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.

Netflix (NASDAQ: NFLX) has been getting a lot of attention lately, but unfortunately, for the wrong reason. The streaming pioneer reported its first quarter of subscriber losses in over a decade, pointing to rising competition, account sharing, and the reversal of the pandemic boom as reasons for the drop-off.

These headwinds have been meaningfully negative, causing the stock price to fall by 71% off its highs in 2021. Let’s look more closely at why everyone is talking about Netflix stock.

1. Netflix faces rising competition

Netflix is not just competing with rival streaming services, though they are playing a part. Netflix is also competing with the rise of free, ad-supported entertainment options that consumers have at their fingertips: Alphabet‘s YouTube, TikTok, and Meta Platforms‘ Instagram have all gained in popularity. Unlike Netflix, those services are free to consume. The difference is that viewers are shown advertisements that interrupt their engagement, which is a feature they’ve demonstrated a willingness to tolerate.

For years, Netflix’s management had been against releasing an ad-supported version of its service at a lower price. However, facing subscriber losses for the first time in over a decade and a stock price that has been down 71%, management signalled that it is planning an ad-supported version that could launch as early as the end of this year.

NFLX data by YCharts.

2. 100 million more homes should be paying for Netflix

That Netflix discovered shared accounts isn’t surprising, but the scale of the sharing is a bit of a shocker. The figure has some investors talking about why management let it get to this level before doing something about it. Did they believe that allowing customers to use each other’s accounts makes them willing to pay higher subscription prices? Or perhaps developing the technology to limit sharing is costly, and the company would rather spend money on creating content instead?

Regardless, Netflix essentially has 100 million customers using the service without paying. Interestingly, launching an ad-supported version will help solve this problem, although not entirely. Netflix can show advertisers that the service is used in the 222 million paying households and an additional 100 million nonpaying ones. In that way, Netflix could draw an increased budget from marketers who would be willing to pay more because they’re getting the opportunity to influence 100 million more households.

Netflix grew to earn $29.7 billion in revenue in 2021 without any ad support. An additional income stream could boost that closer to $40 billion in a few short years.

NFLX Revenue (Annual) data by YCharts,

3. Folks are streaming less content now

During the first pandemic-plagued year of 2020, Netflix added 36.6 million streaming subscribers — 8.7 million more than the 27.9 million it added in 2019. That acceleration of growth was impressive from a company the size of Netflix, which already had the industry lead. However, momentum slowed in 2021, when Netflix added only 17.2 million subs.

It’s only getting worse as Netflix lost 200,000 subscribers in Q1 and forecasts it will lose 2 million more in the second quarter. This downward trajectory is troubling news for shareholders, who are uncertain how far this will go. Will the service eventually lose all the 36.6 million subs it added during 2020? That seems unrealistic. Will it lose the incremental 8.7 million subscribers it added in 2020 vs. 2019? That’s more likely. Will it turn things around in the third quarter and return to growth? That seems most likely.

The changes going on at Netflix are definitely noteworthy. It’s clear why investors are buzzing about its stock.

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

The post Why is everyone talking about Netflix stock? appeared first on The Motley Fool Australia.

More reading

• Can Stranger Things stop Netflix’s subscriber bleed?
• Could Netflix eventually become an excellent dividend stock?
• Will Microsoft and Apple shares finally give way in the stock market’s downturn?
• Here’s why Netflix stock climbed higher today

Parkev Tatevosian has positions in Alphabet (C shares), Meta Platforms, Inc., and Netflix. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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), Meta Platforms, Inc., and Netflix. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Meta Platforms, Inc., and Netflix. 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 Macquarie Group Ltd (ASX: MQG) share price spent today in the green while all its S&P/ASX 200 Index (ASX: XJO) bank peers struggled. Was it a miracle?

Likely not. Let’s take a look at what could have weighed on Macquarie’s ASX 200 peers and why the investment bank appears to have dodged it.

As of Wednesday’s close, the Macquarie share price is 0.99% higher than its previous close at $179.24.

For context, the ASX 200 rose 0.36% today while the S&P/ASX 200 Financials Index (AXSX: XFJ) slumped 2.85%.

Is this buoying the Macquarie share price?

Macquarie traded higher amid a sea of red on Wednesday. Some of its ASX 200 bank peers– like Bendigo and Adelaide Bank Ltd (ASX: BEN) – fell as much as 7.2% today.

Shares in the ‘big four’ all plunged lower. Westpac Banking Corp (ASX: WBC) shares were the hardest hit – falling 6.1%.

Meanwhile, those in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) slumped 4.4%, 3.9%, and 2.3% respectively.

As my colleague Bernd Struben reported earlier today, their suffering follows the Reserve Bank of Australia’s decision to hike interest rates by 0.5% on Tuesday.

Macquarie joined Westpac, CBA, and ANZ in passing the rate rise onto customers on Wednesday.

While rate rises allow banks to increase their net interest margins, bolstering profits, it also means their funding costs increase.

On top of that, higher rates might weigh on housing prices – which is bad news for most banks.

So, is there a reason the Macquarie share price is the only of the ASX 200 banks avoiding the downturn?

One reason might be because the bank just doesn’t deal with many home loans. Thus, it might face fewer headwinds following the RBA’s decision.

Asset finance broker and comparison service Savvy released an analysis on Australia’s mortgage market earlier this year.

It found Macquarie held just 3.32% of the market in 2021. That was around $60 billion worth of home loans compared to its current $68 billion market capitalisation, courtesy of the ASX.

Of course, there could be numerous other happenings behind the Macaque share price’s gains today. But mystery is sometimes the nature of the market.

The post Why is Macquarie the only ASX 200 bank share in the green today? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 financials shares named as buys
• The Macquarie share price has lost 10% in a month. So what’s the dividend yield now?
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• What’s the outlook for the Macquarie share price in June?
• 3 quality ASX 300 shares with dividend reinvestment plans

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 positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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 Wesfarmers Ltd (ASX: WES) share price has been sliding lower and today hit a two-year low of $44.65. Could now be a good time to consider buying shares in the retail conglomerate?

At the close of trade, Wesfarmers shares are down 0.7% at $45.24. They have fallen almost 25% since the beginning of the year and are closer than ever to the March lows seen in the COVID-19 crash of 2020.

Is the Wesfarmers share price a buying opportunity?

It’s an interesting question, considering interest rates are rising and inflation is building in Australia.

Ray Dalio, the billionaire founder of Bridgewater Associates, explains why interest rates are so important for asset values:

It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.

There has been plenty of the elevated inflation in different areas of the economy, such as energy, during 2022, particularly after the Russian invasion of Ukraine. So, the second half of FY22 will deliver the results for investors to keep an eye on.

How is the company coping with inflation?

Wesfarmers said in February 2022 that it was actively managing increasing inflationary pressure and would leverage its scale to mitigate the impact of rising costs. It also said the group’s retail businesses would “increase their focus on price leadership”.

However, the company did note that it was incurring additional costs and experiencing stock availability issues due to the global supply chain disruptions, elevated team member absenteeism and delays with third-party logistics providers.

In the first half of FY22, Wesfarmers reported that its underlying net profit after tax (NPAT) fell by 14.2% to $1.2 billion. I think it will be interesting to see how Wesfarmers has responded to inflation in the six months to June 2022.

Challenging times for Wesfarmers

Things are looking a bit tougher for Wesfarmers. Australian households may not have as much money to spend at the retail giant’s brands such as Bunnings, Officeworks, Kmart, Target and Catch.

Falling Australian house prices could also be a headwind for Bunnings’ earnings if people spend less on improving their houses and more on loan repayments instead.

But plenty of tailwinds…

I think that Wesfarmers is one of the best businesses on the ASX. It has proven to be effective at buying the right businesses and building them into strong brands for the long-term future. This includes the Mt Holland lithium project.

While earnings may drop in the shorter-term, the company is doing the right thing by building new growth avenues, in my opinion. The Australian Pharmaceutical Industries acquisition is the beginning of a health and beauty division for Wesfarmers, opening up another earnings stream for the company.

Bunnings is one of the leading retailers in the country, I believe. It earns strong profit for Wesfarmers and it has the ability to grow through expansion with other businesses such as its recent acquisition of  Beaumont Tiles.

I think that the Wesfarmers share price is also attractive because the business continues to pay attractive dividends to shareholders. That’s a useful way to boost total returns.

I believe that Wesfarmers is a long-term opportunity. The diversified nature of the business lowers the risk in times like this and opens up more potential opportunities, in my opinion.

The post The Wesfarmers share price is trading at 2-year lows. Time to plough in? appeared first on The Motley Fool Australia.

More reading

• Belt tightening? 5 ASX 200 consumer shares slipping to new 52-week lows today
• ASX retail shares tumble following RBA rate rise
• Why this top broker is tipping the Wesfarmers share price to rise 24%
• Top brokers name 3 ASX shares to buy next week
• What’s in store for the Wesfarmers share price 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers 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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Listed below are a couple of dividend shares that brokers believe are in the buy zone right now.

Here’s what income investors need to know about these dividend shares:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share that could be in the buy zone is the Charter Hall Social Infrastructure REIT.

This real estate investment trust invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.

Goldman Sachs is a fan of the REIT and has a conviction buy rating and $4.20 price target on its shares. it commented:

We continue to believe the REIT is positioned for a solid growth outlook given the sector’s positive fundamentals and CQE’s strong balance sheet, with headroom and liquidity to pursue accretive investment opportunities.

As for dividends, the broker is forecasting dividends per share of 17.2 cents in FY 2022 and 18.3 cents in FY 2023. Based on its current share price of $3.57, this implies yields of 4.8% and 5.1%, respectively.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend share that could be in the buy zone is Super Retail. It is the company behind the BCF, Macpac, Rebel, and Supercheap Auto businesses.

Super Retail’s shares have taken a tumble this year amid concerns over COVID headwinds and its inventory management. However, analysts at Citi remain positive and have a buy rating and $14.00 price target on its shares. The broker believes the market’s concerns are overplayed.

We continue to view the market’s concerns about Super Retail’s elevated inventory position to be significantly overplayed given these strong sales trends, likely minimal risk of ageing given where the inventory is held and management’s perspective on the risks to its supply chain.

In respect to dividends, Citi is expecting fully franked dividends of 66 cents per share in FY 2022 and 64 cents per share in FY 2023. Based on the current Super Retail share price of $9.03, this will mean yields of 7.3% and 7.1%, respectively.

The post 2 ASX dividend shares that experts rate as buys appeared first on The Motley Fool Australia.

More reading

• ASX retail shares tumble following RBA rate rise
• Analysts name 2 ASX 200 dividend shares to buy now
• Experts say these 2 ASX dividend shares are buys
• Analysts name 2 ASX dividend shares to buy with 5% yields
• Why are ASX 200 retail shares climbing on Friday?

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 Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail 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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If you’re looking for exposure to the healthcare sector, then Goldman Sachs has got your back.

This morning the broker named three ASX healthcare shares that it believes are well-placed for growth in the future.

Cochlear Limited (ASX: COH)

Goldman Sachs has a buy rating and $237.00 price target on this hearing solutions company. Its analysts believe Cochlear is well-placed to at least meet its guidance in FY 2022. It explained:

Whilst the recovery [from the pandemic] will still be mixed, we believe the steady declines in hospitalisation rates across key markets, supportive backlog volumes and improved margin trajectory support a much improved picture from here. [..] As such, we believe current targets for FY22 offer the best chance in several years for COH to deliver at/above the top-end of its guided range (GSe: A$297m).

Integral Diagnostics Ltd (ASX: IDX)

The broker is also a fan of this diagnostic imaging services provider and has a buy rating and $4.20 price target. Goldman highlights that the recovery in imaging volumes is underway. It is also expecting cost pressures to ease in FY 2023, allowing Integral Diagnostics to deliver strong earnings growth. It said:

Looking forward, we expect the cost pressures to taper in FY23E (+7%), albeit with upside if management achieves their target of low-single-digit growth which, on our numbers, would result in favorable EBITDA growth of +23% in FY23E.

ResMed Inc (ASX: RMD)

Goldman currently has a buy rating and $34.40 price target on this sleep treatment company’s shares. The broker highlights that ResMed has a huge backlog of new patients waiting to be diagnosed that should be supportive of growth. It commented:

There is a 12-18 month backlog of new patients waiting to be diagnosed. While there is a risk these prospective patients may switch to alternative therapies (e.g. dental sleep, neurostimulation), the degree of movement towards these substitutes has been relatively minor against the size of the CPAP market. Instead, we believe the backlog of new patients may add upside risk to our estimates if there is a material realisation of incremental devices/masks sales to new patients in FY23/24 (supply chain pressures permitting).

The post Goldman Sachs names 3 ASX healthcare shares to buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Experts name 2 excellent blue chip ASX 200 shares to buy
• Analysts name 2 high quality ASX blue chip shares to buy right now
• Why the ResMed share price could jump 25% from current levels
• 3 ASX shares to buy in troubled times: expert panel

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

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The WiseTech Global Ltd (ASX: WTC) share price had a rather pleasant day this Wednesday. The software-as-a-service (SaaS) logistics company enjoyed a healthy 2.79% bump today, closing trade at $40.85.

Even so, this positivity doesn’t quite cover WiseTech’s recent woes. The ASX 200 tech share is still down by 2.97% over the past five trading days. As well as down a nasty 30% or so over 2022 thus far.

These share price woes are despite the fact that WiseTech’s books are in far better shape than many other ASX tech shares. As my Fool colleague Brooke covered last month, WiseTech had a robust $380 million in cash and no debt when the company last reported its earnings (for the half-year ending 31 December).

Not only that, but WiseTech also reported an 18% jump in revenues for the half to $281 million. It also reported a 77% rise in underlying net profit after tax (NPAT) to $77.3 million. The company jacked up its interim dividend as well, to 4.75 cents per share, fully franked. That represented a 75.9% increase over the previous year’s interim dividend. And a 23.4% increase over the company’s previous final dividend.

So if everything is going WiseTech’s way, why has the company’s share price been falling so dramatically?

Why has the WiseTech share price been hammered in 2022?

Well, we can’t be completely sure. But it is worth noting that ASX tech shares of most shapes and sizes have been suffering severely over the year so far. Amid rising inflation and interest rates, ASX shares have been extremely volatile over 2022.

And it’s ASX tech shares that have been among the hardest hit. To illustrate, the S&P/ASX All Technology Index (ASX: XTX) is now down almost 32.5% over 2022. So it’s not as though WiseTech’s woes are isolated.

Another factor to consider is WiseTech’s valuation. As it currently stands, WiseTech shares are trading on a price-to-earnings (P/E) ratio of over 90. This is extremely high by conventional standards, and still shows that investors are pricing in a lot of growth into the WiseTech share price.

It also means that WiseTech’s P/E ratio was even higher at the start of the year at well over 100. So perhaps investors have decided to trim what they are willing to pay for WiseTech shares in light of increased global uncertainty.

But this could well present a buying opportunity too. As we covered last month, analysts at Macquarie Group, as well as fund manager Marcus Today, are both bullish on WiseTech shares right now.

According to reporting in the Australian Financial Review (AFR) last month, here’s what Macquarie had to say on WiseTech’s valuation:

WiseTech is still looking expensive on an enterprise value-to-sales multiple versus its own history, the company is now trading in-line with its historical one-year forward enterprise value-to-earnings before interest, tax, depreciation, and amortisation multiple and is thus looking fairly valued.

At the current WiseTech Global share price, this ASX 200 tech share has a market capitalisation of $13.34 billion, with a dividend yield of 0.21%.

The post The Wisetech share price is down 33% this year, despite the fact the company’s rolling in cash. What gives? appeared first on The Motley Fool Australia.

More reading

• How are ASX 200 tech shares performing following the RBA rate hike?
• Why is Audinate outperforming other ASX tech shares today?
• Why did ASX 200 tech shares fall today?
• Why are ASX 200 tech shares having such a cracking Friday?
• Why ALS, Appen, Objective Corp, and WiseTech shares are pushing higher

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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Allkem Ltd (ASX: AKE)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this lithium miner’s shares to $16.38. This follows the release of an update out of Allkem which revealed stronger pricing for its lithium carbonate but softer production for its spodumene operations. Overall, while this was a mixed update, the broker remains positive on Allkem, particularly given management’s production growth plans. The Allkem share price is trading at $11.63 today.

CSL Limited (ASX: CSL)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $310.00 price target on this biotherapeutics company’s shares. Morgan Stanley notes that updates from some of CSL’s peers have painted a favourable picture for industry trading conditions. In addition, the broker is pleased with the progress the company is making with its collection centre rollout. The CSL share price is fetching $270.90 on Wednesday.

Playside Studios Ltd (ASX: PLY)

Analysts at Ord Minnett have retained their speculative buy rating and 95 cents price target on this games developer’s shares. This follows news that the company has signed a new work for hire deal with tech giant Meta Platforms (Facebook) with a focus on virtual reality and the metaverse. The broker feels this further demonstrates the quality of the company’s studio. The Playside share price is trading at 70 cents on Wednesday.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why Macquarie still sees ‘material upside’ for ASX lithium shares
• Analysts have just named these 2 ASX lithium stocks as buys
• 2 ‘quality defensive’ ASX shares to see out rising interest rates: Wilsons
• ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
• PlaySide share price jumps 11% after scoring Meta extension

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

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In perhaps a sign of the times, an ASX shares trading platform and a cryptocurrency exchange are merging to form a mega one-stop-shop.

Superhero, the online stockbroking platform that made headlines for charging just $5 brokerage, has revealed it would merge with crypto exchange Swyftx.

The deal, called “historic” by both Australian companies, will result in a new $1.5 billion fintech monster.

Swyftx co-founder Alex Harper said the merger was “a significant step” for both parties as they evolved from disrupters into a “major financial institution”.

“There is a deep level of mutual respect and alignment between our teams and the experience that the Superhero team has in the regulated business will be enormously important in shaping the future of the combined entity, especially with digital currency going through its own journey towards regulation.”

Explosive growth during the pandemic

Both companies enjoyed explosive growth in recent times as Australians flocked to shares and crypto during the long COVID-19 lockdowns.

Swyftx saw its user base grow an incredible 1,200% last year. The platform now has more than 600,000 retail and institutional investors on its books.

Superhero launched in late 2020, with some parts of the industry labelling it Australia’s answer to the popular US stock platform Robinhood Markets Inc (NASDAQ: HOOD).

It also saw its user population expand exponentially, growing 600% over the last 12 months to now boast 200,000 clients.

The company now also offers a superannuation product, which, judging by its name, was its original founding mission.

‘Exciting day’ for both platforms

Both platforms will continue to run as standalone sites as plans are made to offer all of the new group’s services on both.

Harper and current Swyftx chief Ryan Parsons will become co-executive officers of the merged entity. Superhero co-founder John Winters will sit on the board.

The transaction is due to complete early in the new financial year. 

Winters said it was “an incredibly exciting day”.

“We are thrilled to announce this merger and offer our customers the opportunity to invest in traditional and digital assets across a single platform. 

“The Swyftx team has achieved amazing things since launching in 2018 and we can’t wait to join together to offer investors an even better investing experience.”

The post Popular ASX shares and crypto platforms merge in $1.5bn deal appeared first on The Motley Fool Australia.

More reading

• Why is the Woodside share price flying higher today?
• Why has the CBA share price cratered 4% today?
• Why BrainChip, Firefinch, Magellan, and Westpac shares are dropping
• Bendigo Bank share price slides 7% as ASX banking basket unwinds on Wednesday
• Belt tightening? 5 ASX 200 consumer shares slipping to new 52-week lows today

Motley Fool contributor Tony Yoo 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 Woodside Energy Group Ltd (ASX: WDS) share price is leaping ahead on the ASX today.

The energy giant’s shares are currently swapping hands at $34.28, a 4% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 0.31% today.

So what is impacting the Woodside Energy share price today?

Oil and gas prices rise

Investors appear to be reacting to higher oil and natural gas prices. Woodside is a producer of both oil and gas.

US natural gas prices jumped 0.82% to US$9.3570 MMBTU, trading economics data shows. Natural gas prices have surged 33.18% in a month. Gas futures are currently at a 13 year high, at the highest level since August 2008. Greater demand and declining production are driving up prices.

Oil prices are also climbing today. Benchmark Brent crude oil is up 0.37% to US$121.02 a barrel at the time of writing, while WTI Crude Oil is leaping 0.47% to US$119.97 a barrel, Bloomberg figures show.

This rises comes amid Goldman Sachs predicting Brent crude oil prices could average US$140 a barrel in the months of July through to September, CNN reported. This would be a 15.7% upside on the current brent crude oil price.

Oil and gas producers Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT) are also rising by 3% and 1.36% respectively today.

Broker Morgan Stanley has recently tipped Woodside to deliver US$20 billion in dividends in the next decade. Analysts reportedly said:

We forecast Woodside will distribute US$20 billion in dividends over the coming decade, providing it with another US$20 billion to re-invest in growth, diversify, and pursue further capital management.

Woodside started trading on the ASX under a new name and ASX ticker on 25 May. This followed shareholder approval for the merger with BHP Group Ltd (ASX: BHP)’s petroleum business on 19 May. Earlier this week, Woodside started trading on the London Stock Exchange (LSE), while it commenced trading on the New York Stock Exchange (NYSE) on 2 June.

Woodside share price snapshot

The Woodside share price has risen 43% in the past year, while it’s up a whopping 56% year to date.

For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) has returned about 30% in the past year.

Woodside has a market capitalisation of about $65 billion based on the current share price.

The post Why is the Woodside share price flying higher today? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 energy shares jumping today?
• Why is the BHP share price having such a stellar day?
• What’s coming up for the Woodside share price in June?
• ‘Woodside will distribute US$20bn in dividends over the coming decade’: Morgan Stanley
• Why GrainCorp, New Hope, Tabcorp, and Woodside shares are pushing higher

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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Overall, it’s been a rather pleasing day for the S&P/ASX 200 Index (ASX: XJO) and ASX shares. At the time of writing, the ASX 200 has gained 0.4% to back over 7,100 points. But the same certainly can’t be said of the Commonwealth Bank of Australia (ASX: CBA) share price.

CBA shares are currently in the red. And decisively so. The ASX 200’s largest bank share is currently down by a painful 4.36% at $97.52 a share.

So what’s behind this unusually large drop for CBA, especially on a day that has the market up?

Why has the CBA share price crated on Wednesday?

Well, it’s got nothing to do with anything out of the bank itself, seeing as CBA has made no new ASX announcements for days now. But we did have some big news yesterday that looks to be impacting most ASX bank shares today.

As you may have heard, yesterday saw the Reserve Bank of Australia (RBA) raise interest rates by a surprising 50 basis points, taking the cash rate from 0.35% to 0.85%. Most commentators weren’t expecting such a large rise, which is the first time the RBA has hiked rates by 50 points in decades.

CBA isn’t the only bank feeling the pain. All ASX 200 banks are down today, including all four of the majors. It could have been worse for CBA too. Westpac Banking Corp (ASX: WBC) shares are down close to 6%. Bendigo and Adelaide Bank Ltd (ASX: BEN) has lost close to 7%.

As my Fool colleague Bernd covered earlier, rising rates do have the potential to lift banks’ margins. However, higher rates also increase funding costs for banks, and put pressure on house prices. The latter isn’t good news for banks, especially ones with large mortgage exposure like CBA.

So this is the probable reason why Commonwealth Bank shares are suffering today.

At the new CBA share price, Commonwealth Bank shares have a market capitalisation of $166.94 billion, with a dividend yield of 3.83%.

The post Why has the CBA share price cratered 4% today? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 bank shares plunging on Wednesday?
• The CBA share price is now trading on a 3.5% fully-franked dividend yield
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• What’s the outlook for the CBA share price in June?
• Iron ore price to fall 27% by end of 2022: CBA

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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