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 Bitcoin (CRYPTO: BTC) cryptocurrency reached an all-time high of roughly $68,800 in November of 2021. Since then, a marketwide retreat from high-risk investment ideas drove the digital currency back to approximately $20,300 per coin — a 70% price drop in nine months. Investors are worried about inflation, geopolitical tensions, and the continued fallout from the coronavirus pandemic.

Some cryptocurrency bears believe that this could be the beginning of the end for digital currencies. However, Bitcoin investors with diamond hands continue to HODL their crypto coins, expecting another upswing in this volatile market.

There are differences of opinion, and only time will tell exactly how Bitcoin’s chart will shape up in the long run. Crypto investors are scratching their heads, wondering whether Bitcoin will ever be worth $100,000 per coin.

I believe that the answer to that question is a resounding “yes.” Bitcoin is almost guaranteed to reach the $100,000 price point. But it could take a couple of years to get there, and you should be prepared for some rough weather on that trip.

Why is Bitcoin valuable at all?

Bitcoin’s value is based on its limited supply. There will only ever be 21 million Bitcoins, and 19.2 million of those digital coins have already been created. The U.S. money supply doubled between 2013 and 2022. Bitcoin’s supply will never grow more than 9.8% from today’s level.

This quality makes Bitcoin similar to gold, which cannot be created in a lab and has limited supplies available even if we eventually dig up every last ounce of it. Limited supply plus rising demand equals higher prices over time.

Many investors and developers see Bitcoin as a direct replacement for gold in the long run. If that works out, it’s a huge market opportunity. All gold ever mined is worth at least $9 trillion today, according to estimates by online coin dealer Golden Eagle Coin. If you assume that physical gold holds on to three-quarters of the global value-storage market it owns today, Bitcoin could be worth as much as $2.25 trillion when that balance is struck.

That’s up from $386 billion today, which leaves room for more than a fivefold increase in Bitcoin prices — landing just north of the $100,000 mark in the end. Of course, stingier or more generous estimates will move that target price back and forth, but that’s the ballpark we’re talking about.

And I’m not sure that the gold-replacement plan even accounts for the direct utility Bitcoin offers in frictionless digital payments. When did you last pay for your groceries with a gold coin? Sure, you probably aren’t using Bitcoin that way either, but Amazon‘s Whole Foods Market actually accepts cryptocurrency payments today. A few years down the road, crypto-based payments could become as popular as credit cards and Zelle payments are today.

Where is Bitcoin going?

So the $100,000 price target actually looks like low-hanging fruit for Bitcoin. I’m assuming that cryptocurrencies are here to stay and that grandpa Bitcoin will remain the largest and most trusted cash-replacement option in the market for many years to come.

At the same time, I know that there’s a bumpy road ahead and many things can still go wrong. Proper regulations and taxation systems are still under development in pretty much every country, including America. When lawmakers nail down their long-term rulebooks, it’ll still take time to get consumers and businesses to embrace digital currencies. And of course, I can’t guarantee with absolute certainty that Bitcoin won’t be replaced by another cryptocurrency with similar goals and superior technology at some point.

So Bitcoin seems highly likely to ascend to that lofty $100,000 price target, but it’s a risky trip with plenty of potholes. Don’t expect a 400% return by the end of this year, or over the next couple of years. As the crypto market matures, the wild and unpredictable price swings we’re getting so used to will become milder. Bitcoin has a lot of untapped growth left to explore, as long as you have plenty of time and unshakable patience. Otherwise, you might find this cryptocurrency (and any cryptocurrency on the market today) too frustrating in this market.

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

The post Can the Bitcoin price reach $100,000? appeared first on The Motley Fool Australia.

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More reading

• Why Bitcoin, Ethereum, and Dogecoin are falling today
• 1 cryptocurrency to buy and hold forever
• Here’s why the Bitcoin price just dipped back below US$20,000

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has no position in any of the stocks mentioned. Anders Bylund has positions in Amazon and Bitcoin. 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 Pointsbet Holdings Ltd (ASX: PBH) share price is tumbling on the back of its full-year earnings today. In fact, the bookmaker is currently the worst-performing stock on the S&P/ASX 200 Index (ASX: XJO).

The company’s shares opened Wednesday’s session 4.5% lower at $3.14 before diving to a low of $2.87, a 12.7% loss.

It has since recovered slightly to trade at $2.96 right now, 10.03% lower than its previous close.

Let’s take a closer look at the ASX 200 bookmaker’s results for financial year 2022 (FY22).

Pointsbet share price plunges on FY22 earnings

As The Motley Fool Australia reported earlier, Pointsbet boasted $5 billion of sports betting turnover and brought in $296.5 million of revenue – a 52% year-on-year increase – last financial year.

On top of that, its gross win – the amount received from clients placing losing bets less the amount paid to clients placing winning bets ­– rose 41% to $497.8 million. Its gross win margin also increased, lifting 0.6% to 9.9%.

However, that wasn’t enough to elevate the company’s bottom line into the green.

It posted a $267 million after-tax loss for FY22 while its earnings before interest, tax, depreciation, and amortisation (EBITDA) sank to a $243.6 million loss.

But management assured the market on the company’s future. Pointsbet chair Brett Paton and CEO Sam Swanell commented:

It is clear that North America will deliver the vast majority of regulated global gaming growth over the next decade.

We have now scaled our team, to access the in-house technology and market access to successfully compete in North America and have developed best in class partnerships … which will help accelerate our trajectory to take advantage of this enormous opportunity.

The company also announced the appointment of Edward Hartman today. The former Fox Corporation executive will take on the role of chief strategic officer next month.

Today’s fall included, the Pointsbet share price is trading 58% lower than it was at the start of 2022. It has also dumped 71% since this time last year.

For comparison, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.

The post Pointsbet share price tumbles 10% as full-year losses deepen appeared first on The Motley Fool Australia.

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More reading

• Pointsbet share price in focus as FY22 revenue lifts 52%
• Why is the PointsBet share price rising on Tuesday?
• Here are the top 10 ASX 200 shares today
• Broker tips PointsBet share price to jump 60%
• 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 positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 Tabcorp Holdings Limited (ASX: TAH) share price is one of the worst performers on the S&P/ASX 200 Index (ASX: XJO) on Wednesday.

But at least part of its tumble can be easily explained. The stock is trading ex-dividend today.

At the time of writing, the Tabcorp share price is trading at 94.5 cents, 6.44% lower than its previous close.

For context, the ASX 200 is down 0.25% right now while the company’s home sector – the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) – has lifted 0.04%.

So, what else might be weighing on the gambling and entertainment services provider’s stock today? Let’s take a look.

What’s weighing on the Tabcorp share price today?

The Tabcorp share price is underperforming majorly on Wednesday as the company trades ex-dividend.

That means new investors have missed out on their chance to receive the company’s 6.5 cent, fully franked final dividend, declared last week.

Generally, a company’s share price falls relatively in line with the value of its upcoming dividend when they pass its ex-dividend date.

And indeed, the Tabcorp share price has dumped 6.5 cents at the time of writing.

However, there is one more happening that might be dragging on the stock today.

Bookmaker Pointsbet Holdings Ltd (ASX: PBH) is struggling on the market today after releasing its financial year 2022 earnings this morning.

The Pointsbet share price is down 10% right now, making it today’s worst-performing ASX 200 stock.

Of course, as both companies work in the betting and entertainment space, Pointsbet’s poor performance may be dinting sentiment for Tabcorp shares.

Today’s tumble included, the Tabcorp share price is 6% lower than it was at the start of 2022 and 4% higher than it was this time last year. That’s adjusting for the spin-out of the company’s lotteries and Keno business into the Lottery Corporation Ltd (ASX: TLC).

Meanwhile, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.

The post Why is the Tabcorp share price diving 6% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 ASX 200 shares turning ex-dividend on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Tabcorp share price rises 5% as management focuses on ‘pursuing growth’

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 Dicker Data Ltd (ASX: DDR) share price is heading south after coming out of a trading halt today.

At the time of writing, the technology distributor’s shares are swapping hands at $10.76, down 6.27%.

What’s dragging Dicker Data shares down?

Investors are heading for the hills after Dicker Data announced it has completed its $50 million placement.

The company received strong interest from both existing institutional shareholders and new investors. However, the overwhelming demand resulted in an excess of the funds Dicker Data had sought to raise.

Approximately 4.9 million new fully paid ordinary shares will be issued at a price of $10.30 apiece. This represents a 10.3% discount to the last closing price of the company’s shares on 29 August of $11.48.

Proceeds from the placement will be used to fund the expansion of Dicker Data’s Kurnell warehouse, increasing warehouse capacity by over 70%.

The remaining monies will be allocated to the company’s working capital to increase balance sheet flexibility and support its long-term growth plans.

With the new shares expected to settle on 5 September, this will ultimately dilute shareholder value, which is why the share price is falling.

In addition, Dicker Data advised it has launched a share purchase plan (SPP) for retail investors.

The SPP aims to raise up to a further $10 million, and will be issued under the same price as the placement.

The offer is scheduled to open on 7 September and close on 20 September.

Dicker Data said that the SPP may be subject to scalebacks and is not underwritten.

Dicker Data share price review

It’s been a mixed year for Dicker Data shares, moving in circles for most of the 12 months.

Today, however, the company’s shares reached a 52-week low of $7.22 before treading higher as bargain hunters swooped in.

The Dicker Data share price is 15% lower since this time last year, and is down 27% year to date.

The post Why is the Dicker Data share price down 6% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Dicker Data share price placed on ice amid HY 2022 results and capital raise
• Analysts say these ASX dividend shares are buys now
• Experts name 2 ASX dividend shares to buy next week
• These ASX dividend shares have been named as buys for income investors

Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data 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 Treasury Wine Estates Ltd (ASX: TWE) share price is spilling on Wednesday despite no announcements from the company.

At the time of writing, the wine giant’s shares are swapping hands at $13.22, down 0.83%.

Let’s take a look at what may be causing the share to fall today.

What’s happening with Treasury Wine shares?

On the back of the company’s full-year results, investors are selling off Treasury Wine shares as they go ex-dividend today.

This means if you purchased the company’s shares yesterday or before and owned them at today’s market open, you’ll be eligible for the latest dividend.

When a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. However, this can vary depending on how the market is tracking for the day as well as investor sentiment.

For those eligible for the Treasury Wine final dividend, you’ll receive a payment of 16 cents per share on 30 September. The dividend is also fully franked.

This brings the FY 2022 dividend to 31 cents per share, which is 10.7% higher than the prior corresponding period.

Furthermore, the full-year dividend represents 69% of the company’s net profit after tax (NPAT).

Treasury Wine’s long-term dividend policy is to target a payout ratio of 55% to 70% of NPAT.

Is Treasury Wine shares a buy?

Following the company’s 2022 financial scorecard, a number of brokers updated their outlook on Treasury shares.

As reported by ANZ Share Investing, Macquire upgraded its rating to outperform from neutral. In addition, the broker raised its price target by 20% to $15.00 per Treasury Wine share. Based on the current price, this implies an upside of 12%.

On the other hand, UBS and Morgans lifted their price targets by 9.3% to $14.75, and 13% to $15.71, respectively.

Treasury Wine share price snapshot

For the first half of 2022, the Treasury Wine share price travelled sideways before accelerating to a 52-week high of $13.62 on 19 August.

It appears investors are growing in confidence that the worst is behind the company following its improved outlook.

Treasury Wine has a price-to-earnings (P/E) ratio of 36.10 and commands a market capitalisation of approximately $9.55 billion.

The post Why is the Treasury Wine share price on the slide today? appeared first on The Motley Fool Australia.

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More reading

• Hoping to crack open the next Treasury Wine dividend? Read this
• 5 ASX 200 shares turning ex-dividend on Wednesday
• Brokers name 2 ASX growth shares to buy now
• Top brokers name 3 ASX shares to buy next week
• Treasury Wine share price celebrates Friday with a more than two-year high

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

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The Tesoro Gold Ltd (ASX: TSO) share price is storming higher on Wednesday following the release of a company announcement.

At the time of writing, shares are advancing 30.56% into the green having bounced from yesterday’s 52-week lows, and now rest at 4.7 cents apiece.

What did Tesoro announce?

The company advised that its new drill program at the El Zorro Gold Project has intersected gold. intercepts of 434.60m at 1.22g/t Au from 15.40m.

Resource was found at the company’s Ternera gold deposit that is located at El Zorro. The drill program has revealed multiple high-grade zones within the intercept.

These results could potentially increase the gold grade throughout the deposit as well.

Following the discovery, Tesoro says that it now has numerous potential gold-bearing targets that it intends to explore.

Speaking on the results, Tesoro Managing Director, Zeff Reeves said:

This is a phenomenal result demonstrating the consistency of gold mineralisation within the host El
Zorro Tonalite intrusions. Hole ZDDH0297 shows multiple high-grade zones within the broader
intercept, potentially increasing gold grade throughout the deposit.

This phase of drilling at Ternera is focussed on improving the classification and expanding the existing 1.1 Moz Resource. We believe Ternera will continue to grow with additional drilling with the Deposit remaining open in all directions.

Drilling continues at the Ternera site. To date, 7 holes for a total depth of 3,275m have been completed. The company is awaiting assays for 5 holes “which will be announced in due course”.

After racing to previous highs back in 2021, the Tesoro share price is down 55% in the past 12 months of trade.

The post Guess which ASX mining share just rocketed 31% on a new gold strike appeared first on The Motley Fool Australia.

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More reading

• Is Alphabet stock a buy after Q2 earnings?
• Could the Pilbara Minerals share price really offer more than 50% upside in FY23?
• Net loss doubles in FY22, so what’s with the Imugene share price today?
• Why is the 4DMedical share price rocketing 20% on Wednesday?
• Why is the Best & Less share price crashing 15% on Wednesday?

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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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.

This has been a busy year for Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL). The company has acquired two companies in the cybersecurity space and most recently completed a stock split. Alphabet recently reported second-quarter 2022 earnings and the results were mixed. Though the search and cloud segments were big winners, some investors may be worrying about how the internet giant can sidestep its competition as well as combat macroeconomic factors such as lingering inflation. Let’s dig into the Q2 earnings and analyze if Alphabet appears to be a good buy, or if investors should look elsewhere.

Is the slowdown in revenue a cause for concern?

For the second quarter, which ended on June 30, Alphabet generated $69.7 billion in total revenue. This was an increase of 13% year over year. By comparison, Alphabet grew revenue by a staggering 62% year over year during the same period in 2021. Given the slowdown in top-line growth, investors may be quick to sell and search for new investment opportunities. However, the most prudent thing investors can do is look at where Alphabet may be experiencing levels of stagnation or even declining growth, and which areas are performing well. The table below illustrates Alphabet’s revenue streams during Q2 2022, and percentage changes year over year.

Revenue Segment	Q2 2021	Q2 2022	% Change
Google Search	$35,845	$40,689	14%
YouTube Ads	$7,002	$7,340	5%
Google Network	$7,597	$8,259	9%
Total Google Advertising	$50,444	$56,288	12%
Other	$6,623	$6,553	(1%)
Total Google Services	$57,067	$62,841	10%
Google Cloud	$4,628	$6,276	36%
Other Bets	$192	$193	1%
Hedging Gains (Losses)	($7)	$375	NM
Total Revenue	$61,880	69,685	13%

Data source: Alphabet Q2 2022 Earnings Press Release. The financial figures above are presented in millions of U.S. dollars. NM = non-material.

The table above shows that the search and cloud segments increased 14% and 36% respectively. Advertising from YouTube only increased only 5%. During Q2 2021, YouTube advertising revenue increased by 84%. The massive slowdown in growth is, in part, driven by competing applications such as TikTok. It is important to note that Alphabet has rolled out its own derivative of TikTok, YouTube Shorts. However, management noted during the earnings call that YouTube Shorts is in early development and not yet fully monetized. Additionally, investors learned that vendors have been slashing advertising budgets across different industries due to uncertainty around the broader economic environment, thereby posing a systemic risk to Alphabet’s ad revenue stream.

Given that advertising budgets and lingering inflation do not have a clear path to subside, investors may want to focus on other areas of Alphabet, namely cloud computing.

Are the acquisitions paying off?

Earlier this year Alphabet acquired two cybersecurity companies, Mandiant and Siemplify The strategic rationale behind these transactions was that Alphabet would integrate the new products and services into its Google Cloud Platform. This was a direct effort to combat cloud behemoth Amazon.com, Inc. (NASDAQ: AMZN), as well as cloud and cybersecurity competitor Microsoft Corporation (NASDAQ: MSFT). 

For the quarter that ended June 30, Alphabet reported $6.3 billion in cloud revenue, up 36% year over year. To put this into context, during Q2 2021 Google Cloud was operating at roughly $18.5 billion in annual run-rate revenue. Only one year later, Google Cloud is now a $25.1 billion annual run-rate-revenue business. While this revenue growth is impressive, it certainly has come at a cost. Google Cloud’s operating loss was $858 million for Q2 2022, compared to a loss of $591 million during Q2 2021. Despite robust top-line growth, Alphabet has yet to turn a profit on its cloud platform. By comparison, Amazon’s cloud business operates at a profit, with margins expanding from 28% in Q2 2021 to 29% in Q2 2022.

Keep an eye on valuation

From its stock split in early July, Alphabet stock is up roughly 5%. With cash on hand of $17.9 billion and free cash flow of $12.6 billion, it’s difficult to make a case that Alphabet is in financial trouble. However, Alphabet is at a critical juncture where it is seeing competition from much smaller players, as well as big tech peers.

Perhaps investors should be looking at Alphabet as a growth company. Given its cloud business has a lot of room to grow, and that economic pain points like inflation will not last forever, it could be argued that Alphabet will generate meaningful growth in the years ahead. While the stock has been somewhat muted since the split, now may be a decent time to dollar-cost average or initiate a long-term position while keeping a keen eye on upcoming earnings reports. While Alphabet is not yet out of the woods, there are several reasons to believe that now is a good time to buy the stock.

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

The post Is Alphabet stock a buy after Q2 earnings? appeared first on The Motley Fool Australia.

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• 2 genius reasons to buy Amazon stock today
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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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet (A shares), Amazon, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. 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 Pilbara Minerals Ltd (ASX: PLS) share price has suffered through plenty of volatility in 2022 so far, but the stock could be set to outperform over the coming 12 months.

The S&P/ASX 200 Index (ASX: XJO) lithium stock reached a high of $3.89 in January before hitting a low of $1.975 in June, marking a 49% tumble between its year-to-date high and low.

Fortunately, it has since recovered most of its losses. The Pilbara Minerals share price is trading at $3.66 right now. That’s 4% higher than it was at the start of this year.  

For context, the ASX 200 has dumped 8% year to date.

And there are plenty more signs pointing to the company being a financial year 2023 winner.

Keep reading to find out what might be in store for the company and why some experts are bullish on its stock.

Could the Pilbara Minerals share price take off in FY23?

Could financial year 2023 (FY23) be the year in which the Pilbara Minerals share price takes off once again? Well, we can’t predict the future, but there are plenty of signs the company could outperform over the near term.

For one, it just reported its maiden profit, bringing in a net profit after tax (NPAT) of $561.8 million for FY22. And it has big expectations for the future.

It believes it will up its production of spodumene concentrate to between 540,000 and 580,000 dry metric tonnes in FY23 – marking a potential 53% year-on-year increase.

However, it also expects its unit operating costs to lift from $555 per dry metric tonne to between $635 and $700 per dry metric tonne.

To top it off, the company believes the lithium deficit could surge to around 1.8 million tonnes by 2040 on a base case basis, likely causing the material’s value to soar.

The company’s not alone in expecting big things from lithium prices. Broker Macquarie believes rising lithium prices will drive the Pilbara Minerals share price higher over the next year.

It has slapped the stock with a $5.60 price target, implying a 54.3% upside, as my Fool colleague Tristan reports.  

However, Credit Suisse is reportedly wary that the company’s costs could surge.

It’s placed a $2.30 price target on Pilbara Minerals shares, representing a potential 36.6% downside.

The post Could the Pilbara Minerals share price really offer more than 50% upside in FY23? 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 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.

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The Imugene Limited (ASX: IMU) share price is on mute after the ASX-listed biotech company reported its results for FY22.

After a wobbly start this morning, the Imugene share price has now stalled at yesterday’s closing price of 24 cents despite a significant jump in the company’s net loss for FY22.

Imugene is a clinical-stage immuno-oncology company developing new treatments that seek to activate the immune system of cancer patients to identify and eradicate tumours.

Let’s take a look at the Imugene results for FY22.

What did Imugene report for FY22?

As mentioned, Imugene is still at a clinical stage, so it’s yet to produce any revenue. Imugene currently receives income from Australian government incentives, which increased from $7.2 million in FY21 to $12.6 million in FY22.

Research and development (R&D) expenses more than doubled from $15.4 million in FY21 to $36.6 million in FY22. General and administrative expenses also lifted, from $10.3 million in FY21 to $14 million in FY22.

Overall, Imugene recorded a net loss of $37.9 million in FY22 compared to a net loss of $18.5 million in FY21.

The current cash balance stands at $99.9 million, so there is ample capital for Imugene to continue with its clinical trials.

What else happened in FY22?

Earlier this month, Imugene provided a positive update as the first patient from the third cohort of the Checkvacc Phase 1 clinical trial had been dosed. The Imugene share price shot up 11% on this news.

Since the update, Checkvacc has progressed to dosing for cohort 3 in triple-negative breast cancer patients. Management plans to disclose the results of these studies later.

Imugene also completed phase 2 in HER-2/Neu overexpressing advanced gastric cancer.

The biotech company also presented new PD1-Vaxx data from non-small cell lung cancer patients at the IASLC 2022 World Conference on Lung Cancer in Vienna, Austria. This data shows early positive signs as the company progresses towards a phase 1b combination study.

What did management say?

Commenting on the FY22 results, Imugene executive chair Paul Hopper said:

As our deep pipeline has continued to advance and strengthen, it provides a wide range of possibilities and opportunities for Imugene moving forward. Financially, the company remains in an enviable position with a long cash runway that allows us to continue our clinical programs unimpeded.

This was reinforced by the $90 million placement conducted early in the financial year alongside a further $5 million raise via a Share Purchase Plan. Both received overwhelming support and we thank those investors that participated.

It appears management is confident in its current financial position, and now it’s a matter of delivering the results. Patience is required in these types of businesses because it could take years for a commercial solution to develop.

What’s next for Imugene?

The plan is for PD1-Vaxx to be tested in combination with atezolizumab (Tecentriq) in patients with non-small cell lung cancer. Imugene locked in a second clinical supply agreement with Roche. The testing will be completed at sites in Australia and the United States.

As for Imugene’s latest technology onCARlytics, the company advised of collaborations with two US-based partners, Celularity and Eureka Therapeutics. This partnership involves investigating the combination of Imugene’s CD19 oncolytic virus technology with T cell therapies being developed by each partner.

Imugene share price snapshot

The Imugene share price has suffered a big fall of 43% in the last 12 months but is looking to make amends with a 4% jump over the last month. The S&P/ASX 200 Index (ASX: XJO) has fallen 7% in the past year and is down 0.3% in the past month.

Imugene has a market capitalisation of around $1.4 billion.

The post Net loss doubles in FY22, so what’s with the Imugene share price today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Raymond Jang 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 4DMedical Ltd (ASX: 4DX) share price is trading 23% into the green on Wednesday following a company update.

Investors are rallying the share after it announced a “major success” in the ‘burn pit’ clinical trial. The trial is being conducted by Vanderbilt University Medical Centre, in Nashville in the United States.

What did 4DMedical announce?

Preliminary results indicate that 4DMedical’s XV Technology can detect constrictive bronchiolitis in military veterans, where pulmonary function tests (PFTs) and CT scans have failed to do so.

The XV Technology is a medical imaging platform that uses image-processing methods taken from aerospace engineering to perform deeper respiratory analysis.

Curiously, the background for the trial stems from a pattern of “disabling” respiratory symptoms observed in US military personnel. The symptoms include shortness of breath and coughing, but are severe enough to significantly impact daily function.

It is understood that exposure to toxic chemical fumes when disposing of and burning hazardous/non-hazardous waste was a factor for the personnel during their time serving in the Middle East.

The U.S. military constructed burn pits near bases across the Middle East to dispose of hazardous
and non-hazardous waste.

A wide range of materials, including uniforms, chemicals, tyres, and even medical, animal and human waste, were burned in pits using jet fuel as an accelerant.

It is estimated that 3.5 million Veterans have been exposed to harmful toxins whilst deployed on operations since 2001.

The ‘burn pit’ trial looked at this symptomology and showed that XV Technology is accurate in identifying the constrictive bronchitis.

4DMedical also advised that it has a pre-agreed pricing structure with the Veteran Health Association (VHA). The agreement means the company can offer the procedure at US$171 per scan – without the need for reimbursement.

In the last 12 months, the 4DMedical share price is down more than 61%.

The post Why is the 4DMedical share price rocketing 20% on Wednesday? appeared first on The Motley Fool Australia.

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• Why has the 4D Medical share price popped 7% in a month?

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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