The Bitcoin (CRYPTO: BTC) price is in the spotlight as investors try to determine if the world’s biggest cryptocurrency by market cap could have reached the bottom.

It’s been a tough year for most all cryptos, with the Bitcoin price setting the tone, down 58% year-to-date and down 71% since its 10 November record high.

However, the past two days have seen an uptick.

Bitcoin price rebounds from fall below critical level

Things took a turn for the better over the weekend, with the token gaining 16% on Sunday. Though it should be noted that the outsized gain came after the price fell to US$17,709 early on Sunday.

That’s the lowest level since December 2020. And for the first time in its trading history, that saw the Bitcoin price fall below the peak of US$19,511 it achieved in the previous cycle. Analysts have been predicting that a fall below previous cycle highs could see the token slide much further.

So far, that hasn’t eventuated. But the Bitcoin price remains within a whisker of that figure, currently trading for US$19,993.

Commenting on why the world’s original crypto saw a rebound over the weekend, Paul Veradittakit, a partner at hedge fund Pantera Capital, was quoted by Bloomberg as saying: “I think we started to hit levels near the bottom where institutional investors see a buying opportunity.”

Institutional buyers may have been hitting the buy button. But many analysts remain cautious on the short to medium-term outlook for cryptos.

Dip buyers beware

Katie Stockton, managing partner at Fairlead Strategies, said “momentum is strongly negative” in the crypto space, and she cautioned investors against buying the dip.

According to Noelle Acheson, head of market insights at Genesis (courtesy of Bloomberg):

What we’re seeing is more liquidations driving prices and sentiment lower, which triggers more liquidations and negative sentiment – some flushing-out needed still, but this will at some stage exhaust itself.

That stage, however, may not be here yet, as the Bitcoin price could need some more flushing out.

Alkesh Shah is the head of crypto strategy at Bank of America. According to Shah:

Investors are continuing to position defensively following last year’s liquidity-driven digital asset bull market. Although painful, removing the sector’s froth is likely healthy as investors shift focus to projects with clear road maps to cash flow and profitability versus purely revenue growth.

Atop the new environment of rising interest rates, the Bitcoin price, and cryptos more broadly, have been hit by a number of industry setbacks.

Last month, there was the sector-shaking collapse of Terra’s UST stable coin and its supporting token, Luna. More recently, crypto lender Celsius, which offered outsized yields, is stirring investor angst by halting withdrawals.

And other players in the sector are now looking shaky, which could further erode confidence in digital assets and drag on the Bitcoin price.

Teong Hng, CEO of Satori Research, said, “After Celsius, the focus last few days has been Three Arrow Capital and Babel Finance. Su Zhu, the founder of 3AC seems to be missing in action after purportedly suffering huge losses due to massive drop in crypto this round.”

The post Bitcoin price rockets 14% but experts say cryptos aren’t out of the woods yet appeared first on The Motley Fool Australia.

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More reading

• Why US$19,500 is a line in the sand for the Bitcoin price
• Why tech billionaire Bill Gates is ‘not involved’ in crypto or NFTs
• Why Bitcoin, Ethereum, and Dogecoin dropped and popped in the last 24 hours
• What is the realised Bitcoin price and why does it matter?
• 3 reasons Bitcoin, Ethereum and Solana just hit their lowest levels this year

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 positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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 Bubs Australia Ltd (ASX: BUB) share price is having a tough start to the week.

In afternoon trade, the infant formula company’s shares are down almost 7% to 61.5 cents.

Why is the Bubs share price sinking?

The weakness in the Bubs share price may have been driven by a lukewarm response to the company’s guidance upgrade from a leading broker.

According to a note out of Bell Potter, its analysts have retained their speculative hold rating and 75 cents price target on the company’s shares.

While this still implies decent upside for the Bubs share price from the current level, it hasn’t been enough to get investors excited. Particularly given some of the comments made by its analysts.

What did the broker say?

Bell Potter notes that Bubs has upgraded its guidance for FY 2022 revenue to over $100 million and its underlying EBITDA to be at least double what it recorded during the first half. The latter would mean EBITDA of ~$2.4 million.

Its analysts were a touch underwhelmed with the company’s earnings guidance. Though, it acknowledges that management could have been conservative. The broker explained:

We had previously upgraded FY22e EBITDA forecasts to reflect the benefit of an additional ~$12m of revenue linked to US sales agreements. On face value FY22e EBITDA guidance appears softer than our previous forecast of $4.5m and likely encapsulates a degree of conservatism. We note the implied delta on 1H22- 2H22e gross revenue is ~9% (ex-provision reversals), which compares to the estimated IMF gross contribution margin ~20% (GM less marketing and distribution).

Looking ahead, the broker remains positive on the potential of the company if things go to plan, but appears to waiting for proof before going all in. It concluded:

Our Hold, Speculative risk rating remains unchanged. We continue to see BUB as a high ceiling early stage FMCG entity with the scope to become a ~$50m EBITDA business if the upper bound of sales targets within the Alpha Group distribution agreement are achieved and if permanent US market access is achieved at comparable gross contribution margins to the IMF business today. To a degree an element of success is already reflected to the current market value.

The post Why is the Bubs share price sinking 7% today? appeared first on The Motley Fool Australia.

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• Is there still money to be made from Bubs shares?

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 recommended BUBS AUST 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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The Appen Ltd (ASX: APX) share price has been a very strong performer on Monday.

In afternoon trade, the artificial intelligence data services company’s shares are up 10% to $5.80.

This is despite the company’s shares being kicked out of the ASX 200 this morning.

What’s going on with the Appen share price?

The catalyst for the rise in the Appen share price today appears partly to have been a positive night of trade on Wall Street’s Nasdaq index.

The tech-focused index rose 1.4% on Friday night, whereas the Dow Jones was down 0.1%.

However, it is worth noting that the Appen share price is outperforming materially today, so this only explains a small part of the rise.

Another potential catalyst could be delayed buying. With its shares out of the ASX 200 index from this morning, it is possible that some investors have been holding off buying shares until the rebalance was complete.

This strategy makes sense when you consider that some fund managers and index funds will have been forced to sell shares over the last couple of weeks ahead of Appen’s exit from the benchmark index. This is to ensure that their portfolios meet strict investment mandates or that index funds reflect the changes.

With the selling pressure over, now would appear to be a good time to buy if you were planning to.

Anything else?

But wait, there’s more. Also potentially giving the Appen share price a lift today was a report in the AFR that vaguely claimed that an “investor who did not want to be named [..] had been approached by private equity firms running the numbers on the company.”

This may have sparked hopes that another takeover proposal is coming following the collapse of the Telus approach last month.

Time will tell if that is the case. But with the Appen share price down 48% since the start of the year, it isn’t unthinkable that someone could be considering a move.

The post Appen share price jumps 10% despite ASX 200 exit: What’s going on? appeared first on The Motley Fool Australia.

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• These are the 10 most shorted ASX shares
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• These are the 10 most shorted ASX shares

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 Appen 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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There has been elevated volatility on the ASX share market since the start of 2022. There is a lot of market focus on the high rate of inflation and how central banks are responding with interest rates to bring it under control.

Higher interest rates are theoretically meant to pull down on asset prices. Why? Let’s look at some wisdom that Warren Buffett once shared with the world at an annual general meeting:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature… its intrinsic valuation is 100% sensitive to interest rates.

With interest rates rapidly climbing in both the United States and Australia, perhaps it’s not surprising that markets are seeing volatility as asset valuations are disrupted.

Time to buy ASX shares?

Every expert may have an opinion on that question.

A share market is made up of individual businesses. And each business may or may not be at a good price.

However, some experts have made some comments about whether they think the share market is worth looking at yet. While the comments are focused on the US share market, investors may find them applicable to the ASX as well.

Mark Newton from Fundstrat Global thinks the worst of the falls could be nearing. The Australian Financial Review (AFR) quoted him:

Evidence of bearishness turning to capitulation has been growing, and I’m confident that markets are nearing a bottoming process which should be in place by the end of June.

However, Newton pointed out that downward earnings revisions are starting to “just begin to ramp up”.

Warren Pies from 3Fourteen Research thinks that it could be time to start dipping a toe into the investing water:

Based on a model of forward price/earnings (P/E) ratios and interest rates, the stock market is undervalued by about 10% at present. Historically, bear market bottoms occur when this discount moves to between 15% and 20%.

During a big sell-off, we find ourselves – like most investors – a bit paralysed. Pulling the trigger is difficult. It’s always darkest before the dawn, and every 20 per cent sell-off feels like it could go another 20 per cent.

In hindsight, it’s easy to see the signs of a low – cheap valuations, washed out sentiment and policy support define most bottoms. Yet, trading bear markets is easy in theory but difficult in practice.

Which ASX shares to target?

There are plenty of quality ASX shares that have been sold down that I personally think could now be opportunities.

The shares I would be targeting are Washington H. Soul Pattinson and Co Ltd (ASX: SOL), Brickworks Limited (ASX: BKW), Australian Ethical Investment Limited (ASX: AEF), Betashares Nasdaq 100 ETF (ASX: NDQ) and Xero Limited (ASX: XRO).

The post Is it time to go bargain hunting for ASX shares? appeared first on The Motley Fool Australia.

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• Why I think the Xero share price is now too compelling to ignore

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Australian Ethical Investment Ltd., BETANASDAQ ETF UNITS, Brickworks, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS, Brickworks, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has recommended Australian Ethical Investment 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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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.

Tesla (NASDAQ: TSLA) stock has been underwater in recent memory. Shares of the electric vehicle (EV) giant have been down 45% since the start of 2022. This has led to very polarizing views of the stock, with the bulls insisting that now is the perfect buying opportunity and the bears alleging that the sell-off has just begun.

As many different factors continue to affect the stock market, it’ll be extremely interesting to watch the next few months pan out. Will Tesla bounce back in the second half of the year, or is the Elon Musk-led business bound for darker days?

Here is one reason to pull the trigger on the EV stock and two reasons to look the other way for now.

Buy Tesla because business has never been better

Don’t get it twisted — the EV leader’s business is thriving today. In the first quarter of 2022, total revenues soared 81% year over year to $18.8 billion, and adjusted earnings per share (EPS) crushed Wall Street estimates by 42%, surging 246% to $3.22.

To put the cherry on top, its business is becoming increasingly profitable, with its GAAP (generally accepted accounting principles) operating margin expanding 1,349 basis points year over year to 19.2%. Although supply chain bottlenecks persisted in disrupting the industry as a whole, production and deliveries still grew at a rapid clip. Total production climbed 69% to 305,407, and total deliveries rose 68% to 310,048.

If Wall Street analysts are on par with their assumptions, then the next two years appear bright for the EV juggernaut. In fiscal 2022, analysts project total sales and adjusted earnings per share to grow 59% and 79% year over year, up to $85.6 billion and $12.11, respectively.

Next year, the company is projected to expand its top line by 36% to $116.4 billion, and its bottom line is estimated to increase 32% to $15.95 per share. Combine these surefire growth rates with Tesla’s $17.5 billion in cash on its balance sheet and $2.2 billion in free cash flow (FCF) generation in Q1, and investors can be confident about the company’s business trajectory moving forward.

Keep your distance because of macro conditions and valuation

Before buying shares of the EV leader, there are several pitfalls to be aware of. For starters, the current economic backdrop does not offer an ideal scenario. Record-high inflation has caused the company to increase its car prices across the board, making them less affordable than before.

Likewise, supply chain restraints are expected to limit production for the foreseeable future, and there’s always potential for more factory shutdowns if COVID is to get out of hand. Coupled with the war in Ukraine, which has added just another layer of pressure on the stock market, and CEO Elon Musk’s latest Twitter-related headlines and it’s clear that there are many moving parts that could weigh down Tesla stock in the coming days. 

Despite its latest pullback, the EV stock still isn’t trading at an optimal valuation. Tesla’s price-to-sales and price-to-earnings (P/E) multiples are the lowest they have ever been but the story changes when comparing its valuation to other automobile manufacturers. Today, the EV king is trading at 53.8 times forward earnings, representing a huge premium to traditional car makers Ford and General Motors, which currently peg forward price-to-earnings multiples of 6.3 and 4.8, respectively. Thus, it looks like those who want a piece of Tesla’s growth story will have to pay a rich price for the stock today.

Long-term investors should jump on Tesla today

It’s never a good idea to try to time the stock market. It’s certainly a possibility that near-term headwinds push Tesla’s stock price lower in upcoming trading sessions, but the company’s fresh pullback presents investors with a unique buying opportunity.

And while it’s true that the stock trades at towering valuation multiples compared to traditional auto companies, it’s important to remember that Tesla enjoys superior growth rates and exceptional commercial prospects in the long run. Plus, the stock has historically been successful in growing into its lofty valuation levels, and I don’t think that’ll change in the years to follow. Investors should cash in on the market’s madness today by accumulating shares of the world’s number-one EV enterprise.

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

The post Down 45%, here’s 1 reason to buy Tesla’s dip and 2 reasons to stay away appeared first on The Motley Fool Australia.

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More reading

• Why Tesla stock sold off 7% today
• Why Tesla stock jumped 5% today
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• Tesla Looks to Reinforce Its Battery Supply Chain: Why That Matters
• More likely to 5x first: Tesla vs. Ford?

Luke Meindl has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

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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.

Investing in the stock market can be challenging, and nobody has all the right answers. Also, because investing is a long-term strategy, sometimes you won’t see the repercussions of mistakes until it’s too late.

If I could go back in time, there are several things I’d change about my own investing journey. Here’s how you can avoid making the same mistakes I did.

1. I waited too long to start investing

When I first started saving money, I put everything I had in a savings account. That’s not necessarily a bad idea because a savings account is often the best place for an emergency fund and other short-term savings. 

However, I continued contributing to a savings account well after I had an established emergency fund because I thought it was safer than investing. In reality, I missed out on valuable time to let my money grow.

Over the long term, keeping your money in a savings account can be costly. Even the best accounts only have interest rates of around 1% to 2% per year, which isn’t even enough to keep up with inflation — so your money could actually lose value over time. 

By investing in the stock market, though, you can earn average returns of around 7% to 10% per year over time. Although it can be daunting, investing your money rather than simply saving it can help you earn exponentially more over the long run.

2. I made withdrawals from my retirement account

When I eventually did start investing, I still treated my retirement fund like a savings account. I assumed that since it was my money, I could withdraw it at any time for any reason. I also figured that since I won’t need my retirement savings for decades, withdrawing a little here or there wouldn’t make a difference.

However, there are drawbacks to making early retirement fund withdrawals. For one, if you take money from a 401(k) or traditional IRA before age 59 1/2, you could face taxes and penalties on your withdrawals.

Also, even small withdrawals can affect your long-term savings. Compound interest is the driving force helping your money grow, and it essentially involves earning interest on your entire account balance rather than just your initial investment. The higher your balance, then, the more you’ll earn in compound interest and the faster your money will grow.

When you make withdrawals, though, it’s harder for compound interest to do its job. Repeated withdrawals over time can have a more significant effect, potentially costing you thousands of dollars in missed earnings.

3. I worried too much about the market

When I first began investing, I would obsessively check my account balance every day to see how much my savings had grown. But whenever my balance went down even slightly as a result of normal market fluctuations, I would panic and stop investing.

By now, though, I’ve learned that market volatility is normal and day-to-day fluctuations don’t really matter. What does matter is the market’s long-term performance. 

To this day, I rarely check my account balance — especially when the market is in a slump. I’ve set up automatic contributions so that a set amount of money is transferred from my bank to my retirement account each month, and I don’t even think about how my investments are performing on a day-to-day basis.

Investing in the stock market is a long-term strategy and over time, the market has consistently earned positive average returns. By staying focused on the future, it can be easier to avoid getting hung up on the market’s short-term volatility.

Investing isn’t always easy, but it’s also one of the best ways to generate long-term wealth. While nobody has all the answers, a good strategy can help you earn as much as possible over time. 

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

The post 3 of my biggest investing regrets — and How you can avoid them appeared first on The Motley Fool Australia.

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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.

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

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The S&P/ASX 200 Materials Index (ASX: XMJ) is 4% in the red today, but one ASX mining share is bucking the trend.

The Culpeo Minerals Ltd (ASX: CPO) share price is leaping 50% to trade at 30 cents. But more sensationally, the company’s share price exploded 84% shortly after open on Monday, before pulling back.

So why is this ASX mining share exploding today?

Copper discovery

Investors appear to be buying up Culpeo shares on the back of exciting copper results.

Assay results showed drilling intersected high-grade copper mineralisation at the company’s Lana Corina Project in Chile.

Intersections at drill hole CMLCD005 included:

• 49 metres (m) at 0.83% copper and 41 parts per million (ppm) molybdenum from 216m to 265m
• 80.87m at 1.06% copper and 145 ppm molybdenum from 302.13 to 383m

Managing director Max Tuesley said:

CMLCD005 is another wide >1% copper intercept confirming our belief that the Lana Corina Project has the potential to host a significant >1% near surface copper orebody.

Further, a new mineralised breccia hosted copper zone was uncovered west of the Lana Pipe site. This corresponds to a T3 ground magnetic target discovered recently.

Commenting on this discovery, Tuesley added:

This has the potential to transform the prospectivity of the north-east sector of the Lana-Corina-Laura mineralised zone with multiple, high priority targets identified in the ground magnetic survey analogous to the T3 target over an approximately 1,000m strike.

Culpeo is working on expanding the mineralised footprint at the project and will report further drilling results to the market in the future.

Share price snapshot

The Culpeo Minerals share price is up 50% in the past 12 months, while it has surged 81% year to date. The company’s shares have rocketed 107% in the past month alone.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has fallen 12.5% in a year.

Culpeo Minerals has a market capitalisation of $11 million based on its current share price.

The post Guess which ASX mining share just rocketed 80% on a new copper strike appeared first on The Motley Fool Australia.

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• These 3 ASX mining shares surged more than 20% on Monday
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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.

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It is a big week for Firefinch Ltd (ASX: FFX) shareholders. Later this week, Leo Lithium Limited (ASX: LLL) shares will begin trading on the ASX boards at long last.

Leo Lithium is home to Firefinch’s lithium operations, which have been spun out into a separate listing.

When are Leo Lithium shares hitting the ASX boards?

It won’t be long until Leo Lithium shares are trading alongside fellow lithium developers Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR).

Last week, eligible Firefinch shareholders were distributed 1 Leo Lithium share for every 1.4 Firefinch shares they own.

These shares are scheduled to commence trade on the Australian share market on the morning of Thursday 23 June.

What is Leo Lithium?

Leo Lithium has a 50% ownership in the Goulamina Lithium Project in Mali alongside Chinese giant, Ganfeng Lithium.

The Goulamina Lithium Project is one of the world’s largest undeveloped high quality spodumene deposits. Management notes that it has a long life, large scale and low-cost open pit project. Once operating at full capacity, it is expected to produce 726,000 tonnes of annual spodumene concentrate at an average cash cost of US$312 per tonne.

Though, it will take a little bit of time to reach full capacity. Ganfeng and Leo Lithium are initially aiming for stage one production of 506,000 tonnes of spodumene concentrate per annum. This is scheduled to commence during the first half of 2024.

The good news for shareholders is that it isn’t likely that they will be expected to tip in any extra funds to get the party started. Ganfeng has contributed US$130 million in equity funding to the joint venture and will either source up to US$64 million in external debt or provide US$40 million of debt itself to fund the development of stage one production.

Another positive is that the company has an experienced leadership team. This is being led by former Galaxy Resources CEO, Simon Hay.

Hay was CEO of Galaxy until it merged with Orocobre to form Allkem Ltd (ASX: AKE).

He, along with Firefinch shareholders, will no doubt be watching on closely when Leo Lithium shares start trading on Thursday.

The post Leo Lithium shares hit the ASX this week. Here’s what you need to know appeared first on The Motley Fool Australia.

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More reading

• Why BrainChip, Firefinch, Magellan, and Westpac shares are dropping
• Why Ansell, Domino’s, Firefinch, and Healius shares are dropping
• When will Leo Lithium shares be roaring on the ASX boards?
• Why is the Firefinch share price crashing 66% today?

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

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It’s been a pretty bleak day for most ASX shares so far this Monday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has lost 0.71% and is now back in the low 6,400s. But no one seems to have told the BrainChip Holdings Ltd (ASX: BRN) share price.

Brainchip shares are having a fairly wild day today. The company is presently flat at 90.5 cents a share, right on where it closed at last week. But at market open this morning, Brainship shares spiked dramatically. This artificial intelligence (AI) company jumped to 96 cents a share soon after trading commenced today.

At the time, that was a rise of 6.67%.

So what’s going on with this ASX tech share today?

Why is the Brainchip share price going haywire today?

Well, we can’t be too certain. Brainchip hasn’t come out with any ASX announcements itself but today is a rather big day for Brainchip. It’s the day that the company has officially joined the S&P/ASX 200 Index (ASX: XJO).

The ASX 200 is the flagship index of ASX shares. It tracks the 200 or so largest companies on our share market, ordered and weighted by market capitalisation. Since the values of ASX shares change every day, the index’s provider rebalances the index every three months to ensure that the ASX 200 always reflects the largest companies at the time.

As it happens, Brainchip has made the cut for the first time, helped no doubt by the company’s meteoric near-70% rise in value over the past 12 months. The results of the latest quarterly ASX 200 rebalance were announced back on 3 June and take effect from today.

This saw Brainchip included in the ASX 200, alongside other shares like Core Lithium Ltd (ASX: CXO) and New Hope Corporation Limited (ASX: NHC). They take the place of other ASX shares like Appen Ltd (ASX: APX) and Codan Limited (ASX: CDA), which have now been kicked out of the ASX 200.

ASX 200 inclusion (and exclusion) can have a meaningful impact on a company’s share price. It moves a share towards the centre of the ASX investing universe, and also potentially enables additional investment from fund managers and index funds.

So it’s possible that the gyrations we’ve seen in the Brainchip share price today could be the result of this rebalancing taking effect.

The post Why did the BrainChip share price spike 7% this morning? appeared first on The Motley Fool Australia.

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• What’s with the Core Lithium share price on Monday?
• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
• Transurban share price jumps as dividends hit pre-pandemic highs
• 5 things to watch on the ASX 200 on Monday
• Have ASX 200 shares bottomed? Experts weigh in

Motley Fool contributor Sebastian Bowen 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 Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Kogan.com Ltd (ASX: KGN) share price is lifting higher today after last week’s disastrous performance.

And while there’s been no news from the company to explain today’s gains, there are a number of happenings that might have influenced it.

At the time of writing, the Kogan share price is $2.97, 6.07% higher than its previous close.

For context, the broader market is struggling on Monday. The S&P/ASX 200 Index (ASX: XJO) is down 0.67% while the All Ordinaries Index (ASX: XAO) has slipped 0.85%.

Let’s take a closer look at what might be going on with the Kogan share price today.

What’s going on with the Kogan share price?

Kogan’s stock appears to be recovering from last week’s 13% tumble despite the company’s silence.

Kogan’s stock hit a nearly four-year low on Friday when it slumped to $2.77 a share. Thus, today’s boost might be a reaction to last week’s selloff.

Interestingly, however, the latest data has placed the online retailer’s stock among the most shorted on the ASX. The company has a short interest of 9% – making it the seventh most shorted stock on the Aussie market.

Today’s gains might also come on the back of a broader boost experienced by many consumer discretionary shares.

At the time of writing, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 1.96%, making it the ASX 200’s second-best performing sector behind the S&P/ASX 200 Real Estate Index (ASX: XRE).

The Kogan share price is joined in the green by those of fellow retailers City Chic Collective Ltd (ASX: CCX), Accent Group Limited (ASX: AX1), and Adairs Ltd (ASX: ADH).

That’s despite Deloitte predicting consumer spending will slow in the second half of 2022 amid rising costs, as reported by The Australian.

Sadly, today’s lift hasn’t been enough to boost the Kogan share price into the long-term green.

The stock is currently 66% lower than it was at the start of 2022. It has also slipped nearly 73% since this time last year.

The post Why is the Kogan share price soaring 6% on Monday? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Why the Adore Beauty share price is jumping but Kogan is falling
• This top broker thinks the Kogan share price has 35% upside
• These are the 10 most shorted ASX shares
• Stocked up: Kogan shares are not alone in their inventory woes

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 ADAIRS FPO and Kogan.com ltd. The Motley Fool Australia has positions in and has recommended ADAIRS FPO and Kogan.com ltd. The Motley Fool Australia has recommended Accent Group. 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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