The Ardent Leisure Group Ltd (ASX: ALG) share price is soaring today after the company reported positive half-year results.

Shares in the leisure and entertainment company are currently swapping hands at $1.585, an 18.28% gain.

Let’s take a look at what may have impacted the company’s share price today.

Ardent Leisure share price surges on half-year results

Highlights from the H1 FY22 results include:

• 55.3% reduction in net loss after tax from $82.3 million in the prior corresponding period (pcp) to $36.8 million
• 993% improvement on earnings before interest, tax, depreciation and amortisation (EBITDA) to $43.6 million
• 331% improvement in EBITDA excluding specific items to $41.8 million
• Revenue surged 100.2% to $275.5 million
• No dividend for FY22

What else happened in the half?

The surge in total operating revenue was driven by a strong performance in the Main Event business. Theme Parks and Attractions revenue also soared by 41% due to higher pass sales and turnout.

The higher EBITDA excluding specific items was largely underpinned by a strong performance of the United States business.

The board did not declare a dividend for FY22 due to “ongoing uncertainty in the current environment”.

Ardent Leisure’s Main Event revenue and EBITDA eclipsed H1 FY20 pre-COVID-19 levels, driven by constant centre total revenue growth of 20.1%. There was also a 39.5% increase in walk-in revenue.

A new centre in Chesterfield, Missouri performed above expectations, with the company now operating 45 centres in 16 US states.

The Theme Parks and Attractions business, which includes Dreamworld, WhiteWater World and SkyPoint on the Gold Coast, reported a 41% surge in operating revenue on the pcp.

However, domestic and international border restrictions continued to impact turnout at the theme parks during the half.

On a positive note, since Queensland borders opened in December, recovery momentum has started to build. Total attendances jumped 17% on the pcp, while the value of annual passes improved by 40%.

A new Steel Taipan rollercoaster opened at Dreamworld in December 2021. Ardent Leisure said this has been popular with guests.

Management commentary

Commenting on the results driving the Ardent Leisure share price today, chairman Gary Weiss said:

We are pleased to deliver another solid result for Ardent Leisure Group despite the ongoing challenges of the pandemic.

Main Event has continued to perform above pre-COVID levels and we are optimistic that this positive momentum will continue into second half of FY22.

Strong trading performances in the Main Event business, and a disciplined approach to capital and operational expenditure in Theme Parks and Attractions have allowed the Group to maintain a solid financial position.

What’s next?

Positive momentum in Ardent Leisure’s Main Event business has improved liquidity, setting the business up well for future growth. The Main Event business plans to open up three new centres in the second half of FY22.

The Theme Parks and Attractions business is “optimistic” on the outlook for the future. Easing of government restrictions and improving COVID-19 sentiment is expected to unlock demand in the local and interstate markets.

Commenting on this increasing demand, Theme Parks and Attractions CEO Greg Yong said:

The reopening of the borders and lifting of some restrictions in late December was warmly welcomed however this coincided with the Omicron wave and difficulties related to state government COVID testing and isolation requirements.

Despite this, the business has seen increased ticket sales and attendances for the period, with January and February results suggesting demand is improving for leisure experiences.

Ardent Leisure share price summary

The Ardent Leisure share price has soared 147% in the past year, while it is gaining around 17% year to date.

In the past week, it has jumped around 17%, while it is up 25% in the past month.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 2.46% over the past year.

Ardent Leisure has a market capitalisation of $758 million.

The post Dream result: Ardent Leisure (ASX:ALG) share price soars 18% on earnings appeared first on The Motley Fool Australia.

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• ‘Transformational’: Bigtincan (ASX:BTH) share price ignites on 142% revenue jump

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 Adbri Ltd (ASX: ABC) share price is soaring after the company released its full-year results for the year ending 31 December 2021.

In it, the construction material producer revealed an increase in profit and revenue and a final dividend of 7 cents per share.

At the time of writing, the Adbri share price is up 9.3% at $3.30. To compare, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.38%.

So, what did Adbri reveal today to make its share price fly?

Adbri’s financial results for 2021

The Australian producer’s full-year financial results were as follows:

• Revenue (from continuing operations) up 8% to $1.56 billion
• Earnings before interest and tax (EBIT) up 18% to $174.9 million
• Net profit after tax (NPAT) up 25% to $116.7 million
• Net debt at $437.4 million.

The company acknowledged an impact on its margins due to COVID-19. As such, it saw a drop in EBITDA margin from 18.7% in 2020 to 17.5%.

Due to these difficulties, it also saw $16.2 million in “non-recurring COVID and operational costs”, which were “partially offset by targeted cost savings netting $13.6 million”.

Adbri will pay a final fully franked dividend of 7 cents per share on 11 April.

This, along with its interim dividend payment for the year, accounts for a payout ratio of 68.5% of underlying NPAT.

The company has a trailing price to earnings ratio (P/E) of 16.8.

During the 2021 calendar year, the Adbri share price fell 15.8%.

What’s next for Adbri?

Looking forward, the company has climate change front of mind.

In five years, the company aims to bring down its greenhouse gas emissions by 7%, and to use 50% of kiln fuel from alternative South Australian sources.

Since 2019, it has achieved a 4% reduction, 2% of which was achieved last year. It also saw 25% of its fuel source achieved as per its FY19 baseline target.

In a press release this morning, managing director and CEO Nick Miller said: “We are progressing the roadmap for our aspiration to achieve net zero Greenhouse Gas emissions by 2050.”

Commenting further on the 2021 results, Miller said:

The result is particularly pleasing in the context of significant COVID related challenges and disruption during the year.

Mining and construction demand remain buoyant while the construction materials sector is benefiting from a strong pipeline of infrastructure projects and residential construction approvals.

Adbri remains in a robust financial position with resilient cash flow and a strong balance sheet. Investment grade metrics and available liquidity of $453.7 million ensure we remain well funded to continue with transformative strategic initiatives that drive improved asset performance and operational efficiency, supporting higher shareholder returns over the long term.

Adbri share price snapshot

Since the beginning of 2022, the Adbri share price has increased by 13.8%. To compare, the S&P/ASX 200 Materials Index (ASX: XMJ) has decreased by 2%.

The Adbri share price saw a 52-week high of $3.87 in August 2021 and a 52-week low of $2.70 at the end of January.

The company has a market capitalisation of $1.96 billion.

The post Adbri (ASX:ABC) share price soars 9% amid higher profit in full-year earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Alice de Bruin 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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Just when you thought the Kogan.com Ltd (ASX: KGN) share price couldn’t fall any further, this morning the ecommerce company’s shares crashed 20% to a new 52-week low of $4.50.

When the company’s shares hit that level, it meant they were down 72% from their 52-week high.

The Kogan share price has recovered a touch this afternoon but remains down 13% to $4.88 at the time of writing.

Why is the Kogan share price crashing again?

Investors have been selling down the Kogan share price today following the release of a disappointing half year result from the online retailer.

For the six months ended 31 December, Kogan reported a 1.3% lift in revenue to $419.5 million. However, this growth was entirely from acquisitions, with its core operations going backwards during the half.

For example, the Kogan.com business reported a 17.3% decline in revenue to $325.7 million following a 11.2% decline in Exclusive Brands revenue and a 33.5% drop in Third-Party Brands revenue.

This was despite Kogan boasting a 10.4% year on year increase in active customers to 3,314,000 (excluding Mighty Ape) and a 176% lift in Kogan First loyalty customers to over 274,000 subscribers.

It was only thanks to the inclusion of the Mighty Ape business, which was acquired in December 2020, that Kogan’s overall revenue didn’t decline.

How should this be interpreted?

There are a number of possible (negative) ways that investors could interpret this data. This may explain some of the weakness in the Kogan share price today.

Firstly, if customer numbers are rising but revenue is falling, then a company is simply generating less revenue per customer. And given how the Kogan First loyalty program is designed to make customers spend more, it doesn’t appear to be having the desired effect despite management’s big investment.

Another thing to consider is that Kogan explains that the term active customers “refers to unique customers who have purchased in the last twelve months.” This could mean that some of these active customers have been inactive during the first half and are therefore in danger of dropping off in the second half.

Investors may be fearing a scenario that sees Kogan report falling active customers for the first time since listing.

Swinging to a loss

Also putting pressure on the Kogan share price today was its margin weakness.

Due to spending big to grow the aforementioned Kogan First loyalty program and battling high variable costs associated with warehousing/higher inventory levels, Kogan swung from a profit to a loss during the half.

On the bottom line, the company reported a net loss after tax of $11.9 million. This is down $35.5 million from a first half profit of $23.6 million a year earlier.

Investors will no doubt be hoping for better in the second half. But judging by the Kogan share price performance today, not all of them are willing to stick around to find out if that happens.

The post Why is the Kogan (ASX:KGN) share price is crashing 20% on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com 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 All Ordinaries Index (ASX: XAO) is on a bit of a rollercoaster today.

At time of writing, the index is up 0.6% after almost dipping into the red in the early lunch hour.

This comes after investors, spooked by Russia’s invasion of Ukraine, hit the sell button yesterday. That saw the All Ordinaries close for a 2.8% loss for the day.

While the index is clawing back some of its losses, these 2 All Ordinaries shares are heading sharply in the other direction.

2 ASX All Ordinaries shares hitting 52-week lows

First up we have Bravura Solutions Ltd (ASX: BVS). The ASX tech shares provides software solutions for the wealth management, life insurance, and funds administration industries.

The Bravura share price is down more than 17% today, sinking it to 52-week lows to $1.56.

This comes on the back of the release of its half year financial results today. While the reporting period saw some strong figures, management downgraded its net profit after tax (NPAT) guidance for the full 2022 financial year.

With the Bravura share price now down 47% in 12 months, is opportunity knocking on this beaten down All Ordinaries share?

According to Goldman Sachs it may well be. The broker has a buy rating on the stock, with its most recent price target (issued 24 November 2021) for Bravura of $3.70 per share. That’s 137% above the current price.

Also hitting 52-week lows

Our second ASX All Ordinaries share hitting 52-week lows today is healthcare services provider, Integral Diagnostics Ltd (ASX: IDX).

The Integral Diagnostics share price is down 12% today to $3.45 per share. That brings its 12 months losses to 29%.

This comes after the company emerged from a 2-day trading halt today and following the release of its half year results yesterday, along with the announcement that it had agreed to acquire Peloton Radiology. While the results were solid, the company’s dividend payout slipped.

Catch a falling knife? Or opportunity knocking?

According to Goldman Sachs, this All Ordinaries share also could be an opportunity.

Yesterday the broker had a buy rating on Integral Diagnostics, with a price target of $5. That’s 45% above the current share price.

The post Is opportunity knocking? 2 ASX All Ordinaries shares hitting 52-week lows appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended Integral Diagnostics 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 Bigtincan Ltd (ASX: BTH) share price is firing on all cylinders today.

At the time of writing, shares in the sales enablement platform provider are up 13% to 83 cents.

Investors are getting behind Bigtincan after it achieved record results in the first half of FY22. Let’s take a closer look at the details.

Bigtincan share price takes flight on outstanding growth

• Record revenue of $45.9 million, up 142% over the prior corresponding period
• Annualised recurring revenue (ARR) up 132% to $112 million
• Adjusted EBITDA reaches $1.2 million from $3.6 million loss in prior period
• Lifetime value up 98% to $741 million
• Net retention firms 2% to 107%
• Brainshark acquisition completed

What else happened during the first half?

The first half was dominated by the company’s acquisition of Brainshark — a deal valuing the US-based sales enablement business at A$116 million. Since then, shareholders have been waiting to see whether this acquisition was a great catch, or if Bigtincan bit off more than it could chew.

In a promising sign, the Brainshark acquisition has now been completed and the company is said to be benefitting from it. For example, Bigtincan highlighted synergies as a key driver for the company’s improvement in adjusted EBITDA.

In addition, cross-selling of services with Brainshark helped improve its net retention ratio to 107%. Not to mention, the $19.6 million revenue contribution. These positive indicators are being met with a strong Bigtincan share price today.

Notably, the record revenue result has not been detrimental to the composition of subscription-based revenue. Instead, subscription-based made up 98% of Bigtincan’s record $45.9 million revenue in the first half.

Regarding customers, it was another big six-month period of locking in new customer wins and expansions. Some of these included deals with Reddit, Clorox, T-Mobile, Delta Airlines, and Guess.

What did management say?

Summarising Bigtincan’s performance during the half, CEO David Keane said:

1H FY22 was a transformational period for Bigtincan as we announced, completed and executed on the Brainshark acquisition to further build on our investments in creating a leading platform for sales enablement on a global scale.

Thanks to the ongoing execution of our global team, during the Half Bigtincan was able to demonstrate our ability to improve operating metrics, realise growing efficiency and continue to create the technology that customers love.

What’s next?

Offering an optimistic outlook, the company relayed to investors that it is well-positioned to continue its momentum into the second half. This was accompanied by Bigtincan’s reassurance that it is on track to surpass $119 million in ARR and $109 million in revenue for FY22.

Heading into the second half, Bigtincan held $49.86 million in cash and cash equivalents. This represents a reduction of ~11%. However, total current assets increased ~22% on the prior half, mainly due to a $17.6 million upwards movement in ‘trade and other receivables’.

Bigtincan share price snapshot

Despite the green display today, the Bigtincan share price remains in the negative over the past 12 months. The company’s share struggled to find support since announcing the Brainshark acquisition back in August last year.

Shares are down 14.5% compared to the same time a year ago. Underperforming the benchmark index by approximately 17%.

The post ‘Transformational’: Bigtincan (ASX:BTH) share price ignites on 142% revenue jump appeared first on The Motley Fool Australia.

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

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The Novonix Limited (ASX: NVX) share price is on the move today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, the Novonix share price is charging 4.77% higher at $5.05.

It comes after Novonix announced on Thursday it would be ringing the closing bell to mark the successful completion of its NASDAQ listing.

Novonix share price spikes amid earnings growth

The Novonix share price is rising on the back of the battery technology and materials company’s H1 FY22 results. Key takeouts include:

• Revenue from contracts with customers of $4 million, up from $2.325 million the same time last year
• Net assets of $374.05 million at 31 December 2021, well up from $136.7 million a year ago
• Reported statutory after-tax loss for the half-year of $28.8 million, more than the loss of $10.77 million in H1 FY20
• Added to the constituents of the S&P/ASX 300 Index in September 2021
• Loss on earnings per share (EPS) of 6.5 cents
• Cash and cash equivalents of $259.5 million at end of period compared to $25.3 million at the same time last year
• Commenced trading on the NASDAQ stock market in the US in February 2022

What else happened this period for Novonix?

Back in July 2021, Professor Jeff Dahn joined as chief scientific advisor to the company, and the company also announced it had finalised the purchase of a 400,000 square-foot facility in Tennessee.

Novonix says this site is “planned to be the site for expansion to at least 10,000 tonnes per year of production capacity”.

The facility’s opening was celebrated in December and was attended by the US Secretary of Energy, Jennifer M. Granholm, the company said.

In the following month, Novonix advised that US-listed Phillips 66 (NYSE: PSX) invested a 16% stake in the company in a vote of confidence.

Novonix notes Phillips’ move will help on “advancing [its] production of synthetic graphite for high-performance lithium-ion batteries”.

To cap out the half, the company announced some exciting preliminary results from an assessment of its Anode Material’s GX-23 synthetic graphite product. The data showed the product “offers an approximate 60% decrease in CO2 emissions in a lifecycle assessment”.

Since rolling into the new year, positive momentum has continued for Novonix. The company signed another agreement with Phillips 66 in January, developing technology that will “advance the production and commercialisation of anode materials for lithium-ion batteries”.

Finally, the company successfully completed the listing of its American Depositary Receipts (ADRs) on the American NASDAQ stock exchange this month.

What’s next for Novonix?

With respect to its cathode minerals division, Novonix is working to meet key testing milestones over the next 12-18 months.

It is doing so while pushing through the next phase of pilot-scale with “a 10 tonnes per annum capable demonstration line coming online in 2022”.

At Mount Dromedary, the “high grade (18%+) natural graphite deposit located in Australia”, Novonix says management is conducting a strategic review of the graphite deposit asset.

Novonix also entered into a Securities Purchase Agreement and a Supply Agreement with KORE Power on 31 January 2022. There it purchased 3.33 million shares in KORE Power for US$25 million, representing an approximate 5% stake, for 50% cash and 50% by issuing 1,924,723 shares.

No specific earnings guidance was provided by Novonix in its earnings report today.

Novonix share price snapshot

In the last 12 months, the Novonix share price has gained more than 52%. However, it is down more than 45% this year to date. During the past month of trading, shares have collapsed another 39%, and Novonix is thus trailing the broad indexes this year.

The post Novonix (ASX:NVX) share price jumps as net assets, cash earnings spike appeared first on The Motley Fool Australia.

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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.

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The Appen Ltd (ASX: APX) share price is bouncing back from yesterday’s selloff.

In afternoon trade, the artificial intelligence data services company’s shares are up 14% to $6.95.

Why is the Appen share price racing higher?

As well as getting a boost from a rebound in the tech sector today, a broker note out of Jefferies appears to be giving the Appen share price a lift.

In response to the company’s disappointing full year results on Thursday, the team at Jefferies has retained its buy rating.

And while Jefferies has cut its price target by 20% to $12.00, this still implies significant upside of 73% over the next 12 months.

What did the broker say?

According to the note, Jefferies was surprised to see the Appen share price crash lower on Thursday.

It believes this was driven by the company’s lack of guidance but feels this is an overreaction. Particularly given how the market has treated Appen’s guidance with a pinch of salt recently following a series of downgrades.

Overall, Jefferies was pleased with Appen’s much-improved performance during the second half and appears positive on the future.

Not everyone is positive

But as mentioned here earlier, not everyone feels that the Appen share price offers value for money currently.

This morning the team at Bell Potter retained its hold rating and slashed its price target by 41% to $6.75.

Bell Potter made the move after downgrading its earnings estimates on the belief that Appen’s margins will weaken.

It explained: “We have upgraded our revenue forecasts by 2% and 5% in 2022 and 2023. Our forecast revenue growth is now in the low double digit percentages which is below the mid teens growth required to double revenue by 2026. We have, however, downgraded our underlying EBITDA forecasts by 13% and 14% in 2022 and 2023 due to reductions in our margin forecasts to around 16% in both periods.”

Time will tell which broker makes the right call.

The post Here’s why the Appen (ASX:APX) share price is racing 14% higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen 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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If the S&P/ASX 200 Index (ASX: XJO) had a bad day yesterday, it was nothing to what most ASX tech shares experienced. As we covered yesterday, the S&P/ASX 200 Information Technology Index (ASX: XIJ) was down close to 5% at one point, exceeding the ASX 200’s losses by quite a margin. 

Some prominent ASX tech shares did even worse. Zip Co Ltd (ASX: Z1P) lost almost 9% at one point, while Block Inc‘s (ASX: SQ2) losses hit double digits.

Some tech companies unfortunately scheduled yesterday as the day to drop disappointing earnings reports. Appen Ltd (ASX: APX) and Life360 Inc (ASX: 360) were two such companies. The Appen share price and Life360 share price were both down by close to 30% at various points of the day.

The volatility continues today for ASX tech shares. But in a way that gives relief to some investors. As ASX 200 shares rebound today, ASX tech shares are leading the charge.

ASX tech shares lead recovery

At the time of writing, the ASX 200 is up a robust 0.45%. But the ASX 200 Information Technology Index is the powerhouse, up a whopping 8.1%.

Leading the charge is Block Inc, the new owner of Afterpay. Block reported its own earnings this morning and investors were mightily impressed, to say the least. The company is currently up an eye-watering 33.4%. Clearly, investors were relieved by Block’s 62% rise in gross profits and its 86% surge in revenues.

Life360 has also been a strong performer today. Perhaps some investors thought things went too far yesterday, with Life360 shares now up 18.4%. Ditto with Appen, although investors are not quite as enthusiastic. Appen shares have gained 11% so far today, as have Tesserent Ltd (ASX: TNT) shares and Tyro Payments Ltd (ASX: TYR) shares.

But it’s not just those shares. Almost every ASX tech share on the market is in the green today.

There’s no real explanation we can give for these moves, other than to note that the tech sector is consistently one of the ASX’s most volatile. It often loses more than the broader market on a down day and gains more on an up day. We saw that yesterday, and we seem to be seeing it today. Those earnings results are likely playing a role in share price movements, too.

So after a week that has probably given investors severe whiplash, it will be interesting to see what next week brings for ASX tech shares.

The post Back on the horse! ASX tech shares stage stunning comeback following sell-off appeared first on The Motley Fool Australia.

More reading

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• Why is the Life360 (ASX:360) share price jumping 17% today?
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., Life360, Inc., Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd and Block, Inc. The Motley Fool Australia has recommended Tyro Payments. 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

The intense fighting picking up between Russia and the Ukraine has sent shockwaves through financial markets. This real-world conflict has led to mass selling across a range of sectors many investors may think shouldn’t be affected, including metaverse-related tokens. However, as of 12:30 p.m. ET, Axie Infinity (CRYPTO: AXS), Decentraland (CRYPTO: MANA), The Sandbox (CRYPTO: SAND), and Enjin Coin (CRYPTO: ENJ) have plummeted 14.3%, 12.9%, 12.2%, and 16.4%, respectively, over the past 24 hours. 

So what

Notably, metaverse-related cryptos have been among the biggest winners from the fourth-quarter rally last year into anything metaverse related. This sharp increase in value has led to intense profit-taking by some investors worried about how capital flows may be disrupted by Russia’s invasion of Ukraine. Indeed, this catalyst is likely to affect both equity and crypto markets further, as investors look to de-risk their portfolios.

Sentiment within the risk-on crypto sector remains on the “extreme fear” end of the spectrum, according to multifactorial market sentiment analysis for this sector. This gauge has been creeping lower in recent days, suggesting investors are more interested in minimizing risk than maximizing return. However, this gauge typically provides a good baseline for when the market is primed for buying opportunities, which may result in periodic rallies, should sentiment shift in the market in the coming weeks. 

Now what

As highly volatile assets, cryptocurrencies carry an inherently higher level of risk relative to other investment opportunities. For metaverse tokens that have already appreciated in value so significantly in such a short period of time, it appears investors are keen to take profits or trim losses, on fears the market may take a long time to recover from this. 

Right now, there’s a tremendous amount of uncertainty shaking investor confidence in these tokens. Perhaps long-term investors can look at this turmoil as a buying opportunity. That said, there are likely many more investors who may take the perspective that more downside is likely on the horizon. 

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

The post Real-world conflict hits the virtual world, metaverse cryptocurrencies plunge 12% 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 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.

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

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Thursday night to discuss the war in Ukraine and the ASX’s big fall, plus results from Nine Entertainment Co Holdings Ltd (ASX: NEC) and Lovisa Holdings Ltd (ASX: LOV).

The post Russia invades Ukraine and the ASX tanks. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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• The Lovisa (ASX:LOV) dividend jumped 85%. Here’s what you need to know
• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• ASX wipes out $73 billion as Russia invades Ukraine
• Why Cimic, Lovisa, NextDC, and Nine shares are charging higher
• All that glitters: Lovisa (ASX:LOV) share price skyrockets 20% on high-profit earnings

Motley Fool contributor Scott Phillips 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 Lovisa 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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