The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is in the green today amid changes to its executive structure.

ANZ shares are currently trading at $26.36, a 1.35% gain. For perspective, S&P/ASX 200 Index (ASX: XJO) is up 0.38% today.

Let’s take a look at the changes ANZ announced today.

What changes is ANZ making?

ANZ will create a new commercial division and combine its digital division and Australian retail business. Maile Carnegie will take on the role of group executive of Australian retail. Carnegie has been leading the bank’s digital division since 2016.

ANZ is splitting its commercial business to “better prepare for future growth opportunities”. By combining the digital and retail divisions, the bank hopes to step up attention on its commercial business in Australia.

Mark Hand, currently the Group Executive of Australia retail and commercial, will be leaving the ANZ in the next few months. However, first, he will work with the ANZ to establish the new commercial division.

Commenting on the revamp, chief executive officer Shayne Elliott said:

We’ve been banking Australian businesses since our inception more than 180 years ago and it is core to who we are and what we do. Ultimately, improving the visibility, focus and accountability of this division will benefit all our customers who are striving to either start, run or grow their business.

We recognised retail banking was changing fast and that we needed to use the world’s best digital technology to deliver a customer proposition centred around the financial wellbeing of our customers while also improving the speed and resilience of our operations.

Management comment

Further commenting on the change to the executive team, Elliott added:

Mark Hand has given tremendous service to ANZ over many decades and can be incredibly proud of the contribution he has made, particularly as a key member of the Executive Committee since 2018. I

Maile Carnegie is the right leader to take this business forward. She has brought a different perspective since joining our Executive Committee in 2016 and made a significant contribution in reshaping our digital offerings, particularly with ANZx.

The ANZ share price has been struggling in the past year amid its share of the mortgage market declining.

However, despite this, JP Morgan analysts are bullish the bank can deliver upside in 2022 and 2023. The broker values the bank higher than its current market price. Analysts value the bank at $30.50 per share, 15% higher than its share price at the time of writing.

ANZ share price snap shot

The ANZ share price slid 1.32% in the past 12 months and is down about 5% year to date.

In the past week alone, ANZ shares have fallen around 7%

For perspective, the benchmark ASX 200 has returned about 4% over the past year.

ANZ has a market capitalisation of about $73.8 billion.

The post Own ANZ shares? Here’s the bank’s latest move to ‘better prepare for future growth’ appeared first on The Motley Fool Australia.

More reading

• Greater Certainty: Why this top broker is bullish on ANZ (ASX:ANZ) shares in 2022
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• 2 big-cap ASX shares that even this small-cap expert recommends

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.

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The Insurance Australia Group Ltd (ASX: IAG) share price is suffering this week.

Its struggles come amid severe weather and flooding in parts of Australia – which the company’s peer flagged could cost it $75 million.

At the time of writing, the IAG share price is $4.56, 4.8% lower than it was at Friday’s close.

For context, the S&P/ASX 200 Index (ASX: XJO) rose 0.7% on Monday and is currently 1.03% higher today.  

Let’s take a closer look at the news that could be dragging the blue-chip stock lower this week.

What’s weighing on the IAG share price this week?

The IAG share price is suffering as many Australians prepare to tackle damage caused by a major flood event in southeast Queensland and northern New South Wales.

The Brisbane River peaked at 3.7 metres yesterday after heavy rain caused chaos across Queensland’s southeast over recent days.

Queensland Fire and Emergency Services have responded to more than 9,000 requests for assistance with flood damage and 600 calls for rescue.

More than 43,000 homes in the state’s south-east remain without power today as 9News reports 15,000 of the region’s homes have been flooded.

Meanwhile, the Bureau of Meteorology has issued a flood warning for Sydney as river levels in Lismore recede after the city’s worst flood event in history.

As of 5am this morning, IAG had received 6,700 claims. That number is expected to rise over the coming days.

In a release, the company stated, “after allowing for quota share arrangements, the combination of all catastrophe covers results in IAG having a maximum event retention of $95 million.”

Suncorp Group Ltd (ASX: SUN) updated the market on the impact the wild weather could have on its bottom line yesterday. It believes it could face a maximum retained cost of around $75 million for the event.

The IAG share price tumbled 7% in November when the insurer increased its expected financial year 2022 net natural perils claim costs to around $1 billion.

What else has been happening?

Additionally, over the weekend The Australian reported the company’s exposure to the failed Greensill Capital has deepened.

A claim has reportedly been filed to the Federal Court of Australia by Credit Suisse Virtuoso alleging the insurer refused to pay out compensation after guaranteeing a debt.

It’s the second time reports have emerged stating IAG is caught up in the Federal Court due to Greensill’s collapse. The Australian Financial Review reported the insurer was hit with a US$35 million claim in November.

The insurer has previously stated, “[IAG] has no net insurance exposure to trade credit policies including those sold through [Bond & Credit Co] to Greensill entities.”

IAG reportedly previously owned 50% of Bond & Credit Co.

The post Why is the IAG (ASX:IAG) share price sliding this week? appeared first on The Motley Fool Australia.

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• We’ll pass thanks: Top broker downgrades IAG (ASX:IAG) share price to hold

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 owns and has recommended Insurance Australia Group 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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The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher today.

This follows the Aussie bank announcing it has entered into a binding sale agreement involving its share in the Chinese commercial bank Bank of Hangzhou Co Ltd.

In early morning trade, shares in CBA are swapping hands at $95.09, up 1.74%.

What are the details of the deal?

Commonwealth Bank shareholders might be eagerly rubbing their hands together this morning following the bank’s latest announcement.

According to its release, CBA has decided to sell a chunk of its 10% shareholding in the Bank of Hangzhou. The bank was founded in 1996 and predominantly serves small and medium enterprises, as well as urban and rural residents, in China.

Moreover, the sale is being made to Hangzhou Urban Construction and Investment Group and Hangzhou Communications Investment Group. Both of these entities are majority-owned by the Hangzhou Municipal Government.

The deal is estimated to be worth $1.8 billion before costs. While ASX-listed CBA will retain a shareholding of roughly 5.57% in the Bank of Hangzhou, this remaining stake will be held until at least 28 February 2025, subject to exceptions.

CBA CEO Matt Comyn explained what the transaction means for the bank going forward:

CBA is pleased to have played a meaningful role in HZB’s development since our original investment in 2005. Our collaboration has seen HZB become a significant player in retail, wealth management and commercial banking across the Yangtze Delta region. The reallocation of part of our shareholding to local partners will support the further expansion of HZB.

At the same time, the partial sale of our shareholding is consistent with our strategy to focus on our core banking business in Australia and New Zealand. Our ongoing shareholding in HZB following completion of the Transaction will enable us to continue to support its development as one of China’s leading city commercial banks, and complement our relationships in the region.

How else does the deal impact ASX-listed CBA?

Following completion of the transaction, CBA expects an improvement in its CET1 ratio, which acts as the bank’s capital buffer. Based on the company’s risk-weighted assets as at 31 December 2021, a 35 basis point improvement is anticipated.

Additionally, the sale will result in a post-tax gain of $340 million. The remaining stake will be treated as a strategic equity investment. Essentially, this means the bank will no longer recognise its share of Bank of Hangzhou’s profits under ‘other banking income’ in future financial statements.

Finally, the transaction is slated to be completed sometime around the middle of this year.

The CBA share price is up 12% over the last 12 months.

The post CBA (ASX:CBA) doubles down on ‘core business’ with $1.8 billion sale appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns Commonwealth Bank of Australia. 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.

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The Crown Resorts Ltd (ASX: CWN) share price has come under pressure on Tuesday morning.

In early trade, the casino and resorts operator’s shares are down 1% to $12.24.

Why is the Crown share price falling?

Investors have been selling down the Crown share price this morning following the release of an announcement relating to an AUSTRAC investigation.

According to the release, Crown Melbourne and Crown Perth have been served with a statement of claim from AUSTRAC, commencing civil penalty proceedings. The regulator is alleging contraventions of obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Though, these proceedings should not be a big surprise to shareholders. Management notes that in both its annual report and half year results, it warned that AUSTRAC’s investigation was very likely to result in civil penalty proceedings being commenced.

The company notes that the commencement of these proceedings follows a long-running investigation that commenced in October 2020. It also highlights that Crown Melbourne and Crown Perth have fully cooperated with AUSTRAC during the course of its investigation.

Furthermore, Crown has developed a comprehensive remediation plan which is intended to position it as a leader in the industry in its approach to governance, compliance, responsible gaming and the management of financial crime risk. This plan is underpinned by an uplifted organisational culture.

And while there are undoubtedly going to be fears that this could impact its takeover by Blackstone, it is worth noting that this was addressed in the implementation deed.

That deed states that “any fine announced, proposed, imposed or requested to be imposed by AUSTRAC on a Crown Group Member” is a Prescribed Regulatory Event and will not be treated as a “material adverse Change.”

AUSTRAC has not revealed any details regarding the penalties it is seeking to impose on Crown.

The post Crown (ASX:CWN) share price falls on AUSTRAC court proceedings news appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• Crown (ASX:CWN) share price higher after accepting $8.9bn takeover offer

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.

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The Origin Energy Ltd (ASX: ORG) share price is heading south during early Tuesday morning.

This comes despite the energy giant not releasing any market-sensitive news today.

At the time of writing, Origin shares are down 0.70% to $5.66 apiece.

Why are Origin shares falling today? 

Following the company’s half year results released on 17 February, investors are eyeing Origin shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor does not buy Origin shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

What does this mean for Origin shareholders?

For those eligible for Origin’s interim dividend, shareholders will receive a payment of 12.5 cents per share on 25 March. Although, the dividend is unfranked, which means investors won’t receive any tax credits from this.

The dividend remains unchanged when compared against the prior corresponding period (H1 FY21).

The above payout figure represents 66% of the company’s free cash flow and annualised dividend yield of 3.51%.

Management expects to restore partial franking for its dividends sometime during FY23.

Are Origin shares a buy now?

Following the company’s H1 FY22 results, a number of brokers weighed in on the Origin share price.

The team at Macquarie raised its 12-month price target by 2.5% to $6.53 for the energy giant’s shares. Its analysts believe that there is still more upside in Origin shares regardless of its mixed performance recently.

Based on the current share price, this implies an upside of about 14.5% for investors.

Furthermore, Morgan Stanley also lifted its assessment on Origin shares by 4.1% to $6.05 a pop.

However, JP Morgan appeared unimpressed with Origin’s results, downgrading to underweight from neutral, and cutting its shares by 9.1% to $5.50.

Morgans had a similar take to JP Morgans’s view, downgrading Origin to hold from add, and slashing the outlook by 5.2% to $6.23.

Origin shares price summary

Since the beginning of 2022, Origin shares have gained 8% on the back of rising energy prices.

The company’s shares reached a 52-week high of $6.37 in February, before treading slightly lower thereafter.

On valuation grounds, Origin commands a market capitalisation of around $10.04 billion, with approximately 1.76 billion shares outstanding.

The post Why is the Origin (ASX:ORG) share price is edging lower today? appeared first on The Motley Fool Australia.

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• Power surge! These 2 ASX 200 utilities shares are storming higher today

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.

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ASX agriculture shares could be on a new bull run amid predictions that Australia’s farm gate output will hit a record-breaking $81 billion this financial year.

That’s $3 billion higher than the previous estimates given in January, reported the Australian Financial Review.

The soft commodity boom is getting less coverage than oil, lithium, and other “green” metals.

But if the forecast from the Australian Bureau of Agricultural and Resource Economics (ABARE) is correct, several ASX shares linked to the rural sector could record strong earnings during the August reporting season.

What’s driving the soft commodity boom?

Near-perfect growing conditions and the surge in soft commodity prices to around 32-year highs are driving the bullish outlook.

While the value of Australian farm production is expected to moderate in FY23, it’s still tipped to come in at $76 billion. That’s the second-highest on record, noted the AFR.

But the war in Ukraine is also bolstering the outlook for Australian commodities, including wheat. Russia and Ukraine account for around 30% of global wheat output.

That leaves a big hole that is unlikely to be completely filled. Most of Australia’s bumper harvest will be exported to the tune of $64 billion.

Sun shining on these ASX agri shares

One possible beneficiary from any supply deficit could be the Graincorp Ltd (ASX: GNC) share price. The company owns Australia’s largest grain storage and handling network on the east coast, although the devasting floods hitting Queensland and New South Wales could present a near-term headwind.

But it isn’t only Graincorp that could benefit from these powerful tailwinds. The cash from the soft commodities boom will help top up government coffers. Farmers and rural communities will also likely partake in the feast.

This means any ASX company that provides products and services to the sector could get an earnings boost.

Other ASX shares making hay

You can count the Nufarm Ltd (ASX: NUF) share price among the possible winners. It provides seeds and herbicides to more than 100 countries, including Australia and Europe.

While the Nufarm share price has been gaining ground recently, it’s only up around 12% over the past year.

Another beneficiary could be the Elders Ltd (ASX: ELD) share price. The group provides a wide range of products and services to the rural sector, including insurance.

The Elders share price is faring even worse than the Nufarm share price. It has essentially gone nowhere over the past year.

The post 3 ASX shares that could get a slice of a record $81bn farm output this year appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares in February
• Here’s why the Graincorp (ASX:GNC) share price jumped 5% today
• Why Core Lithium, Dicker Data, GrainCorp, and InvoCare shares are rising
• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher
• 3 buy-rated ASX 200 shares

Motley Fool contributor Brendon Lau owns Elders Limited and Nufarm Limited. 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 Elders 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

What happened

Popular metaverse cryptocurrency The Sandbox (CRYPTO: SAND) has seen some wild price action today. As of noon ET, this token has surged into positive territory, up 2.1% over the past 24 hours. This move negated an earlier intraday decline that saw The Sandbox decline as much as 5.9% over a 24-hour period ending this morning.

The Sandbox has been one of the higher-beta cryptocurrencies of late, surging in late 2021 as investors sought metaverse-related assets. Accordingly, during the recent market-driven declines tied to macro risks, The Sandbox has underperformed.

This morning, investors appear to be taking a more positive view of risk assets, as bond yields declined following news that the Russia-Ukraine war might be heating up.

And news out of South Korea early this morning suggested that the country will be investing heavily in creating its own metaverse platform. A $187 million national metaverse project will be set up, something South Korea hopes will spur corporate growth domestically.

So what

Indeed, the metaverse is an interesting place for investors to focus on right now. On the one hand, they can certainly make the argument that metaverse stocks and cryptocurrencies both likely appreciated far too rapidly, relative to their long-term growth prospects. Accordingly, this breather can be viewed as one that has been necessary, from a fundamentals standpoint.

On the other hand, the massive corporate (and now government) investment in this space is one that has many investors excited. This news coming out of South Korea might renew interest among many investors who have put blockchain-based metaverse projects on the back burner.

Now what

There’s not much investors can control when it comes to the macro environment. Yes, risk assets are rallying once again today amid lower bond yields. However, the roller coaster ride we’ve been on in recent months appears to be far from over. Accordingly, those looking at any high-beta asset, such as The Sandbox, should be aware of the inherent risks tied to volatility, particularly over the near term.

However, from a longer-term perspective, there is a lot to like about the fact that big money continues to flow into the metaverse. Capital flows matter, and today’s news might have sparked some renewed interest among dormant investors.

The metaverse is a growth area (both within and outside of the crypto world) that I think has legs. Accordingly, The Sandbox is a top metaverse crypto project investors might want to put on their watch list.

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

The post Why the Sandbox cryptocurrency went from red to green today appeared first on The Motley Fool Australia.

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Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 

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

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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.

Stock markets remained volatile on Monday. However, the Nasdaq Composite (NASDAQINDEX: .IXIC) in particular remained resilient even in the face of ongoing geopolitical pressure. After having opened down around 1%, the Nasdaq bounced back to post gains briefly during the morning and was roughly unchanged as of 12:30pm ET.

There were a couple of strong stocks that helped bolster the Nasdaq overall. Tesla (NASDAQ: TSLA) shares regained some of their lost ground from last week, as some bearish stock analysts had a slightly less pessimistic view of the electric vehicle (EV) pioneer’s longer-term prospects.

Meanwhile, Coinbase Global (NASDAQ: COIN) gained ground despite some cautionary comments from Wall Street, as the cryptocurrency universe recovered from some of its recent losses.

Tesla moves out of the slow lane

Shares of Tesla gained more than 6% early Monday afternoon. The Elon Musk-led automaker didn’t exactly earn positive comments from analysts, but a slightly less negative view was enough to give shareholders the inspiration they needed.

Analysts at Bernstein haven’t had a favorable view of Tesla’s prospects, and the fact that they kept their underperform rating on the stock shows they haven’t dramatically changed that view. Nevertheless, Bernstein did boost its price target on the stock by 50%, resetting its expectations from $300 per share to $450.

The move higher in Tesla’s stock also came amid news that Japanese battery producer Panasonic would set up a factory to boost the production of its high-capacity lithium-ion batteries. Tesla intends to use Panasonic’s 4680 model battery when it’s available, and the Japanese producer hopes to have the factory up and making batteries by 2023 or 2024.

Tesla’s stock has seen a big pullback as investors have lost confidence in high-growth stocks more generally. However, demand for its vehicles remains robust and seeing a key battery supply-chain issue move toward resolution should help bolster the bullish case for the EV maker.

Coinbase rises on crypto revival

Meanwhile, shares of Coinbase Global were up nearly 5%. The cryptocurrency exchange provider benefited from some rebounds in digital asset prices following a big swoon last week.

Most major crypto prices were well off their lows on Monday. Bitcoin (CRYPTO: BTC) moved higher by 5% to get close to the $41,000 mark. Ethereum (CRYPTO: ETH) rebounded to $2,800, and the smaller but still prominent crypto asset Terra (CRYPTO: LUNA) saw double-digit percentage gains.

Even with the gains, Coinbase remains nearly 50% below its highs. Yet that’s not entirely inconsistent with the crypto market more broadly, as Bitcoin, Ether, and other digital assets are far lower than their highest levels as well.

In the long run, Coinbase is looking to diversify its business to deemphasize the importance of trading activity and instead participate in broader cryptocurrency trends, such as decentralized blockchain technology, non-fungible tokens, and improved wallet technology. If those efforts are successful, then Coinbase could evolve into a more reliable generator of revenue and income even when crypto markets aren’t booming.

Gains from individual stocks like Coinbase and Tesla won’t be enough by themselves to prop up the Nasdaq. However, it’s comforting to remember that even when broader market measures aren’t showing big gains, you can still find some businesses that are producing powerful results and rewarding their shareholders.

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

The post Tesla, Coinbase help the Nasdaq hold its ground Monday appeared first on The Motley Fool Australia.

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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Coinbase Global, Inc., Ethereum, Terra, and 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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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.

Since peaking in November, the tech-heavy Nasdaq Composite has dropped nearly 15%, putting the index in correction territory. And many individual stocks have fallen much further. For instance, shares of DocuSign (NASDAQ: DOCU) and Zoom Video Communications (NASDAQ: ZM) have dropped 63% and 78%, respectively, from their highs, as Wall Street continues to weigh the impact of high inflation and potential interest rate hikes on corporate profitability.

Many investors have also categorized DocuSign and Zoom as “pandemic stocks,” citing slowing revenue growth as cause for alarm. But, arguably, nothing could be further from the truth. Both businesses play an important role in digital transformation, and their services should only become more valuable in the years ahead. Better yet, both stocks look relatively cheap right now.

Here’s what you should know. 

1. DocuSign

Agreements are an essential part of any business. Organizations form agreements with customers, employees, and partners, but traditional paper-based processes — such as printing, signing, and taking action on a physical document — are slow, costly, and prone to errors. With its Agreement Cloud, DocuSign aims to accelerate and simplify workflow by digitizing and automating the agreement process. Its platform spans over a dozen applications, and it integrates with over 350 other technologies.

At its core is DocuSign eSignature, a product that allows documents to be signed in a digital, secure, and legally valid manner, on virtually any device. But the company’s portfolio also includes tools for automatic contract generation, AI-powered analytics and risk scoring, and payment collection. Collectively, those tools help clients work more quickly and efficiently.

Founded in 2003, DocuSign is a pioneer in the e-signature industry, and the company has parlayed its first-mover status into a robust competitive edge. DocuSign ranks as the No. 1 e-signature tool, holding over 70% market share, and its platform boasts a net promoter score (NPS) of 72. For context, the NPS is designed to measure the customer experience, and 50 is an impressive score, but an NPS of 70 (or higher) is considered world class. 

Not surprisingly, DocuSign’s strong competitive position and excellent rapport with customers have fueled impressive growth. Over the past year, the company’s customer base expanded 34% to 1.1 million; revenue soared 51% to $2 billion; and free cash flow skyrocketed 125% to $418.7 million. More importantly, management puts its addressable market at $50 billion, meaning DocuSign still has plenty of room to grow. And with the stock trading at 11.4 times sales — significantly cheaper than its three-year average of 22 times sales — now could be a good time to buy a few shares.

2. Zoom Video Communications

Zoom became a household name during the pandemic. Its core product, videoconferencing app Zoom Meetings, helped socially distanced friends and families stay in touch, while allowing students and employees to learn and work remotely. However, Zoom is more than a videoconferencing application; it’s a communications company, and its platform also includes a cloud-based phone system (Zoom Phone) and a software-based collaboration suite for hybrid workforces (Zoom Rooms). 

While some employees have already returned to the office, remote work is likely here to stay. In fact, research firm Gartner believes that 48% of employees will work remotely at least part time in a post-COVID world, up from 30% prior to the pandemic. And Gartner says that by 2024 just 25% of enterprise meetings will take place in person, down from 60% in 2019. Both of those trends are good news for Zoom and its shareholders.

Better yet, Zoom is actually becoming more popular. In the videoconferencing space, the company captured 49% market share in 2021, up from 26% in 2020. Even more impressive, Zoom is actually the fifth most popular enterprise application of any kind, according to Okta‘s 2022 Business at Work report.

In the most recent quarter, Zoom hit 512,100 customers, up 18%. And the company has kept its expansion rate above 130% for the last 14 quarters, meaning the average customer consistently spends 30% more. Fueled by that stickiness, revenue soared 100% to $3.9 billion over the past year, and free cash flow rose 59% to $1.7 billion. More importantly, management puts its market opportunity at $91 billion by 2025, leaving plenty of room for future growth. And with the stock trading at 9.7 times sales — near its cheapest valuation since going public in 2019 — now could be a good time to take a closer look at this beaten-down tech company. 

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

The post Market correction: 2 top tech stocks down 63% and 78% appeared first on The Motley Fool Australia.

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Trevor Jennewine owns Okta. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended DocuSign, Okta and Zoom Video Communications. The Motley Fool Australia has recommended Zoom Video Communications. 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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The Allkem Ltd (ASX: AKE) share price could be great value and destined to climb materially higher.

That’s the view of the team at Bell Potter, which has spoken very positively about the lithium miner today.

Why is the Allkem share price great value?

In response to the lithium miner’s half year results on Monday, Bell Potter has reiterated its buy rating and lifted its price target to $18.05.

Based on the current Allkem share price of $9.07, this implies potential upside of almost 100% over the next 12 months.

The broker highlights that Allkem’s first half earnings were better than it was forecasting. It explained: “AKE reported underlying 1H FY22 EBITDA of US$98m (BP est. US$83m) and NPAT of US$57m (BP est. US$44m).”

Why is the broker so positive?

Bell Potter notes that Allkem is expecting lithium prices to improve further in the second half. This has led to the broker upgrading its earnings forecasts accordingly.

In addition, its analysts like the company due to its production growth potential, which will allow it to benefit greatly from these high lithium prices.

The broker commented: “AKE is a go-to stock for multi-project exposure to lithium markets. AKE will realise significantly higher prices from 2022, driving material operating cash flow growth. Looking ahead, AKE has a portfolio of growth projects to materially lift production over the next three years.”

“Naraha will commence conversion of primary grade lithium carbonate into 10ktpa battery grade lithium hydroxide by mid-2022. At Olaroz, an additional 25ktpa LCE capacity will be commissioned from 2H 2022, lifting capacity at this asset to over 40ktpa. Construction of Sal de Vida Stage 1 at around 11ktpa LCE has commenced for first production from 2023. In aggregate, we expect AKE’s equity share of production to lift from 33kt LCE in FY21 to over 50ktpa LCE by FY24,” it added.

The post Lithium bonanza! Broker says the Allkem (ASX:AKE) share price could double appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Allkem. 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.

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