Nuix Ltd (ASX: NXL) is again in the spotlight. The company’s CEO Jonathan Rubinsztein denies he was aware of a takeover bid from Reveal when he bought Nuix shares between 7 and 8 September, as The Australian reports.

Nuix’s general counsel and company secretary, Ilona Meyer, said that Rubinsztein did not know that Nuix’s non-executive chairman Jeffrey Bleich held a “highly preliminary discussion” with Reveal’s CEO Wendell Jisa on 6 September in the United States. The discussion included a “potential transaction of some of [Nuix’s] assets,” according to a written response to an ASX compliance query.

Meyer said:

Mr Rubinsztein confirms he was not aware of the proposed discussion between Mr Bleich and Reveal’s CEO or its content until he was briefed on the First Discussion with other members of the Board on the morning of 9 September 2022 in Australia.

All above board?

Meyer also noted that in the 6 September meeting in the US, “no actual proposed transaction was outlined”. Furthermore, she said “the inquiry was not reduced to writing”. Meyer stated that the meeting concluded with Nuix uninterested in pursuing the transaction, and Bleich later briefed the Nuix board of the discussion with Reveal on 9 September. It’s at this meeting Rubinsztein claims to have found out about it.

Rubinsztein sought written approval for the purchase of the securities on 1 September. Approval for the share purchase was granted on the same day. Meyer concluded the letter by affirming that its securities trading policy is sufficient to prevent the appearance of insider trading.

Rubinsztein bought 350,000 shares valued at $236,259.60 over a period of two days near the start of September. On September 9, my Fool colleague James noted that its stock price had rallied 26% on takeover rumours published by The Australian before its shares were placed on a voluntary trading halt.

Nuix then dispelled rumours by The Australian that a takeover bid was made by stating that it had not “received a bid or a written proposal from Reveal”.

After the announcement, shares returned to the market once again.

Shares of the software development and distribution company are currently up 3.95% for the past month.

Nuix share price snapshot

The Nuix share price is down 4.24% today.

Shares of the company currently trade for 79 cents each. Earlier today, shares made an intraday high of 82 cents and a low of 78 cents.

The company’s share price is down 64% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is doing better. It’s only down 10.03% over the same period.

The company’s market capitalisation is $261.78 million.

The post Here’s why Nuix shares are hitting the headlines again appeared first on The Motley Fool Australia.

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More reading

• Up 20% today, what’s new with the Nuix share price?
• Why De Grey, Mineral Resources, Nuix, and Yancoal shares are racing higher
• Nuix share price rockets 26% on takeover speculation before halt
• What’s been happening with the Nuix share price of late?
• Nuix share price tumbles following $23m loss in FY22

Motley Fool contributor Matthew Farley 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 Commonwealth Bank of Australia (ASX: CBA) share price is moving higher in morning trade, up 0.5%.

CBA shares closed yesterday trading for $94.46 and are currently trading for $94.93 apiece.

After a sharp sell-off yesterday, it’s broadly a good day across the markets, with the S&P/ASX 200 Index (ASX: XJO) up 0.3% at the time of writing. And the big financial shares are outperforming, as witnessed by the 0.6% gain posted by the S&P/ASX 200 Financials Index (ASX: XFJ).

That’s the latest price action for you.

So, what’s all this about a potential acquisition?

What acquisition rumours are circulating?

In news unlikely to have a material impact on the CBA share price today, The Australian reports that sources have said the big bank is eyeing Vocus Retail.

Vocus Retail provides broadband, mobile, voice, and energy services. And the company is expected to officially go on the market through UBS over the coming days.

Now if you’re not familiar with all of CommBank’s services, acquiring a company like Vocus might seem a bit odd. However, the bank already offers broadband and certain utility services.

According to CBA:

We’re proud to partner with Australian-owned companies that provide better outcomes for our customers and the community, such as more NBN.

More are a forward-thinking, customer-focused provider of internet and phone plans that can get your household or business connected and help you save money.

You may also recall the days when Vocus was listed on the ASX. Those days came to an end in June 2021, when the company delisted after accepting a takeover proposal from a consortium comprised of Macquarie Infrastructure and Real Assets and its managed funds and Aware Super.

But CBA isn’t the only big name that appears to be eyeing Vocus Retail.

According to The Australian, Origin Energy Ltd (ASX: ORG), Aussie Broadband Ltd (ASX: ABB) and AGL Energy Ltd (ASX: AGL) all may be interested in acquiring the company.

CBA share price snapshot

The CBA share price hasn’t been immune to the forces dragging on global equities this year (we’re looking at you, soaring inflation and interest rates), though it has outperformed the benchmark.

Year-to-date CBA shares are down 7%. That compares to a 10% loss posted by the ASX 200 so far in 2022.

The big four bank is also a popular income stock. At the current share price, CBA pays a trailing dividend yield of 3.9%.

The post CBA share price edges higher amid acquisition rumours appeared first on The Motley Fool Australia.

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More reading

• ASX 200 shares dump $60 billion in horror session. Here’s how Wednesday unfolded
• Macquarie shares bear the brunt of bank sell-off amid inflation bomb
• Expert predicts stock market will crash 20% lower in the next four weeks as US inflation rages out of control
• Why are ASX 200 shares tumbling like dominos on Wednesday?
• Why this fund manager is not banking on CBA shares right now

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

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The Westpac Banking Corporation (ASX: WBC) share price is on the rise today.

Westpac shares are rising 1% and are currently trading at $21.40 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is lifting 0.52% today.

Let’s take a look at what is going on at Westpac.

New digital push

Westpac shares may be rising today, but they are not alone among ASX bank shares. The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is up 1.92% at the time of writing, while Commonwealth Bank of Australia (ASX: CBA) is 0.59% higher. The National Australia Bank Ltd (ASX: NAB) share price is also up 1.12%.

Today, Westpac advised it has updated its banking app as part of its strategy to build a “digital first bank”.

The changes are part of the company’s digital strategy outlined in a market update in July. The update follows Westpac’s acquisition of budgeting and cashflow tool MoneyBrilliant late last year.

Commenting on the news, consumer and business banking chief executive Chris de Bruin said:

We are building a digital first bank and today’s announcement is another step forward in making banking simpler and more intuitive for our five million digitally active customers.

The updated app includes a spend tracker, top expenses feature, and budgeting tool.

In the future, the app will include a carbon tracker, tax help, and the ability to see financial information from other banks.

Westpac research data shows 76% of Australians believe digital banking will help them keep track of their money. De Bruin added:

We want to empower our customers through enabling them to better understand where their money is going to help them reach their financial goals. 

Share price snapshot

The Westpac share price has dropped nearly 17% in the past year and is up just 0.37% year to date.

For perspective, the benchmark ASX 200 index has lost nearly 8% in the past year and around 8% in 2022 so far.

Westpac has a market capitalisation of about $75 billion based on the current share price.

The post Westpac share price lifts amid latest competitive push appeared first on The Motley Fool Australia.

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More reading

• Macquarie shares bear the brunt of bank sell-off amid inflation bomb
• Down 16% in a year, can the Westpac share price become a successful turnaround story?
• What will the Westpac dividend be in 2023?
• Billions in liabilities could be set to hit CBA and other ASX banks: expert
• Westpac shares stepped into the green today amid RBA’s softer tone

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 Westpac Banking Corporation. 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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Do you own Domino’s Pizza Enterprises Ltd (ASX: DMP) shares? Well, it’s a good day for you.

Not that it would seem like it. At the time of writing, the Domino’s Pizza share price has taken a major hit. After surviving yesterday’s carnage on the S&P/ASX 200 Index (ASX: XJO) with just a 0.36% fall, today Domino’s Pizza shares have taken a far chunkier 5.5% hit and are down to $62.32 a share.

But that’s not what we’re talking about. So let’s instead discuss the payday that is coming shareholders’ way today.

Show me the money: It’s dividend day for Domino’s Pizza shares

When Domino’s released its FY22 full-year earnings report last month, the company declared a final dividend of 68.1 cents per share for the year.

This dividend, which comes partially franked at 70%, might have been something of a disappointment, considering FY21’s final dividend came in at 85.1 cents per share. The interim dividend that was doled out back in March was higher still at 88.4 cents per share.

Even so, cash is cash. And today is payday. Yes, Domino’s traded ex-dividend for this payment back on 30 August. But today is the day that this payout will finally hit shareholders’ bank accounts.

This dividend is still significantly higher than prior Domino’s dividends. For example, the company paid out a final dividend of 52.6 cents per share for FY20 and a final payment of 52.8 cents per share in FY19.

Investors will all be receiving cash dividends though. Domino’s does not currently run a dividend reinvestment plan (DRP), so investors did not have the option of receiving additional shares in lieu of the cash payment.

Domino’s Pizza shares remain down a painful 48.3% in 2022 thus far, and by 61.5% over the past 12 months. However, the company remains up by almost 49% over the past five years.

At the current Domino’s Pizza share price, this ASX 200 share has a dividend yield of 2.51%. That’s along with a market capitalisation of $5.7 billion, and a price-to-earnings (P/E) ratio of 36.1.

The post Own Domino’s shares? Get ready for a delivery appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• Down 50% in 2022: Is the Domino’s share price a bargain buy?
• 2 of the best ASX shares to buy now according to Morgans

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

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The Select Harvests Limited (ASX: SHV) share price is having a stellar day on Thursday.

In morning trade, the ASX 300 almond producer’s shares are up almost 18% to $5.78.

Why is the Select Harvest share price going nuts?

Investors have been bidding the Select Harvests share price higher today following the release of a market update.

According to the release, 80% of the company’s 2022 crop has now been processed and management is forecasting between 28,800 MT and 29,200 MT of almonds. This is a touch below its previous estimate due to wetter than normal harvest conditions, which have resulted in lower volume, reduced inshell, plus additional drying and operational costs.

Positively, though, this crop will still be an improvement on 2021’s crop volume of 28,250 MT.

Another positive is the price the company is commanding for its almonds. Approximately 72% of the 2022 crop is committed with a forecast fair value sales price of $6.75/kg. This compares favourably to its previously advised fair valuation sales price of $6.64/kg.

Furthermore, management notes that 100% of the 2022 crop is covered at 0.72AUD/USD and shipping challenges have eased.

Finally, despite facing challenges from bee hive shortages, management is guiding to further volume growth in 2023. It is forecasting a 2023 crop of approximately 30,000 MT.

What else?

Also potentially giving the Select Harvests share price a boost is an update on market conditions in the United States.

The United States Department of Agriculture’s 2022 Objective Measurement crop estimate is for 2.6 billion pounds, which is down 11% on the 2021 crop of 2.92 billion pounds.

The company notes that harvest climatic conditions in California (and also in Spain) have been extremely hot. Early reports are indicating that volumes are down significantly in both regions with almond sizing and quality adversely impacted. This bodes well for market pricing.

Select Harvests’s managing director, Paul Thompson, commented:

The strengthening of almond pricing is pleasing. The Select Harvests’ team have had to manage some difficult market and operational challenges over the last eighteen months. Market demand is beginning to build, and the Select Harvests’ team continues to focus on the basics: cost, quality, volume and price realization. The pollination of our 2023 crop is just another example of how having the right team makes the difference.

The post Up 18% today, why this ASX 300 share is going nuts appeared first on The Motley Fool Australia.

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More reading

• CBA share price edges higher amid acquisition rumours
• Westpac share price lifts amid latest competitive push
• Own Domino’s shares? Get ready for a delivery
• Why is ASX lithium share Anson Resources on ice today?
• Why is the Woodside share price surging 4% on Thursday?

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 share price of ASX lithium explorer Anson Resources Ltd (ASX: ASN) is in the freezer on Thursday as the company prepares to release news of a capital raise.

The Anson Resources share price closed Wednesday’s session at 43 cents.

And there it will stay until either the market hears news from the company or the ASX opens on Monday, whichever comes first.

Let’s take a closer look at the latest from the lithium-focused mineral explorer and development company.

ASX lithium share Anson Resources frozen on Thursday

The Anson Resources share price is on ice today as the company prepares to inform the market of capital raising activities.

The trading halt comes just one day after the stock dodged a broader market sell-off with news of its Paradox Lithium Project.

The Anson Resources share price hit a new record high of 47.5 cents on Wednesday on the back of encouraging assay results from the project’s Cane Creek 32-1 well.

Additionally, the company’s latest quarterly report described its balance sheet as “strong”.

It boasted around $5.72 million of cash and $14.7 million of unused finance facilities as of the end of June. That saw it with an estimated seven quarters of funding available.

The last time the company underwent a capital raise was almost exactly 12 months ago. Then, it raised around $7.35 million, issuing new shares for 9.1 cents apiece.

The Anson Resources share price has since gained 325% over the last 12 months. It has also surged 165% since this time last month.

Of course, that means a measure of its volume weighted average price (VWAP) might come up considerably lower than its current level.

The post Why is ASX lithium share Anson Resources on ice today? appeared first on The Motley Fool Australia.

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More reading

• How are ASX lithium shares faring amid Wednesday’s carnage?
• Anson Resources share price surges to ASX all-time high on lithium news
• Vulcan Energy share price is one of the worst ASX lithium performers so far this year. Why?
• 4 ASX lithium shares that have rocketed more than 100% in 2022
• 4 ASX lithium shares hitting all-time highs on Thursday

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 Woodside Energy Group Ltd (ASX: WDS) share price is on the move this morning on no news.

At the time of writing, shares in the oil and gas giant are up 4.17% to $33.69 each.

In broader market moves, the S&P/ASX 200 Energy Index (ASX: XEJ) is 3.68% higher, spiking 2% immediately from the open today.

Let’s check what’s going on.

What’s up with the Woodside share price?

There are a number of factors impacting the Woodside share price today.

Futures on Brent Crude oil – the world’s oil pricing benchmark – have inched higher overnight to now trade at US$94.5/Bbl.

Meanwhile, European natural gas contracts [TTF EU Dutch gas] have gained around 10% overnight, and now trade back in line with their March 2022 peaks.

The latest gas price surge comes amid a dire forecast from the International Energy Agency (IEA). It now expects a lift in gas-to-oil switching for heating purposes, as gas prices continue to rocket heading into the European winter.

The IEA predicts this may provide some buoyancy to the oil price which, it predicts, will be hit by falling demand by the end of 2022.

According to reporting by Reuters, “The [IEA] expects the deepening economic slowdown and a faltering Chinese economy to cause global oil demand to grind to a halt in the fourth quarter of the year. That has kept prices under pressure of late, and may inhibit further rallies.”

Meanwhile, Woodside shares have been pushing north in an uptrend for most of 2022, lifting 53% year to date.

Chief to this year’s handsome gain has been the rising prices of oil and natural gas, with each commodity rocketing to multi-year highs at some point in 2022.

The Woodside share price has shot from 52-week lows of $21.27 on 20 December last year to a 12-month peak of $35.95 on 26 August. It’s dropped back in range so far this month.

But into today’s session so far, it looks to be a case of ‘trend is our friend’, as the saying goes, meaning the share is still attracting buyers at current prices.

And finally, analysts at Citi have upgraded their forecasts for liquid natural gas (“LNG”) and note that Woodside is “best placed” to benefit from the increase in spot prices.

“Due to fuel switching, impacts of high European natural gas and power prices have reverberated across the entire energy sector globally,” the broker also added.

It rates Woodside a buy with a $36.50 per share valuation.

Woodside shares are up 63% this year to date.

The post Why is the Woodside share price surging 4% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Woodside share price faring better than the ASX 200 today?
• 5 things to watch on the ASX 200 on Wednesday
• Up 50% so far this year, is it too late to buy Woodside shares?
• 5 things to watch on the ASX 200 on Monday

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.

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Shares in Global Lithium Resources Ltd (ASX: GL1) are on the move today following the company’s latest positive release.

At the time of writing, the lithium explorer’s share price is powering ahead by 10.57% to $2.72.

This means its shares have now risen by more than 40% in a week.

Let’s take a closer look at what the Western Australia-based lithium company announced to the market earlier this morning.

What’s charging Global Lithium shares higher?

Investors are fighting to get a hold of the Global Lithium share price after the company advised that its major shareholder, Mineral Resources Limited (ASX: MIN) will be increasing its shareholding to 8%.

This comes at the same time that Breaker Resources NL (ASX: BRB) announced it was divesting its remaining shareholding in Global Lithium.

Breaker will collect $15 million from the sale and put it towards its working capital.

However, the Australian gold explorer will still retain a 20% free-carried interest in the Manna Lithium Project.

Global Lithium is currently operating three drill rigs at the Manna Project and plans to update its Mineral Resource Estimate (MRE) in Q4 2022.

Commenting on the Mineral Resources boosting its shareholding, Global Lithium non-executive chair, Warrick Hazeldine said:

We are pleased that one of our major shareholders MinRes continues to build its stake in GL1, which clearly demonstrates their strong support in both GL1’s assets and the team.

As we continue to progress our programs on the ground at both Manna and Marble Bar, it is truly an exciting time to be part of the global energy transition market. I look forward to keeping our shareholders updated as we advance our ambitions of becoming a significant WA lithium development and production company.

Global Lithium share price review

Adding to today’s gains, the Global Lithium share price has accelerated by 160% in 2022.

However, when looking at the past 12 months, the share is up 540%.

Based on today’s price, Global Lithium presides a market capitalisation of approximately $173.77 million.

The post Why is the Global Lithium Resources share price rocketing 11% today? appeared first on The Motley Fool Australia.

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More reading

• Mineral Resources share price lifts amid lithium stock buy-up
• Global Lithium share price shrugs off inflation woes to leap higher
• Global Lithium share price backtracks despite ‘highest ever grade’ discovery
• 2 ASX lithium shares leaping more than 9% on Monday
• Why is the Global Lithium Resources share price rocketing 27% this week?

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.

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Taking that first step to invest in ASX shares can seem scary for a beginner.

Newspapers and news websites do a great job of highlighting when the ASX share market has had a sizeable fall – “ASX wipes out $50 billion in horror day”.

Those days do happen.

But, the media doesn’t write coverage about the smaller, more regular gains that the market experiences over the months and years – “ASX adds yet another $10 billion in normal day” doesn’t quite have the same ring to it.

It’s true that the ASX share market can indeed go through bear markets – when the market goes through a large drop – but there are also bull markets. That’s when shares are charging ahead.

When some people think about the share market, or stock market, there seems to be an impression that they’re like gambling chips that just randomly move up and down. I believe that if you treat shares like gambling, possibly short-term trading, then the results are likely to look like that.

Long-term returns

I think everyone would feel better if it was called the ‘business market’ instead. That’s what we’re doing, buying pieces of businesses. Plenty of businesses have been operating for decades.

One of the world’s wisest and best investors, Warren Buffett, once said this about market declines:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

In other words, it can be a good thing that shares fall sometimes because it gives us the chance to buy parts of businesses for less. We can ‘buy the dip‘.

I think it’s worth focusing on the fact that, over the long term, business values have collectively increased. This happens for a few different reasons. Inflation over the decades is a useful tailwind. But businesses are doing their best to grow their profit (margins), launching new products or services, and perhaps expanding geographically to open up new markets.

Part of the variability of the ASX share market comes from whether people are feeling optimistic or pessimistic that day. Sentiment changes all the time.

Historically, we can see (for example using this charting tool from Vanguard) that over the long term, ASX shares have returned an average per year of around 10%.

That doesn’t mean that shares will make a 10% return every single year. It’s an average. One year could see a 10% fall, while the following year could see a 20% rise. The entry price into investing in shares is volatility. But volatility can be our friend to help buy at cheaper prices.

When should investors start?

There isn’t a wrong time to start investing, in my view. It’s like the question ‘when should I start working out?’. Starting today can give people the longest time for their money to compound.

Legally, brokers require investors to be 18 years old to own shares in their own name. Investors can start investing with as little as $500 per transaction. But, the smaller the brokerage fee of the transaction (in percentage terms), the better.

The longer investors are invested in the market, gives investors more time to grow their wealth. I’ll give an example of this in action.

Using the Moneysmart compound interest calculator, if the share market keeps growing at an average of 10% per annum, and someone invested just $200 a month for 40 years, they would end up with $1.06 million at the end.

What ASX shares should investors buy?

You don’t need to be an expert to achieve solid returns or do PhD-level analysis. There are lots of different investment choices to pick from.

There are investment options called exchange-traded funds (ETFs) that enable people to simply track the performance of a share market benchmark like the S&P/ASX 300 Index (ASX: XKO) with an ETF like the Vanguard Australian Shares Index ETF (ASX: VAS), which is focused on ASX shares.

Each ETF enables investors to buy a whole group of shares at once. The Vanguard Australian Shares Index ETF is invested in 300 ASX shares.

Then there are ETFs that invest in the global share market, such as Vanguard MSCI Index International Shares ETF (ASX: VGS) or BetaShares Global Sustainability Leaders ETF (ASX: ETHI).

Plenty of investment professionals underperform the returns generated by ETFs, so regular investors can beat the experts by just tracking the market return.

ETFs often come with cheap fees.

Investors could also pick listed investment companies (LICs), which are companies managed by fund managers that do investing on behalf of investors. Investors often like to look at LICs as options for dividends.

For investors wanting to choose individual ASX shares, that’s possible as well. That’s largely what The Motley Fool is all about. Investors often like to categorise many businesses into dividend or growth shares. I recently wrote an article about how I’d invest if I were starting my portfolio from scratch.

Foolish takeaway

Just remember, investing is a long-term affair. I’d want to pick long-term investments that I’d want to buy more of if the market fell heavily. Volatility should be expected so, when it comes, we can be prepared to snap up some bargains.

The post Why making your first purchase of ASX shares can be scary appeared first on The Motley Fool Australia.

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More reading

• The Vanguard Australian Shares Index ETF just took a big hit. What happened?
• Here’s why the Vanguard International Shares ETF isn’t what it seems
• With most investors thinking the next big move in the stock market is down, Warren Buffett says times like these are your friend
• Why is the Vanguard ASX 300 ETF (VAS) so popular among investors?
• How I’d invest my very first $1,000 in ASX shares right now

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended 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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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 name change of Square to Block (NYSE: SQ) dramatically changed the narrative for the company. Once viewed as a pure fintech stock, it has pivoted to music streaming with Tidal and built a cryptocurrency ecosystem that makes it seem more like a conglomerate.

Consequently, Block’s performance has become more closely aligned with that of Bitcoin (CRYPTO: BTC), reinforcing perceptions that it is a different enterprise. Nonetheless, a closer look at the company indicates that Block remains primarily Square and Cash App, and, at least for now, investors have little reason to consider its other ventures while evaluating the stock.

Block stock: Perception vs. reality

The state of Block stock has changed dramatically in a year. Last September, Block (still known as Square at the time) sold for more than $250 per share. Moreover, Jack Dorsey managed both Block and Twitter, Inc.(NYSE: TWTR), and Bitcoin was in a bull market.

Beginning in late November, Dorsey devoted himself to the company full-time, leading to the name change and emphasis on its Bitcoin-based segments, Bitcoin advancement company Spiral and Web platform TBD. Dorsey even predicted that Bitcoin would replace sovereign currencies.

Both Block and Bitcoin subsequently lost most of their value. Admittedly, most tech stocks have fallen, so one cannot blame Block’s decline on Dorsey’s prognostications. Still, the company’s fortunes seem tied to Bitcoin. Since Dorsey became the full-time “Block Head,” Block stock declined 65%, while Bitcoin is off 62%.

Unfortunately for Block shareholders, the stock may have fallen victim to a false perception. Technically, Bitcoin made up $3.5 billion of Block’s $8.4 billion in revenue in the first half of 2022. However, since the company transacts the cryptocurrency, most of that “revenue” would count as payment volume if the accounting rules differed. After subtracting Bitcoin costs, real Bitcoin revenue amounts to only about $85 million in the first six months of the year, about 3% of gross profits.

The Square and Cash App ecosystems

Thus, instead of worrying about Bitcoin, Block investors should judge the company based on the Square and Cash App ecosystems, which still account for nearly all of the company’s revenue. Cash App is a social payments platform that accommodates users’ spending, deposits, and investing. Cash App also led the way in Bitcoin trading on its platform when it began trading the cryptocurrency in 2018. With this functionality, it boasts 47 million monthly active users and has beaten PayPal‘s Venmo for number of downloads on Apple Inc. (NASDAQ: AAPL)‘s iPhone, according to MobileAction.

The Square segment also built a successful niche with businesses. The platform can accommodate nearly all of a business’s financial needs. This includes transactions, payroll, inventory, point-of-sale, and loans. In the U.S., where it opened an industrial bank, Square can also manage a company’s checking and savings accounts.

Additionally, it is moving across the developed world and currently operates in eight countries. Since three of the countries are in the EU, that foothold could mean a relatively easy move into the 24 EU countries it does not yet serve. Also, only $146 million of its gross profit for the first two quarters (around 5%) came from outside the U.S., meaning its non-U.S. markets hold significant potential for growth.

The state of Block stock

Overall, Block reported about $2.8 billion in gross profit in the first two quarters of 2022, growing 31% year over year. Still, operating expenses increased by 68% during that time, leading to a loss for the first half of the year of $417 million. Block earned $243 million in the same period one year ago.

Block’s investments in its business may ease concerns about returning to losses. This is crucial, as investors have shown less leeway for money-losing companies in this bear market.

Another consideration is an expensive valuation, as its price-to-free-cash-flow ratio of 70 makes it considerably pricier than PayPal Holdings, Inc.(NASDAQ: PYPL) at 22 times free cash flow. Nonetheless, the aforementioned 31% gross profit growth for the first half of 2022 could help make Block a buy in this bear market due to its still rapid growth.

Admittedly, Bitcoin, Tidal, and other parts of Block may become a more consequential share of gross profits over time. However, considering the bright future of the Square ecosystem and Cash App, Block stock could make a massive comeback with or without its newer segments.

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

The post Why you should buy Block stock (and it’s not Bitcoin) appeared first on The Motley Fool Australia.

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More reading

• As stocks swoon, can crypto get its mojo back?
• Why Bitcoin and Solana are sinking today
• Why Apple stock popped Wednesday
• Why Bitcoin plunged on Tuesday
• Why Amazon and Apple stocks slumped Tuesday

Will Healy has positions in Block, Inc. and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Bitcoin, Block, Inc., PayPal Holdings, and Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Apple and PayPal Holdings. 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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