If you’re a shareholder of Telstra Corporation Ltd (ASX: TLS), well, firstly, congratulations. Telstra shares have been one of the best performing ASX blue-chips over the past 12 months, giving investors a healthy gain of 36.73% at the latest pricing. That includes the healthy 1.1% bump so far today to $4.22 a share. That’s just a whisker off this telco’s 52-week high of $4.23.

But investors might now be turning their heads to Telstra’s next earnings report. This, the company is scheduled to deliver next month on 17 February. Perhaps Telstra’s much-loved annual dividend of 16 cents per share, fully franked, will be increased, as shareholders have long been hoping for. Although, as my Fool colleague Tristan went through earlier this week, many experts are tipping this as unlikely in FY22.

Well, to gear us all up for Telstra’s big day next month, the company put out an ASX release this morning that gives us some details.

Telstra share price rises amid reporting framework shake up

So Telstra reiterated that it is changing its “product reporting framework” for next month. It will be giving investors “more transparency across our infrastructure business with InfraCo Fixed and Amplitel (InfraCo Towers) on a standalone basis”. It will also include “mobile and fixed product EBITDA margins after including intercompany infrastructure costs”.

In addition, Telstra will be providing these metrics on a backdated basis for the 2020 and 2021 financial years. This has been done in order to “assist the market when reviewing Telstra’s 2022 half-year results”.

It’s reporting framework will now include these underlying categories:

• Fixed – Consumer & Small business
• Mobile
• Fixed – Enterprise
• Fixed – Active wholesale
• International
• InfraCo Fixed
• Amplitel
• Other

Telstra was also at pains to state that “we remain committed to all financial ambitions under our previous reporting framework”. Additionally, the company also reassured investors that this new framework aligns with the T25 cost-cutting strategy.

Arguably, investors have approved of what the company had to say today (or are at least ambivalent), given the moves from Telstra shares we have seen so far.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $49.5 billion, with a trailing dividend yield of 3.8%.

 

The post Own Telstra (ASX:TLS) shares? Here’s what you need to know about next month’s earnings report appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Is the Telstra (ASX:TLS) dividend going to grow in 2022?
• Broker names 2 ASX dividend shares to buy in January
• 4 reasons the Telstra (ASX:TLS) share price could be great value
• 2 ASX dividend shares to buy this month: experts

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 owns and has recommended Telstra Corporation 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on form again and charging higher. At the time of writing, the benchmark index is up 0.6% to 7,483 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is up 15% to $1.37. Investors have been buying this artificial intelligence technology company’s shares in 2022 amid excitement over the use of its Akida chip in a Mercedes concept car. Though, it is worth noting that management didn’t deem this news material enough to warrant an ASX announcement.

Crown Resorts Ltd (ASX: CWN)

The Crown share price is up 8% to $12.58. This follows the receipt of an improved takeover offer from Blackstone. The private equity firm has lifted its offer from $12.50 cash per share to $13.10 cash per share. The good news for Blackstone is that the Crown Board believe this offer would be acceptable if it became binding. The previous offer did “not represent compelling value for Crown shareholders.”

Objective Corporation Limited (ASX: OCL)

The Objective share price is up 5.5% to $17.87 following the release of a trading update from the software company. According to the release, the company expects to report revenue of $52.7 million and EBITDA of $15.1 million for the first half of FY 2022. This represents an increase of 13.3% and 28%, respectively, over the prior corresponding period.

South32 Ltd (ASX: S32)

The South32 share price is up 4.5% to $4.27. This morning analysts at Goldman Sachs retained their conviction buy rating and lifted their price target to $4.70. The broker likes South32 due to its exposure to base metals such as aluminium and alumina. Goldman is bullish on aluminium on a multi-year view.

The post Why BrainChip, Crown, Objective, and South32 shares are racing higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Crown (ASX:CWN) share price jumped 9% today
• ASX 200 (ASX:XJO) midday update: Crown jumps, miners rally, Sonic sinks
• Why the Objective Corp (ASX:OCL) share price is charging higher
• Crown (ASX:CWN) share price on watch after Blackstone ups takeover bid
• Goldman Sachs says buy Rio Tinto and South32 shares but sell Fortescue now

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 Objective Corporation Limited. 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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Many ASX investors who choose to invest their hard-earned money into an exchange-traded fund (ETF) do so because of the benefits of diversification. ETFs are an investing instrument that can arguably offer this diversification like no other. Even though you can buy and sell an ETF in a single trade and with a single ticker code, the underlying investment can be spread across hundreds or even thousands of different companies. That brings us to the Vanguard MSCI Index International Shares ETF (ASX: VGS).

This ETF from Vanguard is one of the most popular on the ASX. Indeed, it is the second most popular fund on the ASX that invests in companies outside Australia, coming in behind the all-American iShares S&P 500 ETF (ASX: IVV). But is it the most diversified?

How does the VGS ETF stack up in terms of diversification?

Well, it certainly makes a strong case. The VGS ETF currently has 1,493 individual company holdings, spread across 22 countries. The ETF focuses on “major developed countries”, so you’ll find everything from the United States, Canada and Japan, to the United Kingdom, Europe, Hong Kong and Israel here. However, most of its holdings (more than 70%) come from the US.

VGS’s top-weighted shares are also (predictably) American. You’ll find Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN) in its top ten holdings, as well as NVIDIA Corporation (NASDAQ: NVDA) and Facebook.. sorry, Meta Platforms Inc (NASDAQ: FB).

So is VGS the most diversified ASX ETF out there? Well, it certainly comes close. But it doesn’t take the cake. To illustrate, let’s take a look at the Vanguard FTSE Emerging Markets Shares ETF (ASX: VGE).

While not as popular as VGS, this ETF makes it look like an amateur when it comes to diversification. VGE currently holds a whopping 5,256 individual companies, spread out across more than 25 countries. The most prominent of these are China (36.3%) and Taiwan (19.2%), but also include India, Brazil, South Africa and Saudi Arabia.

So no, VGS is certainly not the most diversified ETF on the ASX. But it does come close. But a caveat. When you’re talking about diversification through ~1,500 companies or ~5,200, you are arguably at a level where there is not too much pure benefit from having additional diversification at this scale. Something to think about if you’re chasing diversification for diversification’s sake.

The post Is the Vanguard MSCI Index International Shares ETF (ASX:VGS) the most diversified ETF on the market? appeared first on The Motley Fool Australia.

More reading

• 2 excellent ETFs for ASX investors to buy and hold
• 3 ASX ETFs for smart investors in 2022
• Here’s why 2021 was a stellar year for the Vanguard International Shares ETF (ASX:VGS)
• 2 of the best ETFs for diversification
• Here are 3 top ETFs for ASX investors in 2022

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. 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 Sebastian Bowen owns Meta Platforms, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc., Microsoft, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Apple, Meta Platforms, Inc., Nvidia, Vanguard MSCI Index International Shares ETF, and iShares Trust – iShares Core S&P 500 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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The Mineral Resources Limited (ASX: MIN) share price has started the new year off with a bang.

Its shares are currently trading for around 15% more than they were at the end of 2021. That’s despite no news having been released by the company.

At the time of writing, the Mineral Resources share price is $64.81, 3.83% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.63% today and 0.55% since the final close of 2021.

Let’s take a look at what might have helped send the mining services company’s stock higher.

What’s been driving the Mineral Resources share price lately?

While there’s no clear reason behind the stock’s surge in 2022, it’s not alone in the green.

In fact, the majority of its peers are also enjoying the new year. Since the ASX closed on 31 December 2021, the S&P/ASX 200 Materials Index (ASX: XMJ) has gained 7.25%.

The Pilbara Minerals Ltd (ASX: PLS) share price is one of the pack’s leaders. The lithium producer’s stock can boast a 17.5% gain over that time frame.

Meanwhile, the stock of iron ore producer Champion Iron Ltd (ASX: CIA) has gained 17%.

Like those of Pilbara Minerals and Champion Iron, the Mineral Resources share price hasn’t been boosted by news for weeks. In fact, the market hasn’t heard price-sensitive news from the company since mid-December.

Then, on 13 December, the company’s joint venture partner Neometals Ltd (ASX: NMT) announced the pair will be to evaluating potentially commercialising their ELi lithium process at a Portugal-based refinery.

The following day, Mineral Resources announced it will be developing a lithium resource in Western Australia as part of another joint venture.

The Mineral Resources share price gained 3.8% over the course of the two days. It has since gained another 31%.

The post Why is the Mineral Resources (ASX:MIN) share price having such a cracking start to 2022? appeared first on The Motley Fool Australia.

More reading

• What is JP Morgan saying about ASX lithium shares?
• 6 ASX shares involved with green metals
• These were the best performing ASX 200 shares in December
• Brokers name 3 ASX shares to sell
• Is this ASX sector gearing up for a year of M&A activity?

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

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There are many different ways to invest in ASX shares. But could Vanguard Australian Shares Index ETF (ASX: VAS) be the cheapest way to do it?

The VAS ETF is an investment that provides exposure to 300 of the biggest businesses on the ASX.

What is Vanguard?

Vanguard is one of the world’s biggest asset managers. The Vanguard Group was founded in 1975 and has over $11 trillion of assets under management globally across more than 400 funds. Vanguard Australia was founded in 1996 and has $142 billion of assets under management across 82 funds.

How is it different to other managers?

The investment manager says that its focus is always on putting the interests of investors first.

It says that its core purpose is to take a stand for all investors, to treat them fairly, and to give them the best chance for investment success.

Vanguard’s ownership structure, where investors are owners of the business, aligns its interests with investors and drives the culture, philosophy and policies throughout the organisation around the world.

A key selling point of Vanguard is its low costs for investors. That’s also one of the selling points for Vanguard Australian Shares Index ETF. Indeed, it says:

Providing leading, low-cost investment products and solutions to investors isn’t a pricing strategy for us. It’s how we do business.

Our unwavering focus on making decisions in the best interests of investors ensures we deliver a disciplined and consistent investment experience.

As its assets under management increases globally, it aims to reduce its expense costs/ratios for the investors in the funds.

It is already at a very large scale, which helps it keeps costs low for investors.

What are the benefits of low costs?

The lower the costs of investing, the more money that investors get to keep themselves in the VAS exchange-traded fund (ETF) or any other product.

As Vanguard points out, every dollar someone pays for fees and costs is a dollar less of potential returns to that person’s portfolio. Compounded over time, every dollar saved contributes to overall fund performance.

It’s not just scale and a desire to lower costs that helps Vanguard provide lower costs. It says:

Our focus on efficient portfolio management and low turnover means lower ongoing transaction costs and expenses for our investors.

Is VAS ETF the cheapest way to invest in ASX shares?

When looking at some of the largest diversified investment options, there are several with very low fees.

For example, one of the oldest listed investment companies (LICs), Australian Foundation Investment Co.Ltd. (ASX: AFI), has an annual management fee of just 0.14%.

Argo Investments Limited (ASX: ARG), another of the oldest and largest LICs, has an annual fee (also called a management expense ratio) of 0.14%.

Now let’s look at Vanguard Australian Shares Index ETF.

The VAS ETF has an annual fee of just 0.10%. For that fee, investors get cheap exposure to the ASX’s blue chips like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Macquarie Group Ltd (ASX: MQG).

But there is an ETF with an even cheaper cost.

BetaShares Australia 200 ETF (ASX: A200) has an annual fee of just 0.07%. It claims to be the world’s lowest cost ASX shares ETF.

With similar holdings and costs, it is up to investors to decide which provider they want to go with.

The post Is Vanguard Australian Shares Index ETF (ASX:VAS) the cheapest way to invest in ASX shares? appeared first on The Motley Fool Australia.

More reading

• Own VAS shares? Here’s how this ETF performed in 2021
• Invested in VAS shares? Here’s what to watch in 2022

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

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Later this year Commonwealth Bank of Australia (ASX: CBA) is likely to be supplanted by mining giant BHP Group Ltd (ASX: BHP) as the largest company on the Australian share market.

What’s happening?

Australia’s largest bank has been the top dog on the ASX for many years but BHP’s unification plans will put an end to that if shareholder approval is granted.

Last year, the Big Australian announced plans to end its listing on the London Stock Exchange and have its primary listing purely on the Australian share market. This compares to its current dual listing, which has shares listed on both exchanges.

At present, the CBA share price implies a market capitalisation of approximately $173 billion. This is some distance ahead of the BHP ASX market capitalisation of $138.5 billion. However, BHP’s UK market capitalisation is estimated to be GBP50.2 billion (A$94.6 billion).

So, once the dual listing ends, the combined BHP market capitalisation on the ASX will be a massive $233 billion, which is a sizeable $60 billion ahead of CBA. For context, this is about the size of conglomerate Wesfarmers Ltd (ASX: WES).

Could CBA retake the top spot?

For Australia’s largest bank to retake the top spot, it would require a big rise in the CBA share price.

For example, to grow its market capitalisation from $173 billion to $233 billion would require an increase of 35%. This would mean the CBA share price rising from $102.24 currently to $138.00.

While this is not unthinkable, the problem is that most analysts already believe the CBA share price is trading on sky high multiples.

So much so, Macquarie and Morgans both have the equivalent of sell ratings on its shares with price targets of $86.00 and $73.00 respectively. And while Bell Potter is positive on the bank’s shares, its 12-month price target of $111.00 leaves it well short of the level required to retake top spot.

In light of this, CBA may have to get used to playing second fiddle in the future.

The post CBA (ASX:CBA) is about to lose the mantle of the ASX’s largest company, here’s why appeared first on The Motley Fool Australia.

More reading

• Is Westpac (ASX:WBC) going to be the best big 4 bank for dividends in 2022?
• Why did the BHP (ASX:BHP) share price struggle so much in 2021?
• 5 things to watch on the ASX 200 on Thursday
• Could this impact the performance of ASX 200 banks more than interest rates in 2022?
• Own BHP (ASX:BHP) shares? Here’s the lowdown on the miner’s latest nickel play

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 owns and has recommended Wesfarmers 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 Crown Resorts Ltd (ASX: CWN) share price has been the best performer on the ASX 200 on Thursday.

Earlier today, the casino and resorts operator’s shares jumped a massive 9% to $12.68.

Why is the Crown share price surging higher?

Investors have been bidding the Crown share price higher this morning after the company revealed the receipt of an improved takeover proposal from Blackstone.

Crown advised that the private equity firm sweetened its offer after considering non-public information provided by Crown during initial due diligence.

According to the release, Blackstone has tabled a non-binding $13.10 cash per share offer, up 4.8% from its previous offer of $12.50 cash per share in November.

The good news for the private equity firm is that this offer has gone down well with the Crown Board on this occasion. The previous offer did “not represent compelling value for Crown shareholders” according to the Board last time.

However, this time around the “Board’s current unanimous intention would be to recommend the proposal” if Blackstone makes a binding offer “no less than $13.10 cash per share.” This would remain subject to there being no superior proposal and the Independent Expert report concluding that it is in the best interests of shareholders.

In the meantime, though, the company has told its shareholders that they do not need to take any action in relation to the revised proposal. It also warned there is no certainty that the discussions between Crown and Blackstone will result in a change of control transaction.

What about Star?

All eyes will be on Star Entertainment Group Ltd (ASX: SGR) in the coming days and weeks. It was interested in a merger with Crown before withdrawing its offer due to the uncertainty caused by the Royal Commission into Crown Melbourne.

Star has previously suggested that a deal could unlock estimated cost synergies of between $150 million to $200 million per annum. Don’t be surprised if it returns with a new merger proposal.

The post Here’s why the Crown (ASX:CWN) share price jumped 9% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Crown jumps, miners rally, Sonic sinks
• Crown (ASX:CWN) share price on watch after Blackstone ups takeover bid
• 5 things to watch on the ASX 200 on Thursday
• Crown (ASX:CWN) share price slides on news of second $1m fine
• Leading fund manager says these blue-chip ASX shares are buys right now

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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Australian shares are extended gains for the third straight session today as the benchmark S&P/ASX 200 Index (ASX: XJO) inches higher to 7,477 points.

Gains in the broad indices are led by a rally in defensible pockets of the market today, namely in mining, energy and financial stocks.

For instance, the S&P/ASX 200 Energy Index (XEJ) is up less than 1% on the day whereas the S&P/ASX 300 Metals & Mining Index (XMM) has spiked over 2.5%.

Shares in oil and gas giant Origin Energy Ltd (ASX: ORG) are also crawling higher today and are now changing hands at $5.60 apiece, peaking at its 52-week high in doing so.

After trading sideways for the bulk of 2021, the Origin Energy share price has bounced from a low of $4.78 in December and has since traded in an ascending channel to rally as much as 17.5% in that time.

What’s lighting Origin shares today?

Momentum behind Origin’s share price has been high since it announced the acquisition of community energy services company WINconnect.

The deal is set to provide Origin with an additional 87,000 customers, helping the energy giant reach a total of 367,000 customers.

However, gains for ASX energy shares in 2022 are underscored by strengths in the natural gas markets that has been in situ since January.

Natural gas spot is now trading at US$4.82 per million British thermal units (MMBtu) after rallying more than 35% since December 30.

US Natural gas futures also jumped over 13% yesterday to US$4.8/MMBtu, a 6-week high that is well on course to reach 5-year highs of US$6.1320/MMBtu back in October 2021.

Origin, being one of Australia’s largest natural gas producers and exporters, is set to benefit from the surging prices at the margin and free cash flow level, as has been the case with many commodity juggernauts these past 2 years.

Aside from this, the US 10-year Treasury yield touched 1.8% on Monday resulting in a rotation into more defensive sectors like energy and financials.

The investment research team at JP Morgan offer some interesting insights into this, noting that financials, energy and industrials have the highest correlation with a rising yield on the US 10-year note.

In other words, over the last 5-years, these sectors have tracked the US 10-year yield closely and this helps explain their strength since yields spiked again in 2022, JP Morgan says.

With these points in mind, it appears these are the ingredients to make a flavoursome recipe for Origin shareholders in the early days of 2022 with shares jumping 7% since January 1.

Origin Energy share price summary

In the last 12 months, the Origin Energy share price has climbed more than 8% after rallying almost 12% this past month.

Long-term things aren’t as rosy, with shares making a gradual but substantial walk downwards from highs of $10.15 over the last 5-years.

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

More reading

• In the green: the 5 best ASX renewable shares of 2021
• How did the Origin (ASX:ORG) share price perform in 2021?
• ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise
• These were the 5 worst performing ASX hydrogen shares of 2021
• Origin (ASX:ORG) share price slips on $42 million acquisition

The author has no positions 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 ReadyTech Holdings Ltd (ASX: RDY) share price is sinking today following a company update regarding a government licensing project.

At the time of writing, the mission-critical software company’s shares are swapping hands for $3.15, down 6.80%.

What did ReadyTech announce?

The ReadyTech share price is falling after ReadyTech advised it was not successful in winning the government licensing project.

Last year on 11 January, ReadyTech noted that Open Office had been shortlisted for a key government contract. However, the company was not selected for the contract, meaning it will not be paid an $8 million earn-out.

Management said the government client selected an alternative option rather than its configurable Open Office offering.

The project was not included in ReadyTech’s gross opportunity pipeline. Therefore, its FY22 guidance remains unchanged.

Furthermore, the company reiterated its government and justice division is focused on innovating, developing, and delivering scalable cloud-based solutions.

ReadyTech co-founder and CEO Marc Washbourne commented:

Open Office is completely aligned with ReadyTech in its focus on configurability, not customisation, in delivering innovative, customer-centric SaaS [software-as-a-service] solutions. This cultural alignment has facilitated the integration of the two businesses and outperformance of Open Office relative to expectations.

With the business continuing to perform strongly, we are excited by the opportunities we see for the government and Justice segment, as with our education and workforce Solutions segments.

About the ReadyTech share price

It’s been a sound year for shareholders, with the ReadyTech share price having gained around 70% in the last 12 months. However, the company’s shares are down around 20% so far in 2022.

Based on today’s price, ReadyTech has a market capitalisation of $331.63 million and a price-to-earnings (P/E) ratio of 129.17.

The post Here’s why the ReadyTech (ASX:RDY) share price is tumbling 7% today appeared first on The Motley Fool Australia.

More reading

• Sticky revenue winners. Here are the 5 best ASX SaaS shares of 2021
• 5 best ASX 200 tech shares of 2021
• ReadyTech (ASX:RDY) share price leaps on $14 million acquisition

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. owns and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings 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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The Ai-Media Technologies Ltd (ASX: AIM) share price is falling today amid news relating to its captioning service.

Shares in the company are currently trading at 68 cents, down 3.13%.

Ai-Media provides captioning, transcription, and translation services to companies around the world using a cloud-based technology platform.

Let’s take a look at what may be weighing on the Ai-Media share price today.

Djokovic leak controversy

Investors could be reacting to news that Ai-Media is investigating whether a staffer leaked a private conversation between Seven Network Holdings Ltd (ASX: SVW) newsreaders about the World No. 1-ranked tennis star, Novak Djokovic, The Australian has reported.

Ai-Media and Seven held high-level discussions about the matter on Wednesday night, the publication said.

In the footage, which has been going viral on social media, newsreader Rebecca Maddern comments:

Whatever way you look at it Novak Djokovic is a lying, sneaky… it’s unfortunate that everybody else stuffed up around him. To go out when you know you are COVID-19 positive…

Djokovic has been dominating the news in recent days after his controversial entry into Australia to play in the Australian Open.

The Federal Immigration Minister, Alex Hawke, is considering whether to use his veto rights to cancel Djokovic’s visa. A decision is expected today, according to a News Corp report.

My Foolish colleague James noted Ai-Media is a growing small-cap share to watch this week. Broker Bell Potter has a buy rating on the company and a $1.50 target for the Ai-Media share price.

Ai-Media share price snapshot

The Ai-Media share price has fallen by 27.66% in the past 12 months. It is down 5.56% over the past 4 weeks.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 12% in the past year.

Ai-Media has a market capitalisation of about $145 million based on the current share price.

The post Ai-Media (ASX:AIM) share price slides amid Novak Djokovic leak saga appeared first on The Motley Fool Australia.

More reading

• 2 growing small cap ASX shares to watch
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• 3 exciting small cap ASX shares analysts rate highly
• 3 buy-rated small cap ASX shares with major upside potential

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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