Key points

• Qantas share price up 5% this week
• CEO Alan Joyce is calling for more tourists to be allowed to travel to Australia
• JP Morgan has included Qantas in a Super 7 list of shares to buy now

---

The Qantas Airways Ltd (ASX: QAN) share price is lifting this week amid hopes that tourists could soon be welcomed back into Australia.

In the week to date, the airline’s shares have soared by 5.07%. However, in early trading today the Qantas share price is currently down 1%. For perspective, the S&P/ASX 200 Index (ASX: XJO) is also down 0.18% today.

Let’s take a look at what might be impacting the Qantas share price.

What’s happening at Qantas?

The Qantas share price is starting February in the green. In recent days, JP Morgan has listed Qantas in a ‘Super 7’ list of shares to buy now. My Foolish colleague Brendon noted the average return from ASX 200 shares on the Super 7 list is 30%, based on JP Morgan’s forecasts.

Looking at other ASX travel shares, the Webjet Limited (ASX: WEB) share price is up 6% so far this week. The Flight Centre Travel Group Ltd (ASX: FLT) share price has risen by 8%. Meanwhile, Regional Express Holdings Ltd (ASX: REX) has fallen 4%.

Qantas received attention from the highest levels of government on Wednesday, with Prime Minister Scott Morrison addressing the concerns of CEO Alan Joyce directly.

In a press conference at the Royal Australian Airforce Airbus facility in Richmond NSW, Morrison said:

We have had a very successful opening up already over the summer to backpackers and to those on the economic migration programs, and opening up to Singapore.

And we’ve already been open to New Zealand, Japan and South Korea. That has gone very well. And so the next step is opening up to international.

I totally empathise with the comments of Alan Joyce on this issue, and he knows my very strong commitment to getting to that point as quickly and as safely as we possibly can. So I’m looking forward to making progress on that issue.

The PM was referring to the Qantas CEO questioning why tourists are not allowed to come into Australia given there are more cases in Australia than in many overseas countries.

In comments aired by Sky News, Joyce said:

While we’re allowing Australians to come in and out it doesn’t make sense to me to not allow tourists.

It’s the same risk, so hopefully we will get there well before April and we can ease back on the testing requirements that are also there.

On Monday, Qantas launched a new pilot training centre at Brisbane Airport. The facility will train 900 pilots a year.

Qantas share price snapshot

The Qantas share price has gained about 6% in the past year. They have fallen 3.3% in the year to date.

In contrast, the broader ASX 200 index has returned about 3.6% in the past 52 weeks.

Qantas has a market capitalisation of roughly $9 billion based on its current share price.

The post Why is the Qantas (ASX:QAN) share price taking off this week? appeared first on The Motley Fool Australia.

More reading

• Are ASX travel shares finally emerging from the COVID storm?
• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• What is green shorting and which ASX 200 shares are being targeted?
• Why is the Qantas (ASX:QAN) share price gaining altitude today?
• Is Qantas (ASX:QAN) poised to smash its rivals once travel recovers?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/wTz1jNnUi

Key points

• Nick Scali shares climb omid mixed first-half FY22 results
• Revenue up 5.4% to $180.3 million, but NPAT down 6.6% to $35.6 million
• Interim dividend declared of 35 cents per share

---

The Nick Scali Limited (ASX: NCK) share price has moved into the green this morning following the release of the company’s half-year results for 2022.

At the time of writing, the furniture retailer’s shares are up 3.54% to $14.91 apiece. This comes after they slumped to $13.80 at market open.

Let’s take a closer look at how the company performed for the period.

Nick Scali delivers mixed results for H1 FY22

The Nick Scali share price is climbing following the company’s result for the 6 months ending 31 December 2021. Here are some of the highlights:

• Revenue increased to $180.3 million, up 5.4% on the prior corresponding period (pcp) (H1 FY21 $171.1 million);
• Earnings before interest and tax (EBIT) fell to $55.1 million, down 3.7% on the pcp (H1 FY21 $57.2 million);
• Net profit after tax (NPAT) declined to $35.6 million, down 6.6% on the pcp (H1 FY21 $38.1 million);
• Earnings per share (EPS) backtracked to 44 cents, down 6.4% on the pcp (H1 FY21 47 cents per share); and
• Interim dividend dropped to 35 cents per share, down 12.5% on the pcp (H1 FY21 40 cents per share).

What happened in the first half for Nick Scali?

After a challenging 6 months, the group’s sales momentum continued despite revenue being down. This was attributed to widespread store closures and production delays, particularly in Vietnam.

Despite the hard lockdowns, Australia and New Zealand written sales orders exceeded sales revenue as supply chains peaked during H1 FY22.

The gross profit margin for Nick Scali was up 30 basis points to 64.3%. The gross profit margin for Plush was 54.8%, resulting in a combined margin for the group of 63.2%.

The online sales channel soared to $19 million in written sales orders. This comprised $13.7 million for Nick Scali and $2.4 million for Plush.

In addition, the company’s Plush acquisition added 46 showrooms to its network during the period. Nick Scali also opened up a new store in regional New Zealand, which was a first for the company.

What did management say?

Commenting on the result fuelling the Nick Scali share price, managing director Anthony Scali said:

Despite over half of our stores being closed between July and October, and the impact of international lockdowns on our key suppliers, we were still able to deliver a strong earnings result, which was 75% up on H1 FY20.

We are very excited about the recent Plush acquisition which is on track to provide significant sales and profit growth for the Company as we expand the store network and benefit from the synergies of a fully integrated business.

What’s next for Nick Scali?

Looking ahead, Nick Scali expects revenue growth to continue into the second half of FY22.

Last month, written sales orders increased by 31% on the pcp, and were up 92% compared to the first half of FY20. This was driven by a surge of store traffic as consumers adjusted to managing the pandemic.

Nick Scali noted the outstanding order bank at 31 January was 70% higher than in the previous year.

In addition, the company’s suppliers have since resumed normal lead times which should lead to revenue growth in H2 FY22.

However, shipping constraints due to COVID-19 remain a major obstacle in delivering the outstanding order bank. This may impact profitability in the coming months.

Nick Scali share price snapshot

The Nick Scali share price has fallen around 6% this year to date. However, it is up around 35% over the past 12 months.

It has also risen by more than 8% this week.

The post Nick Scali (ASX:NCK) share price rises on first-half revenue increase appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares that could be buys with yields above 5%

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/fcU7MrD9X

---

Shares in private health insurer Medibank Private Ltd (ASX: MPL) are edging lower today and now trade at $3.15 apiece.

Medibank shares have taken a beating since we started the new year. After peaking at highs of $3.60 per share on 7 January, investors have melted more than 12% off the value of Medibank’s share price at the open of trade on Thursday.

So, when will the selling pressure begin to liftoff, and what does all of this mean for Medibank shareholders in the long run?

The team at JP Morgan have some interesting thoughts on the topic, seeing as the investment bank covers Medibank in its insurance and diversified financials universe.

In a recent note, analysts at JP Morgan Securities Australia, led by Siddharth Parameswaran, downgraded the broker’s recommendation, urging its clients to sell Medibank shares. Here are the details.

Brokers now underweight on Medibank

The team at JP Morgan turned bearish on the health insurance giant following its detailed assessment of key issues going into the first half of FY22.

In the short run, the broker says that Medibank will benefit from a winding back of COVID-19 claims, but profits “may not materially benefit” because of obligations to policyholders.

Not only that, but the firm is far less constructive on the entire insurance sector, given the foreseeable challenges to profitability moving forward.

“In the medium term, material increases in capital requirements, only a partial return to prior profits in IIHI and travel, even lower rate increases that could be below underlying inflation trends, uncertainties arising from the federal election, and relative valuation differences with other stocks in our sector make us cautious on the sector outlook” the broker noted.

Medibank should see modest earnings growth in FY22 according to the firm – but with even more benefits next year as premium activity normalises.

Long-term, the broker notes there is a risk that “claims utilization returns to long-run trends, making holding margins difficult following ever-lower premium increases”.

It forecasts premium revenue of $6,983 million for FY22 and $7,256.2 million in FY23, which carries down to statutory NPAT of $408 million and $422.5 million respectively in the broker’s model.

This would lead to operating margins of 7.8% in FY22 and an adjusted return on equity (ROE) of 21.2% this year should JP Morgan’s thesis come to light.

As a result of its most recent assessment, the broker downgraded its valuation on the company to $3 per share, from $3.30 per share previously.

It notes the change in price target reflects “earnings changes post our MTM and valuation roll forward”, including franking credits valued at 70% of face value.

Medibank share price snapshot

In the last 12 months, the Medibank share price has held gains and is now up almost 5% in that time.

Since 2022 however, things have turned sour and shares are now down 8% after faltering in early January. As such, Medibank leads the benchmark indices in losses so far this year.

The post When might Medibank (ASX:MPL) shareholders ‘feel better’? appeared first on The Motley Fool Australia.

More reading

• How do Medibank (ASX:MPL) dividends compare to NIB?
• Why Domino’s, Fortescue, Medibank, and Metcash shares are falling
• Medibank (ASX:MPL) share price shrugs off further questions over profit paybacks
• Own Medibank (ASX:MPL) shares? Here are some key dates to watch in 2022
• How did the Medibank (ASX:MPL) share price perform in 2021?

Motley Fool contributor Zach Bristow 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/ftnE2r3O6

The Appen Ltd (ASX: APX) share price is out of form on Thursday.

In morning trade, the artificial intelligence data services company’s shares are down 7.5% to $9.33.

Why is the Appen share price sinking?

The Appen share price has come under significant selling pressure this morning despite there being no news out of the company.

However, the likely cause for this share price weakness is the release of the quarterly results of one of its biggest customers – Meta (Facebook).

In after hours trade, the social media giant’s shares have crashed 23%, wiping over US$200 billion off its market capitalisation.

Wall Street has been selling off Meta’s shares after its quarterly revenue and guidance fell well short of expectations. Meta’s CEO, Mark Zuckerberg, blamed this partly on inflation and supply chain issues that are impacting advertisers’ budgets.

This is where Appen comes into the equation. Meta has traditionally been one of Appen’s largest customers along with Google, Microsoft, and Amazon. Facebook uses Appen’s services to support its advertising operations. The company’s team essentially help teach machines to predict which advertisements will resonate with which users.

So this softer advertising demand could have an impact on Appen’s revenues in FY 2022.

In fact, you only need to look at its half year results to see how it can impact its performance. For the six months ended 31 June, Appen posted a 2% reduction in revenue and a 14.3% decline in EBITDA.

At the time, Appen’s Chief Executive Officer, Mark Brayan, said: “As expected, our first half results were impacted by our global technology customers’ focus on new AI products and applications, as they broaden their revenue base outside of digital advertising and respond to data privacy changes. This resulted in lower ad-related services revenue.”

This will make Appen’s results for FY 2021 and guidance for FY 2022 later this month worth watching very closely.

The post Why is the Appen (ASX:APX) share price down 7% today? appeared first on The Motley Fool Australia.

More reading

• Why did these tech shares lead the ASX 200 today?
• These are the 10 most shorted ASX shares
• Down 77%! Is the Appen (ASX:APX) share price a buy today?
• 5 things to watch on the ASX 200 on Thursday
• What happened to ASX tech shares today?

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. 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 Appen Ltd and Meta Platforms, Inc. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/ygdzbS1B9

As we pass the 2-year anniversary of COVID-19 arriving in Australia, the share market is on tenterhooks as much as when the pandemic started.

Perhaps it’s time for a drink? 

Each month Morgans reveals its “best ideas” — a list of ASX shares to buy that the team thinks has the greatest chance of high returns over the next 12 months.

Among the February honour roll are 2 ASX shares that keep the beverages flowing for Australians.

Cheers!

Making up for lost ground

Treasury Wine Estates Ltd (ASX: TWE) took a brutal hit in 2020 when its lucrative Chinese market disappeared overnight after a diplomatic feud between Canberra and Beijing.

Morgans analyst Andrew Tang estimates it will take 2 to 3 years to recover the Chinese revenue in other markets.

“However, once it comps China earnings, we expect Treasury Wine Estates to deliver strong earnings growth from the 2H22 onwards.”

In addition to organic growth, acquisitions could also prove fruitful.

“We view Treasury’s recent acquisition of the Napa Valley luxury wine business, Frank Family Vineyards, as strategically important,” said Tang.

“This high margin business should see Treasury achieve its US margin target 2 years earlier than planned.”

The great news for those considering buying Treasury shares is that the stock price has taken a 13.6% haircut so far this year.

“We see recent share price weakness as a great buying opportunity in this high quality company. The stock is currently trading at a material discount to its long term PE range.”

Treasury Wine Estates shares closed Wednesday at $10.80.

Will Australians return to pubs as we ‘live with the virus’?

Endeavour Group Ltd (ASX: EDV) listed last June as a spin-off from former parent Woolworths Group Ltd (ASX: WOW).

The group operates recognisable alcohol retail brands like Dan Murphy’s and BWS, as well as licenced venues.

The retail arm has gone gangbusters over the past couple of years as Australians stayed home and drank.

Conversely, Endeavour’s pubs and hotels have suffered from lockdowns and restrictions keeping patronage low.

As Australia moves to “living with the virus” mode, the Morgans team reckons it can only improve the company’s prospects.

“The reopening of venues in NSW and VIC should be positive for Endeavour overall, despite likely weakness in retail as at-home consumption normalises, given hotels is a higher margin business.”

Like Treasury, Endeavour shares are going for a tidy discount at the moment. The stock price has lost almost 6% this year, and more than 10% since November.

Endeavour shares closed Wednesday at $6.36.

The post This calls for a toast! 2 alcohol ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX 200 blue chip shares with 30% upside
• Treasury Wine (ASX:TWE) share price lifts amid latest tariff battle
• The Treasury Wine (ASX:TWE) share price has plunged 25% from its 2021 highs. What’s next?
• Are ASX consumer staples shares really ‘safe’ to hold in a market selloff?
• Fans of Treasury Wine (ASX:TWE) shares might be surprised to learn of its NFTs

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 recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/hPaAX9s3q

Key points

• The Meta Platforms (NASDAQ: FB) share price has fallen off a cliff after missing earnings expecations
• Rising inflation costs were cited as a headwind for the company
• Investors of ASX media shares could be on heightened alert this earnings season

---

Investors will be keeping a close eye on ASX-listed media shares today following the release of Meta Plantforms Inc (NASDAQ: FB) fourth-quarter results this morning.

The US-based tech company responsible for Facebook, Instagram, and Whatsapp missed revenue and earnings projections.

In response, the company’s shares have been dismantled more than 21% in after-hours trading. At the time of writing, shares in Meta are now hovering around US$252, down from US$327 at the open.

Headwinds highlighted by Meta in its results could draw attention to ASX media shares today.

Rising inflation puts a dent in advertising budgets

Meta’s fourth-quarter results could be the canary in the coal mine for investors of media companies reliant on advertising revenue. Despite a 20% year-on-year increase in revenue for the quarter, diluted earnings per share (EPS) fell 5%.

Furthermore, shareholders were also alerted to a potentially slower period of growth in the next quarter. In explaining this, Meta pointed to several headwinds that the company will be facing. These include:

• Increased competition for people’s time
• A shift of engagement towards video experiences i.e Reels, which monetise at a lower rate; and
• Cost inflation is inhibiting advertising spend

Honing in on the inflation headwind, Meta chief financial officer David Wehner said:

[…] we’re hearing from advertisers that macroeconomic challenges like cost inflation and supply chain disruptions are impacting advertiser budgets.

This follows the United States headline inflation rate recently hitting 7%, marking a 39-year high for the country. However, Federal Reserve chair Jerome Powell has suggested a rate hike in the near future to quell the rising cost pressures.

What could it mean for ASX media shares?

While Meta Platforms is a slightly different beast compared to the ASX-listed shares which derive revenue from advertising, rising inflation is a far-reaching concern.

Importantly, Australia’s headline inflation figure is half of the United States — sitting at 3.5%. Although, there is potential that advertisers will be cautious of forking out as much for advertising in the current economic environment.

For this reason, investors of ASX media shares such as Nine Entertainment Co Holdings Ltd (ASX: NEC), News Corp (ASX: NWS), and Ooh!Media Ltd (ASX: OML) — all of which are in the red in early trading today — will likely be paying extra attention this earnings season. Especially any commentary around how inflation costs might be delaying advertising spending.

The post Meta (NASDAQ:FB) share price plunges 22%. How might this impact ASX shares? appeared first on The Motley Fool Australia.

More reading

• 1 green flag and 1 red flag for Meta’s Metaverse dreams
• FAANG Stocks: 2022 Winners and Losers
• Is the metaverse the next big thing? Here’s why ASX investors think so
• 2 ASX dividend shares to buy this month: experts

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. Motley Fool contributor Mitchell Lawler owns Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. and oOh!Media Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2XZyR0d4c

Key points

• The Xero share price has slumped 22% since the end of 2021
• It may have been weighed down by rising inflation, which likely impacted most of the tech sector
• Still, brokers are bullish on the technology company. One has slapped it with a $158 price target

---

The new year has been tough on the Xero Limited (ASX: XRO) share price.

It’s tumbled 22.1% since the final close of 2021. That’s despite no news having been released by the company.

At the time of writing, the Xero share price is $110.16. That’s despite it closing at $141.44 on 31 December.

The S&P/ASX 200 Index (ASX: XJO) has also had a shocking start to 2022. It has fallen 5.1% this year.

That leaves Xero’s stock having underperformed the broader market by around 17% in 2022 so far.

So, what’s been weighing on the accounting software provider lately? And when can the market expect to hear from it next? Let’s take a look.

What’s going on with the Xero share price?

The Xero share price has had a rough trot in 2022, likely made worse by the performance of the broader tech sector.

While the ASX 200 has slipped 5% the S&P/ASX 200 Information Technology Index (ASX: XIJ) has plunged 19.8%. At the same time, the S&P/ASX All Technology Index (ASX: XTX) has slumped 14.8%.

And what might be behind the tech sector’s struggles? Well, it’s likely the much-discussed talking point, inflation.

As The Motley Fool Australia’s Zach Bristow recently reported, tech shares are particularly sensitive to inflation concerns due to how they’re valued.

Earlier this week the Reserve Bank of Australia noted inflation is rising faster than predicted. Though, the body hasn’t made any moves to up interest rates yet.

While this could sound dire for the Xero share price, brokers are still bullish on the company.

Morgan Stanley rates the company as a buy with a $137 price target. Goldman Sachs also has high hopes for the stock – it’s targeting $158.

Unfortunately, there’s still a while before the market expects to hear news that could boost the ASX tech favourite back towards the green.

As Xero is a New Zealand-based company, its financial year runs from 1 April to 31 March. That means it won’t be participating in the February reporting season. Its full year results are set to be dropped on 12 May.

The post The Xero (ASX:XRO) share price is trailing the ASX 200 by a whopping 17% so far in 2022. What’s next? appeared first on The Motley Fool Australia.

More reading

• These 2 impressive ASX shares are buys in February 2022: experts
• 3 fantastic ASX shares to buy this month
• Are these beaten down ASX 200 shares now too cheap to ignore?
• From hero to Xero (ASX:XRO): share price tumbles 8% to hit 52-week low
• 2 ASX growth shares analysts love

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. 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.

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

The Cettire Ltd (ASX: CTT) share price is crashing on Thursday following the release of its half year results.

At the time of writing, the global luxury online retailer’s shares are down 14% to $2.60.

Cettire delivers explosive growth during the first half

• Gross revenue up 192% to $154.1 million
• Active customers up 208% to 209,000
• Product margin up 178% to $42.7 million
• Operating loss of $9.9 million compared to EBITDA of $4.8 million
• Net loss after tax of $8.3 million compared to a profit of $2.3 million
• Operating cashflow up 43% to $12.3 million
• Cash balance of $55.5 million at the end of December

What happened during the first half?

For the six months ended 31 December, Cettire delivered a 192% increase in gross revenue to $154.1 million. This was also more than the revenue of $124.5 million that the company generated during the entirety of FY 2021.

Management advised that this was driven by a 208% jump in active customers to 209,000, offset slightly by an 8% reduction in average order value to $712.

One big disappointment, which could be weighing heavily on the Cettire share price today, was that this stellar revenue growth did not translate into profit growth. In fact, the company posted a net loss after tax of $8.3 million, which compares to a profit of $2.3 million a year earlier.

This was because Cettire’s sales and customer growth was underpinned by a significant increase in advertising and marketing costs. For the six months, Cettire spent $25.9 million on these activities, which is up approximately 550% from just ~$3.9 million in the prior corresponding period. In addition, a 200% increase in merchant fees also weighed on its margins.

Management commentary

Cettire’s Founder, CEO, and Executive Director, Dean Mintz, appeared to be very pleased with the half.

He said: “A lot of the themes from our FY21 results continued in the first half of FY22. Cettire again grew very rapidly, substantially increasing unique visitors and active customers, further increasing the proportion of revenues from repeat customers, and overall continuing its growth trajectory.”

“The financial results delivered over the first half of FY22 demonstrate the substantial progress we’ve made in executing our growth strategy. A number of important enhancements were implemented to our consumer proposition including further localisation, enabled by our proprietary e-commerce storefront solution, and investing in our brand. What excites us is that Cettire has only just started and is in the early stages of its growth journey. The runway ahead is vast and we will continue to invest to capture the significant market opportunity we see for the business,” Mintz added.

Outlook

The good news for shareholders is that Cettire has started the second half how it finished the first.

As of the end of January, the company’s unaudited gross revenue was up 242% on the prior corresponding period. However, no details were provided in respect to its profits for the period, though management hinted that its increased spend on marketing has continued.

Mr Mintz commented: “Our growth trajectory has continued into H2 FY22, where we have experienced a further acceleration in our growth rate in January. Given the global growth opportunity available to Cettire, we will be running the business to maximise revenues by further investing in brand and customer acquisition, to drive long-term shareholder value.”

“Our focus for the remainder of FY22 is to continue to enhance our customer proposition which is centred around our vast selection of luxury products, value and rapid fulfilment, whilst continuing to develop our deep and diverse supply relationships and investing in our world-class proprietary e-commerce technology that can be rapidly scaled to support entry to new product and geographic markets,” he concluded.

The post Why the Cettire (ASX:CTT) share price is crashing despite 192% revenue growth appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares that could be buys in February 2022
• Why Evolution, Cettire, Hipages, and Kogan shares are sinking
• Cettire (ASX:CTT) share price gains on new $100b potential market
• 2 ASX tech shares that are rapidly growing
• Up 480% in a year: Is it too late to invest in Cettire (ASX:CTT) shares?

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

from The Motley Fool Australia https://ift.tt/hEiZLcvF6

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.

Shares of internet tech giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) exploded as much as 10% higher in Nasdaq trading Wednesday, before settling down to about an 8% gain in the afternoon.

Of course, even just an 8% gain in a company that’s worth nearly $2 trillion works out to Alphabet stock being about $160 billion more expensive today than the stock was yesterday. And when you realize this, the question naturally arises: Is it now too late to buy Alphabet stock?

If you ask Wall Street, the answer is a resounding no.

It’s been less than 24 hours since Alphabet reported its fourth-quarter numbers, but according to TheFly.com, already about a dozen separate analysts have rushed out reports raising their price targets on Alphabet, with each and every one of them urging investors to buy Alphabet stock.

The reasons should be obvious. In yesterday’s report, Alphabet boasted that it grew sales 41% year over year in fiscal 2021, and nearly doubled its net profit — up 91% year over year at $112.20 per share. Operating profit margins were a robust 31% for the year, despite coming in a bit below that level in Q4 alone (when profit margins were 29%, and earnings growth “only” 38%).

Even 38% profits growth, however, makes Alphabet stock look incredibly attractive at its current P/E ratio of 26.6 — if, that is to say, Google can keep on growing at 38%.

Problem is, Alphabet management did not make any promises on how fast it expects to grow in the future. Indeed, analysts who follow the stock are predicting Alphabet will grow at closer to 18% annually over the next five years, according to data from S&P Global Market Intelligence.

That’s still pretty brisk growth, however. Maybe even fast enough to roll the dice on Alphabet stock at 26.6 times earnings. 

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

The post Alphabet stock soared today — Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Alphabet and Amazon will make or break the Nasdaq this week
• FAANG Stocks: 2022 Winners and Losers
• Can 2021’s best-performing FAANG stock do it gain in 2022?

Rich Smith has no position in any of the stocks mentioned. 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) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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.

from The Motley Fool Australia https://ift.tt/puoy7T8S3

The Aristocrat Leisure Limited (ASX: ALL) share price is falling on Thursday morning.

At the time of writing, the gaming technology company’s shares are down 3% to $40.01.

Why is the Aristocrat share price falling?

Investors have been selling down the Aristocrat share price on Thursday after it revealed that its $5 billion takeover of online real money gaming company Playtech collapsed.

According to the release, Playtech held a shareholder meeting on Wednesday, and based on proxy votes, Aristocrat was able to conclude that not enough votes were going to be received in favour of the deal. This has since being confirmed with an official vote count.

While the majority of Playtech shareholders were voting in favour of the deal, a group of investors have built a stake since Aristocrat made its offer and were able to block the deal. These investors are understood to be the reason that another suitor withdrew a competing takeover offer last month.

A disappointing and “highly unusual” situation

Aristocrat’s CEO and Managing Director, Trevor Croker, was disappointed with the news.

He said “We are disappointed that our recommended offer to acquire Playtech plc is expected to lapse. Notwithstanding extensive due diligence on Aristocrat’s part, developments since the announcement of our offer have been highly unusual and largely beyond Aristocrat’s control.”

“In particular, the emergence of a certain group of shareholders who built a blocking stake while refusing to engage with either ourselves or Playtech materially impacted the prospects for the success of our offer, which had been recommended by the Board of Playtech plc,” Croker added.

What now?

While the Playtech takeover may have collapsed, Aristocrat remains committed to expanding in the online real money gaming (RMG) market.

Mr Croker commented: “From a strategic perspective, Aristocrat’s commitment to participate in the online RMG segment will not change. In the future, online RMG capability will be one way we deliver new and connected experiences that leverage our world-leading content, and unlock additional value across Aristocrat’s portfolio while deepening customer engagement.”

“Our focus now shifts to accelerating our plans for alternative online RMG scaling options, and continuing to execute our growth strategy, in a way that is consistent with our rigorous investment criteria, high regulatory standards and integrity. We look forward to sharing more details with shareholders as we move forward,” Mr Croker concluded.

The post Aristocrat (ASX:ALL) share price sinks after $5bn Playtech takeover collapses appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 3 buy-rated ASX growth shares
• 2 strong blue chip ASX shares rated as buys
• Why the Aristocrat Leisure (ASX:ALL) share price is one to watch today
• 5 things to watch on the ASX 200 on Monday

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/5udoYscJp