The Zip Co Ltd (ASX: ZIP) share price is soaring today amid the termination of a merger with Sezzle.

Zip shares are currently trading at 55.25 cents, a nearly 11% gain. Meanwhile, Sezzle Inc (ASX: SZL) shares are plunging more than 33% at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is climbing 0.53% today.

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

Merger agreement terminated

Zip and Sezzle have mutually agreed to cancel their plan to merge. Zip originally announced its intention to acquire Sezzle on 28 February for about $491 million.

The Buy Now Pay Later (BNPL) company will now pay Sezzle $11 million to cover costs, including legal and accounting.

Zip highlighted it remains focussed on its strategic plan and returning to profit by the 2024 financial year.

Commenting on the news, Zip board chair Diane Smith-Gander said:

We believe that mutually terminating the merger agreement with Sezzle at this
time is in the best interests of Zip and its shareholders, and will allow Zip to focus
on its strategy and core business in the current environment

Zip reiterated today that its business ‘remains strong’ and it is continuing to see customer and transaction growth. The company highlighted that the US market is a “significant opportunity” and its core market. In a statement, Zip added:

Zip is well capitalised to execute on its strategy and in line with previous guidance, Zip continues to expect to deliver group profitability during FY24.

Some experts had expressed concern about the proposed merger in recent times. For example, as my Foolish colleague Sebastian reported in May, East 72 founder Andrew Brown said: “Zip should not buy Sezzle, it should pay the fee and walk away”.

Zip share price snapshot

The Zip share price has plunged 83% in the past year, while it has fallen nearly 78% year to date.

In the past five years, Zip shares have fallen around 18%.

In contrast, the benchmark ASX index has fallen about 9% in the past year.

The post Zip share price jumps 6% after merger deal with Sezzle is cancelled appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Sezzle share price plunges 35% as Zip merger scrapped
• Own Zip shares? BNPL player shuts down finance app to focus on profitability
• Down 6%, why Monday is not a fun day for the Zip share price
• Why did some ASX BNPL shares plummet more than 90% in FY22?
• Guess which 2 ASX shares were the best and worst All Ordinaries performers of FY22

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 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.

from The Motley Fool Australia https://ift.tt/aJmNTH2

The Sezzle Inc (ASX: SZL) share price is tumbling this morning as what was once a $491 million merger deal is binned.

Sezzle and its former suitor, buy now, pay later (BNPL) giant Zip Co Ltd (ASX: ZIP), have abandoned their plan to join forces.

At the time of writing, the Sezzle share price is 27 cents, 34.94% lower than its previous close.

Let’s take a closer look at the latest news to drag on this ASX BNPL share.

Sezzle share price plummets on transaction termination

The termination of the deal is mutual and effective immediately. A release from Zip noted its dumping was “in light of current macroeconomic and market conditions”.

Sezzle co-founder, executive chair, and CEO Charlie Youakim said the company will keep pushing towards profitability and free cash flow.

Youakim said:

While we were excited by the potential of this transaction, our board and management team are laser-focused on our strategy and execution … [We] believe this is the best outcome for our shareholders.

The share prices of both Sezzle and Zip have plummeted more than 75% since the merger was announced in February.

The previously agreed-upon takeover deal would have seen Sezzle shareholders receive 0.98 Zip shares for every Sezzle stock held.

Zip has agreed to pay Sezzle US$11 million to cover the costs associated with the dumped transaction.

Sezzle provides quarterly earnings update

The Sezzle share price may also be responding to the company’s preliminary unaudited results for the June quarter released today.

The BNPL provider’s underlying merchant sales are expected to come in at between US$415 million and US$420 million for the three months ended 30 June.

It also expects to report between US$28.5 million and US$29.5 million of income for the quarter. Considering transaction-related costs, that range falls to between US$8.5 million and US$9.5 million.

Sezzle ended the quarter with approximately US$71 million of cash and availability on its line of credit facility.

The post Sezzle share price plunges 35% as Zip merger scrapped appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Zip share price jumps 6% after merger deal with Sezzle is cancelled
• Own Zip shares? BNPL player shuts down finance app to focus on profitability
• Down 6%, why Monday is not a fun day for the Zip share price
• Why did some ASX BNPL shares plummet more than 90% in FY22?
• Guess which 2 ASX shares were the best and worst All Ordinaries performers of FY22

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 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.

from The Motley Fool Australia https://ift.tt/iGHZPb1

If you’re looking for exchange traded funds (ETFs) to buy, then the two listed below could be top options.

Here’s why analysts say these ETFs could be in the buy zone now:

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The first ETF that has been rated as a buy recently is the ETFS Battery Tech & Lithium ETF.

This ETF gives investors exposure to the electrification and decarbonisation trend through a range of companies involved in battery technology and lithium mining. This includes BYD, Mineral Resources Limited (ASX: MIN), Nissan, Pilbara Minerals Ltd (ASX: PLS), and Renault.

One analyst that is positive on the ETF is Jessica Amir from Saxo Markets. She recently said:

If [lithium] stock picking is not for you, and if you believe, like we do, that the electric vehicle industry and the critical minerals/ commodities will continue to see rising demand, and policy support, and also benefit from the world striving to be carbon neutral by 2050, then you could invest or trade in Global X Lithium & Battery Tech ETF (LIT) or ETFS Battery Tech & Lithium ETF (ACDC) that invests in about 30 of the biggest EV and battery technology companies in the world.

VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL)

Another ETF that has been rated as a buy for investors is the VanEck Vectors MSCI World ex Australia Quality ETF.

This ETF provides investors with access to a portfolio of high quality shares outside Australia. These are companies with low leverage, high growth rates, and high returns on equity such as Apple, Microsoft, Nike, and Nvidia.

Sarah Gonzales from Apt Wealth is a fan of the ETF. This is due to its focus on quality, which tends to perform better during market downturns. She recently told Livewire:

My preferred ETF is the VanEck MSCI International Quality ETF. I think it provides exposure to that quality factor, which tends to outperform in market downturns. It does focus on factors like return and equity, year-on-year growth of earnings and also levels of debt. These are proxies for profitability, earnings variability, and the level of debt of companies. Particularly if we are going into a recession,  I think these are really the factors that I think we should focus on.

The post Why analysts say these top ETFs are buys appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are 2 buy-rated ASX ETFs for casting a wider net during uncertainty
• Here are 2 high quality ETFs analysts rate as buys

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.

from The Motley Fool Australia https://ift.tt/70seWjE

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.

Twitter‘s (NYSE: TWTR) stock tumbled to a four-month low on 8 July after Elon Musk formally terminated his $44 billion takeover bid for the company. In a Securities and Exchange Commission (SEC) filing, Musk’s legal team said Twitter had breached the terms of the deal by making “false and misleading representations” regarding the social media platform’s number of “fake or spam accounts”.

The legal team also said Musk had “reason to believe that the true number of false or spam accounts on Twitter’s platform is substantially higher than the amount of less than 5% represented by Twitter in its SEC filings” and that an inability to gauge its true monetizable daily active user (mDAU) count obfuscates the growth prospects of its core advertising business.

Twitter responded by filing a lawsuit against Musk. In a tweet, chairman Bret Taylor said the board remained “committed to closing the transaction on the price and terms agreed upon with Mr. Musk and plans to pursue legal action to enforce the merger agreement”.

As this legal battle drags on, Twitter’s stock is likely to stagnate and remain far below Musk’s “best and final offer” of $54.20 per share. Is it too late to buy Twitter’s underwhelming stock, which has actually delivered a negative return since its first post-IPO trade in November 2013?

Why did Twitter underperform the market?

When Twitter went public, then-CEO Dick Costolo claimed the platform could reach 400 million monthly active users (MAUs) by the end of 2013. It broadly missed that target, started losing MAUs instead, and ultimately replaced that metric with its current mDAU metric in 2019.

Twitter’s mDAUs rose 13% to 217 million in 2021, and it claims it can reach 315 million mDAUs by the end of 2023. That target seems extremely bullish since it would require Twitter’s mDAU growth to accelerate to about 20% in both 2022 and 2023. It also claimed it could generate $7.5 billion in revenue in 2023 — which would require its revenue to grow at a compound annual growth rate (CAGR) of 21.5% over the next two years.

Period	2019	2020	2021
mDAUs	152 million	192 million	217 million
Growth (YOY)	21%	27%	13%
Revenue	$3.46 billion	$3.72 billion	$5.08 billion
Growth (YOY)	14%	7%	37%

Data source: Twitter. YOY = Year over year.

Twitter hasn’t withdrawn that guidance yet, but analysts expect its revenue to only rise 16% this year and then grow just 22% to $7.2 billion in 2023.

In April, Twitter also admitted that it had miscalculated its mDAUs over the past three years by counting multiple accounts for single users as separate mDAUs. Twitter claims that miscalculation only affected about two million mDAUs, but that mistake — which only surfaced after Musk placed his bid — raised red flags regarding its spam accounts.

Twitter’s co-founder Jack Dorsey, who succeeded Costolo in 2015, launched new features like its short-lived “Fleets” feature, organized “topics” for tweets, new tipping services, and “Twitter Blue” verified subscriptions for top accounts — but it still struggled to expand beyond its niche.

Dorsey resigned last year and was succeeded by Parag Agrawal, who focused on increasing Twitter’s mix of higher-value ads and rolling out new e-commerce features to become a “social shopping” platform like Pinterest and Meta Platforms‘ Instagram.

Twitter shouldn’t have sued Musk

Twitter has continued to grow over the past three years, but its earnings growth has been messy. In 2019, its net income was inflated by a $1.21 billion tax benefit. In 2020, it posted a net loss after incurring a $1.1 billion tax charge and COVID-19 expenses.

In 2021, it racked up another net loss after paying $766 million in legal fees to resolve a class action lawsuit regarding its MAU growth forecasts back in 2014. The impact of those taxes and legal fees can be seen in the gap between its reported and adjusted earnings, which exclude those charges:

Period	2019	2020	2021
Net Income	$1.47 billion	($1.14 billion)	($221 million)
Net Margin	42%	(31%)	(4%)
Adjusted Net Income	$259 million	($34 million)	$165 million
Adjusted Net Margin	7%	(1%)	3%

Data source: Twitter.

This May, Twitter settled a privacy lawsuit with the Department of Justice (DOJ) and Federal Trade Commission (FTC) for $150 million. If Twitter sues Musk, it could rack up even higher legal fees this year.

Analysts expect Twitter to generate a net profit of $540 million this year, partly due to its recent sale of MoPub to AppLovin (NASDAQ: APP) for $1.05 billion, but to post a much lower net profit of $130 million in 2023.

Twitter would net a $1 billion termination fee from Musk if it simply lets him walk away. That seems to be a smarter and more cost-efficient decision that would finally allow Agrawal to reset Twitter’s business.

It’s not the right time to buy Twitter stock

Twitter’s stock still isn’t cheap at nearly 40 times next year’s adjusted earnings. The macro headwinds will likely force it to abandon its ambitious growth targets for 2023, and its decision to sue Musk instead of accepting the termination fee raises additional red flags. Simply put, it’s still not the right time to buy this volatile social media stock.

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

The post Elon Musk doesn’t want to buy Twitter anymore, and neither should you appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• Why is the Metcash share price in reverse today?
• What are brokers saying about the CSL share price?
• Why Amazon stock is down 32% so far this year
• Down 23% in June, can the Northern Star Resource share price go up in July?
• Here’s why Goldman Sachs sees lots of value in the Xero share price

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Leo Sun has positions in Meta Platforms, Inc. The Motley Fool Australia’s parent company has positions in and recommends Meta Platforms, Inc., Pinterest, Tesla, and Twitter. 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.

from The Motley Fool Australia https://ift.tt/dwCUAIi

The Aussie share market is heading north today despite Wall Street recording another loss overnight.

Investors are defying the sell-off that occurred on the United States-based Nasdaq ahead of the major reports due this week.

In case you weren’t aware, United States inflation readings for June are set to be released this Wednesday along with the domestic jobs data on Thursday.

In early morning trade, the S&P/ASX 200 Index (ASX: XJO) is climbing by around 0.70% to 6,647.20 points.

Nonetheless, the Metcash Limited (ASX: MTS) share price is treading the opposite way.

At the time of writing, the wholesale distributor’s shares are down 2.55% to $4.21.

Shareholders lock in the Metcash dividend

Following the company’s full-year results released late last month, investors are eyeing Metcash shares as they go ex-dividend today.

This means if you purchased the company’s shares yesterday or before, you will be eligible for the latest dividend.

Traditionally, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors try to make a quick profit after securing the dividend.

For those eligible for the Metcash FY22 dividend, shareholders will receive a payment of 11 cents per share on 10 August.

The dividend reflects an increase of almost 16% when compared to the prior corresponding period (9.5 cents per share).

Furthermore, the dividend is fully franked at a corporate tax rate of 30%, which means investors will receive tax credits.

Under the company’s capital management framework, the targeted payout ratio is around 70% of underlying profit after tax.

Shareholder distributions totalled $408 million in FY22.

Are Metcash shares still a buy?

Following the financial scorecard for the full year, analysts at Macquarie weighed in on Metcash shares.

According to ANZ Share Investing, the broker raised its 12-month price target by 2.2% to $4.60 for the company’s shares.

In addition, Citi also lifted its rating by 4.8% to $4.40 apiece for Metcash shares.

It appears both brokers are in line with what investors believe the company’s shares should be worth in the current climate.

Metcash share price snapshot

Since the beginning of 2022, Metcash shares have lost 4% on the back of weakened investor sentiment.

However, the benchmark ASX 200 index is down almost 12% over the same time frame.

Metcash has a price-to-earnings (P/E) ratio of 17.30 and commands a market capitalisation of roughly $4.16 billion.

The post Why is the Metcash share price in reverse today? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Time is running out to secure the Metcash dividend. Here’s what you need to do
• 4 ASX dividend shares to buy that aren’t banks or miners: expert
• Here are the top 10 ASX shares today
• Why Liontown, Metcash, Star, and Weebit Nano shares are charging higher
• Why Imugene, Link, Metcash, and Sayona shares are racing higher

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.

from The Motley Fool Australia https://ift.tt/0FAmDXi

The CSL Limited (ASX: CSL) share price has continued its recovery on Tuesday.

In morning trade, the biotherapeutics company’s shares are up 2.5% to $295.01.

This means the CSL share price is now trading flat in 2022, which compares favourably to the ASX 200 index’s 12.5% decline.

Can the CSL share price keep rising?

The good news for investors is that a number of brokers still see plenty of upside in the CSL share price.

One of those brokers is Citi, which has a buy rating and $330.00 price target on the company’s shares. This implies almost 12% upside for investors over the next 12 months.

Its analysts believe plasma collection headwinds are largely over and that demand should now be the key focus. And with demand remaining strong, it feels this bodes well for its shares. It recently commented:

Recently, there have been several data points influencing our view on the plasma sector. In this report, we review them and the implications for the sector as a whole. US CMS data indicates continued price increases in immunoglobulin products. This is consistent with our expectation, as donor fees continue to remain elevated.

Underlying demand for plasma products remains strong but supply is constrained due to low plasma collection volume. With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand. This should lead to strength in the CSL share price.

Elsewhere, last week analysts at Macquarie and Morgan Stanley both retained their equivalent of buy ratings with $312.00 price targets.

Macquarie also highlights that plasma collections have been improving and were largely in line with pre-COVID levels last month. This was even the case in Texas despite restrictions on paid donations by Mexican citizens. It feels this bodes well for its earnings growth in the coming years.

The post What are brokers saying about the CSL share price? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What’s the outlook for ASX biotech shares in FY23?
• What’s the outlook for ASX 200 healthcare shares in FY23?
• Why analysts love this ASX share that lost investors 5.5% in FY22
• 4 ‘quality’ ASX shares to buy in scary times: expert
• Analysts name 2 ASX 200 blue chip shares to buy

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 CSL Ltd. 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.

from The Motley Fool Australia https://ift.tt/Rdw6rBt

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 

Shares of Amazon (NASDAQ: AMZN) have fallen hard in the first half of 2022 and are down 32% year to date, according to data provided by S&P Global Market Intelligence. Part of the drop is due to the broader stock market’s tumble as investors processed news of rising inflation and interest rate hikes from the Federal Reserve. 

But the biggest reason for Amazon’s share price drop this year comes from the company’s dismal first-quarter results, which were reported back in April. The e-commerce company reported its first quarterly loss since 2015 and issued disappointing guidance that sent its share price into a downward spiral. 

So what 

Amazon shocked analysts and investors when it reported a net loss of $3.8 billion in the quarter, its first quarterly loss in seven years and far below its net income of $8.1 billion in the year-ago quarter.

That loss came partly because of Amazon’s investment in the electric vehicle (EV) maker Rivian Automotive. It owns about 18% of the EV company, and Amazon reported a pre-tax valuation loss of $7.6 billion related it its Rivian holdings in the quarter.

But Amazon’s net loss also came as the company went on a hiring spree during the pandemic with e-commerce demand soaring. With tons of new workers and higher spending costs due to inflation, Amazon’s expenses ballooned. 

Investors were also disappointed with the guidance that management provided. The company said revenue for the second quarter would be in the range of $116 billion to $121 billion, lower than analysts’ consensus average of $125.5 billion. 

Investors will get a clearer picture of Amazon’s finances when it reports second-quarter results, likely next month.

Now what 

In the near term, Amazon investors could face some share price swings. Inflation is still stubbornly high and the company will continue to experience higher costs. And with the Federal Reserve focused on bringing inflation back down, more interest rate hikes are on the table, which could spook the market even more. 

But over the long term, Amazon investors should keep in mind that the company is still a leader in e-commerce and cloud computing. It is in a solid financial position and could end up being a great stock to have many years from now. 

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

The post Why Amazon stock is down 32% so far this year appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Better bear market buy: Netflix vs Amazon
• Which e-commerce company is the best buy during this bear market?
• 1 green flag for Amazon stock
• Why Amazon shares fell 12% in June
• Why Amazon stock rose while the market slept on Wednesday

Chris Neiger has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended 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.

from The Motley Fool Australia https://ift.tt/BNm8XTJ

The Northern Star Resources Ltd (ASX: NST) share price struggled in June, but could it steam ahead in July?

Northern Star shares fell 23% from $8.89 each at market open on 1 June to $6.84 a share at market close on 30 June.

Let’s take a look at the outlook for this ASX gold share in July.

Can the Northern Share share price go higher?

The Northern Star share price fell in June, but some analysts see potential upside for the gold miner’s shares.

Citi analysts have recently retained a buy rating on the Northern Star share price but cut the price target to $12.10. This is still almost 77% upside on the current share price. Commenting on the outlook for Northern Star in light of gold prices, Citi said:

We’ve trimmed our gold price in FY22/23. “Push and Pull” frictions can keep average prices elevated, but with upward momentum lagging. On a six to 12 month view we now see gold trading at US$1775 per ounce vs spot US$1853 per ounce.

We remain at buy.

Meanwhile, Macquarie also is optimistic about the future of the Northern Star share price, with an $11 price target. This is a nearly 61% upside based on today’s price.

Gold prices fell 2.1% in the month of June and have declined further in July to nearly nine-month lows, Trading Economics data shows.

In a research note today, ANZ senior economist Felicity Emmett noted “gold prices remained under pressure” in global markets as the US dollar strengthens ahead of more US inflation data being released. She said:

An increase in CPI could stiffen the resolve of the Fed to proceed with another big increase in interest rates later this month.

Investors continue to cut their exposure to the precious metal.

Meantime, Northern Star will release its latest quarterly results on Wednesday 20 July.

Share price snapshot

The Northern Star share price has dropped nearly 34% in the past year, falling nearly 28% in the year to date.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has shed nearly 16% in the past year and 11% year to date.

Northern Star has a market capitalisation of about $7.9 billion based on the current share price.

The post Down 23% in June, can the Northern Star Resource share price go up in July? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is this a good time to go digging for ASX 200 mining shares for FY23?
• 5 things to watch on the ASX 200 on Monday
• Why did the Northern Star share price lose its shine in FY22?
• Is now the time to be buying beaten down ASX 200 mining shares?
• Losing their shine: 3 ASX 200 gold shares hitting new 52-week lows today

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

from The Motley Fool Australia https://ift.tt/BvXkRco

It is fair to say that the Xero Limited (ASX: XRO) share price has been well and truly out of form in 2022.

Since the start of the year, the cloud accounting platform provider’s shares are down a sizeable 42%.

While this is disappointing for shareholders, it could prove to be a buying opportunity for long term investors.

Is the Xero share price good value?

The good news is that analysts at Goldman Sachs believe the pullback in the Xero share price is a buying opportunity for investors.

This week the broker reiterated its buy rating on the company’s shares with a slightly trimmed price target of $113.00.

Based on the current Xero share price of $84.26, this implies potential upside of 34% for investors over the next 12 months.

What did the broker say?

Goldman notes that there are some near term challenges that Xero is facing. However, it believes the company can navigate this uncertainty and continue its growth.

In fact, despite reducing its estimates, Goldman is still forecasting average gross profit growth of 22% per annum from Xero between FY 2023 and FY 2025.

It commented:

While noting that the near term remains robust, we do acknowledge the risk of higher churn from SME business challenges and recent price increases. Nevertheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & importance of its software, and lower levels of churn vs. AU overall. We revise FY23-25 GP to reflect FX and higher churn/ARPU growth (price increases). Our 12m TP is -4% to A$113 (also revised in May).

All in all, this could make it a great option for investors that are looking for exposure to the tech sector following 2022’s weakness.

The post Here’s why Goldman Sachs sees lots of value in the Xero share price appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 40% in 2022: Is the Xero share price a buy today?
• Here are the top 10 ASX shares today
• Why are ASX 200 tech shares sprinting higher today?
• How did Xero shares do in the 2022 financial year?
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher

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.

from The Motley Fool Australia https://ift.tt/ghJlMYN

The share price of materials giant Mineral Resources Limited (ASX: MIN) has been struggling lately, tumbling more than 17% over the last 30 days.

But there could be light on the horizon for the lithium and iron ore producer, with one broker tipping a 41% upside on its stock.

At the time of writing, the Mineral Resources share price is $46.01. That’s 21.6% lower than it was at the start of 2022.

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 13% so far this year, as has the S&P/ASX 200 Materials Index (ASX: XMJ).

Let’s take a closer look at what’s been going on with the resources giant and what one broker expects for its future.

Mineral Resources share price tipped to hit $65

The Mineral Resources share price has been plagued by retreating commodity prices and negative sentiment recently. But one broker expects the stock to perform a notable comeback.

Jefferies has reportedly upped its price target for Mineral Resources’ stock to $65. The broker also slapped the company’s shares with a buy rating, Livewire reports.

That would see the company’s stock returning to trade around the 52-week high it reached in January.

A falling iron ore price and a lithium sell-off event have taken their toll on the company’s shares since then.

Companies involved in lithium have had a rough slog over the last few weeks following a major turnaround on the market. Meanwhile, the price of iron ore has slumped around 28% since peaking in March.

Interestingly, there hasn’t been much news from the company over the last few months. Though, it was added to the S&P/ASX 50 Index (ASX: XFL) in June.

The post Could the Mineral Resources share price unload another 41% of upside? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why did the Mineral Resources share price fall 10% in the 2022 financial year?
• The Mineral Resources share price is leaping higher again today. Here’s why
• Here are the top 10 ASX shares today
• Is now the time to be buying beaten down ASX 200 mining shares?
• These ASX 200 mining shares are bouncing back on Thursday

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

from The Motley Fool Australia https://ift.tt/tcF7yke