Once upon a time, the Altium Limited (ASX: ALU) share price was well known for its exceptional performance. More recently, the PCB design software provider has lost its reputation for extreme share price rises. Instead, the tech company has begun to attract appeal with its steadily climbing dividends.

As we covered in our ‘dividend beasts’ article on Friday, substantial changes in the share price of a company can lead to fluctuations in the dividend yield. Given the Altium share price has been knocked down 27% in 2022, it might be time to review its yield.

Let’s find out what passive income investors can now expect from Altium.

Six of one, half a dozen of the other

Typically, a falling share price over a period of time will result in a marginally higher dividend yield. This is simply due to the way a dividend yield is calculated — which is, dividends for the trailing 12-months divided by the share price.

For example, in Altium’s case: 30 cents per share US (AU$0.41) ÷ $32.77 = 1.25%

However, a falling share price doesn’t automatically result in an increased dividend yield. Note that there are two variables in the equation, the other being the dividends per share (DPS). If the DPS were to fall in line with the share price, the result would be a relatively flat dividend yield.

For Altium, the share price has fallen significantly in combination with the DPS increasing since the beginning of the year. In turn, the dividend yield has been boosted from 1.1% to its current 1.25%.

Despite not really being known for its dividends, Altium has managed to notch up its payouts each year for the past 10 years. This has been in line with the board’s policy of paying out 50% to 80% of net profit after tax (NPAT).

Is the Altium share price worth the squeeze?

The once illustrious ‘WAAAX‘ constituent has seen better days, but the team at Bell Porter is still keen on Altium.

As covered by my colleague Sebastian, the broker foresees strong profit growth ahead for Altium. At the same time, the broker doesn’t believe the headwinds that have hounded the investment case for the company are dealbreakers.

The team currently holds a target of $41.25 for the Altium share price. This would suggest a potential upside of 26%.

The post The Altium share price has tumbled 27% in 2022, so what does this make the current dividend yield? appeared first on The Motley Fool Australia.

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• Brokers name 2 ASX shares to buy after the tech selloff
• Here are 2 fantastic ASX growth shares analysts rate as buys
• Altium share price: Is it an ASX buy or a falling knife?
• 5 things to watch on the ASX 200 on Tuesday
• Why are ASX 200 tech shares having such a dire day?

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. owns and has recommended Altium. 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 Bruce Jackson.

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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Challenger Ltd (ASX: CGF)

According to a note out of Citi, its analysts have downgraded this annuities company’s shares to a sell rating with a reduced price target of $6.90. Citi believes the market’s reaction to Challenger’s quarterly update was surprising. While it highlights that Challenger has upgraded its guidance range, it felt consensus estimates were already largely there. It also has concerns over the company’s maturities, which it notes were very high for a March quarter. The Challenger share price ended the week at $7.11.

Endeavour Group Ltd (ASX: EDV)

A note out of Credit Suisse reveals that its analysts have downgraded this alcohol retailer’s shares to an underperform rating and cut the price target on them to $6.60. The broker was disappointed with Endeavour’s trading update and highlights that the company is continuing to lose market share in the retail channel. In light of this, it feels its shares are expensive at the current level and sees better options for investors elsewhere. The Endeavour share price was fetching $7.74 at Friday’s close.

Zip Co Ltd (ASX: Z1P)

Analysts at Macquarie have retained their underperform rating and slashed their price target on this buy now pay later provider’s shares to $1.05. This follows the release of a quarterly update which revealed falling customer usage and slowing growth. The broker also warns that there are regulatory and funding cost risks that make Zip’s pathway to profitability very cloudy. The Zip share price was trading at $1.11 on Friday.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Challenger share price slides as top broker calls Thursday’s gains ‘surprising’
• Brokers name 3 ASX shares to buy today
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• Why BHP, Megaport, OZ Minerals, and Zip shares are dropping

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. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia has recommended Challenger Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

BHP Group Ltd (ASX: BHP)

According to a note out of Citi, its analysts have upgraded this mining giant’s shares to a buy rating with an improved price target of $56.00. While Citi acknowledges that BHP’s operational performance disappointed during the recent quarter, it feels investors should look beyond this due to the mountain of cash flow the Big Australian is generating. This is expected to underpin big dividends. The BHP share price ended the week at $48.49.

Santos Ltd (ASX: STO)

A note out of Morgans reveals that its analysts have retained their add rating and put a $10.10 price target on this energy producer’s shares. Its analysts believe that the company’s decision to launch a share buyback, despite its shares trading in or around multi-year highs, is a sign that management believes its shares are cheap. Outside this, the broker expects the resilience of its growth profile and diversified earnings base to help Santos outperform. The Santos share price was fetching $8.15 at Friday’s close.

Xero Limited (ASX: XRO)

Analysts at Goldman Sachs have reiterated their buy rating but trimmed their price target on this cloud accounting platform provider’s shares to $133.00. Following a recent period of underperformance, the broker believes this has created an attractive entry point into a compelling global growth story. Xero continues to be Goldman’s preferred large cap technology name in the ANZ region. The Xero share price ended the week at $97.84.

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

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• Brokers name 3 ASX shares to buy today
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• Dividend beasts: 5 ASX 200 shares with the highest dividend yield right now
• Top brokers name 3 ASX shares to buy 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. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Do you remember when General Electric was the largest company in the world? It really wasn’t terribly long ago. The industrial giant wrested the market-cap crown away from software titan Microsoft when the dot-com bubble popped.

GE held on to the title with an iron fist for nearly two years:

GE MARKET CAP DATA BY YCHARTS.

Exxon takes over

By the summer of 2002, Microsoft had recuperated while oil producer ExxonMobil rose through the ranks. The top spot shifted between these three companies over the next four years, and then Exxon controlled the crown between 2006 and 2011:

GE MARKET CAP DATA BY YCHARTS.

At this point, Apple had turned its iPhone and iPad product lines into a world-class cash machine. Apart from a brief skirmish with Exxon in 2013, Cupertino monopolized the market cap throne for seven years:

GE MARKET CAP DATA BY YCHARTS.

What’s new?

And now we’re in the modern era. Apple is still the monarch of the market cap, but the title always seems to be within reach of Microsoft and e-commerce veteran Amazon. Online services expert and Google parent Alphabet has also joined the fray every now and then, but never quite managed to reach the top spot:

GE MARKET CAP DATA BY YCHARTS.

What have we learned from these charts?

In two decades and change, we’ve seen the business world shift away from oil producers and industrial-engineering companies while software, online services, and consumer electronics soared higher and higher. Amazon and Apple were mere minnows at the start of this adventure, with respective market caps of $27 billion and $17 billion at the turn of the millennium.

Over the same period, the early leaders have fallen out of sight. These days, General Electric and ExxonMobil are so far behind that they don’t even belong in this conversation anymore. (The bigger they are, the harder they fall.)

Come back in another couple of decades, and the list of the market’s largest market caps will probably look very different once more. Not even Apple and Microsoft are immune to market shifts and new challengers in the long run. The biggest winners in this millennium weren’t the largest blue-chip companies at the start of the race, but the smaller and hungrier upstarts that were still piecing together their long-term business plans:

AAPL TOTAL RETURN PRICE DATA BY YCHARTS.

The post The world’s most valuable companies from 2000 to 2022 appeared first on The Motley Fool Australia.

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• Amazon earnings: What to watch on April 28
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• Is Amazon stock a buy this month?

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. owns and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft. 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 recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

Tesla (NASDAQ: TSLA) has captured the spotlight once again with another showstopper of a quarter. Fans may flock to the company’s top and bottom-line growth, the continued success of the Model Y crossover SUV, or its timely rollout of new factories in Germany and Texas. But critics may cringe at Tesla’s lofty valuation and CEO Elon Musk’s erratic behavior on social media and on other public platforms.

Tesla has been, and continues to be, a battleground stock with a riveting bull and bear case. Here’s why the electric car stock may or may not be worth considering now. 

A sign of things to come

Howard Smith (Tesla): Tesla shares soared after it just reported results for its 2022 first quarter. While the stock move brings the electric vehicle (EV) leader’s already lofty valuation even higher, there are reasons to think it is justified. That valuation is what has kept many investors from buying Tesla stock. At its recent market cap of about $1.1 trillion, the stock has a price-to-earnings (P/E) ratio of 200 based on 2021 earnings. But the most recent quarterly results show why that could still make sense. 

Tesla earned $5.5 billion in all of 2021, and it already has booked net income of $3.3 billion in the first quarter of 2022. The company grew revenue 81% in the first quarter compared to the prior-year period. But it’s really the bottom line profitability that should catch investors’ attention. 

Tesla reported an operating margin of 19.2%, which shows just how much it stands out compared to traditional automakers. For perspective, while it hasn’t announced first-quarter results yet, General Motors (NYSE: GM) reported an adjusted operating margin of just 11.3% for 2021. 

That level of profitability comes in an environment of inflation driving rising raw material costs. Additionally, Tesla has had to overcome the suspension of production at its Shanghai plant due to restrictions implemented to fight the spread of a COVID-19 wave. 

Even with that headwind, CEO Elon Musk said the company could still achieve 60% growth in its year-over-year vehicle deliveries. With its new plants near Berlin, Germany and Austin, Texas just beginning production, there looks to be plenty of growth still ahead for Tesla.

The company has shown it can operate efficiently even as other manufacturers struggle with supply chain constraints and rising costs. The results from the first quarter may just be a sign of things to come for Tesla. Investors with a place in their portfolio for higher risk growth stocks could do well to include Tesla there. 

Tesla keeps demonstrating it is worth a premium price

Daniel Foelber (Tesla): As Howard mentioned, one of the primary reservations that investors have when deciding whether to buy Tesla stock or not is its valuation. And if we know anything about history, hesitating to buy an excellent company on valuation alone is usually a bad idea. Great companies have a habit of growing into their valuation. That hasn’t happened yet with Tesla. But there are signs that Tesla could one day be affordable.

One of the common complaints you’ll hear about Tesla is that it can never sell enough cars to be worth $1 trillion, let alone grow to a $2 trillion market cap. But the difference between Tesla and legacy automakers is that it’s simply a much better business. As Howard said, Tesla continues to sport a high operating margin relative to the industry. Tesla just began delivering vehicles produced from its new factories in Germany and Texas. With those two capital-intensive mega projects now in the past, the full effect of Tesla’s profitability is coming into frame.

Tesla’s Q1 2022 operating margin of 19.2% resembles a low overhead tech company more so than an automaker. Tesla’s profitability is due in part to doing a lot of things in-house and controlling its sales and distribution, which helps it keep costs down and rely less on external suppliers. And even as the company cited supply chain disruptions and higher raw material costs as challenges for the quarter, Tesla’s high average selling price and ability to reduce costs largely offset these headwinds. 

Tesla is growing fast and is more profitable than ever, with Q1 2022 revenue up 87% year-over-year (YOY) to $16.86 billion and adjusted diluted non-GAAP earnings per share (EPS) up 246% YOY to $3.22. The run rate for those figures would give Tesla 2022 sales of $67.44 billion and $12.88 in adjusted diluted EPS — giving it a forward price to sales ratio of 15.9 and a forward price to earnings ratio of 79.2 — not cheap by any stretch of the imagination.

Tesla is undeniably the best company in the auto industry and could very well accelerate its growth and continue to look like it deserves to be worth a lot more than critiques say it should be. But in terms of being the best stock, I would simply argue that there are better ways to invest in the growth of EVs than solely buying Tesla. If this market has taught us anything, it’s that valuation does matter. The risk/reward for Tesla just doesn’t seem to be worth it quite yet, especially given some of the amazing growth stocks that are on sale right now.

A compelling success story in a struggling industry

Tesla has always had impressive technology. But over the past few years, it has evolved to become a very well-run and profitable business that continues to earn more revenue, profit, and free cash flow. The biggest advantage that Tesla has over the competition is that nearly 100% of its cash flow gets poured into its core business, while other legacy automakers still have a lot of costs associated with internal combustion engine divisions. Put another way, Tesla can sustain its momentum and outpace the growth of its competition. For that reason, Tesla may be worth considering now for risk-tolerant investors that can stomach volatility. But for everyone else, it’s OK to wait too. 

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

The post Tesla stock: Bull vs. Bear appeared first on The Motley Fool Australia.

More reading

• Is it too late to buy Tesla shares?
• Is Elon Musk really going to buy Twitter?
• 3 reasons Tesla’s monster earnings can help it keep crushing the Nasdaq in 2022
• Why investors are selling Tesla stock ahead of today’s earnings
• Can the Tesla share price really quadruple from here?

Daniel Foelber has the following options: long May 2022 $705 puts on Tesla and short May 2022 $700 puts on Tesla. Howard Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. 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 Bruce Jackson.

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

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The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Two that analysts at Goldman Sachs believe have huge potential are listed below. Here’s why the broker is tipping them to more than double in value over the next 12 months:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX small cap share that Goldman is bullish on is Hipages.

It is a leading Australia-based online platform and software as a service (SaaS) provider that connects consumers with trusted tradies.

Goldman Sachs believes Hipages has a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia. It has previously likened the company to Carsales.Com Ltd (ASX: CAR) and REA Group Limited (ASX: REA) in their early days.

It said: “In our view, the opportunity for HPG is similar to REA/CAR, which are now the leading online platforms in their respective industries.”

Goldman has a buy rating and $3.60 price target on its shares. Based on the current Hipages share price of $1.34, this implies potential upside of 168% for investors.

Nitro Software Ltd (ASX: NTO)

Another small cap tipped to shine is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world with its increasingly popular Nitro Productivity Suite.

This suite provides businesses with integrated PDF productivity and electronic signature tools. A testament to the quality of its software is that a number of the largest companies in the world use it. This includes over half of the Fortune 500.

Goldman Sachs believes Nitro has enormous growth potential as a challenger in a US$34 billion total addressable market (TAM) across PDF, e-signing and workflows.

It said: “Nitro operates in large, underpenetrated markets supported by structural growth tailwinds including remote work, enterprise digitisation and e-signing adoption. We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

Goldman has a buy rating and $2.60 price target on its shares. Based on the latest Nitro share price of $1.23, this suggests potential upside of 111%.

The post Goldman Sachs says these small cap ASX shares can double in value appeared first on The Motley Fool Australia.

More reading

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• Here are 3 growth shares analysts are tipping to rocket higher

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. owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you interested in adding some ASX growth shares to your portfolio next week? If you are, you may want to look at the two listed below that have recently been named as buys.

Here’s what you need to know about these ASX growth shares:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is a leading appliance manufacturer which have been growing at a solid rate for years. The good news is that thanks to a combination of favourable industry tailwinds, its investment in research and development, and ongoing global expansion, Breville has been tipped to continue its strong growth over the coming years by the team at Macquarie. The broker currently has an outperform rating and $34.80 price target on its shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share that could be a buy is IDP Education. It is a provider of international student placement services and English language testing services. While IDP was hit hard by the pandemic, it has returned to form now restrictions are easing. In fact, during the first half of FY 2022, the company reported a massive 47% increase in revenue to a record of $397 million and a 70% lift in net profit after tax to $52.9 million. And with COVID restrictions easing further since then, IDP looks well-placed for a strong second half. Macquarie is also a fan of IDP and has an outperform rating and $35.00 price target on its shares.

Webjet Limited (ASX: WEB)

A final growth share for investors to look at is this online travel agent. As with IDP, Webjet was hit incredibly hard by the pandemic. However, with travel markets starting to rebound, the company looks well-placed to become profitable again in the near future. And with its costs reduced materially during the pandemic, Webjet will be a much more efficient business in the future when trading conditions normalise. Goldman Sachs is very positive and expects Webjet to come out of the pandemic in a much stronger position. As a result, the broker has a buy rating and $6.90 price target on its shares.

The post 3 excellent growth shares experts are tipping as buys appeared first on The Motley Fool Australia.

More reading

• Here are 2 fantastic ASX growth shares analysts rate as buys
• The Webjet share price has leapt 12% in 2 weeks. Could this be the start of something? 
• Why are ASX 200 travel shares taking off on Wednesday?
• Why are Webjet shares still among the most shorted on the ASX
• Here are the 5 best performing ASX travel shares of 2022 so far

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. owns and has recommended Idp Education Pty Ltd. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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With the S&P ASX All Technology index down materially since the start of the year, a number of high quality shares are trading at sizeable discounts to recent levels.

According to analysts, this may have created a buying opportunity for long term focused investors.

Two ASX tech shares that could be in the buy zone now are listed below. Here’s what you need to know:

Altium Limited (ASX: ALU)

This leading electronic design software provider could be a top option in the tech sector. Especially with its shares down 26% in 2022.

Altium is the company behind the Altium Designer and Altium 365 platforms, the NEXUS design collaboration platform, and the Octopart electronic parts search engine. These platforms are used by some of the biggest businesses and organisations in the world. This includes giants such as Boeing, Microsoft, NASA, and Tesla.

Over the coming years, Altium is aiming to go from leading the electronic design market to dominating it.  The company is targeting 100,000 subscribers and revenue of US$500 million by 2026. If it does deliver on this target, it should be supportive of strong earnings growth over the 2020s.

Bell Potter is positive on Altium. It recently put a buy rating and $41.25 price target on the company’s shares. Based on the current Altium share price, this implies potential upside of 25%.

Megaport Ltd (ASX: MP1)

Another ASX tech share that could be in the buy zone is this leading cloud connectivity and networking solutions provider. Its shares were hammered last week and are now down by over 50% since the start of the year.

The team at Citi believes this is a buying opportunity for investors. While the broker was disappointed with Megaport’s quarterly update, it remains positive on the long term. This is due to the structural shift to the cloud and particularly “demand for multi-cloud connectivity.”

In light of this, the broker has retained its buy rating with a price target of $16.60. Based on the Megaport share price of $9.04, this suggests there is potential upside of almost 84% for investors over the next 12 months.

The post Brokers name 2 ASX shares to buy after the tech selloff appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
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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. owns and has recommended Altium and MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Netflix‘s (NASDAQ: NFLX) first-quarter earnings report led to a massive one-day share decline. Weak subscriber numbers had investors fleeing the stock, and a poor outlook for adding customers led to a single-day drop of 35%.

But amid the negativity, other numbers indicate that the drop might offer an opportunity to long-term investors. The question is whether those advantages outweigh a glaring weakness that showed up in the subscriber numbers of the entertainment stock. Here are three reasons to buy Netflix and one reason to sell.

1. Valuation

The drop in the stock price following earnings slammed tech investors across the board. Amid a slight decline in its subscriber base compared with the fourth quarter, Netflix stock wiped out more than four years’ worth of gains.

However, its price-to-earnings (P/E) ratio now stands at 20. This is a valuation it has not seen in nearly 10 years. Its multiple is now more comparable to that of Comcast and Warner Bros. Discovery, which sell for 15 and 14 times earnings, respectively.

Moreover, it has become significantly cheaper than Disney (now at 72 times earnings), and it is a radical change from the pre-pandemic days when Netflix typically sold for a P/E ratio of over 100.

2. Financials

And while it does not post the rapid growth of past years, its financial performance remains solid. Revenue of just under $7.9 billion grew 10%. Despite the sequential drop in subscribers, subscriber numbers still rose 7% year over year to just under 222 million.

In contrast, net income dropped by more than 6% in that period to just under $1.6 billion. However, it increased spending on technology development and general and administrative expenses while its interest and other income dropped.

Additionally, Netflix had cash-flow challenges in past years as it had to run up debt to cover content development costs. Nonetheless, first-quarter free cash flow came in at $802 million, 16% higher than 12 months ago. Also, total debt fell by $858 million over the same period, adding strength to its balance sheet.

3. A robust outlook

For all of the concerns about its outlook, its problem came from not meeting investor expectations. Indeed, the forecast of a decline in subscribers of 2 million looks disappointing on the surface.

However, the company still forecasts 10% year-over-year revenue growth. This comes from a cost increase that will take its standard plan from $13.99 per month to $15.49 per month. It also plans a lower-cost, ad-supported option to attract customers who think its current service costs too much, and a move into gaming could increase interest in the platform.

Although analysts forecast a 3% dip in net income for the year, they also believe it will grow by 15% in 2023. Thus, they see its current struggles as temporary.

The reason to sell: A weakened competitive moat

The biggest challenge now for Netflix hinges on whether it has lost its competitive advantage. The company has a history of strong strategic decision-making. Netflix pioneered the streaming industry, and when competitors emerged, it pivoted to proprietary content.

That allowed it to attract subscribers in over 190 countries and helped win awards for its programming. This made streaming the mainstream (pun intended) of television. Now, numerous streaming channels exist, and the major ones offer their own proprietary content.

Indeed, Netflix’s pivots into gaming and ad-supported content could draw subscribers. But without a compelling vision for the future that excites users, its high-growth era could now be over.

Should you consider Netflix?

With a discounted P/E ratio and the prospects of continued revenue growth in the double digits, Netflix might again look like a buy. Despite the competition, viewers continue to tune in to its programming. Also, with rising cash flows, the company could finance a move in a new direction.

But the uncertainty of that direction will likely remain a headwind for the foreseeable future. While Netflix may again beat the market, investors should not expect to see growth numbers comparable to past years.

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

The post 3 reasons to buy Netflix, and 1 reason to sell appeared first on The Motley Fool Australia.

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Will Healy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Comcast and Discovery (C shares) and has recommended the following options: long January 2024 $145 calls on Walt Disney and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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If you’re looking for an easy way to invest your hard-earned money, then exchange traded funds (ETFs) could be worth considering.

But which ones should you consider buying? Two highly rated ETFs to consider are listed below. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF for investors to look at is the BetaShares Asia Technology Tigers ETF. This ETF tracks the performance of an index comprising around 50 of the largest technology shares in Asia.

BetaShares notes that this sector is expected to remain a growth sector for some time to come. This is thanks to the region’s younger and more tech savvy population. Among the ETF’s holdings, or tigers, are Alibaba, Baidu, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent.

And while regulatory concerns have been weighing heavily on these shares this year, this could prove to be a buying opportunity for patient long term investors.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Another ETF to look at is the BetaShares Crypto Innovators ETF. It could be a great way for investors to gain exposure to the cryptocurrency industry without directly owning coins.

BetaShares highlights that the ETF is designed to capture all sides of the crypto ecosystem. This is through owning shares in pure-play crypto companies, companies with balance sheets that hold at least 75% in crypto-assets, and diversified companies with crypto-focused business lines.

Companies you’ll be owning a slice of through the fund include Coinbase, PayPal, Riot Blockchain, Robinhood, Silvergate, and Afterpay’s owner, Block.

The post 2 exciting ETFs for ASX investors this month appeared first on The Motley Fool Australia.

More reading

• 3 high quality ETFs for ASX investors to buy today
• 3 of the best ETFs for ASX investors to buy this month
• 3 exciting ETFs for ASX investors to buy today
• 2 popular ETFs for investors to buy in April
• Here are the 5 worst-performing ASX ETFs over the March quarter

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. owns and has recommended Betashares Crypto Innovators ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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