Many of Australiaâs top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.
Three ASX shares brokers have named as buys this week are listed below. Hereâs why they are bullish on them:
According to a note out of Bell Potter, its analysts have retained their buy rating on this footwear retailerâs shares with an improved price target of $2.10. This follows the release of a trading update which revealed strong sales growth and margin expansion financial year to date. Bell Potter believes that the company is well-placed going into the key seasonal period, particularly given its healthy inventory position. The Accent share price is trading at $1.69 on Wednesday afternoon.
A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this location technology companyâs shares with an improved price target of $8.40. Goldman Sachs was pleased with Life360âs quarterly update and believes it reinforces its view that the company is executing well on its long-term strategy to grow subscription lifetime value. The Life360 share price is fetching $6.85 this afternoon.
Analysts at Macquarie have retained their outperform rating and $14.00 price target on this insurance giantâs shares. According to the note, the broker has been looking at a number of industry updates and has been pleased with what it saw. Overall, it remains confident that QBE is performing in line with expectations and highlights that its shares are trading at a discount to global peers. The QBE share price is trading at $11.92 today.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended Accent 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Of all the tech titan stocks that have been clobbered this year, Amazon (NASDAQ: AMZN) is arguably one of the more surprising losers. Shares of the e-commerce and cloud computing giant have fallen over 40% so far in 2022. That fall comes despite Amazon holding onto the retail gains it picked up during pandemic lockdowns, and the continual growth in its AWS [Amazon Web Services] cloud segment by a strong double-digit percentage. Â
Investors weren’t pleased with the Q3 2022 report. Management indicated more slowing growth could lie ahead as a record run-up in the dollar (a result of the U.S. Federal Reserve’s huge interest rate increases this year). But, despite this weakness, Amazon is putting massive amounts of cash to work to bolster its most important business. Is now a once-in-a-decade buying opportunity for this top tech stock?
Re-allocating investments from e-commerce to tech
Amazon CFO Brian Olsavsky said on the last earnings call that the company was going to wind up allocating about $60 billion on capital expenditures (or capex, spending on property, plant, and equipment) in 2022. This figure is roughly in line with capex spend in 2021, even though Amazon’s growth has slowed significantly. This level of capex also dwarfs the capex spend of fellow tech titans — even Meta Platforms(NASDAQ: META) and its huge bill on data center equipment in support of its metaverse aspirations. Â
Why does Amazon spend so much more on capex than its peers? For one thing, Amazon isn’t just tech. It’s also an online retailer. While an online store like Amazon looks like an asset-light business, it isn’t. Behind the scenes, Amazon has been spending heavily on things like distribution centers and delivery services to accommodate the explosion of sales it picked up in 2020 and 2021.
But there’s something interesting going on with Amazon’s capex. Specific numbers were not revealed, but Olsavsky said that $10 billion in capex has been reduced from fulfilment and transportation projects as e-commerce has quieted down. However, that $10 billion has been reallocated to “technology infrastructure, primarily to support the rapid growth, innovation and continued expansion of … [its] AWS footprint.”
Betting big on the business that matters most
This is incredibly significant, especially considering that the AWS cloud computing segment is — and has been for years now — the primary engine of Amazon’s profitable growth. You see, as great as a seemingly endless collection of products and fast delivery times may be, e-commerce just isn’t all that profitable a business for Amazon. Add-on services via Amazon Prime and selling ads within its marketplace are. But at the end of the day, it’s AWS that’s generating the positive income.Â
Amazon segment
First nine months 2022 operating income (Loss)
Operating margin (as % of segment revenue)
North America
($2.61 billion)
-1.2%
International
($5.52 billion)
-6.6%
AWS
$17.6 billion
30%
Data source: Amazon
But why allocate so much extra capex to AWS now, especially given the tough economic climate we’re weathering right now? After all, lots of companies out there are cutting spending to boost profits. It was even reported that AWS customers have been working with the company to reduce their spending on the cloud right now, by switching to lower-cost computing workloads and services.
As a result, while AWS has grown revenue by 32% so far in 2022, management indicated Q4 year-over-year growth was trending toward just a mid-20% growth rate. Meanwhile, Amazon has dipped deep into the red as it puts lots of money to work to promote future (and uncertain) growth. Free cash flow (operating income minus capex) was negative $26 billion over the last 12 month stretch. Â
Nevertheless, Amazon sees a big opportunity, so it’s expanding its cloud footprint into new geographies and bolstering its capabilities in existing data centers. Just as disruption from the pandemic forced many organizations around the globe to accelerate their adoption of the cloud, Olsavsky said inflation (especially in energy and computing hardware costs) is having a similar disruptive impact right now. By switching their tech infrastructure to a cloud provider like AWS, a company can ultimately get more flexible with, or reduce, their expenses. Olsavsky explained:
[T]he benefit of cloud computing is really showing up right now because we allow customers to turn what can normally be a fixed expense into a variable expense, and they can let us manage the highs and lows of inflation and other cost of electricity and everything else. And they can get … to do their business using our services in a very highly secure way. So I think just like in 2020, these time periods are good for long-term adoption on cloud computing. But the offset in the short run is that some companies have demand that drops.
Long story short, Amazon sees behavior-altering changes happening in the economy right now, which spells opportunity for AWS to get aggressive and acquire lots of new customers. Wall Street clearly isn’t comfortable with the company spending so heavily, but what else is new? This is far from uncharted territory for Jeff Bezos’ empire. If AWS’s expansion right now pays off like it has in times past, Amazon stock’s giant drop this year can mean opportunity for farsighted investors as well.
Of course, since Amazon has fallen into unprofitability at the moment, it’s difficult to accurately stick a fair value on shares. However, management also said it expects to taper down its aggressive spending in the coming years, which would create some earnings leverage. In other words, this stock is incredibly cheap right now. That is, of course, assuming you think Amazon’s profitability, as measured by earnings per share, will sharply spike at some point in the next couple of years, and then level back off to a high single-digit or low-teens percentage growth rate after that. (Or if you think free cash flow will spike and turn positive again).
If you have ever felt like you missed the boat on Amazon stock over the last decade, now looks like a prime opportunity to buy.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
Despite what some people may say – we believe investing in shares doesnât have to be overwhelming or complicatedâ¦
For over a decade, weâve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion âexperts” seem to want to perpetuate – weâve created a brand-new âhow toâ guide.
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Foolâs board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Nicholas Rossolillo and his clients have positions in Amazon and Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Meta Platforms, Inc. The Motley Fool Australia has recommended Amazon and Meta Platforms, Inc. 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 Treasury Wine Estates Ltd (ASX: TWE) share price has done well, rising by around 5% over the past week.
That compares to the S&P/ASX 200 Index (ASX: XJO), which only went up by around 2%, so it has materially outperformed.
The winemaker hasnât announced anything recently. But, it may be whatâs going on elsewhere in the world that could be helping boost the Treasury Wine Estates share price.
Thawing of relations
The last few years have been difficult for TWE, as China put tariffs on the Australian wine sector. Treasury Wine Estates saw a sizeable chunk of its earnings dry up. The company has been hard at work finding new markets to sell its wine, and (in my opinion) been largely successful with this strategy.
However, since the change of Australian Government, there has been a slow but steady shift in communication between the two countries.
It culminated earlier this week when Prime Minister Albanese met with Chinaâs leader, Xi Jinping. This was the first meeting between leaders of the two countries in years.
As reported by the ABC, Albanese said ahead of the meeting that even having a meeting with Australiaâs largest trading partner was a âsuccessful outcomeâ.
The meeting was reportedly 32 minutes long, which was 12 minutes longer than originally scheduled.
The ABC reported that Xi said China and Australia should âimprove, maintain, and develop” the relationship, which has “encountered some difficulties” in the past few years. That sounds like a promising thing for the TWE share price, right?
Xi also said that âChina-Australia relations have long been at the forefront of China’s relations with developed countries, and they deserve to be cherished by usâ.
Albanese seemed pleased with the meeting, calling the talks âwarmâ and âconstructiveâ. The PM also said that both countries took an important step to âmoving forwardâ.
The ABC quoted Albanese saying:
There are many steps, of course, that we are yet to take⦠we will cooperate where we can, [and] disagree where we must act in the national interest.
At this stage, there was no official announcement on wine tariffs, or any of the commodities that China has put tariffs on.
The media outlet suggested that there are conditions â that China âwants to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and wants Australia to continue its one-China policy.â Also, the ABC reported that Xi wants Australia to see China as a partner, not a rival.
Foolish takeaway
Any progress that Australia can make that would help the wine industry may seemingly be a benefit for the Treasury Wine Estates share price.
Any change may take a while, and if tariffs are changed it may only be a reduction. Weâll have to see what happens next. Regardless, the business is growing in other markets to make up for the loss of Chinese sales.
The TWE share price is still down more than 20% from the pre-COVID price.
Despite what some people may say – we believe investing in shares doesnât have to be overwhelming or complicatedâ¦
For over a decade, weâve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion âexperts” seem to want to perpetuate – weâve created a brand-new âhow toâ guide.
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 recommended Treasury Wine Estates Limited. 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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As for the rest of the top 10 on the ASX 200 today, they’re all ASX mining shares but represent a big range of metals and minerals. And not an iron ore share in sight.
Top 10 ASX 200 shares today
Nufarm was leading the pack until ASX copper share, Sandfire Resources Ltd (ASX: SFR) rose to the top.
The Sandfire Resources share price is 7.3% higher at $4.97.
ASX coal shares followed second-placed Nufarm, with Whitehaven Coal Ltd (ASX: WHC) shares up 6.99% to $8.81 and New Hope Corporation Limited (ASX: NHC) shares up 5.08% to $5.59.
Then came ASX mineral explorerIGO Ltd (ASX: IGO). The nickel and lithium miner’s share price is up 4.69% to $16.08.
Next is rare earths miner, Lynas Rare Earths Ltd (ASX: LYC). Lynas shares are up 4.58% to $8.79.
Another ASX coal share, Coronado Global Resources Inc (ASX: CRN) takes seventh place. Coronado shares are up 2.95% to $2.10.
Nickel miner Nickel Industries Ltd (ASX: NIC) is rounding out the top eight ASX 200 shares today, up 2.83% to 98 cents.
Despite what some people may say – we believe investing in shares doesnât have to be overwhelming or complicatedâ¦
For over a decade, weâve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion âexperts” seem to want to perpetuate – weâve created a brand-new âhow toâ guide.
Motley Fool contributor Bronwyn Allen has positions in Allkem Limited. 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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As might have been expected, a major cyberattack suffered by the company was a huge topic of conversation at the event. Medibank CEO David Koczkar reiterated that not paying a ransom demanded by the hacker was “the right thing to do”.
Such comments followed reports the cybercriminals were holding off from publishing more stolen information in the prospect of “something meaningful” happening today.
Right now, the Medibank share price is 0.18% higher at $2.815. Though, that’s around 20% lower than it was prior to the attack â some brokers now believe the stock oversold, my colleague Tristan reports.
Comparatively, the S&P/ASX 200 Index (ASX: XJO) is down 0.36% today. The stock is also outperforming its home sector â the S&P/ASX 200 Financial Index (ASX: XFJ) has fallen 1.37% on Wednesday.
Let’s take a closer look at the latest from the embattled health insurer.
Medibank share price lifts following AGM
The Medibank share price is gaining this afternoon. Its lift comes after the company’s leaders doubled down on the decision not to pay a ransom for stolen data. Chair Mike Wilkins told today’s meeting:
Based on extensive advice from cybercrime experts, we formed the view that there was a limited chance paying a ransom would ensure the return of our customers’ data and prevent it from being published.
In fact, the advice we have had is that to pay a ransom could have had the opposite effect and encouraged the criminal to directly extort our customers, and put more people in harm’s way by making Australia a bigger target.
Koczkar came in with more gusto. He called the attack “a watershed moment” and a reminder of “the new frontier in cybercrime”:
We are steadfast in our resolve to NOT reward this criminal behaviour, nor to strengthen a business model that is based on extortion.
While we unreservedly apologise for the impact of the release of the data, we cannot as a community, pay criminals who are likely to continue to extort us all â particularly when there is no guarantee that the criminal would ever delete the data. As I’ve said before, you cannot trust a criminal.
On top of an ongoing investigation by the Federal Police and Australian Cyber Security Centre, Medibank has commissioned Deloitte to conduct an external review.
The company will begin informing the 480,000 customers whose data was recently verified as having been stolen today. It will also be contacting those whose health data is published on the dark web within 48 hours of the hackers posting it.
What else went down at the Medibank AGM?
The company’s leaders also reiterated its financial year 2022 earnings, the withdrawal of its policy growth guidance, and the estimated $25 million to $35 million cost of the attack.
Koczkar also said, as of 12 November, Medibank’s resident policyholder numbers had grown by around 14,500 since the end of June.
Additionally, it’s seen around 14% customer growth in its non-resident business since the end of June 2022. That leaves the number of customers in its non-resident portfolio at pre-pandemic levels.
Koczkar continued:
The rising cost of living has presented a challenge for many households and yet a record number of Australians continue to take out private health insurance, putting their health and wellbeing first.
Consumers no longer see health spending as discretionary and are actually spending more on their health than before the pandemic.
Finally, shareholders passed all resolutions put forward today.
Peter Everingham and Kathryn Fagg stood for election to the company’s board. Meanwhile, Linda Bardo Nicholls and David Fagan sought re-election.
Shareholders also voted on the company’s remuneration report and certain amendments to its constitution. Most of the amendments related to developments in the law, ASX listing rules, and corporate governance practices.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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A former head of Tesla’s Australian arm has pleaded guilty to insider trading of ASX shares.
Sydney Downing Centre local court on Tuesday heard Kurt Schlosser plead guilty to one count of trading while in possession of inside information and one count of communicating inside information to an associate.
The offences related to Schlosser’s knowledge back in September 2020 that Tesla Inc (NASDAQ: TSLA) had signed an in-principle agreement with Piedmont Lithium Inc (ASX: PLL) to supply the car maker with lithium.
The court heard the country director of Tesla Australia bought 86,478 shares in Piedmont on 16 September 2020 before the deal was revealed publicly.
After the supply agreement was announced to the market, Schlosser sold his stocks for a profit of $28,883.53.
The director also told the inside information about the Piedmont deal to a friend on 16 September 2020, knowing that the acquaintance would likely buy shares in the miner.
Each breach carried a maximum penalty of 15 years of imprisonment at the time of the offences.
Schlosser will appear on 16 December in the Sydney District Court for sentencing.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
Motley Fool contributor Tony Yoo 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 Tesla. 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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What a dreary week it is turning out to be for the S&P/ASX 200 Index (ASX: XJO) this week. The ASX 200 looks set to record another loss this Wednesday, in what would be its third of the week. At the time of writing, the index is down by 0.37% at around 7,115 points.
But rather than letting that get us down, let’s check out the ASX 200 shares currently at the top of the share market’s trading volume charts, according to investing.com.
The 3 most traded ASX 200 shares by volume this Wednesday
First up today is the ASX 200 gold miner Gold Road Resources. This Wednesday has seen a sizeable 10.65 million Gold Road shares exchanged on the markets thus far. There has been no news or announcements out of this miner today.
Therefore, it seems likely that this high trading volume is a result of the machinations of the Gold Road share price itself. At present, the miner has lost a nasty 0.8% and is down to $1.65 a share.
But Gold Road has swapped between green and red all day, and rose as high as $1.68 a share around lunchtime before falling back to its present level.
Next up is the ASX 200 lithium stock Core Lithium. A notable 31.73 million Core Lithium shares have been bought and sold on the ASX this Wednesday. Core Lithiumhas had an absolutely wild week. Monday saw the lithium share gain almost 12%, while yesterday had Core Lithium lose it all and then some with a 15.8% drop.
Today, the company is down another 4.5% at $1.50 a share. All of this bouncing around seems to be the smoking gun for the elevated volumes we are seeing.
Last but certainly not least, we have another ASX 200 lithium share in Pilbara Minerals. Today we have seen a hefty 32.11 million Pilbara shares change hands as it currently stands. Unlike Core Lithium, Pilbara shares are having a stellar day. The company is presently up a healthy 2.8% at $4.96 a share.
Despite what some people may say – we believe investing in shares doesnât have to be overwhelming or complicatedâ¦
For over a decade, weâve been helping everyday Aussies get started on their journey.
And to help even more people cut through some of the confusion âexperts” seem to want to perpetuate – weâve created a brand-new âhow toâ guide.
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 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 Arafura Rare Earths Ltd (ASX: ARU) share price is back on form on Wednesday.
In afternoon trade, the rare earths developerâs shares are up 16% to 41 cents.
Why is the Arafura share price racing higher?
The strong gain by the Arafura share price on Wednesday appears to have been driven by the release of an announcement yesterday afternoon which was overshadowed by a broad selloff in the battery materials space.
So, with battery materials shares recovering today, investors seem to be paying more attention to the announcement.
What did Arafura announce?
Yesterdayâs announcement revealed that the Mining Management Plan (MMP) for the companyâs 100% owned Nolans Neodymium-Praseodymium (NdPr) project has been approved by the Northern Territory Government.
This mining authorisation allows Arafura to mine, construct, and operate the Nolans Project.
This approval validates the enormous amount of hard work undertaken since ramping up the Environmental Impact Studies in 2014. It provides the framework, along with our ESG commitment to transparency and openness, that will ensure we minimise the impact of the Nolans Project on the unique Central Australian Arid Zone environment.
This approval, following the recent Hyundai/Kia Offtake Agreement and Project Update, adds to the momentum that should allow Arafura to commence procurement and construction, with FID expected to occur in early 2023.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
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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At the time of writing, the ASX All Ords share is trading for 63 cents. This is just a tad beneath its intraday high of 66 cents, which reflects a 22.22% bump on yesterday’s closing price of 54 cents.
Sezzle’s good news is also pushing up other ASX BNPL shares today. At their intraday peaks, the Zip Co Ltd (ASX: ZIP) share price was 21.4% higher and the Splitit Ltd (ASX: SPT) share price lifted by 14.3%.
By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is down 0.35% at the time of writing.
What news is rocketing this ASX All Ords share higher?
Sezzle’s October business update released today revealed an 18% boost to income year over year.
In its statement, the company said “significant progress continues to be made towards profitability”.
Sezzle reaffirmed that it was on track to successfully deliver US$60 million in annualised revenue and cost savings over 1Q FY23.
The company raked in US$11.5 million in October, up 8.7% on the month prior. That’s a new high as a percentage of underlying merchant sales (UMS).
UMS is used as a measure of Sezzle’s revenue because charging merchant fees is one way it makes money. UMS came in at 7.8% in October — a 190 basis points lift year over year.
The net loss for October was US$1.5 million, compared to an average monthly net loss of US$8.6 million over the fourth quarter of FY21.
The adjusted EBTDA for October was negative US$200,000, compared to an average monthly adjusted EBTDA of negative US$8.2 million in Q4 FY21.
What did management say?
Charlie Youakim, Sezzle chair and CEO, said:
Our path to profitability is not just about cost cutting, but also growing revenue. October was the Company’s second-best performance ever, in terms of revenue.
We are looking forward to the upcoming holiday season and expect to reach new highs in top line performance.
We are even more excited about 2023, as we expect to turn the corner in profitability and launch additional revenue generating and cost savings initiatives beyond the US$60.0M announced in 2022.
Sezzle and Zip mutually agreed to call off their proposed merger earlier this year.
Pending headwind for BNPL shares?
Some BNPL shares did not receive as much of a kick today. At the time of writing, Humm Group Ltd (ASX: HUM) shares are up 1.82% and Block Inc CDI (ASX: SQ2) shares are up 0.61%.
As we reported earlier, the BNPL sector is awaiting the release of a federal government options paper, which will propose three new models for tighter regulation of the fast-growing industry.
New regulations may present challenges for ASX All Ords shares in the BNPL space. This is because investors generally assume that greater regulation on any business will have a negative impact.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
Motley Fool contributor Bronwyn Allen has positions in ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Humm Group Limited. 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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WAM Leaders’ board declared a 4 cent per share interim dividend and a 4 cent per share final dividend in FY 2022. Shareholders received the interim dividend on 29 April. The final dividend will be paid out two weeks from today, on 30 November.
But as we said, WAM trades ex-dividend tomorrow. So in order to pocket that income, investors will need to own shares before today’s closing bell.
The 8 cent per share total, fully franked dividend payout to longer-term shareholders this year represents a record payout and a 14.3% lift from the prior year. At the current share price of $1.55 this represents a 5.2% trailing yield.
WAM Leaders was able to make the record full-year and interim dividend payments after it delivered record investment outperformance in FY 2022. The LIC’s gross portfolio return over the financial year came in at 9.7%, which beat the S&P/ASX 200 Accumulation Index (ASX: XJOA) by a record 16.2%.
This came despite a year of significant market volatility. Or perhaps because of it.
According to WAM Leaders lead portfolio manager of Matthew Haupt, “We welcome periods of uncertainty and volatility, and expect inflection points over the coming year will present further opportunities for our shareholders.”
WAM Leaders share price snapshot
Atop its juicy dividend offer, the WAM Leaders share price has gained 4.2% in 2022. That compares to a 7.6% loss posted by the All Ordinaries Index (ASX: XAO).
Mammoth dividend yields may look good on the surface⦠But just because a company is writing big cheques now, doesnât mean itâll always be the case. Right now âdividend trapsâ are ready to catch unwary investors as they race to income stocks to fight inflation.
This FREE report reveals three stocks not only boasting sustainable dividends but also have strong potential for massive long term returnsâ¦
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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