Plenty of ASX tech shares have been smashed in 2022 as the impact of higher interest rates hit valuations.

For example, just look at the Xero Limited (ASX: XRO) share price which is down over 50%.

Just because a share price has fallen doesn’t mean that a company’s prospects have dimmed, it’s just that investors aren’t as willing to pay as much for that potential future.

But, even with lower prices, investors should still keep their investment criteria in mind.

How are we supposed to judge which ASX tech shares are worth investing in?

A leading fund manager from Wilson Asset Management has outlined some of the things that investors could look out for.

How WAM identifies ASX tech share opportunities

With everything that’s going on, fund manager Tobias Yao says that WAM continues to be “very selective” about tech and is drawn to defensive business models and the growth profiles of some of these companies. The valuation has come back “quite a bit”.

For WAM to be interested in that ASX tech share name, it has to tick three boxes:

• Delivering at a minimum of 10% to 15% of organic revenue growth
• Net cash balance sheet
• Strong operating leverage, while trading at a reasonable earnings multiple

Yao also said that WAM likes to look for founder-led businesses because of the stronger focus on costs.

If a business is growing at a double-digit rate, then this can help quickly grow its scale, which may enable a good compounding effect on profit over time.

‘Net cash’ means that a business has more cash on its balance sheet than debt. This could make it a safer investment proposition.

Operating leverage means that when revenue goes up, its profit is able to grow at a faster pace.

The fund manager concluded:

We believe these companies are the ones the market will gravitate towards when they look for growth. In-fact we’re already seeing some signs of this. In-fact we’re already seeing signs of this with private equity players and strategic buyers in the small cap tech space.

Examples

While the fund management team didn’t outline all of their ASX tech share positions, the monthly fund update for November 2022 revealed some of the positions including Life360 Inc (ASX: 360), REA Group Limited (ASX: REA) and Hub24 Ltd (ASX: HUB).

The post Look for these 3 factors in ASX tech shares for good returns: fund manager appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today
• Forget Core Lithium shares! Experts say these cheap ASX 200 shares could be better buys
• Top brokers name 3 ASX shares to buy next week
• Here are 3 ASX growth shares analysts rate as buys in 2023

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 Hub24, Life360, and Xero. The Motley Fool Australia has positions in and has recommended Hub24 and Xero. The Motley Fool Australia has recommended REA 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 countdown is now on for the new year as we soon wave goodbye to 2022. Another 12 months of abrupt twists and turns, and violent ups and downs for the stock market is almost at a close.

Few — if anyone — could have predicted the market-jolting events that transpired this year. Russia waging war on Ukraine, inflation reaching multi-decade highs across the developed world, interest rates rising at a record pace, geopolitical rumblings from China, and the passing of Her Majesty Queen Elizabeth II.

These events poured fuel on the fire of uncertainty burning away in the minds of investors in 2022. As a result, it’s proven a difficult year with the S&P/ASX 200 Index (ASX: XJO) retracing 6.8% from where it started the calendar period, as pictured above.

Next year will likely be just as unpredictable, but here are my four key predictions for 2023…

What I’m expecting for the stock market in 2023

Before we get stuck into it, I want to make it clear that these are merely my thoughts on what could happen. No one holds a crystal ball and, truthfully, I have a strong displeasure for making short-term predictions — the world likes to make fools of fortune tellers.

So take these predictions with a grain of salt.

Interest rates will steady

In my opinion, the most important piece of data for next year will be inflation. It has dominated the headlines this year and it will take centre stage again throughout 2023.

The latest data from the Australian Bureau of Statistics has household inflation at 7.3%. Meanwhile, the Reserve Bank of Australia is targeting 2% to 3%. To me, this would suggest further increases from the 3.1% rate early in the year.

Westpac and ANZ currently hold the highest rate forecasts at 3.85% in May 2023. I tend to agree with these estimates. However, I believe interest rates will hold steady at this level with most mortgages rolling off of their ultra-low fixed rates by June.

Companies will prioritise cost cuts

I suspect 2023 will the year of cost cuts. This isn’t exactly a bold prediction considering we’ve been seeing plenty of large companies already make substantial layoffs. Though, with interest rates staying high — stifling consumer demand — companies are likely to look inward to maintain profits.

But don’t take my word for it. Go google ‘cost cuts 2023’ and you’ll find some big-name companies anticipating the need for reduced expenses.

In terms of the stock market, listed businesses that are saddled up with lots of debt are going to be prone to the most drastic cuts. There is a chance investors will reward companies that were ahead of the curve — those that were running lean prior to the weaker environment.

Going private

2022 has seen its fair share of mergers and acquisitions. Although, private takeovers might be the flavour of 2023. I say this for three main reasons:

• Less focus on the share price, and more focus on operations during a potentially challenging time
• Private equity could be a source of cheap funding
• They remove the burden of reporting and ASX listing rules during a time when the usual benefit of a public listing (liquidity and easy access to capital) isn’t as prevalent

I wouldn’t be surprised to see some large ASX-listed shares opt for the quieter route if the market continues to struggle over the next 12 months.

Sideways grinding share market in 2023

Speaking of a struggling share market… my final prediction is that we’ll see markets trade sideways for most of 2023. I’d be fine with being proven wrong if it’s to the upside though!

But, in all seriousness, a sideways market can be a phenomenal opportunity to build positions in your highest conviction stocks. An investor’s superpower is to think in timeframes longer than the average person.

My ultimate prediction is that anyone who dollar-cost averages into a diversified portfolio throughout 2023 will be glad they did in the long run.

The post What’s next? My stock market predictions for 2023 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• How I’d invest $200 a month in ASX dividend shares to target a $14,000 passive income for life
• Guess which ASX 200 share is trading ex-dividend tomorrow
• 5 things to watch on the ASX 200 on Wednesday
• The ASX 200 share than turned a $5,000 investment into $2,400 of passive income in 2022

Motley Fool contributor Mitchell Lawler 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3 % to 7,086.4 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to fall again on Thursday following another poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 0.6%, the S&P 500 has fallen 0.7% and the NASDAQ has tumbled 1%.

Oil prices drop

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices dropped on Wednesday night. According to Bloomberg, the WTI crude oil price is down 1.15% to US$78.60 a barrel and the Brent crude oil price is down 1.7% to US$82.87 a barrel. Oil prices fell on Chinese demand concerns.

Lithium miners fall again

It could be another red day for lithium miners such as Mineral Resources Ltd (ASX: MIN) and Pilbara Minerals Ltd (ASX: PLS). On Wall Street, US-listed lithium miners SQM and Albemarle are trading lower in late trade. Concerns over electric vehicle demand and lithium prices appear to be behind this.

Star rated neutral

The Star Entertainment Group Ltd (ASX: SGR) share price could be fully valued according to analysts at Goldman Sachs. This morning, the broker has retained its neutral rating but slashed its price target by 34% to $1.90. Goldman said: “The NSW government’s proposed casino tax reforms pose a significant earnings risk for SGR’s Sydney casino.”

Gold price softens

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price softened overnight. According to CNBC, the spot gold price is down 0.5% to US$1,813.2 an ounce. A stronger US dollar put pressure on the precious metal.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today
• How I’d invest $200 a month in ASX dividend shares to target a $14,000 passive income for life
• Why are ASX 200 gold shares having such a top run today?
• What can ASX lithium share investors learn from Tesla discounting its cars?
• Guess which ASX 200 share is trading ex-dividend tomorrow

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 Novonix Ltd (ASX: NVX) share price tumbled to another 52-week low today.

Novonix shares fell 10.58% to $1.1.395 each on the market today. For perspective, the
S&P/ASX 200 (ASX: XJO) slipped 0.3% while the S&P/ASX All Technology Index dropped 1.24%.

Let’s take a look at what could be impacting the Novonix share price.

What’s going on?

Novonix is a battery materials technology company. ASX tech shares struggled after the Nasdaq Composite fell 1.38% in the US overnight.

Bond yields lifted higher, impacting growth shares including technology, CNBC reported. Truist Wealth co-chief investment officer Keith Lerner told the publication:

It’s basically the continuation of high yields depressing growth, with redistribution into other sectors that are smaller, but not big enough to change the headline index.

Novonix makes graphite anode materials for the lithium-ion battery supply chain. ASX lithium shares also struggled today. The Sayona Mining Ltd (ASX: SYA) share price sunk nearly 11% while Pilbara Minerals Ltd (ASX: PLS) shares fell nearly 4%.

It seems concerns about further interest rate rises and inflation could also be weighing on investor sentiment. Japan’s inflation lifted at its fastest pace since 1981 in November, Bloomberg reported.

Novonix reported a $71 million loss in the 2022 financial year. Higher interest rates also mean debt costs more.

In recent company news, Novonix recently downgraded its graphite anode materials production from the Riverside facility in the US. It is now expecting to produce 3,000 tonnes per annum (tpa) starting in 2024. As my Foolish colleague James reported, this is a significant drop from the company’s plan to produce 10,000 tpa of synthetic graphite in 2023.

Share price snapshot

The Novonix share price has fallen 84% in the last year.

For perspective, the ASX 200 has lost 4.5% in a year.

The post Why did the Novonix share price sink to a new 52-week low today? appeared first on The Motley Fool Australia.

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More reading

• Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today
• What can ASX lithium share investors learn from Tesla discounting its cars?
• Here are the 10 most shorted ASX shares
• 5 ASX lithium stocks to buy in 2023: brokers
• Is Core Lithium the next Pilbara Minerals?

Motley Fool contributor Monica O’Shea 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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After a really rough year, investors may wonder which ASX shares could be good performers in 2023.

2022 has seen plenty of volatility amid strong inflation and rising interest rates. But, just because conditions are difficult doesn’t mean there aren’t opportunities to be found. In fact, the lower share prices could mean there are better-priced opportunities.

The Australian Financial Review (AFR) asked for some recommendations from a number of fund managers that pick stocks for free for the Future Generation listed investment companies (LICs) of Future Generation Investment Company Ltd (ASX: FGX) and Future Generation Global Investment Co Ltd (ASX: FGG).

Here are three of the ASX shares that were chosen.

Seek Ltd (ASX: SEK)

Seek is the operator of a large employment website in Australia. It also has a presence in a number of other countries including Singapore, Brazil, Mexico, the Philippines and Vietnam.

According to the newspaper, Kyle Macintyre, investment director at Firetrail Investments, chose Seek as an opportunity after weakness in the Seek share price. It’s down 40% in 2022 to date. Growth in Seek’s Asian businesses is one of the things that Firetrail is attracted to.

The fund manager noted that the labour market may be weaker, hurting advertisement volumes and revenue. However, Macintyre pointed out that Seek is the market leader and, therefore, it has “underappreciated pricing power which can offset any potential slowdown in job ad volumes, allowing Seek to grow earnings despite the tougher macroeconomic environment”.

Ramsay Health Care Ltd (ASX: RHC)

Private hospital operator Ramsay Health Care is one of the world’s leading businesses in the sector, with a large presence in Australia, the United Kingdom and Europe. It was close to being taken over recently, but remains listed on the ASX.

The Ramsay share price is down more than 20% from April 2022. The AFR reported that Jun Bei Liu from Tribeca Investment Partners chose Ramsay thinking the ASX share can recover. While it does have a higher level of debt, this will seem “more reasonable” as hospital admissions “normalise” and COVID impacts subside. Jun Bei Liu said:

Ramsay is now very well positioned for a rapid recovery in earnings given the backlog of patients waiting for surgery in Australia, the Nordics and especially the UK. We are confident this will support elevated surgical volumes for an extended period.

RPMGlobal Holdings Ltd (ASX: RUL)

This ASX share may be the smallest of the three names by far, but it could have plenty of potential according to James Sioud, a portfolio manager from Regal Funds Management.

The RPMGlobal share price has dropped around 20% in the year to date.

But, good commodity prices could enable ASX mining shares to spend more on their tech budgets. The fund manager also said that the company’s position is boosted by “solid pricing power and switching costs”. The AFR quoted Sioud, who explained:

Whilst the mining industry has adopted cloud-based software much slower than other industries, we believe this transition is inevitable. RPMGlobal has spent the last decade preparing for this structural shift, spending almost $200 million building or acquiring software products, all of which are now cloud-enabled.

Foolish takeaway

It will be interesting to see how these three ASX shares perform and whether they are able to beat the market because of the reasons these fund managers have outlined.

The post 3 ASX shares tipped for market-beating returns in 2023: experts appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are 2 of the best ASX growth shares to buy in December: Morgans
• 5 popular ASX 200 stocks I’m avoiding, plus one that still looks dirt cheap
• 3 ASX 200 tech shares to buy now before the market wakes up: expert
• 3 best-performing ASX 200 healthcare shares in November

Motley Fool contributor Tristan Harrison has positions in Future Generation Global Investment Company and Future Generation Investment Company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended RPMGlobal. The Motley Fool Australia has recommended RPMGlobal and Seek. 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) are on course to start the week with a small decline. In afternoon trade, the benchmark index is down 0.3% to 7,086.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Block Inc (ASX: SQ2)

The Block share price is down 2% to $88.73. This follows a poor night of trade for the payments company’s shares on the NYSE on Tuesday night. Investors were selling Block and other tech shares on Wall Street amid concerns over rising interest rates.

Life360 Inc (ASX: 360)

The Life360 share price is down 6% to $4.77. Tech shares have come under pressure on Wednesday following the aforementioned weakness on Wall Street. Loss making tech shares have been hit hardest. This has led to the S&P/ASX All Technology Index falling by almost 1% this afternoon.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 3.5% to $3.66. Investors have been selling lithium miners again on Wednesday following a very poor night for their peers on Wall Street. The likes of Albemarle and SQM fell over 5% overnight, with Livent Corp not far behind with a 4% decline. Investors appear concerned over the outlook for lithium prices amid falling demand for electric vehicles.

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price is down 11% to $2.07. This also appears to have been driven by concerns over falling electric vehicle demand. Syrah is looking to supply the lithium battery industry with graphite from its operations in Africa and North America.

The post Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• What can ASX lithium share investors learn from Tesla discounting its cars?
• 5 things to watch on the ASX 200 on Wednesday
• 5 ASX lithium stocks to buy in 2023: brokers
• Here are 3 ASX growth shares analysts rate as buys in 2023
• Is Core Lithium the next Pilbara Minerals?

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. 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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ASX 200 gold shares are pushing higher on the market today.

Gold shares in the green include Evolution Mining Ltd (ASX: EVN), Newcrest Mining Ltd (ASX: NCM), and Northern Star Resources Ltd  (ASX: NST).

So why are ASX 200 gold shares on the rise today?

Gold price rises

Evolution shares are rising 1.68% today, while Northern Star shares are up 1.17%. Meanwhile, the Newcrest Mining share price is climbing 1.37% today.

All these ASX 200 gold shares are major producers of gold.

The gold price pushed higher overnight, as my Foolish colleague James reported this morning.

Spot gold lifted to its highest level in six months amid China’s reopening optimism weighing on the US dollar, Reuters reported.

Commenting on the gold price, RJO Futures senior market strategist Bob Haberkorn told the publication:

Gold is following the decisions by China to further ease COVID restrictionson the anticipation of higher demand from the region and in spite of rising yields.

The spot gold price is currently fetching US$1,817.60 an ounce, according to CNBC.

Share price snapshot

The Northern Star share price has risen 21% in the last year.

The Evolution Mining share price has fallen 25% in the past 52 weeks.

The Newcrest share price has slid nearly 13% in the past year.

The post Why are ASX 200 gold shares having such a top run today? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why BWX, Earlypay, Evolution, and Pointsbet shares are dropping today
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Could ASX 200 gold shares be ‘at another pivot point’?

Motley Fool contributor Monica O’Shea 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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Are you looking for retirement portfolio options for 2023? If you are, then you may want to look at the quality ASX 200 shares listed below.

Here’s why these shares could be top options for retirees:

Centuria Industrial Reit (ASX: CIP)

The first ASX 200 share to consider for a retirement portfolio is Centuria Industrial.

It is an industrial-focused property company that owns a portfolio of high quality industrial assets that has been constructed with the aim of delivering consistent income and capital growth to investors.

Centuria Industrial highlights that its portfolio is heavily weighted to areas of the economy that are in demand from tenants. This includes properties linked to the production, packaging, and distribution of consumer staples, telecommunications and pharmaceuticals.

One leading broker that is positive on Centuria Industrial’s outlook is Ord Minnett. It currently has a buy rating and $3.50 price target on its shares. The broker is also forecasting dividends per share of 16 cents in FY 2023 and FY 2024.

Based on the current Centuria Industrial share price of $3.16, this represents yields of 5% in both years.

Transurban Group (ASX: TCL)

Another ASX share that could be a good option for a retirement portfolio is this leading toll road operator. Transurban owns a portfolio of roads in Australia and North America, as well as a significant project pipeline that could support its growth in the coming years.

After struggling during the pandemic, the company has bounced back and traffic volumes are now booming again. Combined with its positive exposure to inflation, Transurban has been tipped to grow at a solid rate in the coming years.

Macquarie is positive on the company. It currently has an outperform rating and $14.19  price target on its shares.

In addition, the broker is forecasting dividends per share of 53 cents in FY 2023 and then 56.5 cents in FY 2024. Based on the current Transurban share price of $13.58, this will mean yields of 3.9% and 4.2%, respectively.

The post Analysts name 2 quality ASX 200 shares for a retirement portfolio appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 share is trading ex-dividend tomorrow
• Building a retirement income portfolio? Buy these unstoppable ASX dividend shares – analysts
• 3 ASX shares to buy for a possible recession next year
• Could this quiet pocket of the market be an ASX index outperformer through inflation?
• Here are the top 10 ASX 200 shares 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 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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It has been a difficult year for Brainchip Holdings Ltd (ASX: BRN) shares.

In morning trade, the semiconductor company’s shares are up 1% to 66.2 cents. However, despite this, the Brainchip share price is still down 16% since the start of the year.

But as you can see below, this is only telling half the story. At one stage, the company’s shares were up as high as $2.34.

From that level, its shares have lost a whopping 72% of their value.

Will 2023 be better for the Brainchip share price?

Whether 2023 will be better for the Brainchip share price will almost certainly depend on its revenue generation.

With a market capitalisation of $1.1 billion, Brainchip appears to be priced for success. And with short sellers building positions, there could be an almighty crash if the company doesn’t start justifying its valuation in the coming quarters with some significant revenue.

Especially after management hyped up its sales potential in its most recent quarterly update. Brainchip’s CEO, Sean Hehir, said:

We are seeing the greatest amount of sales activity and engagement in the Company’s history.

Will Brainchip deliver?

It is worth remembering that there’s certainly no guarantee of success in an extremely competitive industry dominated by behemoths such as AMD, Intel, Nvidia, and Qualcomm.

In addition, Brainchip has a terrible record of delivering on its lofty goals. Since being acquired by a mining company called Aziana back in early 2015, the company has announced countless agreements that have gone nowhere.

Time will tell if history repeats itself and shareholders get burned in 2023.

Perhaps the only thing that you could guarantee in 2023 is management being issued millions more Brainchip shares with extremely low hurdles.

The post Will 2023 be a rewarding year to own Brainchip shares? 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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The Pointsbet Holdings Ltd (ASX: PBH) share price has returned from the Christmas break in fine form.

In morning trade, the sports betting company’s shares are up over 10% to $1.49.

Why is the PointsBet share price jumping?

Investors have been scrambling to buy PointsBet shares on Wednesday after the company confirmed speculation that it could be looking at divesting one of its operations.

PointsBet advised that as part of its ordinary course of business, it routinely explores options to maximise value for shareholders. This includes evaluating proposals from third parties that are received from time to time.

On this occasion, the company has confirmed that it has received a proposal from NTD Pty Limited, which is the owner and operator of rival Betr.

According to the release, PointsBet is currently in discussions with NTD regarding a potential transaction involving the sale of its Australian trading business. However, it notes that any potential transaction will be assessed in the context of PointsBet’s global strategy and opportunities.

At the last count, PointsBet had 231,627 active punters in Australia and generated quarterly turnover of $631.4 million and net win of $47.5 million from them during the first quarter of FY 2023.

No details have been provided in respect to how much PointsBet could receive for the business. Though, it is worth noting that Goldman Sachs values the business at 10x EBITDA, which equates to approximately $80 million based on FY 2022’s segment EBITDA. So, a premium to this is likely to be expected by the market.

In addition, it notes that the discussions between the two parties are incomplete and preliminary in nature. It also warned that there is no certainty that these discussions will result in any binding transaction.

PointsBet advised that it will keep the market updated in accordance with its continuous disclosure obligations.

The post Why is the PointsBet share price jumping 10% 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 positions in and has recommended PointsBet. The Motley Fool Australia has recommended PointsBet. 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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