The Santos Ltd (ASX: STO) share price is in the red after the company released its latest quarterly earnings, detailing record first half production, revenue, and cash flow.

Shares in the ASX oil and gas share have fallen 0.24% to trade at $7.37 at the time of writing.

Santos share price dips despite record first half

Here are the key takeaways from Santos’ June quarter:

• Quarterly revenue of around US$1.88 billion – 74% higher than that of the prior comparative period
• First half revenue came to a record US$3.77 billion – 85% higher than the same period of 2021
• Produced 25.5 million barrels of oil equivalent (mmboe) in the quarter – a 2% drop on that of the March quarter
• First half free cash flow came to US$1.7 billion – a 199% increase

The company’s revenue for the June quarter was flat with the previous quarter’s as higher commodity prices offset lower sales.

Meanwhile, the company’s oil production slipped due to natural field decline at Bayu-Undan and planned maintenance outages at PNG LNG, Darwin LNG, and the Cooper Basin. Though, its production jumped 9% to 51.5 mmboe over the six months ended June.

Santos’ sales volume came to 27.5 mmboe last quarter – a 2% drop. It increased 4% over the first half, coming in at 55.7 mmboe.

Finally, Santos achieved sustaining annual merger synergies of US$95 million in the first six months of its marriage to Oil Search. It previously targeted maximum synergies of US$115 million.

What else happened in the quarter?

The Santos share price slipped 4% over the second quarter, outperforming the S&P/ASX 200 Index (ASX: XJO) by 8%.

The major news from the company in that time came in mid-April. Then, Santos announced a US$250 million on-market share buyback.

As of the end of June, US$174 million of the buyback had been completed.

Additionally, the company’s Barossa project is 40% complete, on schedule, and on budget. Meanwhile, its Pikka Phase 1 project in Alaska has advanced front end engineer design (FEED) work and is ready for a final investment decision.

Looking to the greener end of the business, Santos’ Moomba carbon capture and storage (CCS) project is 18% complete, on schedule, and on budget. Progress is also being made on the Bayu-Undan CCS project.

What did management say?

Santos managing director and CEO Kevin Gallagher commented on the news driving the company’s share price today, saying:

Santos is positioned as a leading and reliable LNG supplier into Asia and we are well placed to take advantage of growing Asian demand for LNG, which is forecast to double by 2050.

Our new capital management framework announced in April combined with strong free cash flows position us well to provide returns to shareholders at the half-year results in August.

What’s next?

The Santos share price might be being weighed down by the company’s newly updated guidance.

It now expects to produce between 102 mmboe and 107 mmboe in 2022. That’s relatively in line with its previous production guidance of between 100 mmboe and 110 mmboe.

On top of that, Santos has lowered its production cost guidance to between US$7.90 and US$8.30 per barrel.

However, the company has also dropped its sales guidance. It now expects to sell between 110 mmboe and 116 mmboe this year. Previously, its top line guidance was 120 mmboe.

Santos share price snapshot

The Santos share price has outperformed the broader market so far this year.

It has gained around 11% year to date. It’s also currently nearly 12% higher than it was at this point last year.

Meanwhile, the ASX 200 has slipped 11% year to date and 7% over the last 12 months.

The post Record-breaking: Santos share price slips despite 85% jump in half-year revenue appeared first on The Motley Fool Australia.

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More reading

• ‘Not enough’: Could Europe’s gas woes bolster ASX 200 energy shares?
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Santos share price on such a tear today?
• Why are ASX 200 energy shares having such a stellar Tuesday?

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

Could a class action lawsuit filed against the creators and early investors in Solana (CRYPTO: SOL) impact your ability to invest in crypto?

Some commenters worry it might. A new lawsuit circulates around the question of whether cryptocurrency is a security. 

Alleging that the defendants were involved in illegal securities trading, the suit could be a harbinger of disruptive rulings revisiting whether crypto is a security and whether non-accredited investors can participate – or it could be a nothingburger.

Although this suit uses some of Solana’s problematic features to argue it is a security, many similar lawsuits have been filed against various crypto entities and businesses using similar lines of reasoning.

The gist of the complaint: Solana is a centralized security, and its creators misled the public in order to profit 

On 1 July, a class action lawsuit was filed against Solana Labs, the Solana Foundation, Solana Labs CEO Anatoly Yakovenko, the venture capital firm Multicoin Capital, and its CEO, Kyle Samani.

Filed by lead plaintiff Mark Young “on behalf of all investors who purchased Solana tokens,” the suit alleges that Solana Labs’ negotiations prior to their initial coin offering (ICO, the crypto world’s equivalent of an IPO) constitute multiple violations of the Securities Act. 

Deploying the Howey test (a court precedent for determining whether something is an investment contract), the suit alleges that SOL is an unregistered security. The suit claims the defendants used a series of negotiations to sell lots of SOL among themselves at rock-bottom prices, and then chose to sell relatively few SOL at much higher prices during the public ICO in order to maintain control over the platform before dumping SOL on gullible investors.  

The core questions in the lawsuit relate to both the specifics of Solana and to crypto investing in general – and that is what concerns some crypto commenters.

The complaint alleges that Solana creators used a series of private deals and their ICO to deliberately centralize and consolidate control of both the tokens and the network infrastructure. Many have criticized Solana for its centralization: Its network and governance structures make it possible for some stakeholders to have more power than others.

However, the broader legal argument suggests that purchasing almost any cryptocurrency with an expectation of profit would meet the threshold of a security — and that the average retail investor lacks the knowledge and skills to make an informed investment.

The lawsuit could have major implications for retail crypto investing

Any class action lawsuit hitting the developers of one of the top 10 cryptocurrencies will turn heads. But one thing about this case that has particularly concerned commenters is that it rests on the argument that Solana is a security.

This classification is more than pedantic hair-splitting: For decades, American courts have used the Howey test to evaluate whether a transaction is a security.  

Many lawsuits have claimed that various crypto entities operate as securities. However, U.S. law generally considers crypto to be a commodity, so it falls under the purview of the Commodities Futures Exchange Commission (CFTC).

There would be many implications if this classification changes, but one of the most direct potential consequences could be restrictions in which kinds of investors can purchase crypto or participate in ICOs. 

It’s important to know that only accredited investors – wealthy individuals with a specific license and high net worth – can purchase certain types of investments. The mere idea of accredited investors is anathema to many who see crypto as a way to even the financial playing field. 

Plus, many businesses in the crypto sector, such as Coinbase (NASDAQ: COIN), use a business model that relies on retail investors to provide revenue.  

Yet many of the lawsuits claiming that crypto is a security rest on the argument that creators defrauded unsophisticated investors.  

That’s why any legal proceeding that threatens to change this status quo could have ramifications that “ripple” beyond Solana. Ripple (CRYPTO: XRP) is already embroiled in a similar lawsuit with the SEC, and legal experts involved with that case are already warning that if Ripple loses, the case could transform the crypto sector.

But then again, maybe it won’t

The Solana suit is hardly breaking new legal ground: As of May 2022, there had been at least 200 lawsuits concerning cryptocurrency, many of which alleged that crypto creators defrauded investors by illegally selling securities.  

Though the initial complaint never specifies whether the plaintiff was an accredited investor, Young purchased more than $117,000 USD of Solana in August and September last year via altcoins such as Cardano and Ethereum.  While nobody wants to watch a $117,000 investment plummet in value, it is also probably more than most retail investors are able to invest in crypto.

The complaint’s emphasis on the defendants’ use of Twitter to promote Solana also suggests that the plaintiff, or others in the class of plaintiffs, might have influenced their investment decisions. 

No matter how this lawsuit turns out, this is a great occasion to remind yourself that all investments carry risk, crypto is highly volatile, and you should only invest in proportion to your risk tolerance.

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

The post Solana Foundation slapped with class action lawsuit alleging SOL is a security appeared first on The Motley Fool Australia.

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More reading

• Shiba Inu, Dogecoin, Solana surge higher: Where are meme coins headed from here?
• Is “Solana Summer” (Finally) upon us?

Fool contributor Miranda Tedholm owns Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Coinbase Global, Inc., Ethereum, Solana, and Twitter. The Motley Fool Australia owns and has recommended Solana and Ethereum. 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 Link Administration Holdings Ltd (ASX: LNK) share price is having a strong day on Thursday.

In morning trade, the administration services company’s shares are up 10% to $4.36.

Why is the Link share price surging higher?

Investors have been scrambling to get hold of Link shares this morning after the company provided another update on its takeover saga.

But as you might have guessed from the Link share price reaction, this update is potentially a good one for shareholders.

According to the release, Dye & Durham has revised its base scheme consideration to $4.81 per share. While this is lower than the original base scheme consideration of $5.50 per share, it is higher than its recently revised offers of $4.30 per share and $4.57 per share.

In addition, Link shareholders remain entitled to receive net consideration of up to 13 cents per share from the sale of the Banking and Credit Management (BCM) business. This is if the business is sold and proceeds are received up to 12 months after the implementation of the revised scheme.

Dye & Durham has advised that it will shortly appoint financial advisers to sell Link BCM business and will commence this process immediately following implementation of the revised scheme.

Offer recommended

The Link board is unanimously recommending that shareholders vote in favour of the revised scheme in the absence of a superior proposal and subject to the independent expert concluding that it is fair, reasonable, and in the best interests of shareholders.

Subject to the same qualifications, each Link director intends to vote in favour of the revised scheme at the forthcoming scheme meeting.

Though, the deal will still require approval from the courts, regulators, and other customary conditions.

The post Link share price jumps 10% on takeover deal appeared first on The Motley Fool Australia.

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More reading

• Link share price higher amid takeover and guidance update
• Here are the top 10 ASX shares today
• Why Chalice Mining, Damstra, Link, and Pinnacle shares are storming higher
• Link share price jumps 7% on beefed up takeover bid
• Why Audio Pixels, Lake Resources, Link, and Magellan shares are dropping

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 Link Administration Holdings Ltd. 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 down 2% in early trade.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy giant closed yesterday at $32.57 and are currently trading for $31.92.

This comes after this morning’s release of the company’s second quarter report (Q2) for the three months ending 30 June.

Here are the highlights that have yet to boost the Woodside share price today.

What happened during the quarter?

• Woodside produced 33.8 million barrels of oil equivalent (MMboe), a 60% increase from the prior quarter and up 49% from Q2 2021
• Sales volume of 35.8 MMboe was up 51% from Q1 2022 and up 27% year-on-year
• The average realised price per barrel of oil equivalent came in at $95
• Revenue of $3.44 billion was up 44% from Q1 2022 and 159% from Q1 2021

What else impacted the Woodside share price during the quarter?

Among the biggest events over the quarter was Woodside’s merger with the petroleum business of BHP Group Ltd (ASX: BHP). That merger was officially completed on 1 June.

The merger transformed Woodside into a top 10 global independent energy producer by hydrocarbon production. And it made the company the largest energy share listed on the ASX.

The three-month period also saw Woodside rebrand itself, changing its name from Woodside Petroleum (with the ticker WPL) to Woodside Energy (with the new ticker WDS).

Topping it off the company moved to a triple listing. While maintaining its spot on the ASX 200, Woodside shares also began trading on the New York Stock Exchange (NYSE) on 2 June, then followed up with trading on the London Stock Exchange (LSE) on 6 June.

Woodside shares trade under the same ticker, WDS, on all three exchanges.

What did management say?

Commenting on the quarter gone by, Woodside CEO Meg O’Neill said:

Significant progress was made on our key projects during the quarter. All major equipment items for Scarborough have been procured and construction has begun at the Pluto Train 2 site…

Following extensive discussions with potential new partners, we have decided to discontinue the sell-down of equity in Sangomar.

In Australia, accelerated Pluto gas transported through the Pluto-Karratha Gas Plant Interconnector has resulted in additional LNG production and sales of uncontracted cargoes in a high-priced market. Lambert Deep, a component of the Greater Western Flank Phase 3 project, achieved ready for start-up in July.

Woodside’s half-year report is scheduled for release on 30 August.

Woodside share price snapshot

The Woodside share price has been a star performer in 2022, up 40%. That compares to a year-to-date loss of 11% posted by the ASX 200.

The post Woodside share price slips despite 44% revenue boost appeared first on The Motley Fool Australia.

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More reading

• ‘Not enough’: Could Europe’s gas woes bolster ASX 200 energy shares?
• 5 things to watch on the ASX 200 on Thursday
• Why this fundie believes Woodside shares are still an ‘attractive investment’
• Why JB Hi-Fi, Mesoblast, Pendal, and Woodside shares are pushing higher
• Why are ASX 200 energy shares having such a stellar Tuesday?

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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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.

What happened

The positive momentum in the cryptocurrency space we’ve seen to start this week is showing no signs of slowing. As sentiment related to the broader market continues to take a bullish tone, investors are seeing some impressive intraday moves in popular tokens. This is evidenced by today’s 24-hour moves in meme tokens Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB), which surged 6.6% and 5.6%, respectively, over the past 24 hours as of 12:20 p.m. ET. Cardano (CRYPTO: ADA) also saw an impressive move higher, gaining 4.4% over the same period. 

These moves appear to be driven by a changing narrative in the crypto sector. Yes, all the same headwinds continue to plague digital currencies right now. The Federal Reserve still appears to be looking to aggressively quash inflation and shrink the money supply. For investors, higher-risk assets are vulnerable to devaluation in such an environment. 

However, the recent announcement that the highly anticipated Ethereum merge has a tentative date of Sept. 19 in place has provided investors with something positive to look forward to. With that and moves by other networks such as Cardano, which is undertaking its own Vasil hard fork upgrade, optimism around key upcoming catalysts appears to be drowning out the rather loud negative catalysts that have reigned supreme this year.

So what

Aside from hard-core crypto maximalists, Dogecoin and Shiba Inu are two meme tokens that are generally viewed as too speculative to touch. However, one important feature these tokens provide is insight into the overall mentality of retail investors, as well as a gauge of investor sentiment more broadly. When speculators feel that a momentum-driven rally may have legs, tokens that are more volatile are often sought out as trades to capitalize on short-term moves.

Thus, when we see Dogecoin and Shiba Inu make multiple substantial daily moves higher (in sequential fashion), the speculative juices start to flow once again. Those betting on another bull market being just around the corner have been looking for such indicators for some time.

Indeed, the Ethereum merge has been a highly discussed event in the crypto sphere for a while. This catalyst, which has been delayed multiple times, is often viewed as what may take the future of decentralized finance, non-fungible tokens, and other crypto-related segments to the next level. As a core piece of the infrastructure supporting the overall crypto ecosystem, that’s a good thing for all tokens. 

Now what

This week’s impressive rally, as always, needs to be put in context. The overall crypto market, which is hovering around a $1 trillion valuation, is down approximately two-thirds from its peak of approximately $3 trillion late last year. Thus, while it’s great to get excited about near-term price action with some popular cryptocurrencies, much more of the same will be needed to erase the incredible losses we’ve seen this year.

Additionally, it’s unclear just how long traders and speculators will continue to bid up various cryptocurrencies before taking profits. The pump is great, but the dump is often not. And while many may stick around regardless of the volatility (those true long-term investors out there), traders and speculators will likely pull the plug at some point. 

Accordingly, true long-term investors may want to be patient with this recent rally. We’re seeing a similar theme play out in the stock market, with many calling this a bear market bounce. We’ll only find out later whether this was a sustainable rally off the bottom, or another head fake. But for now, playing it safe and incorporating appropriate risk management protocols in one’s investing strategy appears to be the best way forward. 

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

The post Does this crypto rally have legs? appeared first on The Motley Fool Australia.

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More reading

• Here’s why the Bitcoin and Dogecoin prices are rocketing
• Shiba Inu, Dogecoin, Solana surge higher: Where are meme coins headed from here?
• Why Bitcoin, Ethereum, and Cardano are rocketing higher today
• What’s going on with the Dogecoin price?
• What one tech guru thinks of the current crypto market

Chris MacDonald 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 Ethereum. The Motley Fool Australia owns and has recommended Ethereum. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has returned from its three-day trading halt.

In early trade, the banking giant’s shares are down almost 1% to $21.46.

Why is the ANZ share price falling?

The catalyst for the weakness in the ANZ share price on Thursday has been the completion of the institutional component of the banking giant’s capital raising.

According to the release, ANZ has successfully raised gross proceeds of approximately $1.7 billion, which will result in the issue of approximately 89 million new shares.

The release notes that the institutional entitlement offer was well supported by ANZ’s institutional shareholders with approximately 95% of entitlements taken up.

The remaining entitlements were quickly snapped up by other eager institutional shareholders who paid $21.65 per new share following a shortfall bookbuild process. This is $2.75 higher than the offer price of $18.90 per share.

ANZ will now push ahead with its retail entitlement offer which is aiming to raise the balance of the $3.5 billion capital raising at the same price.

Why is ANZ raising funds?

The proceeds from the capital raising will be used to fund the acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN) for $4.9 billion.

ANZ’s chief executive officer, Shayne Elliott, explained the rationale of the acquisition. He said:

The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland. With much of the work to simplify and strengthen the bank completed, and our digital transformation well-progressed, we are now in a position to invest in and reshape our Australian business. This will result in a stronger more balanced bank for customers and shareholders.

This is a growth strategy for ANZ and we will continue to invest in Suncorp Bank and in Queensland for the benefit of all stakeholders.

The post ANZ share price edges lower after capital raising appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• How high will the RBA hike rates in 2022? Here’s what the ASX 200 banks are forecasting
• ANZ to buy Suncorp’s banking business, and real wages going backwards. Scott Phillips on Sky News First Edition
• Is the NAB share price in danger from a resurgent ANZ?
• Top broker gives its verdict on ANZ’s Suncorp Bank acquisition

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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It’s been a ripper month for the Imugene Limited (ASX: IMU) share price. It’s surged a whopping 76.6% over the last 30 days, lifting from just 15 cents to close yesterday’s session at 26.5 cents.

But what’s been driving the healthcare stock to outperform most of its S&P/ASX 200 Index (ASX: XJO) peers lately? Let’s take a look.

Imugene share price surges 77% in a month

The Imugene share price has outperformed the ASX 200 by around 72% over the last 30 days. Most of its strong performance stemmed from exciting news of the company’s HER-Vaxx candidate, designed to treat tumours.

The stock surged 45% in late June after the company announced a phase two trial found patients treated with HER-Vaxx had favourable survival outcomes.

Notably, treatment with HER-Vaxx and chemotherapy was found to reduce the risk of death by 41.5%. compared to chemotherapy alone.

The median overall survival for patients treated with HER-Vaxx and chemotherapy was found to be 13.9 months, compared to 8.3 months for those treated solely with chemotherapy.

In other news, the company has made two important appointments over the last month.

Dr Sharon Yavrom was appointed executive director, clinical scientist in early July. Weeks later, Mike Tonroe was appointed chief financial officer.

The Imugene share price’s strong month of trade marks an astonishing recovery. Indeed, it hasn’t yet been two months since the company’s chair and CEO wrote to reassure shareholders after the stock tumbled 67% from its November peak.

“Things have only improved from our share price peak last year,” the leaders said in May. “Imugene is as strong as it has ever been as we continue to make good progress.”

Though, the stock’s recent gains haven’t launched it back into the year-to-date green. The Imugene share price is still 38% lower than it was at the start of 2022.

The post The Imugene share price has rocketed 77% in a month. What’s going on? appeared first on The Motley Fool Australia.

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• What’s the outlook for ASX biotech shares in FY23?
• Up 33% in a week, what’s helping the Imugene share price higher?
• ASX 200 midday update: Regis Resources jump, big four banks fall ahead of RBA meeting
• Why Carsales, EOS, Imugene, and Tyro shares are sinking today
• ASX 200 midday update: Carsales sinks, Liontown jumps on Ford agreements

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 Zip Co Ltd (ASX: ZIP) share price is pushing higher following the release of the company’s quarterly update.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up 5% to 70 cents.

Zip share price higher on Q4 update

Here’s s summary of the company’s performance during the quarter:

• Group quarterly revenue up 27% to $160.1 million
• Revenue margin down 30 basis points quarter on quarter to 7.5%
• Customer numbers up 5.3% quarter on quarter to 12 million
• Quarterly transaction volume up 20% year on year to $2.2 billion
• Transaction numbers up 37% year on year to 19.4 million
• Cash transaction margin up 10 basis points quarter on quarter to 2.4%
• ANZ net bad debts up 42 basis points quarter on quarter to 3.82%

What happened during the quarter?

During the three months ended 30 June, Zip reported a 27% increase in quarterly revenue over the prior corresponding period to $160.1 million.

Management advised that this reflects strong results across its consumer operations in the United States, Australia, New Zealand and Rest of World despite growth being tempered by a deterioration in consumer sentiment and adjustments to risk settings.

Though, it is worth noting that quarter on quarter US revenue fell 2%, ANZ revenue rose a modest 2%, and Rest of the World revenue was flat at just $8.5 million.

This means that for the full-year, Zip delivered revenue of approximately $621.5 million. And while this is a healthy 54% increase year on year, it is short of what some analysts were expecting.

For example, a recent note out of Macquarie reveals that its analysts were expecting Zip to report a 59.9% increase in revenue to $644.24 million for FY 2022. So, the company has missed on the top line with this update.

Global review

Zip has revealed that it is taking steps to right size its global cost base and accelerate the company’s path to profitability. This includes closing down its Singapore business and looking at options for other Rest of the World businesses including the UK.

In addition, as part of the review, the company has looked at the goodwill against the Spotti, Twisto and Quadpay assets. It is now assessing the need to take an impairment charge against the carrying value of goodwill of these assets in its FY 2022 accounts.

Management also revealed that it will be closing down Zip Business and the Pocketbook app, as well putting its planned crypto and investment products on the back-burner.

Management commentary

Zip’s co-founder and global CEO, Larry Diamond, was pleased with the quarter. He said:

We are pleased to announce another solid set of results across our key operating metrics in Q4, demonstrating the continued strength of the Zip business. All this was done whilst balancing and implementing our updated financial strategy to fast-track profitability, by reducing our global cost base, and refocusing our capital and efforts on core products and core markets.

Diamond also commented on the decision to terminate the merger with Sezzle Inc (ASX: SZL), which he and the Zip board believe was in the best interests of shareholders. Particularly as management expects it to allow the company to reach profitability earlier than planned. He explained:

Given the significant and swift changes to the broader macro and capital environment since signing, Sezzle and Zip mutually agreed to terminate the proposed transaction, both businesses opting to focus on their core strategy. As Directors we saw this to be in the best interests of shareholders – we wish Charlie and the Sezzle team all the best in FY23.

This coupled with recent decisions made, as well as ongoing strategic initiatives, will see the group reach cash EBTDA profitability earlier than anticipated.

Zip’s global CEO remains optimistic on the future of the company despite the market’s bleak view on the BNPL industry. He concluded:

As we celebrate our 9th birthday, we reflect on the incredible growth, from start-up pioneering the role of BNPL, to a publicly listed, global business with over 12m customers. Our role as a financial services technology provider is becoming even more crucial in the current climate as we support our customers and merchant partners through this inflationary period. The resilience of Zip and its business model has us well placed to thrive through this next stage of the journey and even though we are nine years in, it genuinely feels like we are only getting started!

The post Zip share price up 5% following Q4 update appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• Why Iluka, JB Hi-Fi, Megaport, and Zip shares are racing higher
• Zip share price jumps 14% ahead of tomorrow’s update
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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 ZIPCOLTD FPO. 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 broker Macquarie has picked out two compelling S&P/ASX 200 Index (ASX: XJO) shares that could be solid buys at current levels.

There has been a lot of volatility in recent times, opening up opportunities for investors to find businesses at much lower prices.

Interestingly, both of these ASX 200 shares I’m about to refer to have exposure to mining.

Let’s have a look at two of the picks Macquarie just called a buy.

Deterra Royalties Ltd (ASX: DRR)

This business is a royalty revenue owner. It receives royalties, with a key asset being Mining Area C (MAC), an iron ore hub operated by BHP Group Ltd (ASX: BHP).

Deterra also pays out 100% of its net profit after tax (NPAT) as a dividend.

Looking ahead, Deterra expects BHP’s South Flank to grow its MAC volumes. Deterra says it will also be “patient and disciplined” with value-adding acquisitions.

The company has no direct exposure to project operating costs and there are no capital cost obligations.

Macquarie rates Deterra Royalties as a buy, with BHP’s recent update showing growth at South Flank.

The broker has a share price target of $5 on Deterra Royalties. This implies a possible rise of about 20%.

This ASX 200 share could offer a grossed-up dividend yield as high as 13.7%.

Lynas Rare Earths Ltd (ASX: LYC)

As the name suggests, Lynas is a rare earths miner. It mines minerals such as neodymium and praseodymium (NdPr).

The company is benefitting from elevated commodity prices. In a recent update, Lynas said that the NdPr price was 70% to 80% higher than at the same time last year.

Resource prices are key for miners. It costs a similar amount to extract materials out of the ground, no matter what the commodity price is doing. So any increase in the price can largely fall to the bottom line.

The average China domestic price for NdPr during the three months to 30 June was US$120 per kilo.

In that quarter, the company generated $294.5 million of sales revenue.

The company has been making progress on the construction of the Kalgoorlie rare earths processing facility. All five kiln sections have been lifted into position and assembled.

Lynas has also been awarded a US$120 follow-on contract by the United States Department of Defence to construct a heavy rare earths facility in the US.

Macquarie recently rated the Lynas share price as a buy with a price target of $12.50. This implies a possible rise of about 50%.

The broker says Lynas is valued at 10 times FY23 estimated earnings.

The post Here’s why Macquarie thinks these 2 ASX 200 shares can outperform appeared first on The Motley Fool Australia.

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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 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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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.

Amazon (NASDAQ: AMZN) is slated to report its second-quarter 2022 results after the market close on Thursday, July 28. An analyst conference call is scheduled for the same day at 5:30 p.m. ET. 

Investors will probably be approaching the e-commerce and technology behemoth’s report feeling somewhat cautious. Last quarter, the company’s earnings missed Wall Street’s expectation, while its revenue was in line with the consensus estimate. While investors were undoubtedly not pleased with the bottom-line result, they were likely more concerned about the company’s second-quarter revenue guidance. It came in significantly lower than what analysts had been projecting.

Investors are increasingly worried about the macroeconomic environment. So far, persistent high inflation hasn’t affected consumer spending, in general, all that much. However, this could change as more consumers become concerned that the U.S. economy could slip into a recession. If many consumers notably ratchet back their discretionary spending, Amazon’s e-commerce business results would be hurt.

That said, investors should keep the bigger picture in mind, as this is a company with what seems like countless current and potential avenues for long-term growth. 

Here’s what to watch in Amazon’s upcoming report. 

Amazon’s key numbers

Metric	Q2 2021 Result	Amazon’s Q2 2022 Guidance	Amazon’s Projected ChangeÂ	Wall Street’s Consensus Estimate	Wall Street’s Projected Change
Revenue	$113.1 billion	$116.0 billion to $121.0 billion	3% to 7%	$119.4 billion	5.6%
Earnings per share (EPS)	$0.76*	N/A	N/A	$0.16	(79%)

Data sources: Amazon and Yahoo! Finance. *Adjusted to reflect the 20-for-1 stock split in June 2022. Note: Amazon does not provide earnings guidance.

While Amazon doesn’t provide guidance for earnings, it does so for operating results. Management expects its operating result to fall between an operating loss of $1 billion and an operating income of $3 billion. In the year-ago quarter, the company posted operating income of $7.7 billion.

The company is facing tough comparables, as it had robust results in the year-ago period. One factor adding to the challenging comparables is the shifting of the annual Prime Day event from the second quarter of last year to the third quarter of this year. In addition, foreign exchange headwinds likely hurt the second-quarter’s revenue because the U.S. dollar has gained strength against other currencies over the last year.

For context, in the first quarter, Amazon’s revenue increased 7% year over year (and 9% in constant currency) to $116.4 billion. That result was on target with the $116.3 billion Wall Street had expected and near the high end of the company’s guidance range of $112 billion to $117 billion. By segment, sales in North America and Amazon Web Services rose 8% and 37%, respectively, while those in international fell 6%. 

Last quarter’s net loss was $3.8 billion, or $7.56 per share ($0.38 per share when adjusted for the 20-for-1 stock split in June). That compared with net income of $15.79 per share in the year-ago period. This result fell far short of the analyst consensus estimate of net income of $8.48 per share.

A sizable part of the shortfall was due to a pre-tax valuation loss of $7.6 billion from Amazon’s common stock investment in electric vehicle maker Rivian Automotive, which held its initial public offering (IPO) last November. Absent this item, Amazon would have recorded a net profit, rather than a loss. However, it still would have missed Wall Street’s expectation.

Third-quarter guidance

Amazon stock is likely to move if management’s third-quarter outlook comes in notably different than Wall Street’s expectations. 

The company provides guidance for revenue, but not earnings. However, its operating income outlook usually gives investors a ballpark idea as to what year-over-year percentage change management expects on the bottom line.

For Q3, analysts are currently modeling for Amazon’s revenue to increase 15% year over year to $127.8 billion and EPS to rise 16% to $0.36. Keep in mind that Q3 will get a boost from Prime Day being held in the quarter, versus in Q2 last year.  

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

The post Amazon earnings: What to watch on July 28 appeared first on The Motley Fool Australia.

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

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