The S&P/ASX 200 Index (ASX: XJO) is back on form on Thursday and pushing higher. In afternoon trade, the benchmark index is up 0.4% to 6,619.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Block Inc (ASX: SQ2)

The Block share price is down 2% to $96.44. This follows weakness in the tech sector on Thursday and a pullback from its NYSE listed shares during overnight trade. The company’s shares fell 2.5% on Wall Street on Wednesday night.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price has sunk 10% to 55 cents. Investors have been selling this infant formula company’s shares despite the release of another update on its US operations. Today’s decline could be a delayed reaction to Bubs’ capital raising on Wednesday, which raised a total of $40.1 million from institutional investors at an 18.8% discount of 52 cents.

Infomedia Limited (ASX: IFM)

The Infomedia share price is down 6% to $1.58. This morning the auto industry software company revealed that Battery Ventures has withdrawn its takeover proposal. While there are still two $1.70 per share bids on the table, Battery Ventures was the highest bidder with a $1.75 per share proposal.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down 7.5% to 53.2 cents. This decline appears to have been driven by a bearish broker note out of UBS this morning. According to the note, UBS has retained its sell rating and slashed its price target on the buy now pay later provider’s shares to 45 cents. The broker is concerned that Zip could inadvertently worsen its credit performance if it raises fees in an effort to improve profitability.

The post Why Block, Bubs, Infomedia, and Zip shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Zip share price cops 6% slashing as analyst fears grow
• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note
• Why is the Infomedia share price falling 5% today?
• Bubs share price falls despite US FDA update
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Infomedia, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended BUBS AUST FPO and Infomedia. 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 PointsBet Holdings Ltd (ASX: PBH) share price is having a shocker of a day despite no company announcements.

At the time of writing, the sports betting company’s shares are down 6.14% to $2.675.

Let’s take a look at what’s dragging down the former market darling.

PointsBet shares sink amid ASX tech sector sell-off

Investors are offloading the PointsBet share price despite the broader market ticking up a notch across the ASX.

However, the S&P/ASX All Technology (ASX: XTX) sector in which PointsBet falls under is shedding 0.29% to 2,033.5 points.

It appears the benchmark index for Australian technology-orientated companies is taking a breather after recording 4 consecutive sessions of gains.

In addition, PointsBet shares continue to be targeted by short-sellers, propping up consistently within the top part of the list.

Short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow shares and sell the shares, and buy them back at a lower price for a profit.

Last week, the Australian Securities & Investments Commission (ASIC) released its short position report revealing the level of short interest within companies.

As at 1 July, PointsBet had 6.20% of its shares being shorted by investors.

Given sizable short positions being taken up, it appears investors believe the company’s shares will continue to fall.

PointsBet share price snapshot

Adding to its steep declines, the PointsBet share price has tumbled by almost 80% over the last 12 months.

These losses have come in 2022 as investor express their concerns about the company’s extreme valuation and high marketing costs.

Year to date, PointsBet shares are down 62%.

Based on today’s price, the company commands a market capitalisation of roughly $834.95 million.

The post What is sending the PointsBet share price 6% lower today? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• ASX 200 midday update: Suncorp’s update, Magellan sinks
• Up 15% this week, what’s going on with the Pointsbet share price?
• Why Argosy Minerals, Cann, OZ Minerals, and PointsBet shares are pushing higher
• Why is the PointsBet share price storming 13% higher today?

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

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The Insurance Australia Group Ltd (ASX: IAG) share price is rangebound in afternoon trade and currently rests 0.93% in the green at $4.36.

Zooming out, and the share is up 2.5% this year to date after whipsawing in a sideways channel since January. This is seen in the chart below.

But what of the future? Let’s see what one expert has to say about the outlook for the IAG share price.

Analysts concerned over catastrophe risk

In a note on Thursday, analysts at Barrenjoey Markets had a downbeat tone on IAG. The broker weighed up all the contributing factors and evaluated the insurer’s outlook.

However, it was what “IAG was not able to say in its announcement” that prompted the broker to “remain cautious on the stock”.

The announcement was referring to IAG’s FY23 aggregate reinsurance cover and quota share arrangements.

IAG says the aggregate cover “has been placed to the extent of 67.5% to reflect IAG’s cumulative whole-of-account quota share arrangements”.

The combination of all catastrophe covers in force at 1 July 2022 gives IAG a maximum event retention of $135 million.

Further details are set to be provided at the company’s FY22 results announcement on 12 August.

Looking ahead, Barrenjoey noted IAG could be set for higher natural catastrophe costs and a series of natural catastrophe losses.

The broker projects an insurance margin of just 9% for IAG in FY23, roughly 300 basis points below IAG’s guidance.

It notes the insurer will likely face challenges from the accounting treatment of its perils and reinsurance cover.

Things get worse in Barrenjoey’s projections when applying further stress testing.

“Under a more severe scenario there is [more than] 20% cash net profit after tax (NPAT) risk,” the broker added.

Alas, it’s been a difficult past 12 months for the IAG share price. In that time it has slipped almost 12% into the red, and has fallen 20% off its former highs.

The post Here’s why one analyst is ‘cautious’ of the IAG share price appeared first on The Motley Fool Australia.

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More reading

• Why did the IAG share price surge 5% on Thursday?
• The ASX 200 share ready to bounce from 10-year lows: expert
• Why is the IAG share price smashing the ASX 200 today?

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

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The Orexplore Technologies Ltd (ASX: OXT) share price is exploding today.

The company’s shares are rising 44% and are currently trading at 11 cents. However, in earlier trade, the company’s share price was 50% in the green. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.33% today.

Let’s take a look at why this ASX mining tech share is rising today.

New commercial agreement

Ozexplore has signed a commercial agreement with mining giant Oz Minerals Limited (ASX: OZL).

As part of the project, Orexplore will scan drill-core and samples on site for Oz Minerals.

Ozexplore is a mineral scanning technology company for the mining and metals sector.

The binding agreement is worth about $2.35 million. The work will involve analysing about 30,000m of historical drill core and samples in a six month time frame.

There are about 100,000 drill core and samples available. Further core and samples could be added to this quantity subject to site conditions and requirements.

Ozexplore said signing this agreement is “significant” due to the commercial site deployment of its technology platform.

Commenting on the news, managing director Brett Giroud said:

We are extremely pleased to collaborate with OZ Minerals as they leverage technology
to extract critical new information from drill core and create value through this
innovative process.

Orexplore share price snapshot

The Ozexplore share price has jumped 58% in the year to date, while it has leapt 50% in the past month alone.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed 11% in the year to date.

Ozexplore has a market capitalisation of about $10.9 million based on the current share price.

The post Guess which ASX mining tech share is surging 44% today appeared first on The Motley Fool Australia.

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More reading

• Here’s why one analyst is ‘cautious’ of the IAG share price
• 2 appealing ASX All Ords growth shares getting discounted today
• Liontown Resources roared home with a 30% gain in FY22
• Why Chalice Mining, Damstra, Link, and Pinnacle shares are storming higher
• What dragged the AMP share price down 13% in June?

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 CSL 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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It’s a good day for many ASX All Ordinaries Index (ASX: XAO) constituents, with the index gaining 0.37% at the time of writing. However, these ASX All Ords growth shares are plummeting lower.

But, with brokers bullish on their future, their Thursday falls may have brought about a buying opportunity.

Let’s take a look at what’s going on with these ASX All Ords shares and why experts have tipped them to win out.

2 quality ASX All Ords shares trading in the red today

Jumbo Interactive Ltd (ASX: JIN)

ASX All Ords growth share Jumbo Interactive is tumbling 5.3% to trade at $15.44 on Thursday.

It comes after the stock shot 11.5% higher yesterday. That triggered a ‘please explain’ from the ASX, to which the company responded today.

Perhaps more exciting, however, the internet lottery business has been tipped as a reporting season winner by broker Morgans.

Morgans senior analyst Alexander Mees is expecting the company’s full-year results to depict “good growth”, my Fool colleague Tony Yoo reported this morning.

The broker estimates Jumbo Interactive’s software-as-a-service division will drive its earnings before interest, tax, depreciation, and amortisation (EBITDA) to $55 million. That would mark a 13% year-on-year improvement.

Nitro Software Ltd (ASX: NTO)

Nitro Software is another ASX All Ords growth share with bright horizons trading in the red today. The company’s share price is currently down 1.35% at $1.46.

The document productivity company has been tipped as a winner by Bell Potter, The Motley Fool Australia’s James Mickleboro reported last week.

The broker likes the company’s growing subscription revenue. It also expects Nitro Software to break into positive cash flow territory in the second half of financial year 2023.

Bell Potter has a $2.50 price target on the Nitro Software share price.

The post 2 appealing ASX All Ords growth shares getting discounted today appeared first on The Motley Fool Australia.

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More reading

• Players gonna play: 3 ASX shares set for a strong reporting season
• 5 best ASX All Ords mining shares in FY22
• These 2 ASX lithium stocks are charging up on Tuesday
• Analysts say these small cap ASX shares have huge potential
• Broker names 3 of the best ASX tech shares to buy in FY23

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 Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited and Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Liontown Resources Limited (ASX: LTR) share price beefed right up in FY22 and managed to hold gains amid the market sell-off last month.

At the time of writing, the share is trading at 94.5 cents, slightly down from the $1 it finished the year on.

Nevertheless, the Liontown share price had a robust year, and remained in the green whilst the broad market incurred heavy losses.

Liontown share price remains top-heavy

Shares in the company first took off back in August 2021 amid a series of price-sensitive updates, including the proposed demerger and IPO of its lithium assets.

The spin out was completed to form Minerals 260 Ltd (ASX: MI6), a newly listed public company. It also released a number of other updates throughout August/September to which investors were galvanised.

Liontown caught a heavy bid and its share price raced to a high of $1.94 by 4 November, a 158% increase in just just 3 months.

The price of lithium also remained strong across FY22 despite a number of potential threats, ranging from supply chain breakdown to geopolitical conflict in Europe.

Not to mention that now infamous bearish note out of Goldman Sachs earlier in 2022 that sent the basket of lithium shares into near meltdown.

In that vein, the company secured offtake agreements with Ford and signed its deal with Tesla, with the latter agreeing to buy 150,000 dry metric tonnes of spodumene concentrate off Liontown each year.

Liontown has also remained in favour of brokers as well. Bell Potter reckons the share is “in a strong strategic position in a market for lithium facing supply shortages”.

It values Liontown at $3.06 per share and rates it a speculative buy.

Nonetheless, the Liontown share price was a performer in FY22 and it has managed to hold a 28% gain over the past 12 months, despite recent volatility.

The post Liontown Resources roared home with a 30% gain in FY22 appeared first on The Motley Fool Australia.

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More reading

• Can ASX lithium shares recharge in FY23?
• Own Liontown shares? Here are 3 takeaways from the company’s investor presentation
• Why did the Liontown share price plummet 25% in June?
• Will the Liontown share price bounce back in July?
• Top broker names 3 of the best ASX 200 shares to buy in FY23

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.35% to 6,618.1 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 8% to $4.05. Investors have been buying this mineral exploration company’s shares following the release of a drilling update. Chalice revealed that a new nickel-copper-PGE sulphide zone has been intersected in initial drilling at the Dampier target, ~10km north of the Gonneville Deposit. This is the first significant indication of orthomagmatic sulphide mineralisation outside of the Gonneville Deposit and is considered an exciting result.

Damstra Holdings Ltd (ASX: DTC)

The Damstra share price is up 19% to 18.5 cents. This morning the enterprise protection software provider confirmed media reports that it has been in takeover talks with Accel-KKR. And while these talks have now ended without a deal being reached, this hasn’t stopped investors from buying shares today.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is up 6% to $4.06. Investors have been buying this administration services company’s shares amid news that Dye & Durham has lifted its takeover offer from $4.30 per share to $4.57 per share. The Link board advised that it will consider this revised offer.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle share price has jumped 10% to $8.35. The catalyst for this was the release of a market update which revealed that performance fees from its affiliates totalled approximately $57.1 million in FY 2022. This includes a sizeable $38.3 million from the second half of the financial year. Pinnacle’s net share of these performance fees is approximately $16.4 million.

The post Why Chalice Mining, Damstra, Link, and Pinnacle shares are storming higher appeared first on The Motley Fool Australia.

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• Why is the Damstra share price soaring 26% on Thursday?
• Here’s why the Pinnacle Investments share price is climbing 6% today
• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note
• Link share price jumps 7% on beefed up takeover bid
• Chalice Mining share price leaps 13% on new exploration results

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 Damstra Holdings Ltd, Link Administration Holdings Ltd, and PINNACLE FPO. The Motley Fool Australia has positions in and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Damstra Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The AMP Ltd (ASX: AMP) share price was up 10% for the calendar year when the closing bell rang on 31 May.

Then June rolled in.

Over the course of the month, the AMP share price fell 12.8%, ending June trading for 96 cents.

To be fair, it wasn’t just the ASX 200 wealth management company that came under heavy selling pressure in June.

The S&P/ASX 200 Index (ASX: XJO) dropped 8.9% over the month. And financial shares did it even tougher, as witnessed by the 11.9% drop in the S&P/ASX 200 Financials Index (ASX: XFJ).

What headwinds was the company battling?

The AMP share price took a beating last month along with other financial companies as investors digested the reality of aggressive tightening from the world’s central banks.

June saw the US Federal Reserve boost the official rate by an outsized 0.75%, with chair Jerome Powell indicating a series of rate hikes to come.

Meanwhile, the Reserve Bank of Australia (RBA) also came through with a 0.50% rate hike here, also surprising to the upside.

But some of the company’s top executives appeared to believe that the retreating AMP share price was overdone and represented a good buying opportunity.

As my colleague James Mickleboro reported, independent non-executive director Mike Hirst bought 100,000 shares at the beginning of June in a couple of on-market trades. Hirst paid an average of $1.097 per share.

Two other independent non-executive directors – Kate McKenzie and Michael Sammells – also put more skin in the game. They each bought 50,000 AMP shares priced at around $1.10.

AMP is currently trading for $1.01 per share.

AMP share price snapshot

Since the closing bell on 30 June, the AMP shares have gained 5.2%, well outpacing the 0.9% gain posted by the ASX 200.

Year-to-date shares in the wealth manager are up 1.0%.

The post What dragged the AMP share price down 13% in June? appeared first on The Motley Fool Australia.

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• ASX bank shares look out, AMP has new tech under the hood
• Down 10% in a month, here’s the latest for the AMP share price
• Will Australia plunge into a recession?
• Guess how much insiders have been spending on AMP shares?

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 Newcrest Mining Ltd (ASX: NCM) share price is rangebound today and currently trades flat at $19.58.

Zooming out, and the share had a fairly robust year in FY22, right up until the final month of June. Shown on the chart below is the Newcrest share price returns this year to date.

Newcrest share price falters in late FY22

The primary driver of the Newcrest share price last financial year was the rally in copper and gold markets.

After making its first move higher in FY20, the price of copper continued north in FY22 albeit at a slower pace.

However, in June the metal cratered from its former high along with a major sell-off in commodities and financial assets.

It now trades down by 19% over the last year as a result of the down-leg in June.

Gold suffered a similar fate, albeit slightly beforehand. The yellow metal had surged to US$2,052 on 8 March.

However, it quickly gave back those gains to trade in line with longer-term averages. In July, it has clipped even more losses.

Each of these instruments trades in close similarity to the Newcrest Mining share price, as seen below.

With that in mind, shares of the gold and gold/copper concentrate mining giant were destined to slide off the cliff face just as both of these metals did in May.

Investors have since pushed the share to its 52-week low of $19.58 in today’s trade.

The post Here’s how the Newcrest Mining share price glamoured in FY22 appeared first on The Motley Fool Australia.

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More reading

• Losing their shine: 3 ASX 200 gold shares hitting new 52-week lows today
• ASX lithium stocks avoid share price shock amid commodities lashing
• Why are ASX 200 gold shares falling today?
• 5 things to watch on the ASX 200 on Monday
• Why did the Newcrest share price sink 17% last month?

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

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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 Atlassian (NASDAQ: TEAM) fell 50.9% in the first half of 2022, according to data from S&P Global Market Intelligence. The Australia-based maker of project management and collaboration tools entered this period on a high note after gaining 217% in the previous two years, but that success made Atlassian’s stock an easy target when market makers backed away from high-flying growth stocks.

So what

At the start of 2022, Atlassian shares changed hands at the lofty valuation of 117 times free cash flows and 40 times sales. Together with the aforementioned price gains in recent years, this rich valuation essentially painted a target on Atlassian’s back. The stock was priced for perfection, and macroeconomic events were about to bring a lot more uncertainty and imperfection into the picture. 

The company did everything it could to support the expensive share prices. Atlassian crushed Wall Street’s expectations across the board in January’s and April’s earnings reports, exceeding Wall Street’s estimates by as much as 7% on the revenue line and 47% in terms of earnings. In the recently reported third quarter, top-line sales increased by 30% year over year as the number of paying customers rose by 25%. About 42% of third-quarter revenues was retained as free cash flows. Pick your favorite business metric and you’ll probably find that Atlassian delivered robust results even in this challenging market environment.

But again, none of that mattered. Atlassian’s shares were richly valued and ripe for a pullback. Macroeconomic concerns on a global scale provided plenty of inspiration for this correction.

Now what

The ironic part of this situation is that companies like Atlassian can help other businesses wring more business performance out of limited budgets. Hence, market slowdowns actually play right into this company’s hands. Share prices are falling because Atlassian was seen as a risky investment in the spring of 2022. The reported results tell a very different story.

I agree that the stock still looks expensive today, trading at 64 times free cash flows and 19 times sales. However, that’s a much more comfortable entry point than the even loftier valuation ratios seen six months ago. Shrewd investors might want to take advantage of this imbalance between winning business results and plunging stock prices. An Atlassian investment today should serve your portfolio well for years to come. 

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

The post Why Atlassian stock fell 51% in the first half of 2022 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’);
})()

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Anders Bylund 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 Atlassian. 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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