The Piedmont Lithium Inc (ASX: PLL) share price is losing ground today despite the company announcing two key appointments.

This comes as a number of shares in lithium companies are deep in the red following a sell-off on Wall Street overnight.

Allkem Ltd (ASX: AKE) shares are currently down 5.01%, while those of Liontown Resources Ltd (ASX: LTR) have fallen 4.86%.

The Piedmont Lithium share price is now down 6.45%, trading at 87 cents at the time of writing.

Let’s take a closer look at the company’s latest update.

Piedmont strengthens its senior leadership team

In today’s release, Piedmont advised it was strengthening its senior management team with the appointment of Nick Fouche as its senior vice president of capital projects.

In the role, Fouche will oversee the development of project execution strategies for Piedmont’s global portfolio to deliver on key objectives.

The company said he brought three decades of experience to the position, having spent the majority of his career at Rio Tinto Ltd (ASX: RIO). Fouche has also spent time at other mining and metals companies, including South32 Ltd (ASX: S32) and Palabora.

Piedmont also advised it had acquired the services of Erin Sanders, who will take up the role as vice president of corporate communications.

The company said Sanders was an award-winning integrated communications strategist, working with a number of global communications agencies to build brand identities. Her expertise covers the mining and manufacturing industries.

She will be responsible for all corporate and executive communications, brand reputation, crisis and issues management, employee communications, community relations, public relations, and social media strategies.

What did management say?

Piedmont president and CEO Keith Phillips said:

Adding these experienced leaders is key as we steadily progress in the development plans of our global portfolio of spodumene resources.

Nick has a proven track record of successfully delivering large, multi-disciplinary projects, which will be instrumental as we move into execution mode in the targeted development of our core projects; and Erin’s broad communications background will play a key role in shaping our brand, culture, and perception among our internal and external stakeholders as we move forward.

About the Piedmont Lithium share price

Over the past 12 months, Piedmont shares have gained almost 20%.

The Piedmont Lithium share price reached a year-to-date low of 48.5 cents on 15 July before rocketing 100% a month later.

Piedmont presides a market capitalisation of roughly $459 million based on the current share price.

The post Down 6%, Piedmont Lithium shares take the foot off the gas appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The Piedmont Lithium share price is actually gaining today. What’s going on?
• Why is the Piedmont Lithium share price popping 6% on Thursday?
• Why are ASX lithium stocks having such a stellar run today?
• Where does Tesla get its lithium and do any ASX shares benefit?
• Piedmont Lithium share price falls 5% after plans to build the largest US lithium plant unveiled

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/js5n3WC

It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Brickworks Limited (ASX: BKW)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this building products company’s shares to $28.00. This follows the release of a full year result that was ahead of the broker’s expectations. And while the broker doesn’t expect the company’s development profits to be as strong in FY 2023, it sees scope for upside surprise to estimates from its property earnings. The Brickworks share price is trading at $21.13 on Friday.

Coles Group Ltd (ASX: COL)

Another note out of Citi reveals that its analysts have retained their buy rating and $20.10 price target on this supermarket giant’s shares. This follows news that the company has agreed to sell its Coles Express business for $300 million. The broker is a fan of the plan and expects the company to be able to focus its efforts on improving its core business which has been losing market share. Citi also believes the money from this sale could support the expansion of its supermarket network and store renewal program. The Coles share price Is fetching $16.29.

CSL Limited (ASX: CSL)

Analysts at Morgan Stanley have retained their overweight rating and $323.00 price target on this biotherapeutics company’s shares. The broker highlights that the latest plasma collection data is very positive with further solid growth year on year. And with the company’s shares pulling back materially from their highs, the broker sees a lot of value in them now. Particularly given its belief that its margin recovery is now starting. The CSL share price is trading at $276.90 today.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Goldman Sachs gives its verdict on the Coles share price
• Here are 2 ASX 200 blue chip shares that experts rate as buys
• 5 things to watch on the ASX 200 on Friday
• Top brokers name 3 ASX shares to buy today
• Could the CSL share price be set for a boost before the year’s end?

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 Brickworks and CSL Ltd. The Motley Fool Australia has positions in and has recommended Brickworks and COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ja8hIbl

The Xero Limited (ASX: XRO) share price is in the red today, but could better days be ahead?

Xero shares are currently trading at $78.01, a 6% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 1.68% today.

So what’s going on with the Xero share price and what’s ahead?

Tech shares slide

Xero shares may be falling today, but they are not alone among ASX tech shares. The Megaport Ltd (ASX: MP1) share price is down nearly 7% today, while Appen Ltd (ASX: APX) shares are down 3% and Block Inc (ASX: SQ2) shares are tumbling nearly 9%.

The S&P/ASX All Technology Index (ASX: XTX) is down 3.68%.

Today’s fall follows a tough Thursday for technology stocks in the USA. The Nasdaq Composite Index (NASDAQ: .IXIC) fell 1.37%. The United States Federal Reserve lifted interest rates by 0.75 basis points and indicated more hikes could be ahead. This is placing pressure on technology valuations and sparking fears of a recession, as my Foolish colleague James noted this morning.

However, Goldman Sachs analysts have recently recommended Xero as a buy and placed a $111 price target on the company’s share price. This is a 42% upside on the current share price.

Analysts believe Xero is “well-placed” to navigate uncertainty given the “stickiness & importance of its software”.

Xero reported a 19% boost in subscriber growth in FY22 to 3.271 million subscribers. The company’s annualised monthly recurring revenue (AMRR) soared 28% to $1.2 billion while operating revenue lifted 29% to nearly $1.1 billion.

Commenting on the future outlook at the company’s annual general meeting in August, chair David Thodey said:

We remain optimistic about the market opportunities for the Xero product portfolio – cloud based accounting is fundamental to the success of small businesses.

Xero share price snapshot

The Xero share price has fallen 49% in the past year, while it has shed 45% in the year to date.

In comparison, the benchmark ASX 200 Index has fallen nearly 12% in the past year.

Xero has a market capitalisation of about $11.7 billion based on the current share price.

The post Xero share price is tumbling 5%, but could it be worth a buy? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Goldman Sachs names 2 ASX tech shares to buy now
• 5 things to watch on the ASX 200 on Tuesday
• Why I’m seriously considering buying these ASX shares following today’s market crash
• Xero share price tumbles 6% amid market selloff: Buy the dip?
• Why are ASX 200 tech shares being hit the hardest on Wednesday?

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/n8kpXz4

The Rio Tinto Limited (ASX: RIO) share price is stretching up in midday trading on Friday.

At the time of writing, shares in the diversified mining conglomerate are lifting nearly 2% higher at $93.13 apiece.

What’s up with the Rio Tinto share price?

Whilst there’s been nothing price-sensitive released by Rio today, noteworthy is that the price of iron ore has made a sharp turn overnight.

Iron ore prices have suffered tremendously in 2022 amid weakening global demand, tightening monetary policy and a slowdown in China’s property sector.

In yesterday’s U.S. session however, iron ore futures lifted from 2-week lows as demand out of China showed signs of an improvement.

As Reuters reported, prices for the main ingredient in steelmaking rose 3.2% on Chinese exchanges and 2.8% on the Singapore Exchange.

This is backed by news the China Development Bank will increase the number of loans to local municipalities for infrastructure projects.

The moves come amid a weakened economic outlook in China following extended COVID-19 lockdowns and a slowdown in its property sector.

In addition, Rio made headlines yesterday after it announced the signing of a memorandum of understanding (MOU) with Shougang Group of China, to invest in the production of low-carbon solutions in steelmaking.

Rio has the aim of reducing scope 1 and 2 emissions by around 15% by 2025, and 50% by 2030 with $7.5 billion in investments allocated to the cause.

Therefore the MOU with Shougang is a step in the direction of achieving these goals.

Finally, Rio confirmed earlier this week that it will not make an improved offer on its acquisition price of Turquoise Hill Resources (NYSE: TRQ) after a large stakeholder said Rio had undervalued its assets.

Meanwhile, it’s been a difficult year for the Rio Tinto share price. Over the past 12 months to date, it has slipped nearly 6% into the red and is down almost 7% since January.

The post Why is the Rio Tinto share price sparkling in a sea of red today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Own Rio Tinto shares? It’s time to dig into your dividends
• $18 billion of ASX dividends are being paid out this week. Here’s the lowdown
• Why China’s slowdown isn’t as bad as it looks for ASX 200 mining shares
• Down 19% since June, where to next for the Rio Tinto share price?
• Could the latest news out of China bode well for ASX 200 iron ore shares?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

from The Motley Fool Australia https://ift.tt/n0l98QP

The Paladin Energy Ltd (ASX: PDN) share price has soared in the past month. But could it go even higher?

Paladin shares have leapt 14.7% since market close on 23 August and are currently trading at 78 cents. In today’s trade, the Paladin share price is down 7.14%. Industrial action in France is disrupting nuclear power generation, according to Reuters.

Let’s take a look at the outlook for the Paladin Energy share price.

What’s going on?

Paladin is a uranium explorer and producer with a 75% stake in the Langer Heinrich uranium mine in Namibia.

The company’s share price has risen in the past month amid the global energy crisis.

Analysts at Macquarie have recently tipped the Paladin Energy share price to rise and have a $1.10 price target on the company. This is a 41% upside on the current share price.

The broker likes Paladin since it has a “near-term path to market” and is “fully licensed in known uranium jurisdictions”.

Meanwhile, news that multiple nations are planning to restart nuclear reactors could also help the Paladin share price. Uranium is a fuel for nuclear power reactors.

For example, Japan is planning to revamp seven nuclear reactors by the northern hemisphere summer next year. This follows Japan closing down nuclear plants after the 2011 Fukushima disaster. Germany and Belgium are also looking to keep their nuclear power plants open for longer. The Philippines is also looking into setting up modular nuclear power plants, according to a news report today.

A new United Nations report released this week has recommended the UNECE region “scale up electrification of all sectors with emphasis on renewable energy and nuclear power” to achieve carbon neutrality. The report states:

To achieve carbon neutrality by 2050, renewable energy supply will grow fastest, followed by nuclear power. All technology solutions leading to carbon neutrality need to be supported.

Paladin Energy share price snapshot

Paladin shares have fallen 8% in the past year, while they have lost 11% year to date.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 30% in the past 12 months and around 32% year to date.

Paladin has a market capitalisation of nearly $2.3 billion based on the current share price.

The post Up 14% in a month, could the Paladin Energy share price go higher? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX uranium shares getting smashed on Friday?
• Even with today’s falls, the Paladin Energy share price is still up 31% in 3 weeks. Here’s why
• ASX uranium shares have had a stellar month. Are they just getting started?
• Why Macquarie is tipping 15% upside for the Paladin Energy share price
• Why has the Paladin Energy share price rocketed 20% in a month?

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

from The Motley Fool Australia https://ift.tt/ZalgAd1

The S&P/ASX 200 Index (ASX: XJO) is taking a tumble today, down 1.81% at the time of writing.

Aussie markets were closed yesterday as part of the national holiday in honour of the Queen’s passing.

That means ASX 200 shares are playing some catchup with their global peers following Wednesday night’s 0.75% interest rate hike by the US Federal Reserve.

While that move was widely expected, Fed chair Jerome Powell’s decidedly hawkish words sent US markets sharply lower over the past two trading days.

How did the Fed spook ASX 200 investors?

Stock markets had widely priced in the US Fed’s 0.75% rate rise. This brings the benchmark rate in the world’s largest economy to a range of 3.00% to 3.25%.

In fact, you may have even expected somewhat of a relief rally, as an increasing number of economists had forecast the Fed might raise by a full 1.00%.

But then markets tend to be forward-looking. And US stocks, and the ASX 200 today, appear to be selling off on what Powell indicated may lie ahead.

Here’s what Powell told journalists after the announcement (courtesy of Bloomberg):

We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t. Higher interest rates, slower growth and a softening labour market are all painful for the public that we serve. But they’re not as painful as failing to restore price stability and having to come back and do it down the road again.

Also, roiling global markets and the ASX 200 is the higher rate expectations expressed by members of the Federal Open Market Committee. The majority of FOMC have upped their forecasts and believe rates in the US will top out above the 4.5% that markets have priced in.

Bloomberg Economics reported its team expects the terminal rate will ultimately be 5%.

Is the Fed targeting stock markets?

After a strong run in 2021, the ASX 200 is now down 13.2% in 2022 amid the new dawn of rate rises from the US Fed, the RBA, and a host of central banks the world over.

In the US, the S&P 500 Index (SP: .INX) is doing it even tougher, down 21.7% year-to-date, officially in bear market territory.

As for tech shares, the NASDAQ is down a painful 30.1%, while here in Australia the S&P/ASX All Technology Index (ASX: XTX) has crashed 34.5%.

And with the Fed boosting aggressively, the RBA and other leading central banks may be more inclined to do the same to get their own nations’ rocketing inflation under control, which could continue to throw up some tailwinds for ASX 200 shares in the months ahead.

Speaking to CNBC, Oanda senior market analyst Ed Moya said, “The Fed’s paved the way for much of the world to continue with aggressive rate hikes, and that’s going to lead to a global recession. And how severe it is will be determined on how long it takes inflation to come down.”

Art Hogan, chief market strategist at B. Riley, said equity markets, which would include the ASX 200, are in for some disinflation as higher rates stem demand.

According to Hogan (quoted by Bloomberg):

If there are more aggressive sellers and less aggressive buyers, that supply-demand imbalance is going to cause some disinflation in equity prices for sure. And to the extent that that’s what we’re going through now, it’s similar to demand being diminished for other things.

Bespoke Investment Group global macro strategist George Pearkes says investors are having a difficult time gauging the market bottom following the Fed’s latest message.

“The message from the Fed is that ‘We’re going to keep hiking until something goes wrong,’” he said. “The fact that nothing’s broken yet tells us we’re not done. If the Fed is in that mood, how are markets supposed to bottom?”

Kim Forrest, chief investment officer at Bokeh Capital Partners is still looking to buy shares. But she echoed Pearkes’ uncertainty, shared by many ASX 200 investors today, about where the market may turn around:

The Fed has laid out this strategy for killing inflation and it looks like it’s going to kill the economy too. And that is why we have a buyer’s strike. The whole thing is I sat there this morning looking over things I want to buy and my big question is this: are they going to be cheaper next month? And the answer is maybe. Maybe.

By 2052, ASX 200 shares today may look like an unbelievable bargain

We’ll leave off with a word from The Motley Fool’s own chief investment officer, Scott Phillips.

When it comes to buying ASX 200 shares, Phillips isn’t trying to time the market. With a long-term investment horizon, he points to the historic 9% annual compound gains as the norm.

As for the current retrace, he said, “I expect that in 2052, we’ll look back at 2022 and wish we’d all invested more money today.”

The post The ASX 200 is tumbling today. Could the US Fed be targeting stock markets? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Up 14% in a month, could the Paladin Energy share price go higher?
• Following this streaming strategy could pay off big for Microsoft
• Goldman Sachs gives its verdict on the Coles share price
• Why has the Lake Resources share price been so volatile lately?
• Broker tips major upside for the Westpac share price

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.

from The Motley Fool Australia https://ift.tt/AMabyJv

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.

Microsoft Corporation (NASDAQ: MSFT) has its hands in many different businesses. Most investors think immediately of the company’s Windows computer software or Azure, its public cloud segment. But gaming has long been a part of the company, starting with personal computers and the Xbox gaming console that first launched in 2001.

Gaming remains a rapidly growing business today, and Microsoft is arguably more dedicated to the industry than ever before. Here is how Microsoft is battling for market share in the gaming sector and why it could benefit shareholders over the long-term.

Gaming may be more significant than you realize

Most celebrities rise to fame through the film and music industries, long considered the pillars of entertainment. But you might not have known that the gaming industry’s $180 billion revenue in 2021 was more than that of film and music combined.

What’s more, the industry is still growing; research from Mordor Intelligence estimates that global gaming could grow to $340 billion in value by 2027, driven by increased accessibility through emerging gaming methods like mobile and cloud-based gaming.

Microsoft’s broad exposure to gaming makes it a logical sector for the company to invest in further. For example, PC gaming is in Microsoft’s wheelhouse, given that Windows has roughly 76% market share of the global desktop computer operating system market. Additionally, the company has built up its Xbox ecosystem, consisting of multiple console products and a subscription service for gaming content, including cloud-based gaming for phones, tablets, and laptops.

Borrowing a strategy from the streaming wars

Microsoft’s subscription service, called Game Pass, is where it has put its financial muscle in recent years. Content has become king in the ongoing video streaming wars. Netflix, Inc.(NASDAQ: NFLX) was the first streaming platform to market, but a company like The Walt Disney Company (NYSE: DIS) has quickly built a rival service because its rich library of intellectual content draws eyeballs. Netflix initially licensed content from third parties but was forced to spend heavily to develop its own after these third parties figured out the importance of that content and launched their own streaming services.

It can work similarly in video games. Many people don’t buy an Xbox or a Playstation console because they love the hardware itself; you buy whatever will give you access to your favorite gaming content. That’s probably why gaming companies fight and spend to keep key game franchises exclusive to their consoles. You’ll probably never see a game franchise like Mario, the second-highest-grossing game franchise of all time, on any hardware other than a Nintendo system.

Microsoft seems to be buying into this content strategy — literally. It spent $7.5 billion in 2021 to acquire ZeniMax, the parent company of Bethesda Studios, which owns trendy game franchises like Elder Scrolls, Fallout, and Doom. More recently, it has a pending acquisition of Activision Blizzard, Inc.(NASDAQ: ATVI) for $68.7 billion, a deal still undergoing regulatory review. Closing that deal would give Microsoft ownership of some of the most popular gaming franchises in history, including World of Warcraft and Call of Duty.

Recurring revenue is the long-term goal

Microsoft wants Game Pass to be such a good value that it would be silly not to subscribe. The service currently costs $14.99 per month, includes instant access to nearly 500 games, and includes free access to cloud gaming and day-one access to virtually every game released by one of the 32 game studios that Microsoft will own if the Activision Blizzard deal closes (23 without the merger).

Microsoft revealed that Game Pass hit 25 million subscribers when it announced its deal with Activision Blizzard. There is a ton of room for growth — 5G is helping bring the connectivity required for gaming to more areas of the world, including an estimated 3.24 billion gamers.

Microsoft is spending to acquire top-notch gaming content because Game Pass could eventually become a free cash flow geyser for the company. Getting Game Pass to 100 million subscribers paying $14.99 monthly would total $18 billion in annual recurring revenue, which would be far more profitable than selling gaming consoles alone. Gaming is a vast business, and Microsoft wants to be king of that hill.

There are plenty of reasons to like Microsoft as a long-term investment, but gaming might be its next big thing. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Following this streaming strategy could pay off big for Microsoft appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• Here’s why splitting up Amazon could mean huge returns for shareholders
• Microsoft just hiked its dividend. Who’s next?
• Is Tesla stock recession-proof?
• Netflix Stock: Headed to $240?
• Could Canva spoil the party of these giant tech stocks?

Justin Pope 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 Activision Blizzard, Microsoft, Netflix, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Activision Blizzard, Netflix, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/9PXBYZs

The Coles Group Ltd (ASX: COL) share price has been dragged lower with the market on Friday.

In early afternoon trade, the supermarket giant’s shares are down almost 2.5% to $16.22.

Why is the Coles share price falling?

Investors have been selling down the Coles share price on Friday amid broad market weakness.

This has been driven by a selloff on Wall Street over the last couple of trading sessions following the US Federal Reserve’s latest interest rate hike.

This hike and the central bank’s plan to continue raising rates in the coming months have sparked fears of an unavoidable recession and sent many investors to the exits.

Anything else?

Also potentially weighing on the Coles share price today has been a broker note out of Goldman Sachs this morning in response to the company’s divestment of Coles Express.

According to the note, the broker has retained its sell rating and $15.60 price target on the company’s shares. This implies potential downside of approximately 4% from current levels.

Goldman continues to believe that Coles will be left behind by rival Woolworths Group Ltd (ASX: WOW) due to its slower digital transformation. It also notes that the Coles Express sale is immaterial to its forecasts given its minor impact on earnings and its valuation.

The broker explained:

We view the potential divestment as ROC positive for COL given the FY22 EBIT contribution of 4mn (post lease interest) implies a low single digit ROC as opposed to GSe for COL at 24.3% in FY23E. Supply of goods has been noted as offering a positive contribution to business profits, but immaterial in scale to the group on the conference call. Overall, Coles Express accounts for c. 1.1% of our SOTP valuation on Coles.

Our Sell rating on COL is based on our view that COL remains a laggard in digital transformation which could result in market share losses and the ongoing high investment cycle as they catch up will put further pressure on group margins and ROC. We do not view this transaction as material to impact our view on the core supermarkets business given the relative size of the segment compared to the group’s business.

The post Goldman Sachs gives its verdict on the Coles share price appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are 2 ASX 200 blue chip shares that experts rate as buys
• 5 things to watch on the ASX 200 on Friday
• Viva Energy share price leaps 5% on Coles acquisition
• Coles share price falls despite $300m Coles Express sale
• Coles shares on watch after massive $300 million selloff to Viva Energy

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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/cHPfCT6

The Lake Resources N.L. (ASX: LKE) share price has been on a volatile journey in 2022, with shareholders holding on tight across the year.

Prices have traded in a wide range reaching as high as $2.45 on 4 April, before trading as low as 60.5 cents on 14 July.

At the time of writing, the Lake Resources share price is fetching $1.04 apiece, less than 2% down on the day.

What’s up with Lake Resources?

It’s been a busy past few months for the company. Whilst the price of lithium carbonate has surged back above its all-time highs, shares in the lithium miner haven’t been so fortunate.

In particular, broad selling pressure across the wider market has been a factor this year for Lake, as investors seek to position against names turning a profit or with high cash flows.

With various systemic risks now at play, “selling has been strongest in higher risk assets such as lithium shares,” The Motley Fool wrote last week.

The lithium share had also attracted a high amount of short interest from short sellers over the past week, with one particular short-biased research firm raising questions on the company’s direct lithium extraction (DLE) technology.

Nevertheless, Lake shares still managed to catch a bid in recent times after further updates at its Kachi Lithium project, located in Argentina.

After an initial step-back involving a dispute over milestone payments at the site, Lake reassured investors last week by noting that it expects to complete onsite processing of Kachi brines in October, should all go according to plan.

This, whilst the price of lithium carbonate ratcheted up past its all-time highs, as the asymmetry in demand and supply for battery materials continues to widen.

Despite the wave of constructive updates out of Lake’s camp of late, it hasn’t been enough for the share to recover back above its previous highs.

Nevertheless, if the price of lithium carbonate is anything to go by, this forms a solid bedrock for the company to prevent an all-out collapse.

After a strong year, it now trades just 3% in the green this year to date and has held an 80% gain for the past 12 months.

The post Why has the Lake Resources share price been so volatile lately? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Which ASX lithium shares are performing best in 2022?
• Here are the top 10 ASX 200 shares today
• Guess how many companies in the ASX 300 actually make no money
• Here are the top 10 ASX 200 shares today
• Why Lake Resources, Life360, Pilbara Minerals, and PolyNovo shares are storming higher

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

from The Motley Fool Australia https://ift.tt/yaEeovj

The Westpac Banking Corp (ASX: WBC) share price is trading lower with the market on Friday.

In late morning trade, the banking giant’s shares are down 1.5% to $21.39.

Is the Westpac share price in the buy zone?

While Australia’s oldest bank isn’t getting a lot of love from investors at the moment, one leading broker believes now could be the time to pounce.

According to a recent note out of Goldman Sachs, its analysts have put a conviction buy rating and $26.55 price target on the bank’s shares.

Based on the current Westpac share price, this implies potential upside of 24% for investors over the next 12 months.

This stretches to approximately 30% if you include the 5.7% fully franked dividend yield the broker is expecting in FY 2022.

Why is Westpac a buy?

Goldman believes that the Westpac share price offers the best risk/reward for investors at present. Particularly given its strong exposure to rising interest rates and its cost reduction plans.

The broker commented:

We continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) while we think its A$8 bn FY24 cost target will now be unachievable, we still forecast a 7% reduction in underlying expenses, iii) its recent market update highlighted that the business is still investing effectively in its franchise, and iv) our 12-mo TP implies a 23% [now ~30%] TSR, and we note the stock is trading at a 20% discount to peers, versus the historic average discount of 2%.

All in all, this could make Westpac one to consider if you’re looking for exposure to the banking sector as interest rates rise.

The post Broker tips major upside for the Westpac share price appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Looking for juicy ASX dividends? This expert says Westpac shares are a buy
• Here’s why I decided to buy each of the big 4 ASX 200 bank shares
• Looking to buy CBA shares? Here’s how the bank’s balance sheet stacks up
• Westpac shares: Buy, hold, or fold?
• Brokers say these ASX 200 dividend shares are buys now

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/cRUhwY9