ASX investors appear unenthused by the latest report from Pointerra Ltd (ASX: 3DP), with the company’s share price 2% in the red to trade at 24 cents.

The ASX tech company released its March quarter activities and cash flow report this morning. Pointerra described March as a “landmark quarter” in which the company concurrently scaled up its platform use among four major US utility providers, while also broadly growing its annual contract value (ACV).

The company offers 3D geospatial data technology which enables clients to view locations around the world in real-time 3D format from any internet device.

Pointerra share price dips despite 71% growth in receipts

Highlights during the three months to 31 March included:

• March quarter customer receipts of $2.4 million (71% year-on-year (YoY) growth vs. Q3 FY21)
• Year-to-date customer receipts of $6.2 million (138% YoY growth vs. FY21)
• Cash flow expenditure from operating activities of $2.3 million
• Consecutive cash flow positive quarter from operations at $64,000
• Cash flow expenditure from investing activities of $42,000
• Cash and cash equivalents balance of $4.9 million as of 31 March

What happened in the March quarter for Pointerra?

The company continued to enhance its platform “in response to customer requests and in line with the Company’s strategic product roadmap”. The report highlighted a variety of improvements to the Pointerra3D Core, Pointerra3D Analytics, and Pointerra3D Answers segments of the platform.

Pointerra said the business is self-funding its organic growth. It said its analytics and answers segments, in particular, are “driving growth in ACV spend”.

New customers have been added and existing customers across all six of Pointerra’s target sectors — survey and mapping; AEC; utilities; transport; mining, oil and gas; and defence and intelligence — are increasing their ACV spend.

Pointerra reported a US$1.9 million increase in ACV in a separate enterprise sales and ACV update today. As at 29 April, ACV totals $US16.3 million, up from $US14.4 million as at 31 January.

What did management say?

According to the report:

The quarter was highlighted by step-change adoption in the scale of Pointerra3D platform deployment by US utility customers FPL, PG&E, Entergy & Eversource and reflects the continued development and adoption of the higher-value elements of the Pointerra3D solution portfolio — Analytics and Answers.

In relation to growing ACV, Pointerra said:

The Utility sector remains Pointerra’s largest single contributor to ACV and whilst the US continues to dominate geographically, the quarter saw successful paid POC’s delivered for Australian customers, which the Company expects to lead to new enterprise contracts in coming quarters, with new prospective clients in the United Kingdom and Europe also entering the sales pipeline during the quarter.

What’s next for Pointerra?

Pointerra said it plans to accelerate the company’s global expansion through the following initiatives:

• Opening its first US office to provide a regional home for the business
• Commencing operations in the UK to service the Europe, Middle East, and Africa (EMEA) region
• Pursuing strategic M&A tuck-in acquisitions targeted to add domain knowledge in people and product in the AEC; transport; and mining, oil, and gas sectors

The Pointerra share price is down 40% year-to-date. ASX tech shares have had a rough year in 2022 so far with the broader S&P/ASX All Technology Index (ASX: XTX) down 24%. By comparison, the S&P/ASX All Ordinaries Index is down 2.8% over the same period.

The post Pointerra share price in the red despite ‘landmark quarter’ appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 travel shares having a first-class end to the week?
• Alphabet stock fell following Q1 report. Is it a buy?
• This ASX energy share has rocketed 200% in 3 days on a secret Santos deal
• Fortescue share price lower after bearish broker note warns of dividend cuts
• Novonix share price powers up on strong quarterly revenue growth

Motley Fool contributor Bronwyn Allen 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 Pointerra Limited. The Motley Fool Australia has recommended Pointerra 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/aTPoKWu

The Hydrocarbon Dynamics Ltd (ASX: HCD) share price is rocketing again today, leaving the All Ordinaries (ASX: XAO) for dust.

At the time of writing, the energy company’s shares are up 52.63% to 2.9 cents. This means its shares have accelerated by more than 200% this week.

In contrast, the broader index is 0.84% higher to 7,706.6 points for the day.

What’s the deal with Hydrocarbon Dynamics?

Investors are rallying up the Hydrocarbon Dynamics share price to a 52-week high after digesting the company’s latest update.

According to its release, Hydrocarbon Dynamics advised it has been awarded the chemical treatment business for 30 wells with receipt of a follow-up order from Santos Ltd (ASX: STO).

The order follows a successful trial conducted on 3 wells in the Cooper Basin last year.

Hydrocarbon Dynamics stated that it will supplant one of the world’s largest oilfield chemical companies that previously treated these wells.

The initial order is expected to generate revenue of approximately A$140,000 with treatment expected to recommence next month.

Notably, Hydrocarbon Dynamics concluded a successful 6-month trial for the producer on a waxy field in the Cooper Basin. This achieved the “key objective of mitigating down time and production loss issues stemming from paraffin build-up.”

The company highlighted that the use of its HCD multi-flow reduced lost production by 96% in the trial.

Furthermore, the results demonstrated that with the introduction of HCD multi-flow there was exceptional improvements in well performance, cleaner flow lines and no additional build-up of sludge in the tanks.

Management said that it’s connecting with other producers in the region with similar production issues to expand business opportunities.

Hydrocarbon Dynamics share price snapshot

Adding to this week’s euphoric gains, the Hydrocarbon Dynamics share price has risen by more than 120% in 2022.

However, when looking further back, the company’s shares are up 45% over the last 12 months.

On valuation grounds, Hydrocarbon Dynamics commands a market capitalisation of around $17.02 million.

The post This ASX energy share has rocketed 200% in 3 days on a secret Santos deal appeared first on The Motley Fool Australia.

More reading

• Fortescue share price lower after bearish broker note warns of dividend cuts
• Novonix share price powers up on strong quarterly revenue growth
• Here’s why ASX 200 tech shares are having such a stellar end to the week
• ANZ share price higher on half year notable items update
• Ampol share price lifts amid electrifying new EV charging plans

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/TkG9zrR

The Fortescue Metals Group Limited (ASX: FMG) share price is trading lower on Friday.

In afternoon trade, the mining giant’s shares are down 0.5% to $21.55.

Why is the Fortescue share price dropping?

Today’s weakness in the Fortescue share price could have been driven by a negative response to the miner’s quarterly update from a number of brokers.

This morning Credit Suisse, Goldman Sachs, and Morgan Stanley have all retained the equivalent of sell ratings on the company’s shares with price targets implying meaningful downside risk.

For example, the note out of Goldman Sachs reveals that its analysts have trimmed their price target to $14.90.

Based on the current Fortescue share price, this implies potential downside of 31% for investors over the next 12 months.

What did the broker say?

Goldman acknowledges that Fortescue’s shipments of 46.5Mt were well-ahead of its estimate of 43Mt. It also notes that the company’s price realisations were a touch ahead of its expectations and believes further improvements are coming in the current quarter.

However, this isn’t enough for a more positive view on the Fortescue share price.

This is due to a number of concerns relating to its valuation, the Fortescue Future Industries (FFI) business, and ramp-up risks with the Iron Bridge project.

In respect to its valuation, Goldman highlights that Rio Tinto Limited (ASX: RIO) shares are trading at 0.9x net asset value (NAV), whereas Fortescue’s shares trade at a lofty 1.7x NAV.

As for the FFI business, the broker has warned that its decarbonisation plans could come with significant costs and impact future dividend payments.

Goldman explained: “We think decarbonising the Pilbara could cost FMG over US$7bn (spend not in our numbers) and requires +US$50/t carbon or a iron ore green premia to be NPV positive. We think FMG is at an inflection point on capital allocation, and to fund the ambitious new strategy, we assume the dividend payout ratio falls from the current 80% to 50% from 2022 onwards.”

In light of this, the broker is forecasting dividend yields of 5% in FY 2023, 3% in FY 2024, and then just 2% in FY 2025.

This could mean the days of bumper yields will soon be coming to an end.

The post Fortescue share price lower after bearish broker note warns of dividend cuts appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares just had their best trading day in 5 weeks. What’s next?
• 5 things to watch on the ASX 200 on Friday
• Why AMP, Fortescue, Pilbara Minerals, and Sandfire shares are racing higher
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates
• Fortescue share price charges higher on Q3 update and shipments guidance upgrade

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/dHT4CGQ

The Novonix Ltd (ASX: NVX) share price is well into the green after the lithium-ion battery technology and materials company released its latest quarterly activities and cash flow report.

Novonix operates in the red hot lithium-ion battery space, and it’s also a graphite explorer and miner. Novonix uses graphite to develop anodes for lithium-ion batteries.

At the time of writing, the Novonix share price is up 3.52%, trading at $5.30.

Novonix share price lifts on strong revenue growth

Novonix reported “continued strong revenue growth” with customer receipts of $2.11 million over the quarter. The company said its sales were increasing as it added and grew key strategic customer accounts.

Highlights during the three months to 31 March included:

• Customer receipts of $2.1 million
• Cash flow expenditure from operating activities of $22.6 million
• Cash flow expenditure from investing activities of $27.5 million
• Cash and cash equivalents balance of $211.8 million as of 31 March
• Commenced trading on the NASDAQ on 1 February
• Half-year report released on 25 February.

What happened in the quarter for Novonix

Over the March quarter, the Novonix share price slumped 41%. Meantime, the company was busy signing a couple of major new deals while continuing to develop its production capacity across the board.

Novonix and Phillips 66 signed a technology development agreement to create higher performance, lower carbon-intensive anode material for lithium-ion batteries in North America.

Phillips 66 is a diversified energy manufacturer and a global producer of petroleum needle coke, the key precursor material for synthetic graphite. Phillips 66 bought 77,962,578 ordinary shares of Novonix for US$150 million in September 2021.

Also during the quarter, Novonix spent US$25 million to take a 5% stake in KORE Power, a leading US-based developer of battery cell technology for clean energy industries. The two companies have worked together since 2019 to improve KORE’s battery technology.

Under a new anode material supply agreement, Novonix will become the exclusive supplier of graphite anode material for KORE’s US operations. Deliveries will begin in 2024. It is anticipated that up to 12,000 tonnes of material will be supplied per year. The goal is to strengthen the domestic US lithium-ion battery supply chain.

In Canada, Novonix completed renovations at its new 35,000 square foot site at Burnside. It relocated all hardware and cathode activities from its Bedford site to Burnside.

Novonix received a repayable contribution of $1 million from the Canadian Government to purchase specialised equipment for Burnside, where it will pilot its “cost-effective and environmentally friendly method for cathode material production”. Novonix says it is “on track for a 10 tonnes per annum pilot line to be fully online in Q1 FY23”. The Bedford location is now dedicated to battery assembly and testing.

What’s next for Novonix?

Novonix hopes to take advantage of new US Government funding to support the domestic processing of critical materials, such as graphite for electric car batteries. It is also looking for new international partners for technology partnership opportunities.

In Australia, Novonix said it was continuing to assess opportunities to develop the Mt. Dromedary high-grade graphite deposit asset in northern Queensland.

The Novonix share price is up 116% over the past 12 months compared to a 4.9% gain for the S&P/ASX All Ordinaries Index. However, Novonix has plunged 42.3% in the year to date, while the All Ords has fallen 2.8%.

The post Novonix share price powers up on strong quarterly revenue growth appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 tech shares are having such a stellar end to the week
• Why is everyone talking about graphite and which ASX stocks have exposure?
• The Novonix share price fell a further 5% on Tuesday. What’s happening?
• ASX 200 midday update: Pendal rejects takeover offer, Mineral Resources rises on broker upgrade
• Have investors fallen out of love with Novonix shares in 2022?

Motley Fool contributor Bronwyn Allen 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/6WgPG8z

S&P/ASX 200 Index (ASX: XJO) tech shares are continuing to rebound after their rough start to the week amid a strong session overseas.

The tech-heavy Nasdaq Index took off overnight, with the Nasdaq-100 recording a 3.48% gain for Thursday’s session. Though, it might be giving some of its gains back later today.

Likely in reaction, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is boasting a 1.74% increase on Friday, helping it to recover some of its losses from earlier in the week.

For context, the ASX 200 is currently 0.68% higher.

Let’s take a closer look at what might be going on with ASX 200 tech shares on Friday.

What’s driving ASX 200 tech shares higher?

The ASX 200 tech sector is leading the index on Friday, with the EML Payments Ltd (ASX: EML) share price coming in as its top performer.

The payments provider’s stock plummeted 38.5% on Tuesday after the company downgraded its guidance. Today, it’s back in the green, gaining 5.34% amid the release of its response to an ASX query regarding Tuesday’s news.

The Life360 Inc (ASX: 360) share price is on a similar trajectory. It’s up 4.86% today following Wednesday’s 29.4% tumble.

Other ASX 200 tech stocks in the green today include Novonix Ltd (ASX: NVX), Computershare Limited (ASX: CPU), and Xero Limited (ASX: XRO).

They’ve gained 3.52%, 2.73%, and 1.81% respectively.

Looking to the broader ASX tech sector, the S&P/ASX All Technology Index (ASX: XTX) is currently up 1.79%.

The sector’s performance follows a similarly strong session on the tech-heavy Nasdaq Index overnight.

Most of Australia woke up to the Nasdaq-100 boasting a 3.48% gain. But tomorrow’s session overseas might not be so pretty.

The Nasdaq Index struggled in after-hours trade on Thursday evening, reports my international colleague.

Its slump was driven by tech giants, Apple Inc (NASDAQ: APPL) and Amazon.com Inc (NASDAQ: AMZN). The pair both released quarterly earnings on Thursday.

If ASX 200 tech shares can hold onto their current gains, the sector will close Friday’s session 2.1% lower than it was at end of last week.

The post Here’s why ASX 200 tech shares are having such a stellar end to the week appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: ResMed disappoints, PointsBet rockets higher
• Is rising inflation reducing how much Aussies are investing in ASX shares?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon, Apple, EML Payments, Life360, Inc., and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended EML Payments and Xero. The Motley Fool Australia has recommended Amazon and Apple. 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/TMwbBaQ

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is pushing higher today.

In afternoon trade, the banking giant’s shares are up 0.5% to $27.23.

What’s going on with the ANZ share price today?

The ANZ share price is rising today after the bank released an update on notable items that will be included in its upcoming half year results.

According to the release, ANZ’s first half FY 2022 statutory and cash profit will be impacted by a number of large/notable items with a net after tax charge of $43 million.

Pleasingly, management notes that this will have a minimal impact on its CET1 capital.

What are the items?

There were a total of four items that led to this net after tax charge of $43 million.

The first is a positive net after tax gain of $205 million relating to divestments and business closures during the period. This was primarily driven by the gain on sale of the Merchant Acquiring Business in exchange for a 49% interest in a new ANZ Worldline Payment Solutions partnership.

Offsetting this will be a tax charge of $126 million relating to withholding tax on a dividend payment from ANZ Papua New Guinea. ANZ notes that a capital injection was made into ANZ Papua New Guinea equivalent to the dividend, net of withholding tax. This was done in order to rebalance capital positions within the group in response to APRA’s changes in the capital requirements for subsidiaries.

Another after tax charge of $123 million relates to customer remediation. This covers increased program costs and revised estimates to customer remediation predominantly in the Australia Retail and Commercial division.

Finally, a modest net after tax gain of $1 million is included and comprises restructuring charges, divested business results, and a litigation settlement.

Judging by the ANZ share price performance today, the market appears to see this $43 million charge as a good result. Especially considering that a year earlier the bank recorded a charge of $817 million.

The post ANZ share price higher on half year notable items update appeared first on The Motley Fool Australia.

More reading

• Top broker downgrades ANZ and Westpac shares
• Is the Westpac share price expensive in April?
• Own ANZ shares? Here’s what this top broker finds ‘particularly concerning’
• What predictions are being made for the ANZ share price in April?
• Is the ANZ share price too cheap to ignore?

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/yODNx2R

Investors are looking at the Ampol Ltd (ASX: ALD) share price with fondness on Friday.

Shares in the fuel retailer are forging a path to the upside today amid a further move into the electric vehicle charging industry. At the time of writing, the Ampol share price is swapping hands for $33.95, representing a rise of 1.4%.

Plugging in and rolling out

The latest household inflation data from the Australian Bureau of Statistics showed transport as the segment with the largest increase year on year. Feverishly high fuel prices are being felt by the consumer, highlighting the price comparison to running an electric vehicle (EV).

In response, Ampol is taking action to remain relevant in an electric future. According to a media release, the company is upping its efforts with the unveiling of its EV charging brand, AmpCharge. The Ampol share price suggests investors are content with the move.

Alongside this, Ampol announced its plan to roll out a national network of EV charging points by leveraging its existing fuel distribution network.

Interestingly, the company won’t be stopping the offering at the bowser. Instead, Ampol intends to make AmpCharge an ‘at-home’ product as well. Notably, this will be a component of a broader home energy offer.

Providing comment on the announcement, Ampol managing director and CEO Matt Halliday said:

I’m pleased to today unveil our full-service electric vehicle fast-charging ecosystem, AmpCharge, leveraging our existing network, skills, and infrastructure to provide a diverse and comprehensive charging network that can minimise range anxiety and support the uptake of BEVs in Australia.

Moreover, Halliday highlighted the company’s position to shift with the times, stating:

We’ve been keeping Australians moving for over 120 years. Today, as energy needs evolve, our vision is to become Australia’s leading distributer of energy, providing mobility solutions for any of the vehicles our customers drive, anywhere and anytime they need it.

The Ampol share price has been on an uptrend this year amid its acquisition of Z Energy.

What’s next?

Ampol intends to kick off its EV ambitions with five pilot sites. These will be located at service stations in Carseldine QLD, Alexandria NSW, Northmead NSW, Altona North VIC, and Belmont WA.

Additionally, the company is aiming for around June to July this year for those sites to be operational with EV charging points. From there, the network is slated to expand to approximately 120 locations by October 2023.

Reportedly, 300 EV charging units have been ordered across three suppliers to bring the plans to life. It is believed that the Aussie EV charging success story, Tritium, is in the mix of suppliers.

Ampol share price recap

The Aussie fuel seller has enjoyed a solid year so far in 2022. Already, the Ampol share price is up nearly 13% this year. Whereas the broader Australian share market is in the red. Unsatiable demand for energy products amid geopolitical contention has offered a strong tailwind for Ampol.

Finally, Ampol is now trading on a price-to-earnings (P/E) ratio of about 14.5 times. Meanwhile, the Australian oil and gas industry average is 12.1 times.

The post Ampol share price lifts amid electrifying new EV charging plans appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares smashing new 52-week highs today
• 3 ASX 300 shares smashing new multi-year highs on Wednesday
• ASX 200 lunch update: GrainCorp jumps on earnings upgrade, Pro Medicus signs $32m deal
• Ampol share price nears a new 52-week high following milestone approval
• Budget fuel excise cut: Which ASX shares could benefit?

Motley Fool contributor Mitchell Lawler 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/w691V4t

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

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

What happened

The hot cryptocurrency of the moment, ApeCoin (CRYPTO: APE), got even hotter on Thursday. As of late afternoon, the token tightly linked to the Bored Ape Yacht Club (BAYC) non-fungible token ecosystem was up by nearly 20% over the previous 24 hours. That made it a 300-pound gorilla when contrasted with the modest gains of a great many fellow tokens, including Bitcoin, Ethereum, and Polkadot.

So what

Unlike nearly all of those coins, ApeCoin is on the brink of entering a new stage of evolution. This Saturday, BAYC is slated to launch Otherside, its metaverse project in which the anchor currency is that furry animal token. And it’s not like there was a long ramp-up to the launch — it was officially announced last Saturday.

While enthusiasm for cryptocurrencies has generally cooled lately, investors are still excited about the prospects of the metaverse. Compounding this, BAYC has provided few details about Otherside, helping to burnish that cyberworld’s mystique and keep people interested.

A brief animated video posted on the recently established (and apparently official) OthersideMeta Twitter account, soundtracked with The Doors’ Break on Through, presents an odd, colorful world with an aesthetic similar to BAYC’s popular NFTs. The main characters in Otherverse seem to be (you guessed it) BAYC-styled apes, although it’s anyone’s guess whether Otherside participants actually get to play as those creatures.

Now what

Another big question is what exactly is going to be sold upon Otherside’s launch (there is a “first mint” for NFTs connected to that metaverse), but in Apeworld fashion, precious few specifics have been provided.

So what we’re dealing with in ApeCoin is not only a very proprietary token, but also one whose future is full of question marks. It might be loaded with potential, but then again it could represent a rickety-foundation trap for incautious investors. To me, this uncertainty makes it an asset to avoid for now. 

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

The post Why ApeCoin was trouncing other cryptos on Thursday appeared first on The Motley Fool Australia.

More reading

• Crypto king Bitcoin to be dethroned by this hot rival: experts
• Bitcoin will be worth $590,000 by 2030: experts
• Bitcoin, Ethereum, and Cardano are turning it around today. Here’s why
• Bitcoin price leaps 4% but is the leading crypto due for a big retrace?
• Why Bitcoin, Ethereum, and XRP are struggling today

Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

from The Motley Fool Australia https://ift.tt/f7IUVNx

Block Inc (ASX: SQ2) shares are edging higher today, up 0.84% to $145.57 per share.

While it’s early hours yet, Block shares trading on the ASX are trailing yesterday’s (overnight Aussie time) performance of their US-listed counterparts. Block closed 4.6% higher on the NYSE, at US$104.65 per share.

While that was a strong day for the global buy now, pay later (BNPL) giant, Bank of America forecasts more strength ahead.

Why investors will be eyeing the Afterpay integration

As you’re likely aware, United States-based Block acquired Aussie BNPL company Afterpay in January this year.

And how well that integration works will have a material impact on Block shares.

As the Australian Financial Review (AFR) reports, Bank of America believes that, among other core factors, “investor focus will also be on the integration of Afterpay, and we will be looking for more specifics regarding potential quantification of revenue synergies”.

Block will report its quarterly results on 5 May, with an investor day presentation scheduled for 18 May.

Tailwinds ahead?

Bank of America believes the quarterly results will offer some fresh tailwinds for Block shares.

“We continue to believe [Block] is well-positioned to be a long-term leader in the Super App race among various Fintechs,” it said.

The bank retained its buy rating on Block shares, though it cut its price target from US$157 to US$144 per share. Still, that’s 38% above yesterday’s closing price on the NYSE.

According to Bank of America (as quoted by the AFR):

We see ample synergies between Afterpay and SQ, particularly the ability to cross-pollinate the respective active user base at Cash App and Afterpay. For example, we note that Afterpay’s 19 million annual active customers (65% in US) will be able to make BNPL instalment payments directly in Cash App.

Meanwhile, Cash App customers will have the ability to discover Afterpay’s 122,000 merchants, while engaging in BNPL transactions within the Cash App platform.

How have Block shares been tracking?

It’s been a rough month for Block shares, down 28.8% since 29 March. By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.6% for the month.

The post Bank of America tips 38% upside for Block shares. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why Appen, Block, Life360, and Northern Star shares are dropping
• Why is the Block share price slipping 6% today?
• 3 beaten-up ASX All Ordinaries shares that surged higher today
• Own ASX BNPL shares? These were the best performers of the March quarter
• Block share price in the red as Afterpay loss balloons 336%

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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/M9eBinr

The SciDev Ltd (ASX: SDV) share price is having a woeful morning on the ASX following a company announcement.

At the time of writing, the chemical engineering company’s shares are down a sizeable 29%, trading at a multi-year low of 28 cents. In comparison, the All Ordinaries Index (ASX: XAO) is tracking 0.79% higher at 7,703 points.

What did the ASX materials share announce?

Investors are selling off SciDev shares following an unexpected announcement regarding its most senior leader. SciDev advised that its CEO and managing director Lewis Utting has tendered his resignation due to personal reasons.

SciDev commercial director of water services Sean Halpin has been appointed to the top job in the interim.

SciDev chair Vaughan Busby said:

The Board thanks Lewis for his leadership, commitment and hard work transforming and growing the company from a start up to where it is today.

We understand and respect Lewis’ decision to resign so he can focus on family matters. Over the next few months, Lewis will be available on a limited basis to assist with the transition.

While the sudden notice has rattled shareholders, SciDev said that it would begin its search for a new permanent CEO.

About the SciDev share price

Adding to today’s losses, the SciDev share price has fallen almost 70% over the last 12 months.

Since reaching a 52-week high of 97.5 cents in mid-2021, the ASX materials shares have been on a downward trend.

The company commands a market capitalisation of roughly $52.5 million based on today’s price.

The post Why has this ASX materials share plummeted 28% today? appeared first on The Motley Fool Australia.

More reading

• Could AFIC shares be an ASX inflation hedge?
• ASX 200 midday update: ResMed disappoints, PointsBet rockets higher
• This ASX 200 healthcare share has a fully franked dividend yield over 4% right now
• TGIF: Why is the Zip share price rocketing 10% today?
• Can the CBA share price maintain its premium to the other ASX banks?

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/HWLrZqw