The Netflix Inc (NASDAQ: NFLX) share price soared in the US after the company released quarterly results showing net income of more than $1.4 billion.

Netflix shares jumped 7.85% to $217.46 on the NASDAQ during after-hours trade. In Tuesday’s trading, Netflix shares climbed 5.61%. For perspective, the NASDAQ leapt 2.93% on Tuesday.

Let’s take a look at what Netflix reported today.

Netflix reports quarterly results

Highlights of the Netflix Q2, 22 results include:

• Total revenue of $7.97 billion
• Revenue jumped 1.3% on the previous quarter and 8.55% compared to Q2, 21
• Loss of 970,000 global streaming paid memberships
• Total of 220.67 million global streaming paid memberships
• Operating margin of 19.8%
• Net income of $1.441 billion, up 6.5% compared to Q2,21
• Diluted earnings per share (EPS) of $3.20, up from $2.97 per share in Q2,21

What else did Netflix report

Despite the loss of subscribers, Netflix said membership was “better than expected”. The company said it is in a position of strength.

Average revenue per membership (ARM) increased 7% year on year, excluding the impact of foreign exchange.

Revenue in the Asia Pacific region jumped 23% compared to the previous year, excluding foreign exchange, and is now almost as big as the company’s Latin America business.

Europe, the Middle East, and Africa revenue also climbed 13% year on year, while Latin America revenue rose 19% and US Canada revenue gained 10%.

Netflix added 1.1 million subscribers in the Asia Pacific region in the quarter, up from one million in the previous corresponding year.

The best Netflix movie in quarter two was Hustle, featuring Adam Sandler. This attracted 186 million hours of viewing. This was followed by Senior Year, starring Rebel Wilson, with 161 million viewing hours.

Netflix is also investing in animated features and building on non-English programming. Netflix said:

While we always have room to improve, we’re very pleased with how far we’ve come in providing so much satisfaction and enjoyment to our members.

What’s ahead?

Netflix wants to accelerate revenue growth and improve monetisation. The company is planning to add a new lower-priced plan with advertising in early 2023. This will be in addition to existing plans that are free of ads.

Netflix plans to roll this plan out in markets where advertising spend is high. Commenting on this initiative, the company said:

Our global ARM [average revenue per membership] has grown at a 5% compound annual rate from 2013 to 2021, so it makes sense now to give consumers a choice for a lower priced option with advertisements, if they desire it.

Netflix is also working on plans to monetise up to 100 million homes that are not paying for Netflix, despite using the services. Netflix added:

We know this will be a change for our members. As such, we have launched two different approaches in Latin America to learn more.

Our goal is to find an easy-to-use paid sharing offering that we believe works for our members and our business that we can roll out in 2023.

Share price snapshot

The Netflix share price has dived 62% in the past year, while it has lost 66% year to date.

However, in the past month, Netflix shares have soared nearly 18%. For perspective, the NASDAQ has dropped nearly 12% in the past year.

The post Why did the Netflix share price lift despite losing 970,000 subscribers? appeared first on The Motley Fool Australia.

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More reading

• The end of ‘Stranger Things’ might actually be a boost for Netflix
• Betting against Netflix now could be a big mistake
• Should you invest in stocks right now? These 2 charts say yes
• Better bear market buy: Netflix vs Amazon
• 3 reasons Netflix should bounce back in July

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. 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 Leo Lithium Ltd (ASX: LLL) share price is racing higher on Wednesday.

This comes after the lithium developer announced a debt facility update to the market.

At the time of writing, Leo Lithium shares are swapping hands at 44.5 cents, up 4.71%.

Leo Lithium completes debt funding package

Investors are rallying up the Leo Lithium share price following the company’s financing efforts.

According to its release, Leo Lithium advised it has secured an expandable US$40 million debt facility with Joint Venture partner Ganfeng Lithium Co.

The facility agreement puts Leo Lithium in a strong financial position to cover its share of the costs in developing the Goulamina Project. The first-stage development costs are estimated to be around US$255 million.

The Goulamina JV now has a debt and equity package of US$170 million.

By securing the funds, this completes Leo Lithium’s initial offtake marketing efforts and locks in all of spodumene product offtake from the first stage of the project.

Based in Mali, Goulamina is regarded as one of the world’s largest spodumene projects and the first of its kind in West Africa.

It’s forecasted that the mine will produce 506,000 tonnes of spodumene concentrate per annum, increasing up to 831,000 tonnes thereafter.

Early-stage development is underway and the first production is being targeted for the first half of 2024.

Leo Lithium managing director, Simon Hay commented:

Leo Lithium and Ganfeng are jointly developing Goulamina with plans to become one of the world’s largest spodumene concentrate producers.

The finalisation of the debt funding package from Ganfeng significantly de-risks development and means we are now able to fully focus on accelerating development work on the Goulamina Project as we jointly bring the Goulamina into production.

The accordion facility provides Leo Lithium with a further funding option, an important feature as the globe experiences broad inflationary pressures.

Leo Lithium share price snapshot

Since listing on the ASX board last month, Leo Lithium shares declined by around 35%.

This follows the demerger from Firefinch Ltd (ASX: FFX) back in April this year.

Based on today’s price, Leo Lithium has a market capitalisation of approximately $424.26 million.

The post Why is the Leo Lithium share price launching 5% today? appeared first on The Motley Fool Australia.

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• Why Beach, Cooper Energy, Leo Lithium, and Whitehaven Coal are dropping
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• Leo Lithium share price fails to roar and sinks 26% following demerger

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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. The benchmark index is currently up 1.75% to 6,765.5 points.

Here’s what is happening on the ASX 200 today:

Megaport shares jump

The Megaport Ltd (ASX: MP1) share price is rocketing higher on Wednesday. As well as getting a boost from a rebound in the tech sector, the release of a strong quarterly update has got investors excited. Megaport reported a 13% increase in monthly recurring revenue (MRR) to $10.7 million and its first quarterly operating profit of $1 million.

Allkem’s quarterly update

The Allkem Ltd (ASX: AKE) share price is underperforming today after the lithium miner’s quarterly update disappointed. Although Allkem reported record quarters for its Mt Cattlin and Olaroz operations, its guidance for FY 2023 appears to have underwhelmed. Management is forecast a sizeable production decline from its Mt Cattlin operation next year.

Tech shares storm higher

The tech sector has been the place to be on the Australian share market on Wednesday. Investors have been piling into the sector following a very strong night of trade on the tech-focused NASDAQ index. Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) shares have been among the best performers and are helping to drive the S&P ASX All Technology index 4.4% higher at the time of writing.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Megaport share price with a 19% gain. This follows the release of the network as a service provider’s quarterly update. Going the other way, there are only a handful of shares in the red. One of those is the Pendal Group Ltd (ASX: PDL) share price, which is down 2.5%. This may be due to profit taking after a solid gain yesterday amid takeover speculation.

The post ASX 200 midday update: Megaport rockets, Allkem’s update, tech shares rally appeared first on The Motley Fool Australia.

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• Xero share price rises 8%: Can it keep climbing?
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• Pendal share price slides amid ‘potential transaction’
• Megaport share price explodes 38% on June quarter profit
• Allkem share price falls despite record quarter

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., MEGAPORT FPO, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has recommended MEGAPORT FPO. 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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Wilson Asset Management (WAM) is a fund manager that manages billions of dollars across various listed investment companies (LICs). It often likes to go hunting for ASX All Ordinaries (ASX: XAO), or All Ords, shares.

The company manages one of the largest LICs on the ASX, WAM Capital Limited (ASX: WAM). Another is WAM Leaders Ltd (ASX: WLE), which looks at the bigger ASX shares.

Each month, the fund manager likes to tell investors what’s going on in its portfolio.

Sometimes it outlines an investment that has gone well (and could keep going well), whereas other examples may be something that has seen a decline but could still be an opportunity.

With that in mind, let’s look at two of the latest All Ords ASX shares that WAM thinks are opportunities.

Smartgroup Corporation Ltd (ASX: SIQ)

WAM described Smartgroup as a business that provides salary packaging, fleet management, and a range of other employee benefit services for organisations across Australia.

The fund manager noted the Smartgroup share price suffered in June after the company announced the Department of Education and Training Victoria would not be renewing its contract.

WAM noted this was a rare occasion where the company was unsuccessful against its competitors. The contract is expected to end in the coming months with an estimated earnings impact of “less than 5%” in the 2023 calendar year.

While this announcement hurts short-term earnings and market sentiment, WAM pointed to a number of reasons to remain positive. Those factors were: a recovery in new vehicle supply, a robust pipeline of novated leases, and a cost-out targeted under the company’s smart future program. All are expected to underpin Smartgroup’s earnings growth over the medium term, WAM said.

Carsales.Com Ltd (ASX: CAR)

The fund manager describes Carsales as a business that operates the largest online automotive, motorcycle, and marine classified advertising business in Australia. It also operates Trader Interactive (TI), a US-based marketplace business that has a leading position in the recreational vehicle, powersports, commercial truck, and equipment markets.

WAM noted that, in June, the All Ords ASX share announced it would exercise its call option to acquire the remaining 51% interest in TI that it doesn’t already own for $1.2 billion. This will be funded by a capital raising.

The transaction is expected to be completed in the first quarter of FY23, with the acquisition providing “immediate low double-digit earnings per share (EPS) accretion”, including tax and interest benefits.

WAM likes the deal because owning all of the TI business is expected to unlock a “range of additional growth options” for the business.

The company also provided a trading update during June 2022, with FY22 earnings guidance in line with analyst expectations.

Despite uncertainty in the wider economic environment, Carsales noted “strong momentum” across all markets going into FY23. WAM thinks the All Ords ASX share’s earnings will be more resilient than the market is expecting.

The post 2 All Ords ASX shares this fund manager thinks are compelling appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ordinaries shares leaping 10% or more today
• Fundie reveals 2 indicators the bear market may be coming to an end
• Why this expert tips a ‘range of additional growth opportunities’ for Carsales shares
• 3 ASX All Ords shares tumbling into the weekend
• Sezzle shares plunge another 16%, now down 60% in a week

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 positions in and has recommended SMARTGROUP DEF SET. The Motley Fool Australia has recommended carsales.com 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.

Equity markets have been southbound for a while now, and last month, the S&P 500 officially dropped below bear market territory as defined by a 20% or more decline from its most recent high. Even the most battle-tested investors can panic in situations like these; it’s only human to do so. 

That’s especially the case considering the state of the economy. Some analysts have predicted that a recession could be on its way, and with inflation at 40-year highs, things could get even worse for the stock market. With that said, there are important missteps investors should avoid in a bear market. Here are just two examples.

Mistake #1: Constantly checking your portfolio

When stocks are struggling, it can be tempting for investors to constantly check how the performance of their portfolios stacks up against that of the broader market — or if, by any chance, they are managing to defy the sell-off. The temptation is understandable but a bit unwise. In a bear market, most investors will be in the red. But until one presses the sell button, losses remain unrealized.

Peeking into the performance of the stocks you own regularly can increase anxiety and provoke panic-selling. Of course, that would be a mistake for investors with a long-term mindset. The market will recover — history tells us that it always does. And provided the stocks you own are those of quality companies, they will bounce back too. Staying the course is generally the correct thing to do.

Not being obsessed with how your portfolio performs helps you do just that. 

Mistake #2: Avoiding buying stocks 

For opportunistic investors, downturns are practically the stock market equivalents of a “sale” sign on the window of a retail store. Sell-offs don’t discriminate. Even robust companies find themselves in the red, creating the perfect opportunity for you to scoop them up on the dip.

Of course, investing best practices still apply. It’s essential only to invest money that you can afford to lose, particularly if the downturn in question is accompanied by economic troubles (as we are currently experiencing).

Furthermore, just because a stock is down doesn’t mean it’s worth buying at its current levels. Doing your due diligence before pressing the buy button is always critical. But if you play your cards right, bear markets can help you increase your returns in the long run.

With that in mind, here’s one beaten-down stock worth buying now: Moderna (NASDAQ: MRNA). The biotech is down big this year, but it is well-positioned to rebound eventually. Here’s why. 

Down but not out

One reason Moderna is down recently — besides the broader sell-off — is that its prospects seem uncertain to some investors. What will the COVID-19 vaccine market look like after this year? Will Moderna continue to generate strong sales from its sole product on the market in 2023 and beyond?

These are reasonable questions, but Moderna seems to have the means to bounce back from a potential drop in sales of its coronavirus vaccine after this year. The company has a pipeline full of promising programs and enough funds to bring at least a couple of brand new products to market (without resorting to dilutive financing) — two key things biotech companies need to be successful.

Moderna is running several non-coronavirus-related phase 3 clinical trials, including a potential vaccine against the flu and two others against respiratory syncytial virus (RSV) vaccine and the cytomegalovirus, neither of which has an existing, approved vaccine. Additionally, it has plenty more programs in phase 2 or phase 1 testing.

The biotech ended the first quarter with $19.3 billion in cash and cash equivalents, more than double the $8.3 billion it had as of the end of Q1 of the previous fiscal year. Moderna’s shares have lost 35% of their value this year. But I believe patience will be rewarded for those who get in now. 

Play the long game 

Bear markets aren’t fun, but investors can make the best of them by avoiding the unnecessary stress of constantly checking stocks and taking advantage of the opportunity to buy great stocks like Moderna or many other companies that fell along with the rest of the market. Trading may be a short-term game, but investing is a long-term one. Focusing on that can help investors get through these challenging times.

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

The post 2 mistakes to avoid in a bear market appeared first on The Motley Fool Australia.

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• 3 things about Moderna that smart investors know

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. 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.

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

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The Northern Star Resources Ltd (ASX: NST) share price is edging higher on Wednesday.

This comes after the company released its operational and financial results to wrap up the fourth quarter of FY22.

At the time of writing, the Australian gold miner’s shares are up 0.59% to $6.80. Earlier, they were in the red before edging back into the green.

Let’s take a look to see how Northern Star performed over the 3-month period.

What did Northern Star report?

For the quarter ending 30 June, Northern Star delivered a strong result whilst managing current macroeconomic challenges.

Gold sold during the three months came to 402,069 ounces (oz) at an all-in sustaining cost (AISC) of $1,650/oz.

For FY22, the company sold a total of 1,561koz of gold at an ASIC of $1,633/oz. This is in line with the guidance range of 1,550-1,650koz at an ASIC of $1,600-1,640/oz.

Here’s a breakdown of Northern Star’s three operating assets:

Kalgoorlie’s performance was in-line with expectations. Its mines sold 213,310oz of gold at an AISC of A$1,791/oz.

On the other hand, Yandal lifted its performance to 121,601oz gold sold at an AISC of A$1,403/oz.

And lastly, Pogo delivered above second-half FY22 expectations with 67,158oz gold sold at an AISC of US$1,184/oz.

Northern Star advised it has a strong balance sheet with cash, bullion and investments of $812 million at 30 June.

Nonetheless, it appears investors are unfazed by the exceptional result, sending Northern Star shares in reverse.

The company is targeting FY23 guidance of 1,560-1,680koz gold sold at an AISC of A$1,630-1,690/oz. However, this will be mostly weighted towards the second half due to the scheduled ramp up of the Thunderbox mill expansion.

What did management say?

Managing director of Northern Star, Stuart Tonkin commented:

I am extremely proud of our team for delivering our FY22 guidance in a year that has seen extraordinary challenges. Further, we have maintained reliable operations over the past year and protected the health and wellbeing of our team.

The first full year of operating as the enlarged Northern Star has provided us a true understanding of the opportunities and requirements of our assets, particularly in this inflationary environment, and resulted in us increasing our FY23 capital budget. Our responsible approach to growth means we will be disciplined in how and when we spend the budget, at all times focused on maximising returns.

… Northern Star is in a strong position to deliver a successful FY23.

Northern Star share price snapshot

Over the last 12 months, the Northern Star share price has fallen 33% as the price of gold continues to wane.

Currently, the yellow metal is fetching at US$1,711 an ounce, down from its US$2,050 highs earlier in the year.

Northern Star is ASX’s second largest gold company with a market capitalisation of approximately $7.92 billion.

The post Northern Star share price edges higher following ‘strong’ quarterly performance appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• Why is the Northern Star share price trading at near 4-year lows?
• 5 things to watch on the ASX 200 on Monday
• Why is the Newcrest share price slipping to a new 52-week low on Friday?
• 2 ASX 200 mining shares performing today amid a volatile gold price

Motley Fool contributor Aaron Teboneras has positions in Northern Star Resources Limited. 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 Paladin Energy Ltd (ASX: PDN) share price is off to the races today.

Shares in the ASX uranium explorer and producer closed yesterday at 62 cents and are currently trading for 66.5 cents, up 7.26% in morning trade.

So, what’s moving the Paladin Energy share price higher?

What did the uranium producer report?

Paladin closed lower yesterday amid the wider market selloff. But it looks like investors may be snapping up shares today based on yesterday’s report that the company is returning its Langer Heinrich Mine, located in Namibia, to production.

Management said the decision to restart the mine was supported by strong uranium market fundamentals. The Paladin Energy share price could be getting a lift from their expectations the mine will begin producing in the March quarter of 2024.

Paladin has appointed the ADP Group to provide engineering, procurement, and construction management services, and reported that mobilisation of the project workforce is “well advanced”.

Citing inflationary pressure across its project supply chain, Paladin said the total project capital expenditure has increased to US$118 million, up from, previous guidance of US$87 million.

Paladin will provide 100% of the project funding, saying it will source priority loans if required. These will be repaid in priority to all outstanding shareholder loans. The company said it had US$177 million in unrestricted cash as at 30 June 2022, leaving it “well positioned” to deliver its first production from the Langer Heinrich Mine, along with funding its ongoing uranium exploration and marketing activities

Its non-project 2023 financial year cash expenditure guidance is US$14.7 million.

Commenting on the mine restart, Paladin CEO Ian Purdy said:

With the strength of the company’s uranium offtakes and the continuing strong uranium market fundamentals, Paladin has made the decision to return the globally significant Langer Heinrich Uranium Mine to production…

The Langer Heinrich Mine remains a low risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all our stakeholders.

Paladin Energy share price snapshot

Although struggling in 2022, the Paladin Energy share price remains up 52% over the past 12 months. That compares to the 8% loss posted by the All Ordinaries Index (ASX: XAO) over that same period.

The post What is driving the Paladin Energy share price 7% higher today? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today

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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The Xero Limited (ASX: XRO) share price has been a positive performer today.

The cloud accounting platform provider’s shares were up as much as 8% to $89.28 at one stage.

The Xero share price has since pulled back a touch but remains up over 5% to $87.35 at the time of writing.

Why is the Xero share price rising today?

Investors have been bidding the Xero share price higher today amid a rebound in the tech sector.

This follows a particularly strong night on Wall Street after investors started to bet that markets have now bottomed. This improved investor sentiment is being driven by the ongoing US reporting season, which has seen stronger-than expected corporate earnings.

The tech sector has been benefiting most, with the S&P/ASX All Technology Index rising by a sizeable 4% at the time of writing.

Given how a large number of tech shares, such as Xero, have been beaten thoroughly down this year, investors appear to be piling in on the belief that there are bargains galore in the sector.

And it isn’t hard to see why. Despite continuing its strong growth in FY 2022, the Xero share price is down 40% since the start of the year. That’s even after today’s gain.

Can its shares keep rising?

One leading broker that still sees plenty of room for the company’s shares to climb from here is Goldman Sachs.

A recent note reveals that its analysts have a buy rating and $113.00 on its shares.

Based on the current Xero share price, this implies potential upside of almost 27% for investors over the next 12 months.

The post Xero share price rises 8%: Can it keep climbing? appeared first on The Motley Fool Australia.

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• Why did the Xero share price have such a lousy session today?
• Why cheap hamburgers could give beginner ASX share investors food for thought
• Experts name 2 blue chip ASX 200 shares to buy
• What are brokers saying about the Xero share price?
• Broker names 2 ASX tech shares to buy in July

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

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The Qantas Airways Limited (ASX: QAN) share price is down again. The ASX airline share has seen declines since the beginning of COVID-19, and over the past few weeks.

At the time of writing, Qantas shares are down 16% since 8 June 2022.

A lot has happened in the last couple of months, including significant interest rate hikes by the Reserve Bank of Australia (RBA). It has implemented back-to-back 50 basis point (0.5%) rises.

That certainly can affect the valuation of assets. Interest rates can act like gravity on asset prices. The higher the interest rate, the harder it pulls downward on the price. Billionaire Ray Dalio once said about interest rates:

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

But there’s a lot more to understanding the Qantas share price situation. Management and investors have been waiting for demand to come back after more than two years of disruption from the pandemic.

What’s the latest from Qantas?

Comments from the airline could indicate what medium-term demand and financial growth may look like.

The last update we heard from the ASX airline share was a market update in June 2022.

It said that “travel demand remains strong across all categories”. Indeed, the demand may have been more than Qantas was initially prepared for as it thanked customers for their “patience and understanding while the airline works through what has been a challenging restart for the industry globally”.

But, fuel prices are hampering things. Fuel is one of the biggest expense items for Qantas.

The airline has reduced its domestic capacity for FY23 to assist with the recovery. For July and August, a further 5% of capacity will be removed on top of the 10% announced in May. The 15% total will also apply to September. A reduction of 10% will be applied to schedules from October to the end of March 2023.

This means that Qantas’ planned domestic flying will be brought down 106% of the pre-COVID level for the second quarter and 110% for the third quarter.

Qantas explained that these reductions, combined with “robust” international and domestic travel demand, are expected to help the airline recover the elevated cost of fuel. If this helps profitability, it could help the Qantas share price.

There are no changes to international capacity plans, with flying steadily increasing from around 50% of pre-COVID levels in June to around 70% by the end of the FY23 first quarter (30 September 2022) to meet demand.

Qantas says that capacity growth will continue as additional A380s return to service. International capacity is expected to reach 90% of pre-COVID levels by the fourth quarter of FY23, which is the three months between April 2023 to June 2023.

What will the airline do with the profit it’s making?

The ASX airline share said that it expects net debt reduction. The improved demand is expected to reduce net debt to around $4 billion by the end of FY22.

In the second half of FY22, it’s expecting to report underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of between $450 million and $550 million.

Is the Qantas share price a buy?

Brokers are somewhat mixed on the business.

UBS and Morgan Stanley both rate the company as a buy, with price targets of $6.55 and $6.60 respectively. This implies a possible rise of more than 40% over the next 12 months. The brokers were pleased with the better net debt expectations.

However, Credit Suisse rates the airline as ‘underperform’, with a price target of just $4.35 because of concerns that higher fuel prices will hit potential profit.

Using Credit Suisse’s profit expectation, the Qantas share price is valued at 22x FY23’s estimated earnings. The Morgan Stanley profit projection puts the Qantas share price at 19x FY23’s estimated earnings.

The post Will the Qantas share price fly higher in FY23? appeared first on The Motley Fool Australia.

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More reading

• ‘Disappointed’: Qantas share price lifts despite Heathrow chaos
• Clipped wings: Why ASX 200 travel shares are having trouble getting off the ground today
• Qantas share price slips amid COVID’s continuing toll  
• Own ASX travel shares? Here’s the outlook for FY23
• Here are the top 10 ASX shares today

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 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 Novonix Ltd (ASX: NVX) share price is taking off on Wednesday despite the company’s silence.

The battery technology and materials stock is joined in the green by many of its S&P/ASX 200 Index (ASX: XJO) tech peers.

At the time of writing, the Novonix share price is $2.26, 4.63% higher than its previous close.

For context, the ASX 200 is currently up 1.56%.

So, what’s helping to boost the ASX 200 technology giant’s stock higher today? Let’s take a look.

Novonix share price takes off on Wednesday

It’s a brilliant day for the S&P/ASX 200 Information Technology Index (ASX: XIJ) and the Novonix share price is riding the hype.

The tech sector is leaping 4% at the time of writing, with Novonix’s stock trading in the middle of the pack.

Out in front is the share price of Megaport Ltd (ASX: MP1) following the release of the company’s latest quarterly update. It’s currently up 19%. Megaport’s revenue for the June quarter was 10% higher than that of the prior comparable period, coming in at $30.6 million.

The tech sector’s strong performance also comes on the back of an equally good session on the tech-heavy NASDAQ index overnight.

The NASDAQ Composite lifted 3.11% on Tuesday, marking its best session in close to four weeks.

Sadly, the Novonix share price has a long way to go before it can break even. The stock is currently trading 75% lower than it was at the start of 2022. It has also slipped 13% since this time last year.

The post Why is the Novonix share price launching 5% higher today? appeared first on The Motley Fool Australia.

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More reading

• The only certainty in uncertain times: expert
• ‘Unusually cheap’: ASX experts call out massive buying opportunity
• 5 things to watch on the ASX 200 on Wednesday
• Down 76% this YTD, can the Novonix share price claw back gains?
• Is the NAB share price in danger from a resurgent ANZ?

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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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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