LBT Innovations Limited (ASX: LBT) shares are catching the eye on Wednesday.

At one stage today, the ASX AI healthcare stock was up as much as 170% to 3.8 cents.

The medical technology company’s shares have given back most of these gains since then but remains up 80% to 2.5 cents.

Why is this ASX AI healthcare stock rocketing?

Investors were scrambling to buy the company’s shares today after it announced the successful completion of primary validation for the Automated Plate Assessment System (APAS) PharmaQC product.

The company’s APAS product uses artificial intelligence and machine learning software to automate the imaging, analysis, and interpretation of microbiology culture plates.

The completion of this milestone represents the final step in the product development and technology commercialisation with global healthcare giant AstraZeneca (NASDAQ: AZN).

As a result, AstraZeneca will now undertake an internal secondary validation of the system within its own manufacturing processes. Completion of AstraZeneca’s secondary validation is anticipated in the third quarter of calendar year 2024.

If that is successful, then it could be only a matter of time until the ASX AI healthcare stock is generating revenue.

‘Incredibly important’

The company’s CEO and managing director, Brent Barnes, was very pleased with the news and believes the technology is important to the industry. He said:

Evidence based automation is incredibly important in the biopharmaceutical industry. The completion of our primary validation is a valuable asset to the Company. We expect this data to build confidence in our technology and assist customers with their adoption of APAS PharmaQC.

Many customers we’ve spoken to over the past 6 months gave positive feedback on our technological approach and we are looking forward to sharing our primary validation data with them. We have set ourselves an ambitious commercialisation schedule for 2024 and expect the customer qualification pipeline to accelerate as we present our APAS PharmaQC technology at a number of key global conferences.

The post Guess which ASX AI stock rocketed 170% on an AstraZeneca update appeared first on The Motley Fool Australia.

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More reading

• Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today
• Why Core Lithium, Jupiter Mines, Newmont, and Perpetual shares are dropping today
• At $29, I think the Woodside share price could be 20% undervalued!
• Guess which ASX All Ords company is being sued by shareholders over stock price losses
• 1 top ASX 200 dividend stock to buy now with $500

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 recommended AstraZeneca Plc. 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.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is pushing higher again. At the time of writing, the benchmark index is up 0.2% to 7,729.6 points.

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

Accent Group Ltd (ASX: AX1)

The Accent share price is up 4.5% to $2.04. Investors have been buying this footwear retailer’s shares following the release of a bullish broker note out of Morgan Stanley. According to the note, the broker has upgraded Accent’s shares to an overweight rating with an improved price target of $2.45.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is up 8% to $1.42. This follows news that the lithium developer has entered into a $550 million debt facility agreement. These funds will be used to ensure the Kathleen Valley Lithium Project is funded through to its first production and the ramp-up to the company’s three million tonnes per year base case.

PSC Insurance Group Ltd (ASX: PSI)

The PSC Insurance share price was up 6% to $5.15 before being placed in a trading halt. This follows speculation that the insurance company could be a takeover target. The rumoured suitors include US$55 billion giant Arthur J. Gallagher & Co. (NYSE: AJG) and the UK’s Ardonagh Group. An offer of $2.3 billion is thought to be on the cards.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 3% to $1.32. This morning, analysts at Citi upgraded this buy now pay later provider’s shares to a buy rating with an improved price target of $1.40. Citi has been impressed with the company’s performance and particularly its balance sheet improvements.

The post Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today appeared first on The Motley Fool Australia.

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• Guess which ASX All Ords stock is suspended amid takeover rumours
• Liontown share price leaps 10% on fresh $550 million funding
• Here are the top 10 ASX 200 shares today
• 4 ASX All Ords shares going gangbusters on Tuesday
• Liontown shares rocket 30% in a month ahead of Friday’s results

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended PSC Insurance Group and Zip Co. The Motley Fool Australia has recommended Accent Group and PSC Insurance Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) is on form again on Wednesday and is pushing higher. In afternoon trade, the benchmark index is up 0.3% to 7,737.1 points.

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

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 9% to 20 cents. This follows the release of the lithium miner’s half-year results. Due to lithium price weakness and the suspension of its spodumene production, Core Lithium reported revenue of $134.8 million and a loss after tax of $167.6 million. The company also revealed that its CEO, Gareth Manderson, is stepping down.

Jupiter Mines Ltd (ASX: JMS)

The Jupiter Mines share price is down almost 3% to 17.5 cents. This follows the release of the scoping study evaluating the opportunity to supply high purity manganese sulphate monohydrate to the electric vehicle battery market. Management advised that the study has “yielded promising results” but the market doesn’t appear convinced.

Newmont Corporation (ASX: NEM)

The Newmont share price is down 3% to $51.33. Investors have been selling Newmont and other gold miners today after the gold price tumbled overnight. This was driven by a hotter than expected US inflation reading which has reduced the chances of a rate cut in the near future. The S&P/ASX All Ordinaries Gold index is down 2% this afternoon.

Perpetual Ltd (ASX: PPT)

The Perpetual share price is down over 2% to $24.14. This has been driven by the fund manager’s shares going ex-dividend this morning for its upcoming interim dividend. Eligible shareholders can look forward to receiving this 65 cents per share partially franked dividend next month on 8 April.

The post Why Core Lithium, Jupiter Mines, Newmont, and Perpetual shares are dropping today appeared first on The Motley Fool Australia.

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• Core Lithium shares crash 9% after posting massive half-year loss
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• Here are the top 10 ASX 200 shares today
• Why are short sellers shifting into ASX blue chips and out of lithium losers?

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.

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The Woodside Energy Group Ltd (ASX: WDS) share price has tumbled almost 24% over the past six months.

As you can see on the chart below, on 13 September shares in the S&P/ASX 200 Index (ASX: XJO) energy stock closed the day trading for $37.85 apiece.

In intraday trading today, shares are swapping hands for $28.92.

Now, the Woodside share price certainly could soar by 31% to reach $37.85 again. In fact, I believe that over the longer term, it probably will.

But I think that a 20% gain is more likely over the coming months.

Six months ago, Brent crude oil was trading for US$92 per barrel, compared to US$82 per barrel today. And while I believe the crude oil price will head higher this year, it would likely take some very unwanted escalations in the Middle East tensions to get it back above US$90 in 2024.

Still, I expect we’ll see Woodside stock trading back near the US$35 range we saw in late October when Brent crude was selling for US$87 per barrel.

Why the Woodside share price could soar by 20%

Despite ongoing concerns related to climate change, work at Woodside’s offshore Scarborough LNG project has recommenced. That offers additional long-term tailwinds for the Woodside share price.

And the company is working hard to address carbon reduction.

“Our climate strategy is integrated throughout our corporate strategy as we provide the energy our customers need today and into a lower carbon future,” CEO Meg O’Neill told investors.

She added that the company’s climate action plan is intended to “create and return value” to its shareholders while enabling Woodside to conduct its business sustainably.

Other tailwinds I see for the Woodside share price are the sizeable ongoing production cuts from OPEC+.

Despite near-record output from the United States, OPEC+ is managing to reduce global supplies.

According to the US Energy Information Administration (EIA):

As a result of OPEC+ extending crude oil production cuts, we have reduced our forecast for global oil production growth in 2024. The lower growth contributes to significant global oil inventory declines in our forecast for the second quarter of 2024 (2Q24)

And that’s likely to lead to higher energy prices, which should support the Woodside share price.

“Because of falling inventories, we now expect the Brent crude oil spot price will average $88 per barrel (b) in 2Q24,” the EIA noted. The agency expects Brent crude oil prices will average US$87 per barrel over 2024.

That forecast puts the oil price back to late October 2023 levels, when Woodside was trading for US$35 a share, some 20% above current levels.

Then there’s LNG, which comprises a large part of Woodside’s revenues.

According to the EIA, “We expect the US benchmark Henry Hub natural gas spot price to average higher in 2024 and 2025 than in 2023.”

Atop a potential 20% gain for the Woodside share price amid rising energy prices, the ASX 200 oil and gas stock also trades on a trailing dividend yield of 7.5%.

The post At $29, I think the Woodside share price could be 20% undervalued! appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• How Woodside shares can ‘thrive through the energy transition’
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• 5 things to watch on the ASX 200 on Monday
• ASX dividend royalty: Australia’s top stocks for reliable income

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.

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Mesoblast Ltd (ASX: MSB) shares have been on fire recently.

So much so, the ASX All Ords biotech stock has risen 40% since this time last month.

Why has this ASX All Ords biotech stock stormed higher?

This strong gain has been driven by a couple of positive developments relating to the US Food and Drug Administration (FDA).

The first was that its Revascor product, which is being trialled as a treatment for children with hypoplastic left heart syndrome, was granted an Orphan-Drug Designation following the submission of results from a randomised controlled trial.

The second news is that the US FDA will support an accelerated approval pathway for its rexlemestrocel-L (R-L) product under the existing Regenerative Medicine Advanced Therapy designation.

It is Mesoblast’s allogeneic mesenchymal precursor cell product for patients with end-stage ischemic heart failure with reduced ejection fraction and a left ventricular assist device.

This positive developments appear to have drowned out news that the ASX All Ords stock has been hit with a class action.

Class action

This month it was revealed that Omni Bridgeway Ltd (ASX: OBL) will be co-funding a shareholder class action on behalf of investors who acquired Mesoblast shares or related securities between 22 February 2018 and 17 December 2020 inclusive. It states:

Broadly, the Consolidated Class Action alleges that Mesoblast contravened its continuous disclosure obligations and engaged in misleading or deceptive conduct throughout the Claim Period in relation to both the SR-aGVHD application and COVID-19 application of R-L.

Participants in the class action may be entitled to compensation for losses arising out of Mesoblast’s alleged breaches of its continuous disclosure obligations and/or by Mesoblast engaging in misleading and deceptive conduct.

It remains unclear how much the class action is seeking in damages but the company can ill-afford to give up much cash. At the end of the first half, Mesoblast had a cash balance of US$77.6 million after burning through US$26.6 million of cash during the six months.

The post Guess which ASX All Ords company is being sued by shareholders over stock price losses 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.

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Got a spare $500 to invest in a top S&P/ASX 200 Index (ASX: XJO) dividend stock?

Then I suggest checking out ASX 200 bank stock Australia and New Zealand Banking Group Ltd (ASX: ANZ).

ANZ shares have long been popular among passive income investors for their lengthy track record of reliably paying two dividends per year. Even during the pandemic addled year of 2020.

Atop that welcome passive income, I also like buying into strength. And the ASX 200 dividend stock has been rewarding investors with outsized share price gains this year as well.

The ANZ share price closed at $29.81 on Friday, notching new 52-week highs. Shares could retest that record today. After slipping on Monday and edging higher yesterday, ANZ stock is up 1.5% in afternoon trade today at $29.74 a share.

That puts shares in the big four bank up more than 27% in 12 months.

Not including those dividends, which we’ll get to shortly!

And there could be more outperformance from the ANZ share price to come in 2024.

With inflation in Australia slowly returning to the RBA’s target range, we could see several interest rate cuts in the second half of the year. That could help ANZ increase its earnings if management decides not to pass the full rate reductions on to the bank’s borrowers.

So, how about that passive income?

One ASX 200 dividend stock to buy for passive income

Getting back to those juicy dividends, ANZ paid a fully franked interim dividend of 81 cents per share on 3 July. The bank paid a final dividend, franked at 56%, of 94 cents per share on 22 December.

That puts the full-year payout from this top ASX 200 dividend stock at $1.75 a share, partly franked.

At the current ANZ share price, that equates to a trailing yield of 5.9%.

With $500, you could buy 16 shares today, with enough left over for a pizza dinner. Based on the trailing yield that would see you earn $28 in annual passive income alongside the potential for further share price gains.

Lacking a crystal ball, I can’t say with certainty what the future passive income payouts will be from this ASX 200 dividend stock. But as outlined above, I think the earnings outlook for ANZ looks strong in 2024, which should support dividends.

We’ll know precisely what the next interim dividend payment will be on 7 May, when ANZ reports its half-year results.

As always, you should do your own thorough research before investing in any product, including this leading ASX 200 dividend stock.

If you’re not comfortable with that or simply don’t have the time, then reach out for some expert advice.

The post 1 top ASX 200 dividend stock to buy now with $500 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.

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Dividend shares that pay out income to their shareholders every three months are quite rare here on the ASX. Especially high-yield ASX shares.

Whilst it might be the norm for income shares to pay out quarterly dividends in many countries abroad, biannual, six-month dividends are the undisputed standard here on the Australian markets.

Almost every ASX blue chip share on the stock market sticks to a schedule of rewarding their shareholders every six months.

However, not all ASX dividend shares fall into this category. So today, let’s discuss three high-yield ASX shares that pay out dividend income four times a year.

3 high-yield ASX shares that pay out quarterly dividends

GQG Partners Inc (ASX: GQG)

First up we have US fund manager GQG. GQG is a stock that has been causing some waves on the ASX lately, thanks in most part to its 60% or so rise over the past four months. Strong growth in funds under management is attracting investors all over the ASX to this stock.

But despite this share price rise, GQG remains a compelling investment for anyone seeking dividend income in my view. This company remains a high-yield ASX share, currently trading on a whopping dividend yield of over 6.5%. And yes, this dividend does come in three-month, quarterly instalments.

These dividends have been rapidly climbing in value too. Last year, GQG paid out a March dividend worth 1.87 US cents per share. But the same dividend in 2024 is set to be worth a much-improved 2.6 US cents per share.

Rural Funds Group (ASX: RFF)

Next up, we have an ASX real estate investment trust (REIT) in Rural Funds Group. Rural Funds is a REIT that specialises in owning agricultural land and assets. Its portfolio consists of macadamia, cattle and almond farms, as well as vineyards.

Rural Funds is another high-yield ASX share. At current prices, investors are being offered a trailing dividend yield worth an attractive 5.5%. And yes, this REIT pays out quarterly dividend distributions too. Investors have enjoyed receiving 2.93 cents per unit from Rural Funds every three months over the past two years.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

Finally, this exchange-traded fund (ETF) from Vanguard is worth a mention. Unlike most ASX shares, most ETFs do pay out quarterly dividend distributions. Vanguard’s High Yield ETF is no exception. This fund invests in a basket of high-yield ASX shares that offer some of the best and most consistent dividends on the ASX.

Some of the shares that are currently in VHY’s portfolio include Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), Wesfarmers Ltd (ASX: WES) and Woodside Energy Group Ltd (ASX: WDS).

Today, VHY units offer investors a trailing dividend distribution yield of 4.49%.

The post 3 high-yield ASX dividend shares that pay cash every quarter appeared first on The Motley Fool Australia.

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• Got $10,000 to invest? How to turn it into monthly income
• Why Cettire, GQG, Mesoblast, and Nine Entertainment shares are falling today

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Wesfarmers. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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PSC Insurance Group Ltd (ASX: PSI) shares were storming higher on Wednesday before being slammed into a trading halt.

The ASX All Ords insurance stock was up 6% to $5.15 before the halt.

Why is this ASX All Ords insurance stock jumping?

Investors were fighting to get hold of the company’s shares today amid speculation that it could be the latest ASX All Ords stock to receive a takeover proposal.

In response to the speculation, the company has requested that its shares be suspended while it prepares to make an announcement. It stated:

The Company requests a trading halt pending an announcement by the Company with respect to media speculation in relation to potential takeover approaches for the Company. The Company requests the trading halt remain in place until the earlier of the Company releasing an announcement in response to the media speculation, or until the commencement of trading on Thursday, 14 March 2024.

What’s the speculation?

According to the AFR, the $1.9 billion insurance company has held “informal discussions with at least two offshore insurance brokers.” It has also reportedly hired Goldman Sachs to guide it through the preliminary takeover talks.

The company’s managing director, Tony Robinson, didn’t shut down the rumours when quizzed by the media outlet. He said:

At any period in time, we are talking to people and parties about ideas and opportunities. And that includes ideas around privatisation.

The rumoured suitors include US$55 billion giant Arthur J. Gallagher & Co. (NYSE: AJG) and the UK’s Ardonagh Group.

But with the ASX All Ords stock reportedly looking for a price of $2.3 billion, it remains unknown whether either of these parties will bite.

PSC Insurance Group shares are up a modest 7% over the last 12 months, whereas fellow insurance stock QBE Insurance Group Ltd (ASX: QBE) is up almost 20%.

The post Guess which ASX All Ords stock is suspended amid takeover rumours 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 positions in and has recommended Goldman Sachs Group and PSC Insurance Group. The Motley Fool Australia has recommended PSC Insurance Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P 500 (INDEXSP: .INX) closed up 1.1% yesterday (overnight Aussie time).

That saw the benchmark US index end the day at a new record closing high of 5,175.2 points. And it puts the index up a whopping 34.2% in 12 months.

It was only back in late January that the S&P 500 broke into all-time highs for the first time in almost two years.

But as we’ve witnessed with the series of recent record-breaking days on the S&P/ASX 200 Index (ASX: XJO), stock market records are falling hard and fast in these early months of 2024. Though unlikely to break last Friday’s all-time highs, the ASX 200 is up 0.2% in late morning trade today.

Although not quite breaking its own recent record highs, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) closed up 1.5%.

The Nasdaq’s strong performance was helped by a 7.1% gain in the Nvidia Corporation (NASDAQ: NVDA) share price. With shares up 300.2% in a year, the artificial intelligence company now has an eye-popping market cap of $US2.3 trillion (AU$3.5 trillion).

And all this on the day that US core inflation data came in hotter than expected.

S&P 500 dodges inflation scare

Investors sent the S&P 500 into new record territory despite February’s core consumer price index (CPI) coming in slightly above consensus expectations.

Core CPI, which excludes food and energy costs, was up 0.4% from January and up 3.8% over the past year.

That remains well above the US Federal Reserve’s 2% inflation target range. But investors are still betting on a series of interest rate cuts in 2024 from the world’s most influential central bank.

Commenting on the record-breaking run on the S&P 500, Josh Gilbert, market analyst at eToro said there could well be more gains ahead.

“We see markets as fundamentally supported and driven by the improving earnings cycle and coming interest rate cuts, with the Fed set to cut as early as June this year,” he said.

Gilbert added:

Inevitable pullbacks should be seen as an opportunity as these twin pillars remain in place. The fear of investing at highs is misplaced, especially if fundamentals remain supportive, as we see now.

Regan Capital’s Skyler Weinand also sounded a bullish note on the outlook for the S&P 500 (quoted by Bloomberg).

“It’s proving difficult to see what may stop the market’s momentum, as earnings, inflation, and interest rates are moving in the right direction,” Weinand said.

Indeed, a bit of ‘sticky’ inflation data doesn’t seem to have stopped the positive momentum for the S&P 500 in the least.

The post US inflation is still running hot. So why did the S&P 500 just hit new record highs? 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 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.

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US tech stocks have powered the Nasdaq-100 Index (NASDAQ: NDX) to a new all-time high in March. It has climbed 53% in the past year and 66% since the beginning of 2023. The Betashares Nasdaq 100 ETF (ASX: NDQ) has seen a similar rise.

But has it risen so far that it’s now in bubble territory like we saw in 1999? Around 24 years ago there was a big crash in tech stock valuations after going to extraordinary levels.

Bubble territory?

There has been enormous interest in artificial intelligence, leading to rising share prices for names like Nvidia and Microsoft.

While there has been a lot of market excitement about those stocks, those businesses have seen a large increase in revenue and profit. In contrast, the dotcom bubble saw crazy valuations for businesses that weren’t making much revenue, or none at all.

The Australian reported on comments from David Philpotts, the Schroders head of strategy for QEP global shares.

He doesn’t think the AI boom is a repeat of the late 1990s, suggesting that share prices and valuations were “far more reasonable” than the dotcom boom and currently they’re “not particularly expensive”. He then said:

Because of its strong earnings growth, Nvidia is actually looking quite reasonable. But the key question is how long that strong earnings growth keeps coming through.

Nvidia is doing very well. It recently announced quarterly revenue of US$22.1 billion, which was a 265% rise year over year, while annual revenue was up 126% to US$60.9 billion.

The estimate on Commsec suggests the business is valued at 37 times FY25’s forecast earnings.

Philpotts suggested there isn’t an obvious catalyst to turn investors off (NASDAQ) AI businesses. That could be helpful for supporting the Betashares Nasdaq 100 ETF unit price if there’s no obvious troubling bad news on the horizon.

Goldilocks to be achieved for the NASDAQ?

Central banks like the RBA have been trying to engineer a situation soft landing that reduces inflation but doesn’t put economies into a painful recession. The Goldilocks situation is finding the right balance. Philpotts was quoted by The Australian, saying:

My caveat is that hard landings look soft originally but it looks like we’re going to have something more like a Goldilocks scenario.

But in terms of what that means for markets, I think we’re on the cusp now of moving beyond the fundamentals. I’m not saying we’re in a bubble, but you could argue there’s lots of good news in the price. We’ve got some uncertainty this year around elections and geopolitics more generally.

I don’t know what the catalyst is going to be, but there’s a lot of good news in the price.

In the early stages of bubbles, there’s often a big theme, like AI, there’s often a lot of liquidity – and it’s debatable how much liquidity is out there, but it doesn’t feel like we’re in a tight environment now.

Normally in a bubble there’s an excessive amount of retail participation, which is not really the case now, despite some recent commentary about retail buying of Nvidia. We’re not seeing a retail buying frenzy like we have seen in the past, so you could argue the case for a melt-up from here.

While the NDQ ETF and NASDAQ could go higher, solid ongoing revenue/earnings growth would be necessary to keep delivering good US share market returns over the longer term at this level. But Philpotts is “modestly positive” on the ‘magnificent seven’ NASDAQ stocks, though he is least positive on Tesla and Apple.

He suggests there are better opportunities outside of the US, though there is more “cyclical risk”.

I think there are still opportunities in the ASX share space.

The post Is the Nasdaq in a dotcom-style bubble? appeared first on The Motley Fool Australia.

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More reading

• Can you buy Nvidia shares on the ASX?
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• The Nasdaq just hit a fresh all-time high. What could it mean for Aussie investors?

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 positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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