Investors would be forgiven for being disheartened at points in 2022 so far. Markets across the world have struggled over the course of the last 11 months amid roaring inflation, the war in Ukraine, and continued pandemic-related impacts. However, there is a silver lining.

Market downturns can provide ripper opportunities. Here’s how I would capitalise on the ASX’s recent suffering by investing in dividend shares for retirement now.

The S&P/ASX 200 Index (ASX: XJO) has fallen 4% so far this year. Meanwhile, the benchmark All Ordinaries Index (ASX: XAO) has dumped 6%.

Why I’d buy ASX dividends for retirement now

ASX dividend shares can generate passive income – that’s likely especially important for those gearing up for retirement. And what better time than during a market downturn to snap up dividend stocks?

That might sound counterintuitive, but downturns can allow an investor to buy into quality companies for less than they otherwise would. There are likely some major bargains buried in the market’s rubble right now.

Additionally, buying quality ASX dividend shares during a downturn could mean my portfolio comes along for the ride when the market recovers.

Of course, such a recovery is never guaranteed. Historically, however, the Aussie bourse has always returned to, and surpassed, previous highs following a tumble.

Another reason I would invest in ASX dividend shares during a market downturn is the opportunity to receive more shares than I otherwise might.

The cheaper the quality share, the further my hard-earned cash will go. And the more shares I hold, the more dividends I’ll likely receive. That could see me enjoying a greater passive income during my golden years.

Not to mention, dividend stocks are capable of acting as an inflation hedge ­– providing returns faster than the measure can eat away at cash savings. That’s another important factor to consider when retirement planning.

Here’s how I would go about identifying quality ASX dividend shares to buy for retirement now.

How I would find quality dividend stocks trading cheap

Each person will have a differing opinion on what makes an ASX dividend share good quality. Personally, I look for companies with a competitive edge, a strong balance sheet, and a history of pushing through tough times.

When seeking out dividend stocks to provide passive income in retirement, I would also consider companies’ dividend yield and payment history.

A high dividend yield might sound like great value for money but it could be hard to sustain over years to come. Meanwhile, a company that has historically prioritised dividends might offer greater surety of passive income.

That might mean I focus my efforts on blue chip shares, generally found on the ASX 200.

And, as always, I would be looking to build a diverse portfolio of ASX dividend shares so to de-risk my investments.  

The post Almost ready to retire? I’d buy ASX dividend shares now to capitalise on a stock market recovery appeared first on The Motley Fool Australia.

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• Why is the Rio Tinto share price marching higher again today?
• Why this ASX 200 dividend share could be an income gold mine hiding in plain sight
• 5 things to watch on the ASX 200 on Wednesday
• Guess which ‘boring’ ASX 200 share became one of the top dividend boosters of 2022
• Here are the top 10 ASX 200 shares today

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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The Rio Tinto Ltd (ASX: RIO) share price is treading higher again in morning trade on Wednesday.

After closing up 3.5% yesterday, shares in the S&P/ASX 200 Index (ASX: XJO) iron ore miner are up 0.2% at the time of writing to $108.05 per share.

Materials shares are broadly outperforming today, with the S&P/ASX 200 Materials Index (ASX: XMJ) up 0.68% while the ASX 200 is down 0.41%.

Here’s what’s moving the Rio Tinto share price today.

What are ASX 200 investors considering?

The Rio Tinto share price is in the green on the back of another leg up for iron ore prices.

The industrial metal broke back above the US$100 mark yesterday and gained another 2.4% overnight to US$101.25 per tonne. That’s the highest price in more than two months amid new Chinese government stimulus for the nation’s property markets.

The Rio Tinto share price also enjoyed a big gain in US markets, with the stock closing up 4.0% on the NYSE.

In other news likely to draw the interest of ESG-focused investors, the miner announced it will invest another $600 million in renewable energy assets in the Pilbara. The new investment is part of Rio’s ongoing effort to decarbonise its Western Australian iron ore operations.

Rio Tinto intends to construct two 100MW solar power facilities and 200MWh of on-grid battery storage by 2026.

Commenting on the new renewable energy investments, Rio Tinto Iron Ore CEO Simon Trott said:

The Pilbara is extremely well-positioned to take advantage of renewable power with land, access to people, and abundant wind and solar resources. Our Pilbara electricity grid is the largest privately-owned grid in Australia, ensuring that we have the initial infrastructure required to enable a transition to renewable energy.

We expect to invest around $3 billion to install renewable energy assets as well as transmission and storage upgrades in the Pilbara as part of our commitment to halve our emissions from the Pilbara by the end of this decade.

Rio Tinto share price snapshot

The Rio Tinto share price is up 16% over the past 12 months. That compares to a flat full-year performance of the ASX 200 Index.

The post Why is the Rio Tinto share price marching higher again today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In morning trade, the Commonwealth Bank of Australia (ASX: CBA) share price is down slightly at $107.53.

Despite this, the banking giant’s shares are on course for a positive monthly gain of approximately 3%.

In fact, things have been so positive this month, the CBA share price managed to hit a 52-week high of $109.20 at one point.

Why did the CBA share price hit a 52-week high in November?

Investors were bidding the CBA share price higher in November thanks largely to the release of a solid first quarter update in the middle of the month.

For the three months ended 30 September, Australia’s largest bank reported a 2% increase in cash earnings over the second half average of FY 2022 to $2.5 billion. This was driven by a 9% lift in operating income, which was offset partially by a 4.5% increase in expenses due largely to wage inflation.

The bank’s solid operating income growth was underpinned by higher margins and volume growth, which offset a reduction in non-interest income. The former reflects household deposit growth of 8.6%, home lending growth of 6.3%, and business lending growth of 12.6%.

And while the banking giant surprisingly decided not to reveal what its net interest margin (NIM) was during the period, Goldman Sachs estimates that it came in at between 2.05% to 2.10%.

This was a big positive given that the broker was forecasting a first half NIM around 10 basis points lower than this. Especially given how interest rate hikes are likely to support a further increase in its NIM during the second quarter.

Goldman commented:

CBA did not provide a NIM for the quarter; however, we note that net interest income was very strong at +16% vs 2H22 average and was run rating 5.5% above our 1H23E forecasts. Based on current GSe balance sheet forecasts, and the fact liquids seem to have grown stronger than loans in the quarter, we estimate a 1Q23 NIM of between 2.05% to 2.10% (which is >10bp higher than our current 1H23E), with its trajectory into 2Q likely still higher.

All in all, a positive month for the bank and its shareholders will no doubt be hoping for more of the same from the CBA share price in December.

The post Why did the CBA share price jump to a 52-week high in November? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

The post-COVID slowdown hasn’t been kind to Amazon (NASDAQ: AMZN), and the stock is down 45% so far this year. While the company’s e-commerce operations are experiencing weak growth and margins, Amazon is much more than just an online retailer. Let’s explore three potentially overlooked factors that could make the stock a buy for long-term investors. 

Cloud computing is Amazon’s new backbone 

Amazon’s third-quarter results were a mixed bag. Revenue grew by 15% year over year to $127.1 billion, but operating income almost halved to $2.5 billion because of challenges like inflation and overexpansion during the pandemic boom of 2020 and 2021. But while its North American and international e-commerce segments are both bleeding cash — with operating losses of $400 million and $2.5 billion, respectively — its cloud computing business, Amazon Web Services (AWS), is helping to pick up the slack. 

AWS segment revenue increased by 27% to $20.5 billion while its operating income jumped 11% to $5.4 billion. With both of Amazon’s e-commerce segments burning cash, AWS is now Amazon’s foundation. And investors may be overlooking its value. According to analysts at equity research firm Redburn, AWS alone could be on track for a $3 trillion valuation and could be spun off to unlock a better valuation. 

While Redburn’s predictions are admittedly optimistic and don’t come with a concrete timeframe, they do highlight the huge potential many industry watchers see in Amazon’s cloud offering because of its economic moat, which includes a strong brand and economies of scale. The company is using these advantages to attract new clients such as power company Duke Energy, which entered a three-year cloud deal with AWS in November to modernize its electric grid.

Film entertainment could help too

First an online bookstore, then an e-commerce giant, and now the global leader in cloud computing — Amazon is no stranger to reinventing itself. And while cloud computing looks likely to power most of the company’s valuation growth, other business segments could also contribute. 

In November, Amazon announced plans to spend $1 billion a year to produce 12 to 15 movies that it will release in theatres annually. This decision comes in the wake of its March acquisition of Hollywood studio MGM, and could help lay the groundwork for the company to become a fully-fledged entertainment giant that can compete with the likes of Walt Disney.

The new content will also help create a competitive advantage for Amazon Prime, which includes a video-streaming service. 

Management hasn’t provided guidance on how much revenue it expects Amazon’s film production efforts to generate. But if it’s successful, it could provide some much-needed diversification and growth to counteract the slowdown in the company’s retail operations. 

Amazon’s valuation is still reasonable

Amazon’s significant stock declines have made the company more interesting for value-hungry investors. And while the company is far from distressed territory, its price-to-sales ratio of 1.9 is lower than the S&P 500‘s average of 2.4. And while Amazon’s bottom line remains under pressure in the near term, continued growth in AWS and new business could help turn things around in the coming years.

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

The post 3 reasons to buy Amazon stock right now appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Will Ebiefung 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 Amazon and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Duke Energy and 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 Amazon 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.

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The Qantas Airways Limited (ASX: QAN) share price is on course to record a strong monthly gain.

In morning trade, the airline operator’s shares are down slightly to $6.19.

This means the Qantas share price is up 6% since the start of the month.

Why did the Qantas share price take off in November?

Interestingly, the Qantas share price was looking like it could have an underwhelming month as recently as two weeks ago.

At that point, the flying kangaroo’s shares were trading modestly lower month to date.

But that all changed just a few days later when the release of a trading update turned on the afterburners and sent Qantas’ shares hurtling higher.

What was in the trading update?

Readers may recall that in October, Qantas provided the market with its first half profit guidance and net debt guidance.

It advised that it expected to report an underlying profit before tax of between $1.2 billion and $1.3 billion for the six months ending 31 December. Management also revealed that it expected its net debt to be between $3.2 billion and $3.4 billion, well below of its target of $3.9 billion.

Well, fast forward a little over a month and Qantas is now expecting to be even more profitable. Such a refreshing change after a couple of years of COVID struggles!

According to the release, management expects the airline to post an underlying profit before tax of between $1.35 billion and $1.45 billion for the half. This represents a $150 million increase to the guidance range given in October.

Qantas advised that this is being driven by consumers continuing to put a high priority on travel ahead of other spending categories. In addition, it advised that there are signs that limits on international capacity are driving more domestic leisure demand, which is benefiting Australian tourism.

Impressively, this strong profit is being achieved despite Qantas’ fuel costs being on course to reach a record high of $5 billion for FY 2023.

In light of this strong performance and also due to some delayed capital expenditure, Qantas expects its net debt to be $2.3 billion to $2.5 billion at the end of December. This is around $900 million better than expected in its most recent update.

Anything else?

Also giving the Qantas share price a boost was the reaction from brokers.

A number of Australia’s leading brokers, such as Goldman Sachs, responded by reiterating their buy ratings and lifting their price targets.

In fact, Goldman is tipping the Qantas share price to reach a record high of $8.20. This bodes well for its shares in December and beyond.

The post Why did the Qantas share price take off in November? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A wide array of ASX tech shares suffered a sell-off during 2022 as inflation and rising interest rates pulled down asset values.

It’s true that a higher interest rate is meant to hurt share prices. As billionaire Ray Dalio once said about interest rates:

It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.

However, these businesses are the same companies that they were at the start of the year. The main thing that has changed is that investors can now buy them at cheaper prices. So I think that investors are spoiled for choice.

Here are three that could continue to do well, even if the global economy goes through a tough time in the short term.

Xero Limited (ASX: XRO)

Xero is a leading cloud accounting software business. According to the recent Xero FY23 half-year result, it has 3.5 million global subscribers (this was a 16% year-over-year increase).

Despite the growth that Xero continues to achieve, the Xero share price has fallen by around 50% in 2022 to date.

Not only are subscribers growing, but how much it’s making from those subscribers is rising too. HY23 average revenue per user (ARPU) increased by 13% to $35.30, which helped annualised monthly recurring revenue (AMRR) rise by 31%.

With a gross profit margin of 87%, the business is experiencing rapid gross profit growth. The business is directing a large part of this to marketing as well as product design and development expenses.

I think we may start to see the underlying profitability of Xero come through in the next couple of years as the percentage of revenue that the ASX tech share spends on growth reduces. Xero’s HY23 free cash flow jumped 145% to $15.5 million.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This is an exchange-traded fund (ETF) focused on video gaming and e-sports businesses around the world.

For people who know a bit about video gaming, some of its biggest holdings may be recognisable: Nvidia, Activision Blizzard, Nintendo, Advanced Micro Devices, Roblox, Tencent, Electronic Arts, Take-Two Interactive Software, and Bandai Namco.

The VanEck Video Gaming and Esports ETF has dropped by around 30% since the start of the year. But I’m not sure that the demand for video games will drop that much. I’d guess younger people will continue to want to spend some of their discretionary income on games and consoles.

E-sports is an exciting area of growth. VanEck-sourced stats suggest that e-sports revenue has grown by an average of 28% per annum since 2015. Global e-sports audiences are growing and this is helping unlock new revenue such as new potential revenue streams from game publisher fees, media rights, merchandise, ticket sales, and advertising.

Audinate Group Ltd (ASX: AD8)

This ASX tech share provides the Dante system — advanced audio and visual media equipment that helps simplify digital media setup and usage. The company has a strong presence in the professional audio sector and now it’s trying to offer a full package with video as well.

Audinate wants to grow in areas such as live venues, broadcasting, corporate board rooms, and university lecture spaces.

According to Audinate sources, the professional AV industry is expected to grow 11% in 2022 and hit a new high-water mark of $263 billion globally. It’s estimated the industry will grow by nearly 50% over six years to $351 billion in 2027.

The company has a focus on significant traction in the video field, including revenue of at least US$3 million in FY23.

The recovery from COVID, as live events resume, could be a boost for the Audinate share price in 2023. The Audinate share price is down around 20% since August 2022.

The post Could these be the best ASX tech shares to buy now for 2023? appeared first on The Motley Fool Australia.

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• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
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• 2 popular ETFs for ASX investors to buy next week
• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended AUDINATEGL FPO, Activision Blizzard, Advanced Micro Devices, Nvidia, Roblox Corporation, Take-Two Interactive, Tencent Holdings, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Electronic Arts and Nintendo and has recommended the following options: long January 2023 $115 calls on Take-Two Interactive. The Motley Fool Australia has positions in and has recommended AUDINATEGL FPO and Xero. The Motley Fool Australia has recommended Activision Blizzard, Nvidia, and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports 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 Temple & Webster Group Ltd (ASX: TPW) share price is on course to end the month on a very positive note.

In morning trade, the online furniture and homewares retailer’s shares are up 15% to $5.33.

Why is the Temple & Webster share price shooting higher?

Investors have been bidding the Temple & Webster share price higher this morning following the release of a trading update at the company’s annual general meeting.

According to the release, as previously flagged, the first half of FY 2023 has been a tough period for the company. This is because the prior corresponding period included lockdowns across parts of Australia, which boosted online sales.

As a result, Temple & Webster recorded a 14% decline in revenue financial year to date to 27 November.

So why are its shares racing higher?

The reason the Temple & Webster share price is rising strongly today is management’s comments on its improving performance.

It revealed that second quarter sales were down 3% quarter to date as of 27 November, which is a big improvement on its first quarter performance.

But it gets better! For the period 1 November to 27 November, the company’s revenue is running slightly ahead of the same period last year. Management believes this is a good sign for the remainder of FY 2023. It commented:

The pleasing news is that we have now begun the trajectory back to growth, and Q2 (QTD: 1st Oct to the 27th Nov) is only down 3% vs the same period last year and the month of November (1st Nov to the 27th Nov) is running slightly ahead of November last year. This is a good sign as this month is usually our busiest sales period due to Black Friday, suggesting a return to double-digit growth during the financial year.

In addition, the company revealed that its inventory levels remain strong across both its dropship network and its own private label range, and deflationary signs are appearing on both factory and container costs.

Finally, also giving the Temple & Webster share price a boost is management’s comments on its margins for the year. Despite the tough economic environment, it has reiterated its margin guidance for FY 2023. It explained:

While a return to year-on-year growth is important, equally important in this environment is a focus on unit economics and bottom-line profitability. The Group reiterates its stated 3–5% EBITDA range for the full FY23.

The post Temple & Webster share price rockets 15% on ‘good sign’ appeared first on The Motley Fool Australia.

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• Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early
• 2 explosive ASX growth shares to buy according to experts
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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 Fortescue Metals Group Limited (ASX: FMG) share price is pushing higher on Wednesday.

In morning trade, the iron ore giant’s shares are up 1.5% to $19.74.

What’s going on with the Fortescue share price today?

Investors have been bidding the Fortescue share price higher on Wednesday following a positive night of trade for the iron ore price.

Due to hopes that China may ease its COVID restrictions following recent protests, iron ore futures topped US$100 a tonne again. This bodes well for the profitability or iron ore miners like Fortescue.

Anything else?

In other news, this morning the miner has announced a major new appointment.

According to the release, the company has snared Fiona Hick from Woodside Energy Group Ltd (ASX: WDS) to lead its iron ore business, Fortescue Metals.

As CEO, Hick will be reporting to the Fortescue board, along with Fortescue Future Industries (FFI) CEO, Mark Hutchinson.

The release explains that the Fortescue Metals CEO will work with Hutchinson to lead the company in its transition to a global green metals and energy company.

This includes delivering Fortescue’s global metals strategy –

To be the most successful iron ore operator in the world, to lead exploration and development into critical minerals and rare earths, and to decarbonise Fortescue in partnership with FFI, creating significant additional value for shareholders.

Why join Fortescue?

Fiona Hicks revealed that she made the switch due to Fortescue’s aim of transitioning into a global green metals and energy company. She commented:

I have enjoyed and grown immensely during my 20 years in energy. I am as committed to the new future of the world as Andrew is. We must provide the metals and the energy which will help to accelerate the energy transition. I join with, and commit to, Andrew and Fortescue’s vision of becoming the leading green metals and energy company globally.

Fortescue’s founder and executive chairman, Dr Andrew Forrest AO, added:

We are looking forward to Fiona joining us, a deeply respected and experienced executive, to help lead us to step beyond fossil fuels, making our company ever stronger and always creating additional value for shareholders. Fortescue has only had three Chief Executives since it was founded in 2003. We welcome Fiona in our 20th year to lead our green metals company.

The post What’s boosting the Fortescue share price on Wednesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

U.S. stocks showed signs of a potential bounce on Tuesday morning, albeit a modest one. Stock index futures were up as much as a third of a percent shortly before the regular trading session began on Wall Street.

One factor that has weighed on investor sentiment recently has been the ongoing battle that the Chinese government has waged against the COVID-19 pandemic. China has been a lot more stringent with its lockdown measures to stem the potential spread of the disease, and that has raised concerns about how much downward pressure the government’s actions could have on economic activity. With Chinese citizens now starting to protest lockdowns and other restrictions, the prospects for eliminating the zero-COVID policy in favor of a more lenient alternative are giving many well-known stocks in China a boost on Tuesday morning.

What China could do

Investors in Chinese companies got more comfortable after hearing comments from China’s National Health Commission (NHC). The governmental body said that it would make a greater effort to provide COVID-19 vaccinations for its elderly population, aiming to protect those over 80 and making booster shots available sooner after primary vaccinations. The NHC is also looking to launch a campaign to convince those who are reluctant to get vaccinated that the benefits of COVID-19 vaccines outweigh any perceived downsides.

Interestingly, the reaction to recent protests in China has been mixed. At first, investors feared that the Chinese government would crack down on protestors with COVID-19-related measures that could be stricter than current guidelines. However, more market participants seem to view the protests as potentially having a positive influence in persuading government officials to loosen their zero-COVID policy.

That’s a big part of why some major Chinese stocks moved higher in premarket trading Tuesday morning. Alibaba Group Holding rose 5%, matching gains from electric vehicle companies Li Auto and XPeng. Baidu climbed 6%, while JD.com moved 7% higher.

Solid earnings from Bilibili

Also boosting sentiment on Chinese stocks, Bilibili (NASDAQ: BILI) released its latest quarterly results on Tuesday, and the stock climbed 10% in response. The online gaming and digital media company reported solid gains in the third quarter, including an 11% rise in revenue year over year to $814.5 million. Net losses narrowed by 36% from year-ago levels to $241 million as Bilibili reported a 25% rise in daily active users to 90.3 million. Almost 333 million people now use the service on a monthly basis, and while less than 10% of those users actually pay for a premium subscription, Bilibili reported high levels of engagement.

Shareholders were pleased to see Bilibili responding proactively to macroeconomic threats. Already, Bilibili’s numbers are reflecting more efficient operations, as gross margin improved and expenses for sales and marketing fell as a percentage of total revenue. The company anticipates continuing to control its costs strictly, with an eye toward unlocking even more savings as it aims to become consistently profitable as soon as it can.

More hurdles ahead

COVID-19 is only one of the factors that have weighed on Chinese stocks in recent years. Turbulent foreign relations between China and the U.S. have led to volatility, while structural aspects of the Chinese economy have introduced systemic risks for investors to consider. Talk of potentially delisting Chinese stocks has quieted in Washington, but it could come back in 2023 and beyond.

Nevertheless, progress toward moving beyond the zero-COVID policy seems to be giving investors more comfort in investing in Chinese stocks. Those who are comfortable with the risks could find interesting opportunities in China. 

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

The post Chinese stocks are soaring. Here’s why appeared first on The Motley Fool Australia.

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Dan Caplinger 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 Baidu and JD.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Bilibili. The Motley Fool Australia has recommended JD.com. 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.

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ASX directors buying and selling their company’s shares can arguably provide insight into what they expect from its future. Indeed, investing great Peter Lynch is widely quoted as saying:

Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

Thus, insider buying is often heralded as a sign those in the know are confident in their business, while insider selling can arguably signify the opposite.

There have been plenty of director transactions on the ASX this month. Let’s take a look.

ASX directors trading their company’s shares this month

Let’s start with ASX technology share Electro Optic Systems Holdings Ltd (ASX: EOS). The stock has tumbled 75% since the start of 2022.

Its slump may have presented a buying opportunity, if a recent uptick in insider buying is any sign.

Directors Kate Lundy and Robert Kaye both recently bolstered their stake in the company. Lundy bought 8,000 shares in the ASX tech stock for 60 cents apiece on 22 November, while Kaye’s spouse purchased 50,700 shares, paying around 57.90 cents apiece, on 22 November. The buys were worth $4,800 and $29,355 respectively.

Topping off the trading was a $307,050 acquisition by newly appointed chair Garry Hounsell. Hounsell bought 500,000 shares for 60.41 cents apiece on 24 November.

Meanwhile, insider selling was going down at WiseTech Global Ltd (ASX: WTC). The ASX tech company’s founder, CEO, and director Richard White has been selling off the company’s shares in droves this month, but there might be more to the story than meets the eye.

Between 28 October and 24 November, White appears to have offloaded a grand total of 455,075 shares in the ASX company, receiving $25.8 million for the sales. However, it’s unclear whether the insider selling is related to a previously announced equity swap transaction.

Finally, ASX share Bravura Solutions Ltd (ASX: BVS) recently took a 52% tumble and some of its directors have seemingly taken advantage.

Chair Neil Broekhuizen indirectly bought 636,000 Bravura shares, paying 62.53 cents apiece, on 4 November. Director Alexa Henderson got in on the buying action on 7 November, indirectly acquiring 141,000 shares for 70.72 cents apiece. Finally, director Peter Mann indirectly purchased 119,200 shares for around 73.33 cents per stock on 8 November.

The parcels of ASX shares cost the respective directors $397,675, $99,715, and $86,224.

The post Which ASX directors were buying and selling their company shares in November? appeared first on The Motley Fool Australia.

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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 Bravura Solutions Ltd, Electro Optic Systems Holdings Limited, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Bravura Solutions Ltd and WiseTech Global. 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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