The Xero Limited (ASX: XRO) share price is slipping in early trade today, down 0.87%.

Xero shares closed yesterday at $81.85 and are currently trading for $81.14.

A top performer for many years, the Xero share price hit a record high of $155.75 on 1 November last year. Since then, it’s been falling hard, with shares hitting one-year lows on 12 May following the release of the company’s results for the full 2022 financial year (FY22).

It’s been four weeks now since the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider reported those results.

So, how has it been tracking since then?

What’s been impacting the ASX 200 tech share?

The Xero share price had been steadily declining for just over six months when the company reported its FY22 results.

Highlights of those results included a 29% year-on-year increase in operating revenue to NZ$1.1 billion. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at NZ$212.7 million, an increase of 11% from FY21. Yet the company still booked a net loss after tax of NZ$9.1 million.

While revenue and earnings growth were strong, they fell shy of expectations, and the Xero share price ended the day down 11.6% at $76.90.

Since that low, investors have been doing more buying than selling, seeing Xero shares gain 19.7% by 30 May when they closed at $92.02.

But Xero hasn’t proven immune to the forces that have been pulling down most tech shares. Namely hot-running inflation and the accompanying rising interest rates. Those concerns saw the tech-heavy Nasdaq Composite (NASDAQ: .IXIC) slip again overnight, taking the year-to-date losses for the index to 24%.

With shares following the Nasdaq’s lead and slipping today, Xero is now up 5.5% from the close on the day it reported its results.

Xero share price snapshot

The Xero share price is down 37% in the last 12 months, compared to a loss of 3% posted by the ASX 200.

Long-term shareholders, however, will have little to complain about.

If you’d bought Xero shares five years ago, you’d still be sitting on gains of 240%, or 10 times the 24% gains posted by the ASX 200 over that same period.

The post How has the Xero share price performed since reporting FY22 results? appeared first on The Motley Fool Australia.

More reading

• Here’s why I think these ASX tech shares are buys in June
• How are ASX 200 tech shares performing following the RBA rate hike?
• 2 beaten down ASX tech shares that analysts rate as buys
• Why Codan, Incitec Pivot, Xero, and Zip shares are dropping
• Down 13% in a month, fundie says Xero share price is ‘very reasonable’

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

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The Rio Tinto Limited (ASX: RIO) share price is lifting on Thursday. Meanwhile, the company has taken a major step towards powering its Queensland assets with renewable energy.

The S&P/ASX 200 Index (ASX: XJO) resources giant and Queensland’s largest energy user has put the call out for entities to build large-scale wind and solar projects in the state.

At the time of writing, the Rio Tinto share price is $119.63, 0.6% higher than its previous close.

For context, the ASX 200 is also down, having slipped 0.87% this morning. The company’s home sector – the S&P/ASX 200 Materials Index (ASX: XMJ) – is also 0.13% lower right now.

Let’s take a closer look at the latest news from the metals and mining monolith.

Rio Tinto’s ‘important step’ towards climate targets

The Rio Tinto share price is in the green amid news that the company’s moving to power its Gladstone assets with renewable energy.

Doing so should help it meet its climate change ambitions and encourage renewable development and industry in the region.

The company has opened a formal market request for proposals to find an entity to develop multiple renewable projects.

The projects – in parallel with firming solutions – will help supply power to Rio Tinto’s assets in the Gladstone region through the Queensland grid by 2030.

Those assets include the Boyne smelter, the Yarwun alumina refinery, and the Queensland Alumina refinery.

They need 1140 megawatts of reliable power to run, equating to at least 4000 megawatts of quality wind or solar power with firming.

Rio Tinto Aluminium CEO Ivan Vella commented on today’s news, saying:

[W]e have an important role to play in driving the development of competitive renewable energy sources for our Gladstone assets and supporting the state’s renewable energy targets.

It is early in the process, but this is an important step towards meeting both our group climate change target of halving our emissions by the end of the decade and our commitment to net zero emissions by 2050.

Rio Tinto share price snapshot

The Rio Tinto share price has been performing well in 2022 so far.

It has gained 19% since the start of the year. Though, it’s 5% lower than it was this time last year.

The post Rio Tinto share price lifts amid ‘important’ renewable energy step appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Rio Tinto share price gains lag BHP despite green steel deal
• Own Rio Tinto shares? Here’s why the miner is being sued by this Russian aluminium producer
• What are brokers predicting for the Rio Tinto share price in June?
• What happened to the Rio Tinto share price in May?

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

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The ASX share market is going through a lot of volatility at the moment. ASX growth shares could be opportunities during this period.

Rising interest rates make it a tricky investing environment. However, with the prices of many potential investments now substantially lower, I think they’re long-term opportunities.

Businesses continue to operate, even if the share price is up 5% or down 10% in one week. They’re still trying to grow and succeed. I think the lower prices mean it’s a good time to pounce on ideas. Here are two I’d happily buy during today’s trading with $2,000.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading e-commerce platform business for beauty products. It now sells around 11,700 products from more than 270 brands.

I think the Adore Beauty share price looks very good value after its 70% decline this year. It’s also down almost 80% since November.

While the valuation has suffered, the company continues to grow in operational size, which I think is a positive sign for the future. In the three months to 31 March 2022, revenue rose by 9% year on year to $42.7 million, and active customers increased by 7% to 880,000.

I believe the company is doing a good job at retaining many of the customers that it attracted during the COVID-hit years of 2020 and 2021. The number of returning customers increased by 47% year on year – this was driven by strategic initiatives to improve retention.

Those initiatives include things such as growing its own marketing channels like podcasts and the company’s YouTube channel. The business also notes that successful partnerships with Temple & Webster Group Ltd (ASX: TPW) and 7-Eleven have also supported its strategic focus on increasing brand awareness.

I think increasing operating leverage will help increase the ASX growth share’s profitability over the long term and also help revitalise investor sentiment about the business over time.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is one of my favourite exchange-traded funds (ETFs) on the ASX.

The ETF has not fallen as much as other investments this year — it’s only down by 9%. Even so, I think it represents a better buying opportunity after its decline.

As VanEck says, this investment is about giving investors “exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team”.

The idea of sustainable competitive advantages is that these companies can continue generating outsized profitability for at least a decade and, more likely than not, for two decades. Competitive advantages can come in different forms such as intellectual property or brand power.

But, the competitively advantaged companies are just a starting point, a watchlist. Businesses are only chosen for the portfolio if they are “trading at attractive prices relative to Morningstar’s estimate of fair value”. In other words, they need to be cheaper than what Morningstar analysts think the businesses are actually worth.

This combination of attributes makes the MOAT ETF an attractive ASX growth share, in my opinion.

On 7 June 2022, these were the biggest five positions: Merck & Co, Philip Morris, Kellogg, Campbell Soup, and Constellation Brands. It’s a diverse portfolio of around 50 names.

Foolish takeaway

I think both of these potential investments have a good long-term future. The lower prices represent attractive entry points. I believe Adore Beauty looks particularly good value considering it is still growing revenue, yet its share price is down heavily.

The post 2 ASX growth shares I’d buy right away with $2,000 appeared first on The Motley Fool Australia.

More reading

• 3 high quality ETFs for ASX investors to buy this month
• Why is the Adore Beauty share price sliding 6% on Monday?
• I’d invest $5,000 into these excellent ASX shares for the long term
• Why has the Adore Beauty share price tumbled 20% in a month?
• 3 top ETFs to today in June

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited, Temple & Webster Group Ltd, and VanEck Vectors Morningstar Wide Moat ETF. 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.

It’s official: Amazon (NASDAQ: AMZN) just executed its first stock split since 1999. 

On Monday, the e-commerce giant gave investors 20 shares for each one they previously held, and consequently, the individual share price plunged. After years of the stock trading in the $1,000 range, it looks odd to see Amazon shares going for just around $120. But while the price of an individual Amazon share is much lower than it was last week, investors shouldn’t be fooled. The stock isn’t any cheaper than it was, and the value proposition is the same as it was last week before the split was announced.

Though the stock split itself doesn’t really matter, there are a number of great reasons to buy Amazon stock now. Let’s take a look at a few.

1. The stock is cheap

Amazon stock isn’t cheap because of the stock split. It’s cheap because it’s trading down a third from its peak last fall, and its earnings potential is as strong as ever.

That said, the company’s generally accepted accounting principles (GAAP) earnings were marred last quarter by a plunge in the value of Rivian, the electric vehicle maker that Amazon has invested in. That was purely a paper loss, based on a mark-to-market method of accounting, which led the company to post a loss in the first quarter. Based on 2021 earnings per share, however, Amazon is trading at a price-to-earnings ratio of just 37.8, about the cheapest it’s ever been based on that metric.

In May, Amazon actually fell below where it was trading in February 2020 before the pandemic. In other words, the market seems to think that all the gains the company made in the last two years aren’t even worth anything. That’s a mistake. 

2. The e-commerce business will recover

The first quarter was an ugly one for e-commerce. In Amazon’s North American segment, revenue grew just 8%, and the company posted a $1.6 billion operating loss compared to an operating profit of $3.5 billion in the quarter a year ago. That business segment isn’t just e-commerce. It includes the high-margin advertising business, meaning that North American e-commerce losses were likely even worse than $1.6 billion.  

The international segment was just as discouraging. Revenue actually fell 6%, or was flat in currency-neutral terms, leading to an operating loss of $1.3 billion, which compares to a segment operating profit of $1.3 billion in the quarter a year ago.

Amazon is facing a number of e-commerce headwinds. Rising fuel prices have contributed to higher transportation costs, which explains in part why shipping costs rose 14% even as units shipped were flat. The company also overexpanded capacity during the pandemic and is now subleasing excess space, but it should eventually grow into that capacity.

The e-commerce sector, in general, was also facing difficult comparisons in the first quarter as Q1 2021 was the last full period before COVID-19 vaccines were available to the public. This was also a time when Americans also got stimulus checks. So e-commerce performance should improve over the year, even though Amazon may continue to lose money this year due to overcapacity.

3. AWS is still a juggernaut

Amazon’s biggest profit contributor is also its most reliable, and it shows no signs of slowing down.

Amazon Web Services (AWS), its cloud infrastructure unit, posted 37% revenue growth in the first quarter to $18.4 billion and currency-neutral operating income growth of 53% to $6.5 billion. That gives AWS a 35% operating margin. Despite competition from Microsoft and Alphabet, Amazon is still the top dog in cloud infrastructure, and it looks set to remain that way based on its growth rate and profitability. 

AWS continues to expand into new products and services such as Amplify Studio and is attracting customers like Boeing, Telefonica, and the owner of the Toronto Maple Leafs hockey team. AWS architect Andy Jassy replaced Jeff Bezos as CEO, showing the importance of the cloud infrastructure business, and some see the addressable market for the cloud infrastructure systems reaching multi-trillion-dollar levels.

On the earnings call, management said that the AWS backlog was up 68% to $88.9 billion, a clear sign of strong upcoming growth. CFO Brian Olsavsky expressed confidence in the business, saying, “For full year 2022, we do expect infrastructure spend to grow year over year, in large part to support the rapid growth and innovation we’re seeing within AWS.” Some investors have even argued that AWS alone can justify Amazon’s valuation.

2022 is still likely to be a tough year for Amazon, and second-quarter guidance was not encouraging, as the company called for 3% to 7% revenue growth, a bottom-line result between an operating loss of $1 billion, and an operating profit of $3 billion. 

Still, the company’s myriad competitive advantages aren’t going anywhere, and the business should improve as it grows into excess logistics capacity and the economy eventually stabilizes. 

Stock split or not, now looks like a great time to take advantage of the discount on this top company. 

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

The post Amazon stock split is complete. Time to buy the stock? appeared first on The Motley Fool Australia.

More reading

• Amazon’s stock split has taken effect. Now what?
• 3 reasons Amazon stock could soar after its split
• Amazon shareholders approve 20-for-1 stock split. Here’s what investors should know
• Amazon stock rallied today — here’s why now might be the time to buy
• 3 reasons to buy Amazon and 1 reason to hesitate

Jeremy Bowman has positions in Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Microsoft. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Syrah Resources Ltd (ASX: SYR) share price is under significant pressure on Thursday morning.

At the time of writing, the graphite producer’s shares are down a disappointing 12% to $1.35.

Why is the Syrah share price sinking today?

The weakness in the Syrah share price on Thursday has been driven by events near Ancuabe in the Cabo Delgado Province of Mozambique.

This is 200 kilometres away from Syrah’s massive Balama Graphite Project, which is also in the Cabo Delgado Province.

According to the release, the company has received reports of an insurgent attack at a mine project site near Ancuabe. This is the second attack this week in the district of Ancuabe.

The release notes that prior to these incidents there had been a significant improvement in the overall security situation in the province. However, the situation now appears to be deteriorating quickly, which could have some investors fearing that the attacks will spread to Balama in time.

What’s happening?

Syrah advised that the incidents occurred between 30 kilometres and 40 kilometres from the N1 road, which is the primary transport route between Balama and both Nacala and Pemba.

In light of this, Syrah and its logistics service provider have taken the precautionary measure of suspending all personnel and logistics movements through the route section until further information is available.

At this stage, Balama’s mining and processing operations have not been impacted.

Management advised that it retains close contact with Government, security authorities and other stakeholders to monitor the situation and assess the safe resumption of transport operations.

All in all, this is another example of why investing in companies operating in areas close to conflict zones or in countries with high levels of corruption, such as AVZ Minerals Limited (ASX: AVZ), carry significant risk and should be treated with caution.

The post Why is the Syrah share price crashing 11% today? appeared first on The Motley Fool Australia.

More reading

• Mineral Monday: What you need to know about vanadium and which ASX shares are cashing in on it
• 2 sold-off ASX shares essential for electric cars

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.

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I think there are some great ASX tech shares that are now good value following the significant volatility that the market has seen in recent times.

While a business isn’t necessarily a buy just because it has fallen, I believe the two technology investments below could now be very promising for the long term at the current share prices.

Xero Limited (ASX: XRO)

Xero is a leading global cloud accounting software company. I believe it is one of the strongest businesses on the ASX and possibly among the best in the world at what it does.

The ASX tech share is heavily pursuing growth. Despite having a gross profit margin of 87.3%, the business only made free cash flow of $2 million in FY22. That’s because it’s spending enormous amounts on marketing, product design, and development. FY22 marketing costs were $405.7 million, while design and development costs amounted to $372 million.

One way that Xero is developing new ways to engage with customers has been the recently announced partnership with FIFA Women’s Football. In terms of market development, Xero is working on product localisation in a number of international markets and future innovation in areas such as platform, ecosystem, and acquisitions.

The company continues to grow subscriber numbers strongly. Total subscribers increased by 19% over FY22.

I think the 44% decline of the Xero share price in 2022 makes it very compelling for the long-term.

REA Group Limited (ASX: REA)

REA Group is another of the highest-quality businesses on the ASX, in my opinion.

But, the owner of realestate.com.au has been savaged like many other ASX tech shares in 2022. The REA Group share price has fallen by almost 40% in 2022.

It is possible that the property market could go through difficulty as interest rates shoot higher as the Reserve Bank of Australia (RBA) tries to get on top of inflation. A subdued property market isn’t a positive for REA Group.

However, I think this much lower valuation reflects a lot of those potential future impacts. To put things in perspective, it has now fallen approximately the same amount that it did during the COVID-19 crash of February and March of 2020.

I believe the business has a compelling future. I’m not expecting that it can capture much more market share. It’s already the market leader according to the site visits that it regularly boasts about to investors.

For me, there are three areas that make me optimistic about this ASX tech share, aside from the lower valuation.

The first thing is that it can keep implementing good price increases for its property advertising services. Sellers will want to be on the best property portal to ensure the best chance of a good sale, particularly in a difficult market for sellers. However, REA Group’s advertising charge is relatively small compared to the overall sale price of a property.

Second, REA Group is looking at diversifying its business into areas like financial services and data. It now has a sizeable mortgage broking segment after the acquisition of Mortgage Choice.

Finally, I think the ASX tech share has a long-term opportunity in international markets such as the US, India, and other Asian countries where REA Group has investments in leading property sites. Those international sites are not generating useful profit yet, but they are setting the foundation for potential growth as they invest. They can also benefit as more of the local populations turn to digitally searching for real estate.

The post Here’s why I think these ASX tech shares are buys in June appeared first on The Motley Fool Australia.

More reading

• Here are 2 ASX 50 shares analysts rate as buys
• How are ASX 200 tech shares performing following the RBA rate hike?
• 2 beaten down ASX tech shares that analysts rate as buys
• Why Codan, Incitec Pivot, Xero, and Zip shares are dropping
• Down 13% in a month, fundie says Xero share price is ‘very reasonable’

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended REA 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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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 Tesla (NASDAQ: TSLA) are reacting to an overnight report on how it it planning to ensure it has the raw materials to continue to lead the EV market as it grows. The report has Tesla shares jumping in early trading. As of 11:03 a.m. ET, the stock was up 3.5%. 

So what

Tesla has plans to add another battery supplier, and it is one of the largest EV makers in China, according to CNBC. That supplier, Chinese automaker BYD, is also a company Warren Buffett likes. Buffett’s Berkshire Hathaway owned 225 million shares of BYD as of Dec. 31, 2021, representing a 7.7% ownership stake in the company. The report quoted BYD Vice President Lian Yubo as saying his company is “now good friends” with Tesla CEO Elon Musk, and that BYD is ready to supply batteries to Tesla soon. 

Now what

BYD sold more than 740,000 electric and fossil-fuel-based vehicles combined last year. Its new-energy-vehicle production — which includes both plug-in hybrid and battery electric cars — more than tripled year over year in 2021, to more than 600,000. That makes it a direct competitor to Tesla, which also has a manufacturing plant in the largest global EV market. 

While vehicle production was a much larger portion of its sales, battery sales represented about 7.3% of total revenue in 2021. The alignment makes for an interesting combination, as its other battery suppliers are not competing directly with Tesla for vehicle sales. 

But Musk knows EV competition is heating up, and one of the supply chain restrictions could be battery supply in coming years. Investors are cheering the news that Tesla is thinking ahead to be able to supply its growing manufacturing volume with a necessary part that might be in short supply for many EV makers. 

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

The post Why Tesla stock bounced today appeared first on The Motley Fool Australia.

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• Why did the Tesla share price just dump 9%?
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• The Tesla share price has rallied 18% in less than a fortnight. What’s going on?

Howard Smith has positions in BYD and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway (B shares) and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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 All Ordinaries Index (ASX: XAO) has struggled this year – tumbling 6% year to date – but not all shares on the index have suffered.

In fact, these three have gained more than 130% in 2022 so far. Let’s take a look at what’s been driving them higher.

3 ASX All Ordinaries shares boasting massive 2022 gains

Yancoal Australia Ltd (ASX: YAL)

All Ordinaries coal producer Yancoal has seen its share price lift a whopping 134.6% so far this year. As of Wednesday’s close, it was trading at $6.10.

Surging energy prices following Russia’s invasion of Ukraine have likely been behind much of its gains. Though, recent talk of a potential takeover offer from Yankuang Energy might have also spurred interest.

Yankuang Energy is a Chinese state-owned entity and Yancoal’s controlling shareholder. Yesterday, the market heard its response to news the ASX-listed company wouldn’t support its takeover bid.

Yankuang said the bid – which is still hypothetical at this stage – would provide “a reasonable opportunity for those Yancoal shareholders who wish to exit but are not able to do so at current market prices”.

Stanmore Resources Ltd (ASX: SMR)

The share price of Yancoal’s fellow All Ordinaries coal producer Stanmore Resources has also taken off this year. It’s currently trading at $2.75 – 190.1% higher than it was at the start of 2022.

The company has also likely had tailwinds due to the price of coal in 2022.

Additionally, it completed its acquisition of BHP Group Ltd (ASX: BHP)’s 80% stake in BHP Mitsui Coal last month.

Grange Resources Limited (ASX: GRR)

Finally, the Grange Resources share price has lifted a whopping 133.8% this year so far. It closed yesterday’s session at $1.77.

The All Ordinaries share mines iron ore and produces iron ore pellets in Tasmania. It also owns a 70% stake in a magnetite project in Western Australia.

The company has benefited from strong iron ore prices this year, allowing it to declare a 10-cent per share fully franked final dividend in April. That’s its highest routine dividend ever and equal to a 10-cent special dividend it paid out late last year.

The post 3 ASX All Ordinaries shares up by more than 130% so far in 2022 appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Perenti, Strandline, and Yancoal shares are pushing higher
• Yancoal share price lifts as potential takeover slammed
• Here are the best performing ASX dividend shares so far this year
• Why Appen, Elders, Predictive Discovery, and Yancoal shares are dropping
• Why these ASX coal shares could be ‘bigger than Ben-Hur’: fundie

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

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The Magellan Financial Group Ltd (ASX: MFG) share price has rebounded on Thursday after hitting a multi-year low yesterday.

In morning trade, the fund manager’s shares are up 3% to $12.96.

Why is the Magellan share price rising?

Investors have been bidding the Magellan share price higher today after the company announced the return of its co-founder Hamish Douglass.

According to the release, Mr Douglass will resume working with Magellan in a new consultancy role in October. In this new role, he will provide investment insights, including geopolitical and macroeconomic views.

The release notes that this new role will allow Mr Douglass to deliver his expertise to investors free from board, management, and portfolio responsibilities.

‘Another important step’

Magellan’s Chairman, Hamish McLennan, believes this appointment is another important step for the company. He said:

The Board and Hamish have carefully considered the right balance for Hamish, for Magellan and most importantly for our clients as they navigate global markets. Hamish’s appointment in this new role is another important step as Magellan moves forward as a focused global funds manager.

Magellan’s macroeconomic team has advised clients through the recent inflation, higher interest rates, war, financial crises and supply chain issues. Magellan combines its perspectives with access and insights at the highest levels from around the world. Magellan’s investment team of 30 plus investment professionals focuses on research of major global companies and sectors, also providing real time microeconomic information and data which feed into our analysis.

New CEO starting sooner

In other news, Magellan’s next CEO, David George, has brought forward his start date to 19 July. Previously Mr George was expected to commence in the role on 8 August.

Mr McLennan commented:

The Board has received very positive feedback from clients and investment professionals globally following the announcement on 11 May 2022 of the appointment of David George as Chief Executive Officer and Managing Director of Magellan. Today, the Board is also delighted to announce that Mr. George’s commencement date with Magellan has been brought forward from 8 August 2022 to 19 July 2022.

The post Magellan share price pushes higher on Hamish Douglass return appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, Firefinch, Magellan, and Westpac shares are dropping
• 10 ASX All Ords shares that could be stung by tax-loss selling
• 3 ASX 200 shares defying today’s sell-off to leap higher
• Magellan share price lifts amid buyback speculation
• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today

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.

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The BrainChip Holdings Ltd (ASX: BRN) share price has had a poor run in the past week.

Since last Wednesday, the artificial intelligence (AI) technology company’s shares have shed a touch over 16%.

In particular, the BrainChip share price has been deep in the red across the last three trading days.

At yesterday’s market close, BrainChip shares ended the day 5% down at 95 cents apiece.

What’s driving BrainChip shares lower?

While the company has been relatively quiet on the news front, investors have offloaded the BrainChip share price.

This comes after some concerns from investors that the company’s market capitalisation may have gotten ahead of itself.

BrainChip is currently valued at $1.71 billion and will only just sit inside the S&P/ASX 200 Index (ASX: XJO) from 20 June.

However, with an exorbitant market cap, it’s worth noting that the company generates very little revenue.

In its last quarterly report for the period ending 31 March, BrainChip received US$0.2 million in cash receipts from customers. And that’s a decrease of 81% from the prior US$1.1 million collected in Q4 FY21.

Furthermore, BrainChip shares rose strongly last month following investor hype regarding its acceptance into the Arm AI Partner Program.

It appears the sentiment has also worn off in the company.

Nonetheless, the S&P Dow Jones Indices announced some changes in its quarterly rebalance of the S&P/ASX Indices in which Brainchip will be added.

What this means is that a majority of fund managers can only buy shares within a certain index. The updated list may help prop up BrainChip shares as well as investors looking to take advantage of the upcoming change.

BrainChip share price snapshot

Regardless of treading lower in recent times, the BrainChip share price has gained almost 70% over the last 12 months.

When looking at year-to-date, its shares are up around 40%.

BrainChip has approximately 1.74 billion shares on its registry.

The post Why has the BrainChip share price fallen 16% in a week appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, Firefinch, Magellan, and Westpac shares are dropping
• BrainChip market cap is ‘not even close to where it can and should be’: CEO
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
• Brainchip shares could get a massive boost this month: here’s how
• 5 things to watch on the ASX 200 on Monday

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

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