The EMvision Medical Devices Ltd (ASX: EMV) share price has spent the morning in the red. It is currently changing hands for $2.91, down 5.21%.

EMvision’s shares are on the move today after it announced an important update regarding a device application in the United States.

Here’s what we know.

What did EMvision announce?

For context, EMvision is currently on the tools developing a portable medical imaging device that uses electromagnetic microwave imaging.

Its primary purpose is to diagnose the serious and complicated brain condition known as a stroke. However, it will diagnose other conditions as well.

EMvision advised it had received feedback from the US Food and Drug Administration (FDA) on its recent application for a Breakthrough Device Designation (BDD) in the US.

Under the Breakthrough Devices Program, applicants get priority review of their proposed therapy or intervention. This includes “interactive communication across the device development and validation path,” per the release.

The release notes that preliminary evidence supports the use of its technology to “differentiate and localise” both types of stroke in patients.

However, the company reports that the FDA requires more clinical study data to support the case. It will need this before EMvision’s device can get approval for the market.

As a result of the FDA feedback, EMvision advised it “has not been granted the BDD at this time.”

It’s not all over, though. The company still intends to go after the BDD once it has the clinical data on hand. EMvision will “generate [data] through further clinical development.”

Importantly, the company emphasises that its pursuit of the “FDA De Novo regulatory marketing authorisation pathway” for its 1st Gen portable brain scanner product remains unaffected.

EMvision itself didn’t appear to be fazed by the rejection. The medical tech company opting to take the feedback on board instead and get the ball rolling again.

Speaking on the announcement, EMvision CEO Dr Ron Weinberger said the company was “grateful for the quality feedback” provided by the FDA.

The decision has done little to deter the company’s growth vision. Weinberger confirmed the marketing authorisation “remains unchanged, as does (its) preparation for expanded future clinical studies.”

EMvision share price snapshot

The EMvision share price has had more than a choppy year so far, and has lagged the major benchmarks with a year-to-date loss of 5.81%.

Despite this, it’s rallied 4% this past month, and is still 14% in the green over the past year.

Nonetheless, the EMvision share price has lagged the S&P/ASX 200 Index (ASX: XJO) gain of around 21% in the 12 months.

The post EMvision (ASX:EMV) share price slides 5% following FDA update appeared first on The Motley Fool Australia.

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• What happened for the NAB (ASX:NAB) share price in the FY22 first quarter?
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• ASX 200 bank shares fall flat amid flurry of new regulations
• Here’s what happened to the Bitcoin price in September
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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended EMvision Medical Devices 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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ASX 200 bank shares are waking up to a number of new rules and reforms from regulators, the Australian Prudential Regulation Authority (APRA) and the Australian Banking Association (ABA) on Wednesday.

At the time of writing, all four major banks are underperforming the S&P/ASX 200 Index (ASX: XJO) which is up 0.11% to 7,256.1.

Commonwealth Bank of Australia (ASX: CBA) has retreated 2.28% to $103.095. National Australia Bank Ltd (ASX: NAB) is 0.22% lower to $27.72. Westpac Banking Corp (ASX: WBC) is down 0.46% to $25.69. Australia and New Zealand Banking GrpLtd (ASX: ANZ) is also lower, down 0.29% to $27.75.

ASX 200 bank shares underperform as new regulations revealed

APRA tightens lending rules

The Australian housing market is rising at its fastest annual pace since June 1989 with home prices surging more than 20 per cent over the past year.

APRA announced new measures on Wednesday to further de-risk lending practices by increasing the minimum interest buffer banks use to assess the serviceability of home loans.

In a letter to banks, APRA told them to increase the buffer by 0.50 percentage points from 2.5 per cent to 3.0 per cent above the loan product rate.

APRA Chair Wayne Byres said this is a targeted and judicious action designed to reinforce the stability of the financial system. 

The move was designed at ensuring “heavily indebted borrowers” could meet the debt they were taking on today and, more importantly, in the distant future.

“More than one in five new loans approved in the June quarter were at more than six times the borrowers’ income, and at an aggregate level the expectation is that housing credit growth will run ahead of household income growth in the period ahead,” said Byres.

ASX 200 banks hit by swathe of new reforms

Also weighing on ASX 200 bank shares is a sweeping set of reforms from the ABA to improve financial services and strengthen the protection for customers.

Chief executive officer at the ABA Anna Bligh said that this month’s changes represent a major step forward for all stakeholders following the 2018 Royal Commission.

Six new reforms will be introduced this week, including:

• Anti-hawking laws: banks are banned from unsolicited selling of financial products to customers
• Add-on insurance laws: a cooling-off period between calls or contact for add-on insurance products so customers can make informed purchasing decisions
• Design and distribution obligations: ensures products are better targeted to the right customers
• Faster complaint resolution: customer complaints will need to be resolved faster, with clear reasons for the outcome reached
• Better reference checking: mortgage brokers and financial advisers will require better reference checking to ensure consistent practices throughout the industry
• Increased breach reporting requirements: banks will need to report more information about non-compliance and misconduct to regulators

“Two and a half years ago, the banking industry put its hand up and said we must do better, and looking back now, we have made strong progress,” said Bligh.

The post ASX 200 bank shares fall flat amid flurry of new regulations appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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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Bitcoin (CRYTPO: BTC) investors were holding on through another volatile month in September.

That kind of volatility remains par for the course, even for the world’s first and still biggest crypto by market cap.

How did the Bitcoin price move in September?

To give you an idea of the price swings, on 7 September Bitcoin was trading for US$52,700. By 22 September, it had tanked to US$40,600, a loss of 23% in 15 days, according to data from CoinMarketCap.

For cryptocurrency investors who held on throughout the month, the outcome wasn’t quite that bad.

Bitcoin kicked off September trading for US$47,150. On 30 September it was worth US$43,450, down 8% for the month.

What moved the price over the month?

There were a number of factors both pushing and pulling on the Bitcoin price in September.

Enthusiasm was high around El Salvador’s official launch of its crypto trading platform, Chivo, part of the move that makes the digital token legal tender in the Central American nation.

However, glitches in Chivo when it was rolled out on 8 September promptly saw the Bitcoin price crater by 11% on the day. Those glitches have since been fixed, and you can now buy your Big Mac in El Salvador with however many Satoshis it costs.

(You can split your Bitcoin into 100 million Satoshis.)

September also revealed a surprising shift in the makeup and number of Aussies investing in (or planning to invest) in cryptos. Inflation concerns were among the top reasons that respondents gave in the CoinSpot survey.

We also learned in September that cryptos are far from immune from the forces that impact share markets. Like the massive debt woes of Chinese property giant China Evergrande Group (HKG: 3333).

News that Evergrande could collapse, leaving debt holders out many tens of millions of dollars, roiled global share markets. That news also saw the price of Bitcoin tank 8% on 21 September.

“Quite often there is negative news out of China and we see this impact the price of Bitcoin to varying degrees, and the fallout from Evergrande is following a similar pattern,” said Jonathon Miller, managing director of Australian cryptocurrency exchange Kraken.

October, if you’re wondering, has been a better month for the token. Currently trading at US$51,560, it’s up 19% so far this month. Of course, those gains can evaporate as quickly, or faster, than they materialise.

Invest with care.

The post Here’s what happened to the Bitcoin price in September appeared first on The Motley Fool Australia.

More reading

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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 Santos Ltd (ASX: STO) share price has continued its positive run and is pushing higher on Wednesday.

In morning trade, the energy producer’s shares are up 3% to $7.47.

This means the Santos share price is now up over 20% in the space of a month.

Why is the Santos share price up 20% in a month?

As well as getting a boost from a positive reaction to its merger plans with Oil Search Ltd (ASX: OSH), investors have been bidding the Santos share price higher in recent weeks after oil prices surged.

In fact, oil prices continue to rise and hit multi-year highs overnight.

According to CNBC, on Tuesday night the Brent crude oil price settled 1.6% higher at US$82.56 per barrel and the West Texas Intermediate (WTI) oil price settled 1.7% higher at US$78.93 per barrel. The latter was its highest level since 2014.

The catalyst for this was OPEC’s meeting this week. At the meeting, the oil cartel resisted calls to increase supply quicker and stuck to its gradual production increase plans. OPEC is reportedly concerned that a fourth global wave of COVID-19 infections could hit the demand recovery.

Is it too late to buy shares?

The good news is that one leading broker believes there’s still a lot of value left in the Santos share price.

According to a recent note out of Morgans, the broker has an add rating and $8.55 price target on the company’s shares.

Based on the current Santos share price, this implies potential upside of 14.5% over the next 12 months.

Morgans commented: “We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a continuing broader sector recovery. STO remains our top preference amongst our large-cap energy universe. With early indications supportive of our view that material synergies and enhanced growth plans will result from the OSH merger. While in good shape, we expect STO to continue gaining investor support as it executes on the opportunistic OSH merger.”

The post Santos (ASX:STO) share price up 3% as oil surge continues 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. 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 Aroa Biosurgery Ltd (ASX: ARX) share price is climbing in early trade this morning as the company released its preliminary half-year results.

At the time of writing, the surgical technology company’s share price is up 14.81% from the market open and changing hands at $1.24 a share.

After a robust first half, Aroa also announced it had also signed a contract extension.

Here are the details on both advancements.

Aroa Biosurgery share price lifts on strong preliminary sales growth in first half

Aroa came out of the reporting period with a healthy set of results, with preliminary unaudited sales revenue of around NZ$17 million.

That represents an approximate 108% year on year growth when neutralising exchange rate effects.

After changes the company made to its sales team to drive more product turnover, the company claims to have grown its earnings substantially over the half-year.

On these two factors, Aroa updated its FY22 product sales guidance and now expects to be at the upper end of previous guidance of NZ$30 million to NZ$33 million.

Aroa will “further assess its FY22 product sales revenue guidance” once it confirms its H1 FY22 revenue, including “the quarterly revenue share from TELA Bio”.

Aside from this progress, Aroa also announced it had signed a contract extension for its Myriad products.

The contract is to be rolled over with “leading US group purchasing organisation (PGO)” HealthTrusts Purchasing Group, L.P.

According to the company, approximately 1,500 US hospitals and healthcare systems will have access to its Myriad products as a result of the extension.

To cover the announcement in more detail, Aroa is holding an investor presentation today.

What did management say?

Speaking on the announcement, Aroa Biosurgery CEO Brian Ward said:

It is pleasing to see the momentum that is developing across the AROA product portfolio. The changes we made to our sales team [are] delivering on our expectations for Myriad Matrix, Myriad Morcells and Endoform. We are also seeing growing demand from TELA Bio, Inc., AROA’s sales and distribution partner for OviTex products.

Regarding the company’s guidance figures, Ward went on to add:

Despite the constraints of COVID-19, the preliminary figures represent a strong revenue result for the half year, exceeding internal forecast expectations. Once unaudited revenue for H1 FY22 is confirmed and the outlook for COVID-19 becomes clearer, we intend to further assess our FY22 product sales revenue guidance.

Aroa Biosurgery share price snapshot

The Aroa Biosurgery share price has gained 16.5% in the past month, however, has had a difficult year to date.

It has only managed to climb 5.6% into the green during this time and is 5% in the red over the last year.

Both of these results have lagged the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% in the past year.

The post Aroa Biosurgery (ASX:ARX) share price up 14% on strong half appeared first on The Motley Fool Australia.

More reading

• Boss Energy (ASX:BOE) share price wobbles after operational update
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• The Pilbara Minerals (ASX:PLS) share price surges on resource upgrade
• Why Facebook shares bounced back on Tuesday
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The author Zach Bristow 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 Boss Energy Ltd (ASX: BOE) share price took off this morning before handing its gains back.

The surge coincided with the company’s release of a non-price sensitive update. The uranium-focused minerals exploration company updated the market on its uranium inventory, its Honeymoon Project, key appointments, and its prediction of future uranium prices.

At the time of writing, the Boss Energy share price is 24 cents, flat against its previous close.

However, the Boss Energy share price reached 25.5 cents earlier this morning – representing a 6.25% gain.

Let’s take a closer look at today’s news from Boss Energy.

Boss share price soars on market update

The Boss share price took off this morning as the company released a seemingly positive market update.

Firstly, Boss announced it has recorded a book profit of $21.81 million after the value of its uranium inventory soared.

Since Boss purchased its 1.25 million pound uranium stock in March, the price of the commodity has increased from US$30.15 per pound to US$41.25 per pound. That compares to Boss’ forecasted price of US$31.90 per pound.

In addition to its inventory’s increased cash value, Boss’ inventory has boosted the flexibility of project funding and offtake negotiations with customers as it prepares to restart production at its Honeymoon Project.

Boss has also received requests for tender proposals from 3 countries with nuclear energy. It says the requests indicate the growing strength of the uranium market and its Honeymoon Project’s industry status.   

The company is currently preparing for a final investment decision for the South Australian uranium project.

At the same time, it’s ramping up its exploration strategy with a staged approach.

The strategy has already expanded Honeymoon’s global JORC resource by around 433% to 71.67 million pounds since 2015.

Additionally, Boss is progressing its front-end engineering design studies. It’s expected to be finished in the first quarter of 2022.

Finally, the company has appointed several new team members. Among the new faces is Jonathan Owen, who will be project manager of Honeymoon’s restart.

Commentary from management

Boss managing director Duncan Craib commented on the update:

While the continued purchasing of U3O8 by the Sprott Physical Uranium Trust will have a positive impact on the market by sequestering significant quantities of uranium and strengthening the uranium price, we can expect to see continued volatility until more nuclear power utilities enter the market…

By continuing to advance Honeymoon on several fronts while growing the uranium inventory, we can ensure we can capitalise on the rapidly turning uranium market at the moment of our choosing.

Boss Energy share price snapshot

The Boss Energy share price has gained 140% since the start of 2021. It is also 242% higher than it was this time last year.

The post Boss Energy (ASX:BOE) share price wobbles after operational update appeared first on The Motley Fool Australia.

More reading

• Why has the Boss Energy (ASX:BOE) share price tanked 30% in 2 weeks?
• How did ASX uranium shares perform in September?
• A sea of red for ASX uranium shares. Is the run over?
• Are ASX uranium shares fully valued?
• Why the Boss Energy (ASX:BOE) share price is tanking 18% today

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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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

After suffering a bad case of the Mondays, like just about every growth stock on Earth, shares of Apple (NASDAQ: AAPL) bounced right back on Tuesday, rising as much as 2.2% and closing the day up 1.4%.

You can thank Wall Street for that.

So what

In separate reports, investment banks Piper Sandler and Bank of America gave two reasons for investors to remain optimistic about Apple despite yesterday’s sell-off.

In its just-completed biannual “Taking Stock with Teens” survey, reports StreetInsider.com, investment bank Piper Sandler found that the Apple brand retains a strong following among America’s youth. In particular, out of 10,000 teens surveyed, 87% said they own an iPhone.

Ponder that staggering number for a moment. 10,000 kids. Chosen at random. 8,700 of them not just own smartphones but iPhones.

And the news gets better. 88% of those kids said they plan to buy an iPhone as their next phone and 22% of them specifically plan to upgrade to the iPhone 13 before the year is out. Piper Sandler concluded its report with this observation: “The survey results [confirm] Apple’s place as the dominant device brand among teens.”

Now what

And how! Of course, this makes it more important than ever that Apple deliver its iPhones to the masses in a timely fashion. And in this regard, Bank of America Securities’ report is encouraging. In a separate note on StreetInsider, the stock ratings news site quotes BofA saying that “our tracking of iPhone ship dates on Apple’s own website, and various carrier websites, indicates that lead times are improving particularly in the U.S.”.

While it’s taking a bit more time than Apple might like to ship iPhone “13 Pro and Pro Max models,” BofA found that “iPhone 13 and 13 Mini” availability is just fine, especially if you buy your phone from a carrier rather than from an Apple store (where wait times are “more extended”).

About the only bad news you can find in this report is BofA’s observation that “current lead times are not indicative of significantly higher demand vs last year,” but rather due to “ongoing supply side challenges” from the shortage of components and production slowdowns in China.

On balance, though, the news is still more good than bad for Apple, and that’s why the stock is up.

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

The post Why Apple stock bounced higher on Tuesday appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Rich Smith has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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The Pilbara Minerals Ltd (ASX: PLS) share price jumped after it posted a 54% increase in total 2P (Proved and Probable) ore reserves.

The Pilbara Minerals share price rallied over 3% to $1.94 in early trade when the S&P/ASX 200 Index (Index:^AXJO) is struggling around breakeven.

The miner is also outperforming other ASX lithium shares. The Orocobre Limited (ASX: ORE) share price fell 1.8% to $8.12 and the IGO Ltd (ASX: IGO) share price lost 0.9% to $8.51 at the time of writing.

Resource upgrades powers Pilbara Minerals share price

The discovery of new pegmatite domains, together with integration of the Ngungaju Resource led to the upgrade. Management reported a mineral resource estimate at 30 June 2021 of 308.9 million tonnes (Mt) grading 1.14% Li2O (as spodumene), 105 ppm Ta2O5 and 0.59% Fe2O3 at a cut-off grade of 0.2% Li2O.

Pilbara Minerals share price is also reacting to the upgraded Pilgangoora Lithium-Tantalum Project. Management said increased the contained lithium oxide estimates at the project by 47% to 162 Mt grading 1.2% Li2O, 100 ppm Ta2O5 and 1.0% Fe2O3.

The Pilgangoora project has a mine life of around 26 years. This is based the combined 6.3Mt per annum (Mtpa) operations, consisting of the 1.3 Mtpa Ngungaju process plant and the proposed Pilgan 5 Mtpa expanded process plant.

More growth levers ahead

“The continued growth in Ore Reserves reflected the successful integration of the Ngungaju project area and the highly successful development drilling program undertaken this year,” said Pilbara Minerals’ chief executive Ken Brinsden.

“The quality and scale of the Pilgangoora project confirms Pilbara Minerals as a leading hard rock lithium producer and truly sets the scene for our expansion to 6.3 Mtpa and continued growth beyond that.”

The updated Ore Reserve is based on a pit shell selected at a flat forward commodity price of US$588 per tonne of spodumene concentrate for Central, East and South pits.

The long-term price projection for smaller pits (comprising 6% of Ore Reserve) scheduled for later in the mine life is US$700 per tonne.

Bullish lithium outlook drives Pilbara Minerals share price

ASX lithium shares have strongly outperformed on expectations that global supply cannot keep up with demand.

The rapid adoption of electric vehicles and battery storage is driving this demand. Meanwhile, supply has been slow to play catch up.

Some experts believe this trend will persist over the medium-term. This bullish outlook sent the Pilbara Minerals share price surging over 500% over the past year. The Orocobre share price has tripled in value while the IGO share price gained 105% over the period.

In contrast, the ASX 200 is “only” up 22% over the past year.

The post The Pilbara Minerals (ASX:PLS) share price surges on resource upgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns shares of Independence Group NL and Orocobre Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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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

After suffering a bad case of the Mondays, shares in Facebook (NASDAQ: FB) stock bounced back in Tuesday trading, regaining 2.3% of the 4.9% that it lost. You may want to thank Piper Sandler for that.

So what

As you’ll recall, Facebook got hit by a double-whammy on Monday. First, it suffered a public relations blow when the whistleblower behind The Wall Street Journal‘s “The Facebook Files” reporting stepped out of the shadows and revealed herself to be a one-time member of Facebook’s own Civic Integrity Team.

This is the work team responsible for helping to stop the “spread [of] political falsehoods, [the stoking of] violence and [the abuse of Facebook] by malicious governments”.

Adding injury to insult, the social network suffered its worst services outage ever on Monday when unspecified “networking issues” caused Facebook and other apps it owns, including WhatsApp and Instagram, to go dark for six hours straight.

Now what

The outage is over now. And in what feels like a rare bit of good news, Piper Sandler just released a report (according to TheFly.com) confirming that for all its troubles, Facebook’s Instagram remains the “most used social app” among US teens, with 81% reporting using it.

Don’t get too excited though. While everyone still kinda uses Instagram, Piper noted that after surveying 10,000 American teens, its competitor Snap (NYSE: SNAP) is actually teens’ favorite social app. Asked to rank their favorites, 35% of respondents picked Snapchat over Instagram.

Worse news for Facebook, Snapchat scored higher in this survey than in the one Piper ran six months ago. As negative headlines continue to swirl around Facebook and Instagram, we’ll be even more interested in seeing how these numbers look six months from now. 

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

The post Why Facebook shares bounced back on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why Facebook fell nearly 11% in September
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Rich Smith has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook. The Motley Fool Australia has recommended Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

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

What happened

After suffering a bad case of the Mondays (like just about every tech stock on the planet), shares of Amazon (NASDAQ: AMZN) are bouncing right back on Tuesday, and were up a solid 2% as of 1:30 p.m. EDT.

You can thank Wall Street for that.

So what

StreetInsider.com reports that investment bank Piper Sandler‘s (NYSE: PIPR) just-completed biannual “Taking Stock With Teens” survey found that Amazon remains the most popular and widely used retailer among teens, with 52% of youths surveyed saying they used it. This is important, Piper Sandler says, because it shows Amazon is still getting customers while they’re young, so as the teen cohort ages into adulthood, it will be likely to subscribe to Amazon Prime (as adult Amazon users tend to do). This, in turn, “should serve as a powerful tailwind [for Amazon’s profits] for many years to come,” the bank says.

Now what

You wouldn’t know this tailwind is there, to judge from Amazon’s stock price. Shares are flat, and even down a small fraction of a percent, since the year began. But according to a second analyst, the J.P. Morgan division of JPMorgan Chase (NYSE: JPM), this price weakness in Amazon stock creates a “compelling opportunity” to buy the shares.

Investors might be worried that Amazon isn’t growing as fast this year as it was in the depths of the pandemic, when much of the country was quarantined and locked down with nothing much to do but shop on the internet. Nevertheless, J.P. Morgan argues that multiple months of forced training in how to shop online has created a “significant secular shift” in American shopping patterns.

Amazon might not grow as fast as it did in 2020, but it will certainly grow. In fact, most analysts forecast 30% average annual earnings growth over the next five years.

Whether that’s fast enough to justify a 60 P/E on the stock is the only real question remaining. 

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

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Rich Smith has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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