Shares in iron ore giant Fortescue Metals Group Limited (ASX: FMG) are up in afternoon trade, trading up 1.96% at $22.94.

As the price of iron ore begins to curl upwards from 52-week lows in November last year, iron ore players like Fortescue are back in fashion once more in 2022.

After taking a beating last year, both iron ore and the Fortescue share price had reached a low point before rekindling the flame to trade back at levels not seen since 1H 2021.

In the last month, the price of iron ore has gained 22% as market pundits are now pricing in an uptick in demand once global construction picks back up at the normal pace.

This bodes in well for Fortescue, given it is a price taker whose share price fluctuates with volatility in the iron ore markets. This relationship is shown in the chart below.

With this rally, analysts at JP Morgan have since chimed in on the investment debate, offering their outlook on Fortescue shares in 2022. Let’s take a closer look.

What’s in store for Fortescue this earnings season?

JP Morgan analysts are constructive on Fortescue’s upcoming earnings results and forecast profits to land slightly ahead of consensus.

Buoyant iron ore markets and the company’s pivot into new ventures are attractive points in the iron ore giant’s case, JP Morgan says. It recently updated its FY22/23 estimates and prescribed a 46% and 35% upgrade to earnings respectively.

“We look for 1H22 NPAT of $2.77 billion (consensus $2.70 billion) and expect a dividend of 86 cents per share (70% payout)– in line with consensus”, the broker noted in its release to clients.

Analysts at the firm also note that Fortescue offers investors exposure to long life mining operations, “with attractive margins and expansion optionality over the long term”.

Even with these factors, JP Morgan retains its neutral rating on the stock, citing several risks that need to be considered.

“The market continues to look for material details on hydrogen plans, along with progress on Iron Bridge” it said, a view it held fairly consistently last year.

“Our December 2022 price target is set in line with our valuation, rounded off to the nearest dollar” the broker noted, reinforcing its neutral stance on Fortescue shares.

The broker is also forecasting iron ore prices to increase across all major spot and futures contracts this quarter, implying a 47%–61% jump and then a 19%–22% spike the subsequent quarter.

Aside from that, its analysts are tipping Fortescue to trade on a 5.8% dividend yield in FY23 and 5.6% in FY24, slightly behind some competitors.

It also estimates the company to deliver a half year adjusted EBITDA of $4.8 billion, whereas the consensus of analyst estimates has Fortescue generating $2.07 billion in net profit.

“Our FMG valuation rises 4% on the new price deck with our FY22/23 earnings up 46%/35%, respectively” the broker concluded.

Fortescue reports earnings on 16th February. Investors can tune in then.

A bit more on Fortescue shares

Fortescue shares have pared gains in the past 12 months and have lost 3% in that time.

This year to date the picture is completely different, however. Since trading started on January 4, shares have spiked more than 19% and are now up over 11% for the month. This is ahead of the benchmark index.

The post Should you buy Fortescue (ASX:FMG) shares before the mining giant reports next week? appeared first on The Motley Fool Australia.

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• CBA’s stunning profit, Fortescue investing $10b in renewables. Scott Phillips on Nine’s Late News
• Fortescue (ASX:FMG) Future Industries is planning a HUGE solar and wind farm
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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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a disappointing note. At the time of writing, the benchmark index is down 0.7% to 7,239.8 points.

Four ASX shares that are avoiding the market weakness today are listed below. Here’s why they are pushing higher:

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is up over 4% to $4.74. Investors have been buying this insurance giant’s shares following the release of its half year results. For the six months ended 31 December, IAG delivered a cash profit of $176 million. While this was short of what the market was expecting, investors appear to be willing to overlook this due to management upgrading its FY 2022 gross written premium (GWP) guidance. It now expects GWP growth in the mid single-digits compared to low single digits.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is up 3% to $122.50. Investors have been buying Rio Tinto and other iron ore miners after the steel making ingredient continued its ascent. According to CommSec, the spot iron ore price has risen by a sizeable US$7.00 or 4.8% to US$153.75 a tonne.

Unibail-Rodamco-Westfield (ASX: URW)

The Unibail-Rodamco-Westfield share price is up 7.5% to $5.66. Investors have been buying this shopping centre operator’s shares after its announced the sale of a 45% stake in Westfield Carré Sénart and the creation of a joint venture with Societe Generale Assurances and BNP Paribas Cardif.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is up 1% to $22.83. Investors may be buying the banking giant’s shares due to the prospect of rising interest rates. A stronger than expected inflation reading in the US has led to speculation the US Federal Reserve could act sooner. Rising rates would be a boost to the bank’s margins.

The post Why IAG, Rio Tinto, Unibail, and Westpac shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• Merci! Here’s what’s driving the Unibail (ASX:URW) share price 7% higher today
• Here’s why the IAG (ASX:IAG) share price is charging 4% higher today
• ASX 200 (ASX:XJO) midday update: IAG upgrades guidance, Magellan sinks again
• Here’s what Rio Tinto (ASX:RIO) boss says is ‘causing some challenges’ right now
• 2 buy-rated ASX dividend shares with 4%+ yields

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Australia has recommended Westpac Banking Corporation. 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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It’s been a tough start to the year for S&P/ASX 200 Index (ASX: XJO) stocks. Fortunately, brokers have tipped plenty of ASX 200 growth shares to keep an eye on over the rest of this year.

Among them are some old favourites and others that might come as a surprise.

Let’s take a look at which shares experts are predicting will perform well in 2022.

3 ASX 200 growth shares brokers expect to rocket in 2022

Domino’s Pizza Enterprises Ltd. (ASX: DMP)  

The Domino’s Pizza share price is one that has caught brokers’ attention this year.

As The Motley Fool Australia recently reported, Goldman Sachs has a price target of $136.20 on the stock. That signals a 30% upside on its current share price of $104.26.

The broker is expecting strong growth from the company’s soon-to-be-released earnings for the first half of financial year 2022.

Meanwhile, UBS has slapped it with a smaller price target – expecting it to get to $120 – and a ‘buy’ rating. That represents a 15% upside.

IDP Education Ltd (ASX: IEL)

Another ASX 200 share worth watching, according to brokers, is IDP Education.

The company helps international students’ study in English speaking countries. It also owns the International English Language Testing System.

According to reporting by my Foolish colleague James Mickleboro, the company could be set for strong growth this year as international students return to their studies.

UBS currently has a $35.90 price target and a ‘buy’ rating on IDP Education’s shares, representing a 24% upside on its current share price of $28.94.

Goodman Group (ASX: GMG)

Finally, real estate investment trust (REIT) Goodman Group has brokers excited in 2022.

The REIT focuses on industrial real estate such as logistics and industrial facilities, warehouses, and business parks.

As The Motley Fool Australia recently reported, Citi has slapped the Goodman Group’s stock with a $27.50 price target – 20% higher than its current share price of $22.75.

The post Top brokers say there are still ASX 200 growth shares with massive upside in 2022 appeared first on The Motley Fool Australia.

More reading

• Here are 3 highly-rated ASX growth shares
• 3 buy-rated ASX growth shares to make you smile
• 3 buy-rated ASX 200 shares with plenty of upside potential
• IDP Education (ASX:IEL) share price tumbles after record result falls short of expectations
• How are ASX Real Estate Investment Trusts (REITs) performing in 2022?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Idp Education Pty Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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 S&P/ASX 200 Index (ASX: XJO) is, unfortunately, having a pretty depressing end to the week so far this Friday. At the time of writing, the ASX 200 is down by 0.71% after falling a little further earlier in the trading day. But the Zip Co Ltd (ASX: Z1P) share price is putting that move to shame.

Zip shares are currently down a nasty 6.2% at just $2.88 each That’s a lot closer to the company’s 52-week low of $2.78 than its 52-week high of $14.53 a share. Today’s move puts this buy now, pay later (BNPL) company’s 2022 performance at a sobering -33.5%.

So what might be behind Zip’s share price malaise this Friday?

Well, it’s possible Zip shares have just been caught up in the selloff that has gripped the ASX tech shares sector. We’ve already covered Appen Ltd‘s (ASX: APX) nasty fall earlier today. So perhaps Zip is just experiencing a similar fate.

But there is some other relevant news out today that might be affecting investor’s appetites for Zip shares too.

Last night (our time), the US BNPL company Affirm Holdings Inc (NASDAQ: AFRM) reported its quarterly results for the December quarter. As my Fool colleague Brooke covered this morning, Affirm was forced to release the results early after the company mistakenly gave some of it away on Twitter.

Buy now, pay later? Investors are paying now, but not buying Zip shares…

Affirm reported a 77% increase in revenue over the quarter. But it also reported a net loss of US$159.7 million. Investors evidently weren’t too impressed. The Affirm share price promptly crashed 21.4% over last night’s US trading session.

So obviously some of this sentiment alone might have flown into the zip share price. Block Inc CDI (ASX: SQ2), the new owner of fellow BNPL provider Afterpay, has also lost a good chunk of change today.

But another warning came out of Affirmt that might have spooked investors even further.

According to reporting in the Australian Financial Review (AFR) today, Michael Linford, chief financial officer (CFO) at Affirm, warned investors that rising interest rates pose a massive risk to Affirm’s business. He said that a “1 per cent lift in rates ‘beyond current expectations’ would result in 20 basis point impact to revenue less transaction costs as a percentage of gross merchant value in FY2023”.

Investors in both the US and here in Australia are already arguably on edge over inflation and interest rate rises. So that was probably not what investors wanted to hear. Worryingly for Zip, it’s possible that the same factors could affect Zip’s own business in a similar fashion.

So that might be why ASX investors are punishing Zip shares today so far.

At the current Zip share price, this ASX BNPL share has a market capitalisation of $1.71 billion. 

The post Do Affirm’s warnings raise red flags for the Zip (ASX:Z1P) share price? appeared first on The Motley Fool Australia.

More reading

• Why are these ASX 200 tech shares tumbling more than 6% on Friday?
• ASX 200 (ASX:XJO) midday update: IAG upgrades guidance, Magellan sinks again
• ASX BNPL shares in focus after Affirm (NASDAQ:AFRM) share price tumbles 21%
• After a disastrous 2021, the Zip (ASX:Z1P) share price has tumbled another 30%. What’s going on?
• The Zip (ASX:Z1P) share price has 100% upside – broker

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 Block, Inc. and ZIPCOLTD FPO. 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 investors are taking a closer look at Bitcoin (CRYPTO: BTC) as it faces unchartered territory.

The potential of rising interest rates is a phenomenon that cryptocurrencies have not yet seen in their existence. Though, it is looking more likely after the United States consumer price index hit a staggering 7.5% year-over-year increase last night.

Today, the Reserve Bank of Australia (RBA) has acknowledged the surprisingly hit figure. RBA Governor Philip Lowe responded by recognising that a rate increase this year may now be ‘plausible’.

Despite this, recent research from JPMorgan suggests there could still be a pathway to new all-time highs for Bitcoin.

So, where could Bitcoin be heading from here?

Short term pain before a long term gain

In the past week, the price of Bitcoin has rallied nearly 17%, recuperating some of the ground lost between November and January. However, in a recent report from JPMorgan research analyst Nikolaos Panigirtzoglou, there could be more downside in the short term.

According to the report, Bitcoin should be fairly valued at around US$38,000. Interestingly, the analyst bases this on a comparison of volatility against gold.

Panigirtzoglou highlights that because Bitcoin is four times more volatile than the precious metal, its price target is US$38,000. Moreover, if the cryptocurrency was able to reach parity to gold on a volatility basis, then its fair value would be US$150,000.

As such, the analyst applied a long-term price target of US$150,000 on Bitcoin. Although, this would be reliant on it gaining more mainstream acceptance — an outcome that would presumably reduce volatility.

Is Bitcoin correlated with other investments?

Cryptocurrency advocates have long touted cryptocurrency — namely Bitcoin — as an uncorrelated asset class. Essentially, this means its performance is relatively untethered to other investments such as shares, real estate, etc.

More recently, the behaviour of the long-standing cryptocurrency has started to resemble that of tech shares. In the chart below, Bitcoin moved counter to the S&P/ASX All Technology Index (ASX: XTX) back in March 2021.

However, the pair began moving more synchronously in November last year.

Nonetheless, some crypto experts believe the correlation will be short-lived. Bitcoin strategist at Validus Power Corp, Greg Foss, reckons the similarity in performance will separate in the future.

Foss said:

Bitcoin eventually will be viewed as insurance and, therefore, will de-correlate from the rest of the assets.

The post Could Bitcoin (CRYPTO:BTC) be eyeing off a $150,000 future? appeared first on The Motley Fool Australia.

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• Bitcoin price rally fizzles. Here’s what the experts are watching for next
• The best cryptocurrency exchanges for Australians
• $3.6 billion crypto heist thwarted, sending this obscure cryptocurrency skyrocketing
• This global financial giant is buying up Bitcoin. Could ASX banks be next?
• Why Bitcoin and Ethereum Were Up Big Today

Motley Fool contributor Mitchell Lawler owns Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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 Unibail-Rodamco-Westfield CDI (ASX: URW) share price is jumping today on the back of a sale and joint venture announced after the market closed yesterday.

The real estate company — which owns and runs 85 shopping centres and more than 50 flagship sites in Europe and the United States — also released its full-year results for the 2021 financial year yesterday.

At the time of writing, the Unibail Rodamco share price is up 7.32% at $5.65.

So what does this joint venture mean for the company? And how has it fared over the last 12 months with the worldwide COVID-19 challenges?

Let’s dive straight in…

Unibail-Rodamco’s joint venture

The Unibail-Rodamco share price is gaining after the company announced it had agreed to sell a 45% stake in Westfield Carré Sénart in Paris.

It will also enter into a long-term joint venture and management contract with insurance companies Societe Generale Assurances and BNP Paribas Cardif to provide asset and property management services.

The centre has an implied sticker price of €1 billion with a transaction date expected in Q1 FY22. The sale will cut €280 million of debt from the company’s balance sheet.

Unibail-Rodamco-Westfield CEO Jean-Marie Tritant said:

We are pleased to announce the completion of this transaction and the creation of a long-term partnership with two leading French institutional investors.

The agreement is fully in line with our European disposal strategy to find the right joint venture partners for select assets, allowing us to release capital while continuing to leverage our established management capabilities.

FY21 full-year results

Additionally, the Unibail-Rodamco share price is likely being boosted by the company’s earnings for FY21, which it also released after the market closed on Thursday.

The real estate company saw decreased vacancies across the board, with “tenant sales approaching pre-COVID levels”. In fact, sales-based rents were up 30% against 2019.

As of 31 December 2021, the Unibail-Rodamco portfolio was valued at €54.5 billion — retail accounted for 86% of this, offices 6%, convention and exhibition venues 5%, and services 2%. It has also seen its asset values stabilise.

Further, it reported “above guidance” adjusted recurring earnings per share (EPS) of €6.91. Its 2022 adjusted earnings per stapled share (AREPS) are predicted to be between €8.20 and €8.40.

The company has also made a €2.2 billion debt reduction dent in its deleveraging plan and is pushing towards its goal of reducing its US financial exposure this year and the next.

Tritant said Unibail-Rodamco’s “operational performance over the past 12 months, achieved in the extremely difficult context of COVID-19, gives us great confidence for 2022”.

Unibail-Rodamco share price snapshot

Over the past 12 months, the Unibail-Rodamco share price has increased by 21%. It saw its highest price of $6.53 in June and its lowest of $4.25 in February.

Its shares are also up 18% this year to date.

The company has a market capitalisation of $1.01 billion and a price-to-earnings ratio (P/E) of 6.13.

The post Merci! Here’s what’s driving the Unibail (ASX:URW) share price 7% higher today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: IAG upgrades guidance, Magellan sinks again

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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ASX shares are having a tough time of it today.

At time of writing the All Ordinaries Index (ASX: XAO) is down 1%, having been down as much as 1.4% in earlier trading.

ASX shares in the tech space are doing it even tougher.

The S&P/ASX All Technology Index (ASX: XTX) is currently down 2.4% following an earlier loss of 2.9%.

Why are ASX shares under pressure?

Inflation figures out of the United States surprised to the upside once more. Inflation in the world’s largest economy now stands at 7.5%, the highest level since 1982.

That means the US Federal Reserve is more likely to raise rates by more, and more often, than many investors had been hoping.

This saw US share market tumble yesterday (overnight Aussie time), with the Dow Jones falling 1.5% and the tech-heavy Nasdaq closing down 2.1%. And the ripple effect is seeing many ASX shares selling off today.

Abrupt change in financial conditions

Australia’s inflation rate remains well below the 7.5% just posted in the US. But that doesn’t mean ASX shares are immune to rapid rate increases by the US Fed, the world’s most watched central bank.

Speaking at a parliamentary hearing today, Reserve Bank of Australia (RBA) governor Philip Lowe said the surprising leap in US inflation was a “source of uncertainty” for Australia’s economic outlook,

As the Australian Financial Review reports, Lowe “warned investors that the country’s financial markets are at risk of an ‘abrupt adjustment’ if surging US inflation forces the Federal Reserve to raise interest rates faster than expected”.

According to Lowe:

For the first time in several decades, inflation has become a major issue in the global economy. It’s entirely possible that countries with higher inflation rates will need a bigger adjustment in interest rates than currently anticipated. And if so, this could result in an abrupt change in financial conditions around the world including here in Australia.

However, Lowe noted that the current inflationary situation is very different in Australia and much of Asia. “The prices have gone up, so the US is in a very different position than us,” he said. “Inflation is not a problem in China, in Japan, in most of south-east Asia.”

While Lowe kept the door open for a possible cash rate rise this year, which would throw up some headwinds for ASX shares, he didn’t expect the cash rate to reach 2.5% for several years.

Addressing the real interest rate (which takes inflation into account) versus nominal rates (which do not), Lowe said that if inflation in Australia reaches the central bank’s midpoint target of 2.5%, a 2.5% cash rate would offer zero real returns, rather than negative.

According to Lowe (quoted by the AFR):

So if we just get to zero real interest rate, then the cash rate would have to average at least 2½ per cent because that’s what we want inflation to average. Let’s hope productivity growth will be stronger and the return to savers will be positive in real terms.

With today’s market action in mind, we imagine ASX shareholders will be watching the developments at the world’s top central banks closely.

The post ASX shares at risk? RBA’s Lowe sounds warning on US rate rises appeared first on The Motley Fool Australia.

More reading

• Here’s why the IAG (ASX:IAG) share price is charging 4% higher today
• Why are these ASX 200 tech shares tumbling more than 6% on Friday?
• What’s the outlook for AGL (ASX:AGL) shares according to these brokers?
• Hazer (ASX:HZR) share price rockets 14% on low-carbon hydrogen project
• The carnage continues: Appen (ASX:APX) shares tumble 7%, here’s why

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 having a great day in comparison to the rest of the market.

In early afternoon trade, the insurance giant’s shares are up over 4% to $4.74.

The compares very favourably to the ASX 200, which is down by a disappointing 0.8% at the time of writing.

Why is the IAG share price outperforming the market today?

Investors have been bidding the IAG share price higher today after the insurer released its half year results.

IAG’s results were quite messy due to high natural perils costs, which were above its allowance by $299 million during the period. This reflects events including the Victorian earthquake and severe weather across Australia in October.

This ultimately led to IAG reporting a 57.8% decline in its insurance profit to $282 million and a 62% reduction in its cash earnings to $176 million. The latter appears to have fallen short of expectations.

For example, according to Morgans, it was expecting a first half cash profit of $210 million, whereas the consensus estimate stood at $285 million.

And while IAG’s interim dividend of 6 cents per share was in line with Morgans’ estimates, it was short of the consensus estimate of 8 cents per share. It was also the lowest interim dividend in a decade.

So why are its shares pushing higher?

The market appears to be overlooking the cash profit and dividend miss due to its FY 2022 guidance and its longer term outlook.

Management spoke very positively about current trading conditions and has upgraded its gross written premium (GWP) guidance from “low” to “mid single-digit” growth.

It also reaffirmed its reported insurance margin guidance of 10% to 12%, which management believes puts it on course to achieve its aspirational goal of 15% to 17% over the medium term.

In respect to the future, IAG’s CEO, Nick Hawkins, commented: “IAG today is a much stronger, more resilient company than in recent years and we have the right foundations to position us well for the future. I am confident we will continue to deliver profitable business and customer growth in FY22 and longer-term value for our stakeholders.”

The post Here’s why the IAG (ASX:IAG) share price is charging 4% higher today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: IAG upgrades guidance, Magellan sinks again
• IAG (ASX:IAG) share price on watch amid earnings miss but guidance upgrade
• 5 things to watch on the ASX 200 on Friday
• Could IAG (ASX:IAG) shares become suddenly sexy amid rising interest rates?
• Own IAG (ASX:IAG) shares? Here’s what to expect when it reports next week

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 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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Friday is proving to be a rough day for S&P/ASX 200 Index (ASX: XJO) technology shares as they weigh heavily on the broader market.

In fact, at the time of writing, tech and buy now, pay later (BNPL) shares are among the ASX 200’s worst performing constituents, despite relative silence across the sector.

Right now, the ASX 200 is down 1.09%. Meanwhile, the S&P/ASX 200 Info Tech Index (ASX: XIJ) has fallen 3.14% and the S&P/ASX All Technology Index (ASX: XTX) is down 2.72%.

Let’s take a look at what might be dragging on ASX tech shares on Friday.

ASX 200 tech shares leading the index’s fall

ASX 200 tech shares are suffering today after the Nasdaq Index plummeted 2.1% overnight.

It tops off a shocking 30 days over which the United States-based, tech-heavy index has fallen more than 2% in 6 separate sessions, culminating in a 6.39% tumble.  

Additionally, renewed fears of rising interest rates have likely also put pressure on ASX tech stocks after the Reserve Bank of Australia governor Phillip Lowe warned changes to international interest rates could spur an “abrupt adjustment in financial conditions”.

Right now, the biggest fallers on the ASX 200 include Life360 Inc (ASX: 360), Appen Ltd (ASX: APX), and Zip Co Ltd (ASX: Z1P). They’ve fallen 7.2%, 7.1%, and 6.1% respectively.

At the same time, Block Inc CDI (ASX: SQ2) and Megaport Ltd (ASX: MP1) are both down more than 5%.

The only ASX 200 tech share to be recording a gain right now is Computershare Limited (ASX: CPU).

It’s continuing its recent rally, having gained 0.55% at the time of writing. It’s also hit a new 52-week high in today’s session.

Unfortunately for BNPL fans, Block and Zip both have an additional weight on their shoulders today.

Their international competitor, Affirm Holdings Inc (NASDAQ: AFRM), tumbled 21% overnight after it released its quarterly earnings early.

Other recognisable Nasdaq stocks that plummeted during the United States’ Thursday session include Australian export Tritium DCFC Ltd (NASDAQ: DCFC). After rocketing 113% earlier this week, its share price slumped 15% last night.

Stock in Meta Platforms Inc (NASDAQ: FB) also fell 1.6% after Wednesday’s 5% gain. It has fallen 27% since the end of January.

The post Why are these ASX 200 tech shares tumbling more than 6% on Friday? appeared first on The Motley Fool Australia.

More reading

• The carnage continues: Appen (ASX:APX) shares tumble 7%, here’s why
• ASX 200 (ASX:XJO) midday update: IAG upgrades guidance, Magellan sinks again
• ASX BNPL shares in focus after Affirm (NASDAQ:AFRM) share price tumbles 21%
• After a disastrous 2021, the Zip (ASX:Z1P) share price has tumbled another 30%. What’s going on?
• Here are the top 10 ASX shares today

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., Life360, Inc., MEGAPORT FPO, Meta Platforms, Inc., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended MEGAPORT FPO and Meta Platforms, Inc. 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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Shares in AGL Energy Limited (ASX: AGL) are heading south today and are now trading 6% lower at $6.82 apiece.

Whilst there’s been no price-sensitive news out of the energy giant’s camp today, AGL did release its first-half results for FY22 yesterday.

Market pundits originally responded well to the update, which was characterised by a 6% year on year gain in revenue. There was also a jump back into the black with statutory net profit after tax (NPAT) at $555 million.

However, the activity was short-lived yesterday as investors started to pick apart the update. Underlying NPAT decreased by 41% and the interim dividend was cut to 16 cents per share compared to 41 cents last year.

Is AGL a buying opportunity after its results?

Morgan Stanley analysts remain neutral on the stock. However, they do reckon AGL is set to deliver a strong set of results in FY23. But for now, they think it might be best for investors to sit on the sidelines.

Morgan Stanley says AGL should benefit from a recovery in energy demand after the La Nina summer in Australia and COVID-19 lockdowns.

The investment bank also notes that energy prices in the eastern states of Australia are another potential tailwind for AGL shares, especially given the current state of energy markets around the world.

However, the broker also cautions investors on the prospect of supply increases. New plants and company ventures may even out the demand/supply equation and reduce prices.

AGL’s redundancy program is sure to help its operating costs in FY22/FY23, the broker says, alluding to the energy giant’s decision to slash its coal and gas power plant workforce last year.

Even though Morgan Stanley remains neutral on AGL shares, the broker did lift its price target by 6% to $6.88. This means they feel AGL is fairly valued right now (supporting its neutral view).

What do other brokers say?

Fellow broker JP Morgan is more constructive on AGL and rates the shares a buy on an $8.75 price valuation.

The team likes AGL’s current valuation, its corporate appeal, and current strength in underlying commodity markets. As such, the broker urges its clients to buy AGL.

Credit Suisse is equally bullish on AGL and has set a price target of $8.20 per share.

AGL share price snapshot

In the past 12 months, AGL has tanked almost 40% after a difficult period in 2021. However, this year to date, the AGL share price has climbed by 8%.

The post What’s the outlook for AGL (ASX:AGL) shares according to these brokers? appeared first on The Motley Fool Australia.

More reading

• ‘Not enough’: Government challenges AGL (ASX:AGL) over planned closures
• AGL (ASX:AGL) takes a knife to dividends in its first-half earnings
• 5 things to watch on the ASX 200 on Thursday
• Both have had a bumper start to the year. But which is the better buy, AGL or Origin (ASX:ORG) shares?
• Could AGL (ASX:AGL) be gearing up for a major capital raise?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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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