Given the market’s aversion for loss-making tech stocks, Brainchip Holdings Ltd (ASX: BRN) shares would likely be given a major boost if the semiconductor company became profitable.

But what are the chances of that happening in 2023?

Will Brainchip be profitable in 2023?

Unfortunately, it is difficult to say if Brainchip will be profitable this year. However, it seems highly unlikely that it will be profitable any time soon given that it has just diluted shareholders by raising funds through its agreement with alternative investment company LDA Capital.

Brainchip is issuing LDA Capital with 30 million shares (and possibly 10 million more if shareholders approve) at a yet to be determined price.

You would imagine that if it were confident that its sales would grow enough to reach profitability, it wouldn’t be seeking these funds.

No broker coverage

Unlike almost all ASX 200 shares, Brainchip doesn’t have any coverage by the major brokers.

This could mean that analysts don’t believe the company is investment grade.

As well as being a bit of a red flag, it also means investors can’t use broker data as a guide for if and when the company achieves profitability.

Big quarterly update coming

In light of the above, investors may want to look out for the company’s upcoming quarterly update.

For a couple of quarters, the company has been talking up its sales pipeline. For example, in its last quarterly update, which saw Brainchip report pitiful cash receipts of US$100k, its CEO Sean Hehir commented:

We are seeing the greatest amount of sales activity and engagement in the Company’s history […] We remain positive on future market penetration and broad adoption of Brainchip’s technology.

Its next update will likely demonstrate whether there is meaningful demand for its technology in a market dominated by tech behemoths and whether it deserves its whopping $1.2 billion market capitalisation.

And with short sellers targeting the company, shareholders will no doubt be hoping Brainchip delivers the goods.

Time will ultimately tell if Brainchip can become profitable and be more than just a meme stock.

The post Will BrainChip turn a profit in 2023? appeared first on The Motley Fool Australia.

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More reading

• Why Brainchip, Core Lithium, Deterra Royalties, and Mesoblast shares are falling
• Why Brainchip, IAG, Premier Investments, and Telix shares are sinking today
• Here’s why the Brainchip share price is sinking 6% today
• Here are the top 10 ASX 200 shares today
• ASX 200 tech shares are leading the market higher 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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The S&P/ASX 200 Index (ASX: XJO) fell on Tuesday, posting its third – albeit small – decline of 2023. The index ended the day 0.03% lower at 7,386.3 points.

It was a mixed session across the market, with the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) leading the way.

The sector gained 1.8%, led by shares in supermarket operators Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), and Metcash Limited (ASX: MTS).

Meanwhile, the S&P/ASX 200 Utilities Index (ASX: XUJ) weighed heaviest, falling 1.2% as the Origin Energy Ltd (ASX: ORG) share price dumped 2.1%.

The company announced the consortium looking to snap it up has requested more time to complete due diligence.

 Mining shares also suffered today, with the S&P/ASX 200 Materials Index (ASX: XMJ) falling 1.1%.

So, after considering all that, let’s take a look at the 10 shares taking out the top spots on the ASX 200 on Tuesday.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was battery materials and technology provider Novonix Ltd (ASX: NVX). The stock leapt 5.5% to close at $1.92 despite the company’s silence.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Novonix Ltd (AS: NVX)	$1.92	5.49%
Metcash Limited (ASX: MTS)	$4.13	2.74%
Johns Lyng Group Ltd (ASX: JLG)	$6.07	2.71%
Orora Ltd (ASX: ORA)	$3.04	2.7%
Woolworths Group Ltd (ASX:WOW)	$34.76	2.45%
Endeavour Group Ltd (ASX:EDV)	$6.49	2.04%
Coles Group Ltd (ASX: COL)	$17.15	2.02%
Charter Hall Group (ASX: CHC)	$13.45	1.97%
Goodman Group (ASX: GMG)	$19.42	1.94%
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)	$22.77	1.83%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Why I’ll be buying more ASX dividend shares for my portfolio in 2023
• ‘Upwards trend to continue’ for this ASX 200 gold share: expert
• Buy ‘underappreciated’ Origin Energy shares for 20% upside: Morgan Stanley
• 5 things to watch on the ASX 200 on Tuesday

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 positions in and has recommended Johns Lyng Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool Australia has recommended Johns Lyng Group and Metcash. 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 recent run for the S&P/ASX 200 Index (ASX: XJO) and ASX shares seems to have come to an end, at least so far this Tuesday. 

At the time of writing, the ASX 200 has slipped by a small but still significant 0.1% to just over 7,380 points. That was despite a brief foray into positive territory around midday. 

But rather than dwelling on that, let’s instead check out the ASX 200 shares that are 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 Tuesday

Pilbara Minerals Ltd (ASX: PLS)

First up today is a common appearance on this list, the ASX 200 lithium heavyweight Pilbara Minerals. So far this Tuesday, a chunky 17.5 million Pilbara shares have been exchanged on the share market. There’s been no official news out of Pilbara Minerals today.

So it’s possible that this volume is down to the movements of Pilbara shares themselves. At present, this leading lithium producer has just scraped back into the green, up 0.25%, and is sitting at $4.05 a share.

However, Pilbara shares have been very bouncy today, and have traded between $3.95 and $4.08 each. Also assisting volumes could be the speculation that Pilbara could announce its maiden dividend in 2023.

Tabcorp Holdings Ltd (ASX: TAH)

Next up, we have the ASX 200 gaming company Tabcorp. Thus far, 19.62 million Tabcorp shares have been wagered on the share market.

Tabcorp hasn’t made any announcements whatsoever in 2023 yet. So we can rule out that. So again, let’s turn to the company’s share price performance today. Tabcorp opened strongly this morning, rising as high as $1.20 a share.

But investors have gotten cold feet over the gaming company, with Tabcorp shares now down 1.35% at $1.095 each. This bouncy performance, together with Tabcorp’s relatively low share price compared to its market capitalisation is probably the cause of this elevated volume.

Core Lithium Ltd (ASX: CXO)

Last up this Tuesday is another ASX 200 lithium share in Core Lithium. This Tuesday’s session has seen a decent 20.27 million Core shares bought and sold as it currently stands. There hasn’t been much out of Core either.

So again, we probably have the company’s share price movements to thank for this volume. Core Lithium has fared far worse than Pilbara today, with the company shedding a nasty 4.69% so far to $1.015 a share. That’s without the midday pop into positive territory that Pilbara enjoyed too.

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why I’ll be buying more ASX dividend shares for my portfolio in 2023
• 3 catalysts for Core Lithium shares to rip higher in 2023
• ‘Upwards trend to continue’ for this ASX 200 gold share: expert
• Buy ‘underappreciated’ Origin Energy shares for 20% upside: Morgan Stanley
• Can Pilbara Minerals shares really deliver an 8% dividend yield in 2023?

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 Lake Resources N.L. (ASX: LKE) share price has climbed nearly 3% year to date, but can it keep going higher?

Lake shares are rising 1.54% today and are currently fetching 82.3 cents. For perspective, the S&P/ASX 200 (ASX: XJO) has climbed 0.13% today.

Let’s take a look at the outlook for Lake Resources in 2023.

Lithium exploration and extraction progress

Lake Resources is a lithium developer working to extract high purity lithium from the Kachi Project in Argentina. Lake Resources is also developing three other lithium brine projects in Argentina.

Any progress on lithium extraction at the company’s projects could provide a boost for Lake Resources shares in 2023.

Lake shares leapt higher on 10 January on news of important milestone achievements at the Kachi project. Lake’s direct lithium extraction technology partner Lilic has managed to operate the lithium processing demonstration plant for 1,000 hours, producing 40,000 litres of lithium chloride. This will be shipped to Saltworks for conversion to lithium carbonate.

In other recent news, the mineral resource estimate at the Kachi project has now doubled to 2.2 million tonnes of measured and indicated lithium carbonate equivalent. The inferred resource has now lifted to 3.1 million tonnes.

Lake has now expanded its operating team to oversee the next stage of development of the Kachi project. The company is planning to complete a definitive feasibility study on the processing plant by mid-2023.

Lake has a business plan to produce 50,000 tonnes per year of lithium carbonate. The company plans to complete a “rigorous evaluation” of project timelines and estimated capital costs and report in the second quarter of 2023.

News on a final investment decision on this project or any further positive news at the demonstration plant could provide Lake Resources with a boost this year. Sales of lithium appear to be still a while away.

Broker coverage

Any positive broker sentiment could provide Lake Resources shares with a boost in 2023. Analysts at Bell Potter have a positive outlook on the Lake Resources share price. Bell Potter has a speculative buy rating on Lake Resources with a $2.52 price target. This implies a mammoth upside of 206%.

On the flip side, Lake Resources has been attracting short interest again lately. Short seller J Capital is continuing to target Lake Resources due to technology and funding concerns, as my Foolish colleague James reported recently.

Lithium prices

Lithium prices and demand sentiment for electric vehicles (EVs) could impact Lake Resources shares in 2023. The lithium price and EV demand tend to weigh on multiple ASX lithium shares each week, including Lake Resources.

The Office of the Chief Economist is tipping spodumene prices to rise from US$2,700 a tonne on average in 2022 to US$4010 in 2023.

However, Goldman Sachs has a more bearish outlook on lithium prices. Goldman is tipping lithium hydroxide to fall from US$76,650 a tonne to US$58,650 a tonne in 2023.

Looking at electric vehicle demand, EY Global has recently predicted EV sales in the US, China and Europe to “outstrip” all other engine sales by 2030.

Meanwhile, a survey conducted by money.com.au has recently found 42% of Australians will buy an EV as their next car purchase.

Lake Resources share price snapshot

The Lake Resources share price has slid nearly 13% in the last year.

Lake Resources has a  market capitalisation of about $1.1 billion based on the current share price.

The post 3 catalysts for Lake Resources shares to take off in 2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Why is the Lake Resources share price racing higher on Wednesday?
• Why Lake Resources, Platinum, Polynovo, and Volpara shares are charging higher
• Lake Resources share price jumps 8% on ‘key milestones’ achievement

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The All Ordinaries Index (ASX: XAO) is wobbling in and out of the green on Tuesday, but its volatility hasn’t proven enough to stop five shares that call the index home from posting brand new 52-week highs.

Indeed, some gained as much as 9% to surpass the milestone measurement earlier today.

Right now, the All Ords is down 0.13%, trading at 7,378.6 points.

So, what’s going right for these All Ords shares on Tuesday? Let’s take a look.

5 ASX All Ords shares surpassing 52-week highs today

The A2 Milk Company Ltd (ASX: A2M) share price soared 2.9% to trade at $7.14 at its Tuesday peak – marking a new 18-month high.

Interestingly, there’s been no price-sensitive news from the milk and infant formula producer since November.

However, the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is also outperforming today, gaining 1.52% at the time of writing.

It’s also a good day to be invested in All Ords tech share Data#3 Limited (ASX: DTL). The stock soared 9% earlier today to trade at an all-time high of $7.32.

Its surge came on the back of news the IT services and solutions provider expects its first-half pre-tax profits to come in at the high end of its prior guidance.

Data#3 previously flagged between $21 million and $25 million of profits for the period.

Joining its tech peer in posting a new 52-week high today is fellow All Ords share Weebit Nano Ltd (ASX: WBT). The stock rose 3.6% earlier today to reach $4.65 – its highest point in nearly 10 years.

It’s now gained a whopping 30% since it announced the tape-out of its 22-nanometre memory chip technology.

The EBOS Group Ltd (ASX: EBO) share price is also at a 10-year high today. In fact, the stock hit its highest point since its 2013 initial public offering (IPO) earlier today when it soared 8.6% to trade at $45.77.

Interestingly, there’s been no news from the New Zealand-based healthcare, medical, and pharmaceutical distributor since August.

Finally, fellow All Ords healthcare share Aroa Biosurgery Ltd (ASX: ARX) hit a new 52-week high of $1.19 earlier today. That marked a 3.5% gain today.

It’s the seventh time the stock has surpassed the milestone in 2023 so far.

The post 5 ASX All Ords shares cracking new 52-week highs on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Why Arafura, Data#3, Leo Lithium, and Zip shares are charging higher today
• 2 ASX All Ords shares cracking new 52-week highs on Tuesday
• My 3 best ASX shares of 2022 – and why I think they’ll win again in 2023
• The A2 Milk share price rocketed 20% in 2022. Is it too late to buy for 2023?
• 5 profitable ASX shares you probably have never heard of

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 recommended A2 Milk. 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 ASX share market has plenty of options for investors to choose from to build wealth. An adult can start investing at any age – 20, 30, or even 70.

One of the most powerful tools we can use to help grow our finances is compounding. Albert Einstein, once supposedly said:

Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.

The longer we give compounding to work, the easier it is. But that doesn’t mean it’s not worth doing if we haven’t started as early in life as we’d like.

Wealth-building examples

I think one of the easiest ways of showing how ASX shares can build wealth is with a compound interest calculator.

If someone was 30, had $0 invested, and decided to invest $500 a month, with a share portfolio returning an average of 10% per annum, it would grow into $343,650 after 20 years and almost $1 million after 30 years.

Investing $1,500 a month grows into $1.03 million after 20 years and $2.96 million after 30 years if it compounded at 10% per annum.

Don’t forget that employees are meant to receive superannuation contributions which can play a big part in wealth building. Indeed, superannuation contributions could make up the majority of the necessary money needed to build someone’s net worth to more than $1 million.

However, which ASX shares to invest in is an entirely different question.

One of the easiest investment options is an exchange-traded fund (ETF). An ETF allows investors to buy a whole group of shares at once, rather than having to buy one investment at a time. It can save a lot of time and brokerage fees, as well as enabling investors to track the market return for a low fee.

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is one of the most diversified ETFs with more than 1,400 holdings across the world. The US has by far the biggest allocation of any country because that’s where many of the world’s global leaders are based, such as Apple, Microsoft, Alphabet, Amazon.com, Johnson & Johnson, Exxon Mobil, Berkshire Hathaway, and Nvidia.

Since its inception in November 2014, the ETF has returned an average of 10.6% per annum, though the past is not a guarantee of future results.

Which other ASX shares could generate good returns?

I think the best investment strategy is to invest for the long term. In terms of which ASX shares could be good investments for at least a decade or longer, names like VanEck Morningstar Wide Moat ETF (ASX: MOAT), Wesfarmers Ltd (ASX: WES), and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) could make good returns for investors in my opinion.

It’s never too late to start investing. I would love to build a $1 million portfolio myself but it’s going to take a lot of work to get there.

The post With almost no investments at 30, can ASX shares still make me rich? appeared first on The Motley Fool Australia.

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More reading

• Is Wesfarmers a ‘safe’ ASX 200 share to buy for dividends?
• Experts say these top ASX dividend shares are buys right now
• Are ASX 200 retail shares on sale in 2023?
• I think these two ASX ETFs are great buys as inflation cools
• 3 of the best ASX ETFs for investors to buy in January

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, Berkshire Hathaway, Microsoft, Nvidia, Vanguard Msci Index International Shares ETF, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway, short January 2023 $265 calls on Berkshire Hathaway, and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has recommended Alphabet, Apple, Berkshire Hathaway, Nvidia, VanEck Morningstar Wide Moat ETF, and Vanguard Msci Index International Shares 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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The JB Hi-Fi Limited (ASX: JBH) share price is trouncing the broader market on Tuesday following the release of its preliminary first-half results.

Around midday, shares in the retailing powerhouse are 0.4% stronger than yesterday at $47.29 apiece. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is swimming in the red with a 0.12% downward move today.

Earlier today, JB Hi-Fi shares reached an 8-month high of $49.72. Excitement is swirling around the company amid a shockingly good set of numbers. Unsurprisingly, the retailer is one of the best-performing shares in the index today.

What is bolstering the JB Hi-Fi share price today?

The market might have expected a weak result from one of Australia’s most prominent retailers. After all, the COVID-19-induced shopping frenzy has mostly fizzled out, inflation has increased costs, and interest rate rises have stifled consumer spending.

Despite all the headwinds, JB Hi-Fi revealed record sales and earnings in the first half of FY23. Preliminary results show group sales increasing 8.6% year-over-year to $5,278.5 million. Even sweeter, net profit after tax (NPAT) surged 14.6% to $329.9 million.

According to the release, the stupendous figures were a byproduct of continued elevated customer demand for consumer electronics and home appliances. Additionally, management attributed ‘well-executed’ Black Friday and Boxing Day promotions as contributors to the blockbuster result.

Breaking it down

Picking apart the metrics, the largest increase in sales came from the company’s New Zealand operations — increasing 16.1% year-on-year. However, in terms of earnings before interest and tax (EBIT), JB Hi-Fi’s New Zealand EBIT fell 26.5% — the worst of the bunch.

This didn’t impact the group’s overall EBIT growth due to most of the company’s EBIT being derived from its Australian operations. The Aussie segment’s pre-tax earnings jumped by 16.7% to $341.3 million during the half.

The JB Hi-Fi share price is up nearly 14% since the start of 2023. Signs of inflation possibly easing has spurred on a renewed taste for ASX retail shares as the outlook starts to turn more optimistic.

The post Here’s why the JB Hi-Fi share price is smashing the ASX 200 today appeared first on The Motley Fool Australia.

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More reading

• Are ASX 200 retail shares on sale in 2023?
• Still shopping, share price not dropping: Lovisa shines among 3 best ASX 200 retail shares of 2022
• Falling inflation! Could the party be back on for ASX 200 retail shares?
• 3 ASX All Ords shares forecasting dividend yields of at least 7% in FY24
• My plan to turn $5 a day into a passive income in 2023

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 recommended Jb Hi-Fi. 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 growth shares to buy? If you are, then you may want to check out the two listed below that experts rate as buys.

Here’s what analysts are saying about these ASX growth shares right now:

Jumbo Interactive Ltd (ASX: JIN)

According to analysts at Morgans, this online lottery ticket seller could be an ASX growth share to buy right now.

The broker appears confident on Jumbo’s outlook thanks to its defensive qualities, low capital expenditures, and its global opportunity with the Powered by Jumbo software-as-a-service (SaaS) platform. It explained:

We believe JIN offers excellent strategic growth opportunities, both in Australia and overseas, supported by a steadily expanding domestic market for digital lottery retailing. The business is cash generative and has a low requirement for ongoing capex. Lottery sales are resilient to economic cyclicality. They do not represent a large proportion of the personal budgets, hovering around 0.5% of household discretionary income in Australia. Although near-term sales are affected by the frequency of large jackpots, over time growth is steady.

Morgans currently has an add rating and $17.50 price target on the company’s shares. This compares to the latest Jumbo share price of $15.48.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that experts say investors should buy is Temple & Webster. It is Australia’s leading pure-play online retailer of furniture and homewares.

One of the most bullish brokers is Goldman Sachs, which is tipping the company to grow at a rapid rate long into the future. It expects this to be underpinned by the company’s leadership position in a retail category that is still in the early stages of shifting online. The broker explained:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

Goldman has a buy rating and $7.50 price target on the company’s shares. The Temple & Webster share price is currently fetching $5.23.

The post Here are 2 excellent ASX growth shares to buy now: experts appeared first on The Motley Fool Australia.

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More reading

• Waiting for ASX shares to bottom? Why you could miss out on a stock market rally
• Goldman Sachs names 3 ASX growth shares to own in 2023
• These beaten down ASX shares are cheap buys: experts
• 3 ASX growth shares to buy with huge upside potential – analysts
• 2 excellent ASX growth shares that analysts say are buys in January

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 Jumbo Interactive and Temple & Webster Group. The Motley Fool Australia has recommended Jumbo Interactive and Temple & Webster 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory but has fallen a touch short. At the time of writing, the benchmark index is down slightly to 7,385.6 points.

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

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down a further 2% to $2.63. Investors have been selling this baby products retailer’s shares this week following the release of another disappointing trading update. In response to the update, Morgans has just downgraded Baby Bunting’s shares to a hold rating and slashed the price target on them to $2.80.

Origin Energy Ltd (ASX: ORG)

The Origin share price is down 3% to $7.42. This may have been driven by concerns over its takeover by private equity. This morning, the energy giant revealed that the consortium looking to acquire it for $9.00 per share has requested more time for its due diligence.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down 1% to $121.00. Investors have been selling this mining giant’s shares amid broad weakness in the resources sector and the release of its fourth quarter update. That update revealed that Rio Tinto delivered the low end of its iron ore shipments guidance in FY 2022. However, its costs were slightly ahead of guidance due partly to inflationary pressures.

South32 Ltd (ASX: S32)

The South32 share price is down 3% to $4.56. This appears to have been driven by a spot of weakness in the copper price. According to CNBC, overnight the base metal dropped 1.55% to US$4.150 per pound. Broad weakness in the resources sector could also be impacting its shares.

The post Why Baby Bunting, Origin, Rio Tinto, and South32 shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• Buy ‘underappreciated’ Origin Energy shares for 20% upside: Morgan Stanley
• Rio Tinto share price falls on Q4 update
• Why did iron ore shares lag the ASX 200 on Monday?
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why did this ASX 300 share just crash 12%?

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 Baby Bunting Group. The Motley Fool Australia has recommended Baby Bunting 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 US-listed electric battery and vehicle manufacturer Tesla Inc (NASDAQ: TSLA) remains one of the most controversial stocks on the US markets.

After a blistering run up over 2020 and 2021, Tesla shares had a shocker last year. The company started 2022 at US$352.26 a share, but ended the year down a nasty 65% at US$123.18:

 

So investors have taken one mightily cold bath on this one.

But for fans of Tesla, perhaps these lower prices are drawing some eyes. So could this be the moment to jump into this future-facing company?

Elon Musk…

Well, the first thing to note is that it’s very possible that Tesla’s woeful performance last year wasn’t entirely the fault of the company’s performance itself. Tesla CEO Elon Musk is a highly controversial character. Musk has been an eyebrow-raiser for years. But his antics in 2022 were certainly divisive.

Most pressingly, many investors began to worry that Musk’s quest to purchase the social media giant Twitter compromised Tesla.

Not only is Musk now running Twitter in addition to Tesla and his other companies like SpaceX, but he has sold down significant chunks of his Tesla holdings to fund the US$44 billion purchase.

If you don’t like Musk, his antics or his… unique way of running his companies, then perhaps Tesla is not an investment for you. Musk remains Tesla’s largest single shareholder, and it’s likely that he will remain at the helm of the company for as long as he wants to.

So everyone knows that Tesla is a leading provider of fully electric vehicles. Many countries, such as the United Kingdom, have already passed laws that will outlaw the sale of internal combustion-powered vehicles over the next two decades.

And there is significant pressure around the world to move vehicle fleets to electric power in order to combat climate change. This is a powerful tailwind behind Tesla.

The company is also expanding its vehicle range to cater for more customers. Its most popular models are the mass-marketed Model 3 and Model Y. But the company is working on bringing out its ‘cybertruck’ ute. It has also recently begun rolling out the Tesla Semi.

So I think there is plenty of growth left in Tesla’s future.

But let’s get down to some numbers now.

Is Tesla stock a buy or a sell today?

Elon Musk stated that he has set a goal for Tesla increasing its vehicle deliveries by 50% in 2022. The company did not quite achieve that, announcing recently that total deliveries grew by 40% in 2022 to 1.31 million.

Still, I consider that to be a very impressive figure, especially for such a capital-intensive business.

At the current Tesla stock price, the company has a price-to-earnings (P/E) ratio of 37.71. For a company that just grew its sales by 40%, I personally think that P/E ratio is quite reasonable.

If I was thinking about buying Tesla stock today, considering these metrics, the final question I would ask myself is this: ‘Is this company going to be larger and more profitable in 10 years’ time than it is today?’. If the answer to that question is yes, then the current pricing might be your best chance to buy Tesla shares.

The post Should I buy Tesla stock for 2023 or not? appeared first on The Motley Fool Australia.

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More reading

• Tesla share price correction: A chance to get rich?
• What can ASX lithium share investors learn from Tesla discounting its cars?

Motley Fool contributor Sebastian Bowen has positions in Tesla. 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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