non-genuine item had been purchased via Cettire. Based on information provided by The Australian, the items used as examples have not been inspected by either Cettire or the relevant manufacturer to verify their authenticity.

Management also defended its customer experience and advised that it is “not aware of any ACCC investigation into its customer service practices.”

The ASX All Ords share then concludes:

Cettire categorically rejects the entirely unfounded allegations contained in the article. Selective use of, and reliance on, a small number of unverified customer reviews when more than 60% of Cettire’s revenues come from repeat customers and the Company is transacting over 1 million orders per annum, is an entirely unreasonable representation of Cettire’s business. It is the Board’s opinion that the article misrepresents the Company’s supply chain, product quality and levels of customer satisfaction.

The post Shorted ASX All Ords share rallies 8% despite ’empty box’ allegations appeared first on The Motley Fool Australia.

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• Why Cettire, De Grey Mining, Life360, and Neuren shares are falling today

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

It’s no secret that amongst the ASX bank stocks, Commonwealth Bank of Australia (ASX: CBA) shares are the premium option on the investing menu.

Commonwealth Bank shares have long delivered capital gains that would make the owners of other ASX banks green with envy.

To illustrate, the CBA share price is today sitting at a five-year gain of 53%. That’s almost double that of National Australia Bank Ltd (ASX: NAB), which has returned 29.2% over the same period.

It runs rings around ANZ Group Holding Ltd‘s (ASX: ANZ) 2.6% increase over the same period, and laughably better than Westpac Banking Corp‘s (ASX: WBC) loss of 2.44%.

CBA is also up 20.67% over just the past 12 months, and has raced 5.8% higher over 2024 to date.

Check all of that out for yourself here:

But the downside of this extraordinary success is that today, CBA shares trade at a significant premium to their banking peers. And ‘significant’ is arguably an understatement.

Today, CBA shares are commanding a price-to-earnings (P/E) ratio of 20.99. For one, that’s 33.6% more expensive than even its closest rival – NAB on an earnings multiple of 15.7. But it runs rings around Westpac’s 14.95 and makes ANZ’s 12.52 P/E ratio look silly.

So, to put it simply, investors are today being asked to pay almost $21 for every $1 of CBA’s earnings, but they are only being asked to fork out $12.52 for every $1 of ANZ’s earnings.

Are CBA shares worth the premium price compared to other ASX banks?

It is the conventional wisdom on the ASX that higher P/E shares tend to have better growth prospects than ones with low P/Es. That’s why investors are happy to pay more for the company.

But is this really the case with CBA? Sure, it is the largest ASX bank in terms of both sheer size and market share. It can also be argued that CBA is a higher-quality business. But let’s dig into whether this P/E ratio can be justified.

Comparing bank earnings is always a little tricky because the big four’s financial calendars don’t exactly align. But we can do some quick comparisons regardless.

Earlier this month, CBA released a quarterly update covering the three months to 31 March 2024. As we covered at the time, this had CBA report a 5% drop in statutory net profits after tax to $2.4 billion.

This actually looks worse than the half-year report ANZ delivered around the same time. This had ANZ reveal a 4% fall in profits after tax to $3.41 billion for the six months to 31 March.

NAB’s half-yearly earnings report for the same period advised an underlying profit of $5.47 billion, which was a whopping 10.6% drop over the previous corresponding period.

Westpac also released a half-year earnings report around the same time. This report revealed that the ASX bank suffered an 8% decline in net profits to $3.51 billion over the six months to 31 March.

Foolish takeaway

Yes, CBA’s latest earnings update covered only three months, while the other major banks reported for six months. But it doesn’t exactly show CBA’s earnings leading the pack.

This might be why most ASX analysts are describing the CBA share price as overvalued at the current time.

However, the market is still pricing CBA at a significant premium compared to its peers in ANZ, NAB, and Westpac. Only time will tell if the bank’s future earnings can justify that.

At the latest CBA share price, this ASX 200 banking giant has a market capitalisation of $198.97 billion, with a dividend yield of 3.79%.

The post Are CBA share buyers getting the highest growth in return for being the most expensive? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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 Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is up a very healthy 0.8% today, but this ASX 200  healthcare share is leaving those gains wanting.

Shares in the biopharmaceutical company closed on Wednesday trading for $20.71.

The stock then entered a trading halt pending an announcement on the results of its phase 2 clinical trial for one of its drug candidates intended to treat patients with Pitt Hopkins syndrome.

The ASX 200 healthcare share exited that trading halt this morning following on that announcement, which saw shares leap to $23.07 apiece, up 11.4%.

After some likely profit-taking, shares are currently changing hands for $22.67 apiece, up 9.5%.

Any guesses?

If you said Neuren Pharmaceuticals Ltd (ASX: NEU), go to the front of the virtual class.

Here’s what’s spurring investor interest on Monday.

ASX 200 healthcare share soars on significant results improvements

The Neuren Pharmaceuticals share price is leaping higher today after the company reported on the top-line results from its phase 2 clinical trial of NNZ-2591 in children with Pitt Hopkins syndrome (PTHS).

PTHS can be severely debilitating for patients, yet there are currently no approved treatments for the disease.

And investors are bidding up the ASX 200 healthcare share after Neuren Pharmaceuticals noted a “statistically significant improvement” was observed relative to the baseline following treatment. That improvement was observed by both caregivers and clinicians across all four efficacy measures designed to assess the core characteristics of PTHS.

Patients showed improvements in areas including communication, social interaction, cognition and motor abilities.

Nine out of 11 children assessed by clinicians showed improvement, while eight out of 11 children assessed by caregivers showed improvement.

NNZ-2591 was also reported to be safe and well tolerated, with no serious or severe adverse events during the phase 2 trial.

Commenting on the clinical trial results sending the ASX 200 healthcare share soaring today, Neuren Pharmaceuticals CEO Jon Pilcher said:

We are very excited about the results of this first clinical trial in Pitt Hopkins patients. This underserved community has such urgent unmet need, and we can now continue towards our goal of developing a first approved treatment.

We are very grateful to the people in the Pitt Hopkins community and at the trial sites in the United States who enabled the successful completion of this extremely challenging, but groundbreaking trial.

Nancy Jones, Neuren vice president of Clinical Development added:

The consistent results on the PTHS specific assessments affirm the need for syndrome specific measurements in severe neurodevelopmental disorders where measures that were developed for broader populations may not be as appropriate.

Neuren Pharmaceuticals share price snapshot

With today’s intraday gains factored in, the ASX 200 healthcare share is up an impressive 67% since this time last year.

The post Guess which ASX 200 healthcare share just rocketed 11% on ‘groundbreaking trial’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Scott Phillips.

ASX dividend share Universal Store Holdings Ltd (ASX: UNI) might be a rewarding company to own for passive income.

Now, retail companies may not be an investor’s first choice for dividend income, but they can trade on a low price/earnings (P/E) ratio and sometimes have a high dividend payout ratio, resulting in a high dividend yield.

Universal Store owns a number of premium youth fashion brands, including Universal Store, THRILLS, Worship and Perfect Stranger.

Here’s why I think it should be on your dividend stock watchlist.

Rising dividend

Universal Store started paying a dividend in 2021 and has grown its annual payout each year since. In 2021, it paid an annual dividend per share of 15.5 cents; in 2022, 21.5 cents per share; and in 2023, 22 cents per share.

In the FY24 first-half result, Universal Store’s board decided to increase its dividend per share by 18% to 16.5 cents.

This means the last two declared dividends amounted to a fully franked dividend yield of 5.1% and a grossed-up dividend yield of 7.3%. That’s a lot stronger than the rates offered by term deposits.

Analysts expect Universal Store dividends to increase even further. Commsec forecasts that the ASX dividend share could pay an annual dividend per share of 28 cents in FY25 and 32 cents in FY26. This translates into grossed-up dividend yields of 8.3% in FY25 and 9.5% in FY26.

Dividend growth is not guaranteed, but the company has shown a willingness to keep hiking the payout. If profit can keep rising, then future dividends could be positive for shareholders.

Profit growth potential

One of the easiest ways for a retailer to grow profit is to increase the size of its store network. In the FY24 first-half period, it opened six new stores, including three new Perfect Stranger stores, two new Universal Stores, and one new THRILLS store.

The rollout of Perfect Stranger as a standalone retail format delivers strong performance. The ASX dividend share’s total sales grew 8.5% in HY24, with Perfect Stranger sales soaring 59.7% to $6.6 million.

Not only is the scale of the business increasing, but its profit is increasing at a faster pace. I like to see that because the profit pays for dividends, and investors usually value a business based on profit generation and expectations.

The company’s HY24 gross profit margin improved 80 basis points year over year to 59.7%. Statutory net profit after tax (NPAT) rose 16.7% to $20.7 million.

If we look at the longer-term valuation, the stock seems very compelling to me. The Universal Store share price is valued at just 10x FY26’s estimated earnings. With a large forecast dividend yield and a low valuation, I think this ASX dividend share is a long-term buy for passive income.

The post This ASX dividend share is predicted to pay a 9% dividend yield in 2026! appeared first on The Motley Fool Australia.

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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. 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 Scott Phillips.

When the founder of an ASX tech share sells out $15.9 million worth of stock, it’s enough to make most investors sit up and pay attention. After all, shareholders usually like to see the managers of their company put their money where their mouths are and have as much skin in the game as possible. Plus, $15.9 million is no small chunk of change.

This is the situation facing investors of ASX tech share Megaport Ltd (ASX: MP1) today. So let’s dig in and see if shareholders have anything to worry about.

Megaport founder unloads $16 million worth of stock

So Megaport released an ASX filing just this morning before market open. This filing showed that Megaport founder and non-executive chair Bevan Slattery disposed of 1,100,000 ordinary shares on 23 May last week in an on-market trade.

Yes, Slattery sold 1.1 million shares of Megaport last Thursday, collecting an average of $14.52 per share. That puts this sale at a value of $15.97 million.

It’s arguably opportune timing for Slattery, as the stock price of this ASX tech share has exploded over the past 12 months. This time last year, Megaport shares were going for just $6.58 each, a far cry (120%) from the $14.50 the company is asking today.

Megaport stock has also climbed a whopping 57.8% over just 2024 to date. This ASX tech share is also up a whopping 252% from the $4-levels we saw in March 2023.

Check all of that out for yourself below:

It’s not hard to see why Megaport shares have enjoyed such a lucrative run if we look at this ASX tech share’s last earnings report, which was released back in February.

As we covered at the time, these earnings showed the company booking a 35% increase in revenues over the six months to 31 December to $95 million. Gross profits for the period came in at $67 million, a 43% rise over the previous half.

Megaport also reported record earnings before interest, taxes, depreciation and amortisation (EBITDA) of $30 million. That was up 785% from the previous half.

Should ASX tech investors be worried about this share sale?

But let’s talk about whether investors in this ASX tech share have anything to worry about with last week’s founder sale.

So yes, most investors like to see management align their own financial interests with those of shareholders as much as possible. As such, no one is going to welcome this sale. But management figures have their own finances to worry about.

Perhaps Slattery wants to buy a house, has a large tax bill, or wishes to invest in another venture. Perhaps he just wants to diversify his wealth away from his single largest holding, something that most financial experts would recommend anyone do.

So yes, Slattery did sell out a huge chunk of shares worth $16 million. However, the ASX filing shows that he still retains a massive stake in Megaport of 5,006,283 shares. This would be worth approximately $52.57 million today.

As such, we can’t exactly argue that Slattery doesn’t continue to have a vested interest in seeing Megaport succeed from here.

But at the end of the day, it’s up to individual investors of this ASX tech share to determine whether this founder sale bothers them enough to change their minds about the company.

The post Founder of ASX tech company offloads shares worth $16 million after doubling in a year appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BHP Group Ltd (ASX: BHP) share price is marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $44.64. In morning trade on Monday, shares are swapping hands for $44.96 apiece, up 0.7%.

That compares to a 0.6% gain on the ASX 200 at this time.

And it’s handily outpacing the 0.5% loss posted by Fortescue Metals Group Ltd (ASX: FMG) shares and the 0.7% loss of Rio Tinto Ltd (ASX: RIO) shares, both of which are slipping despite a 0.8% bump in the iron ore price to US$120.40 per tonne.

The BHP share price may be outperforming its rivals as investors eye the looming deadline for the ASX 200 miner’s $75 billion takeover proposal of Anglo American (LSE: AAL).

Takeover deadline fast approaching

Unless you’ve just emerged from four weeks hiding under a rock, you’re probably aware of BHP’s acquisition goals of UK-listed Anglo American.

The BHP share price initially came under pressure when the first takeover bid was announced on 26 April.

With global copper demand surging and forecast to remain strong, sending the red metal to record highs last week, BHP is primarily interested in Anglo’s portfolio of high-quality copper assets. Although the miner’s Queensland-based coal mines are also on the agenda.

Complicating matters, BHP’s takeover proposal involves divesting a number of Anglo American’s assets, including its South African iron ore and platinum businesses and likely its diamond projects.

Labelling the deal as too complex and undervaluing its growth potential, Anglo’s board rejected BHP’s initial offer.

And the board swiftly rejected its second offer, lobbed on 14 May and valuing the miner around $64 billion, as well.

Enter the third bid, made on 23 May, which now values Anglo American at some $75 billion.

That bid earned BHP a one-week deadline extension under British legislation to negotiate with Anglo’s board and make a binding offer. The new deadline is this Wednesday, 29 May.

“BHP looks forward to engaging with the board of Anglo American to explore this unique and compelling opportunity to bring together two highly complementary, world class businesses,” Henry said on Thursday, when the BHP share price closed the day down 2.9%.

According to Liberum Capital research analyst Ben Davis (quoted by The Australian Financial Review), BHP could still increase its offer price.

However, Davis noted, “We are at a level where shareholders are increasingly vocal on capital discipline.”

Davis added:

They have clearly got bored of bidding against themselves in a vacuum and have said they will not be increasing this offer any further … except in the situation of Anglo or an interloper coming up with a new acceptable number.

The BHP share price is up 4% over the past 12 months.

The post BHP share price marching higher amid fast approaching $75 billion takeover deadline appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 Scott Phillips.

NVIDIA Corporation (NASDAQ: NVDA) recently posted its Q1 2024 financial results, sending its share price skyrocketing to US$1,064 and its market capitalisation soaring to US$2.6 trillion.

At the current currency exchange rate, this translates to AUD$3.9 trillion. This massive valuation now dwarfs BHP Group Ltd (ASX: BHP), the world’s largest mining company, with a market value of $226.4 billion at the time of writing.

In other words, Nvidia is now worth more than 17 times BHP. According to investment strategist Lyn Alden, it is also one of the only assets that has outperformed Bitcoin over a 10-year period.

Let’s dive into what’s driving Nvidia’s incredible growth and what might come next for the tech giant.

AI is driving Nvidia shares higher

The artificial intelligence (AI) boom is a key factor behind Nvidia’s meteoric rise. As tech companies globally invest heavily in AI, Nvidia’s GPUs and chips have become essential components, making it a crucial player in the AI revolution. This is akin to selling shovels to miners during a gold rush.

For the quarter ending 31 March 2024, Nvidia last week reported extraordinary financial performance. You can see the company’s staggering growth below:

Item	Year-on-Year Growth
Total Revenue	262%
Operating Income	690%
Earnings Per Share	628%

In what I consider to be shareholder-friendly actions, Nvidia management announced a ten-for-one forward stock split “to make stock ownership more accessible to employees and investors”. It also increased its quarterly dividend by 150% to $0.10 per share.

These results stunned Wall Street as if they’d seen a bear in real life. IG Markets analyst Hebe Chen said there was no doubt that Nvidia’s numbers “moved beyond the financial performance of a single company”.

“From a data standpoint”, Chen said, “today’s results have undoubtedly cleared any remaining doubts in the market about the AI frenzy”, adding this was “a validation of how far the AI stocks’ party can go”.

What’s next for Nvidia shares?

Looking ahead, Nvidia’s management projects $28 billion in revenues for the next quarter, with gross margins of 75%.

Wall Street analysts forecast the company’s annual revenue to hit $120.5 billion, marking a 98% growth from 2023. In the last three months, Nvidia’s full-year revenues have been revised a staggering 41 times, and earnings per share have been revised 38 times.

But with Nvidia shares trading at a price-to-earnings (P/E) ratio of 62, investors are expecting significant future performance.

IG Markets’ Hebe Chen warns these high expectations, set by the recently announced stock split and dividend boosts, “sets a dauntingly high bar for future excitement”.

Foolish takeaway

Nvidia’s share price rise to US$1,064 marks a staggering 22,150% total return over the past 10 years.

A $10,000 investment in the tech player a decade ago would now be worth over $2.2 million. Analysts project strong growth for the company in the next 1–2 years. Beyond that, who knows what’s in store.

The post Nvidia shares are now worth more than 17 times the market cap of BHP. What’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.