• Apple’s App Store case: What investors need to know

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

    apple iphone

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

    Apple (NASDAQ: AAPL) has been locked in a battle with Epic Games, the creator of the popular game Fortnight, since last August. Epic tried to implement a way for users to pay for in-game purchases without going through Apple’s App Store.

    Apple didn’t like that idea.

    But in a court ruling earlier this month, U.S. District Judge Yvonne Gonzalez Rogers determined the tech giant must allow other avenues of payment for in-app purchases. While that’s bad news for Apple and its investors, the ruling still had plenty of good news too.

    Here’s what investors need to know.

    The bad news first

    The judge’s ruling will force Apple to allow alternative payment options for in-app purchases. 

    Apple previously made a concession to allow certain apps to provide users with a link to pay for a subscription outside of Apple’s ecosystem. That rule only applied to what Apple called “reader apps,” which allow users to access subscription content like video, music, or news. The court ruling will force the company to apply that same mechanism to all apps in the United States.

    That’s a big deal, because Apple derives a significant amount of its App Store revenue from in-app game purchases in the U.S., which were previously restricted to Apple’s payment system. App Store users in the U.S. spent $12.6 billion on mobile games last year between premium downloads and in-app purchases, according to data from Sensor Tower. Apple kept about $3.8 billion of that total.

    There’s also potential for the ruling to influence regulations and lawmakers around the world. South Korea and Japan have already made rulings affecting Apple’s App Store policies in recent weeks. In fact, a Japan Fair Trade Commission ruling was the impetus behind the change for reader apps.

    For now, however, the ruling may result in a loss of revenue between $1 billion and $4 billion per year, according to Loup Ventures analyst Gene Munster. For a company with annual operating income approaching $100 billion, that’s a manageable setback.

    The good news

    Judge Gonzalez Rogers didn’t find Apple to be a monopolist under either California state or federal law. As such, the company won’t be required to allow third-party app stores on iOS. It also means Apple can restrict developers from inserting their own payment processing mechanisms within their apps. In fact, the judge ordered Epic to pay Apple damages — 30% of revenue collected — for using the payment mechanism that got it booted from the App Store.

    Furthermore, the ruling also makes it harder for the Department of Justice to make the claim that Apple’s a monopolist that excludes market entrants and extracts monopolist profits. It won’t, however, prevent lawmakers from enacting legislation curbing the operations of the App Store, but it could make them more difficult to pass or hold up in courts.

    What happens next?

    Epic isn’t happy with the verdict. It will likely appeal the case in an attempt to force Apple to make further concessions. Judge Gonzalez Rogers even noted the 30% App Store commission is probably higher than it should be, but since Epic didn’t call into question the amount of the commissions — just that there’s a commission at all — she couldn’t rule on it. As such, that may be grounds for another lawsuit.

    Additionally, Apple faces anti-competition cases around the world, including from the EU. And it’s just one of several big tech companies under fire from regulators and lawmakers in Washington. So, there’s still a lot of uncertainty about the future of the App Store. But if the ruling is any indication, Apple is in a strong position to defend itself and one of its most profitable sources of revenue.

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

    The post Apple’s App Store case: What investors need to know appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Apple right now?

    Before you consider Apple, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Apple wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    Adam Levy owns shares of Apple. 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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  • Ethereum price climbs as competitor’s blockchain suffers outage

    A man handles a transaction on his smartphone using Facebook's new crytocurrency diem

    The Ethereum (CRYPTO: ETH) price is firming on Wednesday after a potential ‘Ethereum-killer’ cryptocurrency attempts to restart its network following a prolonged outage.

    The Solana network is currently stuck in a frozen state after a high-speed processor ran into a problem. Those in the crypto space have been wary of Solana’s rising prominence as a potential competitor to Ethereum. However, it appears Ethereum investors are more positive on the back of the reports.

    At the time of writing, the world’s second-largest cryptocurrency by market capitalisation is trading around A$4,673.45, up 3.33% over the past 24 hours.

    Solana hits a wall

    For those who may not have heard of Solana before, let’s run through a quick review. Solana operates on blockchain technology to provide decentralised finance (DeFi) solutions. Originally founded in 2017, the project has grown in recent months to be considered by many as a potential Ethereum beater.

    Importantly, Solana can facilitate around 351 transactions per second at an extremely low average cost of approximately 0.0025 cents per transaction. Theoretically, the network can handle up to 65,000 transactions per second.

    Meanwhile, it is believed that Ethereum can only handle roughly 30 transactions per second. In addition, based on gasnow.org, a slow transaction on the Ethereum network would cost $5.03.

    To offer such a dramatically faster network at a low cost, Solana employs a proof-of-history (PoH) model. In short, PoH utilises cryptographic verification of time to both secure its network and improve its speed. (Read more about proof of history here.)

    Unfortunately, the network was flooded with 400,000 transactions per second, pushing it beyond its capability. As a result, transactions were unable to be prioritised and the network began to fork. Subsequently, some of the nodes that the network relies on went offline.

    The outage led to a swift 16% fall in the Solana (CRYPTO: SOL) price from $234 to a low of $196. Since then, the cryptocurrency has recovered to $212.

    In an attempt to reboot from the frozen state, developers have passed on instructions to validators to coordinate a restart of the network. At this stage though, the network remains frozen.

    The ramifications of the outage are not yet known. However, with a multibillion-dollar ecosystem of trading, staking, and lending on the line, many will be hoping for minimal impact.

    Ethereum price in review

    The Ethereum price has struggled with its own hurdles in recent weeks. As the non-fungible-token (NFT) space booms on the Ethereum network, gas prices have soared, exceeding thousands of dollars at times.

    This has, unsurprisingly, drawn many critics to the unsustainable nature of such prices. Although, those who are bullish on Ethereum are likely awaiting the rollout of Ethereum 2.0 before making a judgement.

    The update is expected to improve the performance and functionality of the blockchain through a new structure. An anticipated outcome of this is substantially lower network fees.

    The post Ethereum price climbs as competitor’s blockchain suffers outage appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Ethereum right now?

    Before you consider Ethereum, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ethereum wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    Motley Fool contributor Mitchell Lawler owns shares of Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Ethereum. 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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  • Why the Uniti (ASX:UWL) share price will be on watch today

    Young man in shirt and tie staring at his laptop screen in anticipation.

    The Uniti Group Ltd (ASX: UWL) share price could be on the move today following the company’s response to alleged insider trading by one of its former executive directors.

    The telecommunications company’s shares crashed to as low as $3.42 yesterday on the news, before rebounding quickly. When Uniti requested a trading halt in late afternoon trade, its shares froze at $3.905, down 4.99%.

    What did Uniti say?

    In last night’s statement, Uniti advised it was aware of media reports about the allegations made in regards to executive director, Vaughan Bowen.

    The Australian Securities and Investments Commission (ASIC) alleges that Mr Bowen personally sold Vocus Group Ltd (ASX: VOC) shares receiving inside information on a failed takeover.

    The transactions, worth $25.7 million occurred in June 2019, a day before Vocus shares plummeted on the market release. Swedish private equity firm, EQT Infrastructure IV Fund withdrew from a $2.3 billion offer to acquire 100% of Vocus shares.

    Under section 1043A of the Corporations Act, each charge of insider trading carries a maximum penalty of 15 years’ imprisonment.

    Mr Bowen is being charged with two counts of insider trading.

    Uniti stated that Mr Bowen denies the allegations and will be vigorously defending the matter in court.

    Furthermore, the company advised its operations have not been impacted and will continue as normal.

    The board does not intend to make any changes to Mr Bowen’s role and position of executive director for now. It will until the outcome of the matter has been determined before making any decisions.

    Uniti share price snapshot

    Despite yesterday’s fall, it has been a strong 12 months for Uniti shares, climbing by more than 175%. In 2021 alone, its share price is up almost by 130%, reflecting positive investor sentiment in the company.

    Based on today’s price, Uniti presides a market capitalisation of roughly $2.6 billion and has approximately 687 million on issue.

    The post Why the Uniti (ASX:UWL) share price will be on watch today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Uniti right now?

    Before you consider Uniti, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Uniti wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Uniti 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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  • 3 reasons this broker says the South32 (ASX:S32) share price is a buy

    Man in fluoro vest nad hard hat cheers with fists in air

    The South32 Ltd (ASX: S32) share price has been on fire this year.

    Since the start of the year, the mining giant’s shares have risen an impressive 36%.

    This is more than triple the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

    Can the South32 share price go higher?

    The good news is that it may not be too late to invest, with one leading broker tipping the South32 share price to keep rising.

    According to a note out of Goldman Sachs this morning, the broker has retained its conviction buy rating and lifted its price target on its shares to $3.80.

    Based on the current South32 share price of $3.41, this means potential upside of ~11% over the next 12 months.

    In addition to this, the broker is forecasting some very generous dividends in the coming years.

    Goldman has pencilled in dividends per share of 29 US cents in FY 2022 and 31.9 US cents in FY 2023. Based on current exchange rates and the latest South32 share price of $3.41, this will mean fully franked yields of 11.6% and 12.8%, respectively.

    What did the broker say?

    Goldman explained that there are three key reasons why it is bullish on the South32 share price.

    It commented: “(1) Valuation: The stock is trading at 0.92x NAV (A$3.75/sh). (2) Strong FCF outlook: We forecast a FCF yield of c. 15-18% in FY22 & FY23 (over 20% at spot), driven mostly by higher base metal prices (combined c. 70% of FY22 EBITDA). Spot EBITDA is over US$3.8bn vs. our base case c. US$3.0bn estimate. (3) Increased capital returns: We assume the buyback continues to be extended (at US$250mn p.a) and S32 continues to pay out 70% of earnings (40% ordinary, 30% special dividend component). On our estimates, S32 is on a dividend yield of c. 12-13% in FY22 & FY23.”

    The post 3 reasons this broker says the South32 (ASX:S32) share price is a buy appeared first on The Motley Fool Australia.

    Should you invest $1,000 in South32 right now?

    Before you consider South32, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and South32 wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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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  • Pilbara Minerals (ASX:PLS) share price on watch as lithium prices boom

    A miner in a hardhat makes a sale on his tablet in the field.

    The Pilbara Minerals Ltd (ASX: PLS) share price could be a mover on Wednesday. This is after the company announced the results of its second lithium spodumene concentrate digital auction.

    Battery materials exchange price surge

    Pilbara Minerals launched a new sales and trading platform for its Pilgangoora project in March. The company saying it provides “flexibility to transaction by auction, tender process or bilateral sale.”

    During the inaugural battery materials exchange (BMX) auction held on 29 July, Pilbara Minerals received 62 online bids. The bids ranged from US$700/dry metric tonne (dmt) to US$1,250/dmt free on board Port Hedland, for a 10,000 dmt cargo of spodumene concentrate.

    On Thursday, Pilbara Minerals revealed the results of a second spodumene concentrate digital auction. The highest bid was almost double that of its July auction.

    Pilbara Minerals said that it intends to accept the highest bid of US$2,240/dmt for the intended 8,000 dmt (spodumene concentrate 5.5%, free on board Port Hedland basis) cargo.

    The company added:

    …given the strong margins yielded through the BMX trading platform to date, Pilbara Minerals expects to channel more concentrate sales through the platform, including concentrate generated from the recommencement of the Ngungaju processing plant.

    According to S&P Global, a China-based bidder said, “We started [bidding] at slightly over $1,100/dmt and we were expecting the price to hit a maximum of $2,000/mt. This [closing price] is a really crazy high one.”

    A Chinese refiner also commented that “if we buy at this price, there will be no profit margin left for us.”

    Pilbara Minerals share price takes a breather

    The Pilbara Minerals share price has been consolidating around the ~$2.20 level since early August.

    It has rallied 159% year to date and surged more than 600% in the last 12 months.

    During this time, lithium prices have ballooned from multi-year lows to record highs.

    In an update for the quarter ending in June last year, reporting agencies indicated spodumene prices in the range of US$410-423/dmt.

    The post Pilbara Minerals (ASX:PLS) share price on watch as lithium prices boom appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Pilbara Minerals right now?

    Before you consider Pilbara Minerals, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pilbara Minerals wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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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  • Why this analyst sees 15% upside for the Coles (ASX:COL) share price

    a happy, smiling woman rides on the back of a trolley down the aisles of a supermarket.

    The Coles Group Ltd (ASX: COL) share price has been out of form in 2021.

    Since the start of the year, the supermarket giant’s shares have fallen almost 7%.

    Is the Coles share price in the buy zone?

    One leading broker sees the weakness in the Coles share price this year as a buying opportunity.

    According to a recent note out of Morgans, its analysts have an add rating and $19.80 price target on the company’s shares.

    Based on the current Coles share price of $17.28, this implies potential upside of almost 15% over the next 12 months before dividends.

    But the returns don’t stop there. Morgans is forecasting a fully franked dividend of 61 cents per share in FY 2022. If you include this, the potential return on offer stretches to over 18%.

    What did the broker say?

    Morgans is a fan of Coles due to its strong market position and the belief that consumers will continue to stay at home due to COVID-19. The broker expects this to support solid sales across its 800+ store supermarket network.

    And while rival Woolworths Group Ltd (ASX: WOW) will benefit from the same trends, the broker notes that its shares trade on significantly higher multiples. As a result, it sees far more value in the Coles share price at present.

    Morgans commented: “While vaccines are being rolled out across Australia, we think people will continue to spend more time at home due to the ongoing risk of COVID flare-ups with the working-from-home trend also likely to stay for some time (eg, Sydney and Melbourne remain in lockdown indefinitely).”

    “This will be beneficial for the major supermarket operators. We continue to see COL (~24x FY22F PE and ~3.5% yield) as offering better value than WOW (32x FY22F PE and 2.5% yield),” it added.

    Overall, it feels this makes the Coles share price a good option right now.

    The post Why this analyst sees 15% upside for the Coles (ASX:COL) share price appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Coles right now?

    Before you consider Coles, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Coles wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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 shares of and has recommended COLESGROUP DEF SET. 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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  • 2 more of the best ASX share ideas according to this leading broker

    Five stars

    If you’re looking for a few new additions to your portfolio in September, then look no further.

    Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

    The first two I looked at can be found here. Whereas below are two more that the broker rates highly in September:

    Transurban Group (ASX: TCL)

    Morgans is a fan of this toll road operator and appears to believe it would be a top long term option. This is due to the quality of its assets and its expectation for dividends to rebound quickly once lockdowns and border closures end.

    It commented: “We think TCL will continue to be attractive to investors given its market cap weighting (important for passive index tracking flows), the high quality of its assets, management team, balance sheet, and growth prospects. Watch for rapid recovery in DPS alongside traffic recovery and WestConnex acquisition prospects. A negative overhang is the contaminated soil disposal issues related to its West Gate Tunnel Project.”

    However, despite being on its best ideas list, the broker still only has a hold rating and $14.26 price target on its shares. This compares to the latest Transurban share price of $13.82.

    Treasury Wine Estates Ltd (ASX: TWE)

    Another ASX share the broker is positive on is Treasury Wine Estates. Morgans acknowledges that there are risks to the reallocation of its wine from China, but has been very impressed with the performance of its US business. It also believes the company is undervalued based on a sum of the parts (SOTP) valuation.

    Its analysts explained: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However, outside of China, its key markets, particularly the US, are recovering faster than expected from COVID. The new business units centred around the brands, are now fully in place and we are excited to see what they can earn with TWE effectively creating the benefits of a demerger without the extra costs. It also demonstrates that the SOTP is worth materially more than the whole. It shines a light on Penfolds and its best-in-class margins and may ultimately lead to corporate activity in some form in the future. We rate this management team highly.”

    Morgans has an add rating and $14.01 price target on the company’s shares. This compares favourably to the current Treasury Wine share price of $12.28.

    The post 2 more of the best ASX share ideas according to this leading broker appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Treasury Wine right now?

    Before you consider Treasury Wine, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Treasury Wine wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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 shares of and has recommended Treasury Wine Estates 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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  • 3 highly rated ETFs for ASX investors in September

    green etf represented by letters E,T and F sitting on green grass

    Are you looking to make some additions to your portfolio in September? If exchange traded funds (ETFs) are of interest to you, then you might want to look at the three listed below.

    Here’s what you need to know about them:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The first ETF to look at is the BetaShares Asia Technology Tigers ETF. This ETF gives investors access to a number of the most promising tech shares in the Asian market. This includes ecommerce giant Alibaba, search engine company Baidu, WeChat owner Tencent, and online retail platform Pinduoduo.

    The BetaShares Asia Technology Tigers ETF has come under pressure recently amid a crackdown on tech shares by Chinese regulators. While this is disappointing, it could be a buying opportunity for long term and patient investors.

    BetaShares Global Cybersecurity ETF (ASX: HACK)

    Another ASX ETF to look at is the BetaShares Global Cybersecurity ETF. This ETF gives investors exposure to the leading companies in the global cybersecurity sector. This includes the likes of Accenture, Cisco, Cloudflare, Fortinet, Okta, Splunk, Zscaler, Crowdstrike.

    Due to the growing threat of cyberattacks globally, demand for cybersecurity services has been increasing strongly. The good news is that this trend is expected to continue in the future, which puts these companies (and the ETF) in a strong position for growth over the 2020s.

    VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

    A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF allows investors to gain exposure to the largest companies involved in video game development, hardware, and esports. This includes Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two.

    VanEck notes that these companies are well-placed to benefit from the increasing popularity of video games and eSports. This could make the ETF a top long term option for investors.

    The post 3 highly rated ETFs for ASX investors in September appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of August 16th 2021

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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 shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • 2 excellent ASX growth shares named as buys

    chart showing an increasing share price

    If you’re a fan of growth shares like I am, then you may want to look at the two listed below.

    Here’s why these could be growth shares to buy this month:

    Hipages Group Holdings Ltd (ASX: HPG)

    The first ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider that connects tradies with residential and commercial consumers.

    The Hipages platform not only helps tradies grow their businesses by providing job leads, but it also allows them to communicate with customers and run general admin duties.

    Last month the company released its FY 2021 results and delivered a 22% jump in revenue to $55.8 million. This was ahead of its guidance for the year. In addition, the company revealed that its monthly recurring revenue (MRR) rose 27% year on year to $5.2 million.

    Goldman Sachs remains very positive on the company and sees it as a great long term option. It notes that Hipages currently captures around 5% of total industry advertising spend. However, it sees scope for this to increase to 40% to 60% in the future as the company builds out its ecosystem.

    The broker currently has a buy rating and $4.35 price target on the company’s shares.

    REA Group Limited (ASX: REA)

    Another ASX growth share to look at is REA Group. It is a leading provider of property and property-related services via websites and mobile apps across Australia and Asia.

    It is best-known for the realestate.com.au website which is dominating the ANZ market. So much so, during FY 2021, the company revealed that 12.6 million people visited its website each month on average. This led to a 35% increase in average monthly visits to 121.9 million, which was 3.3 times more than its nearest competitor.

    This led to the company delivering a 13% increase in revenue to $928 million and a 19% jump in EBITDA to $565 million. The latter was ahead of expectations.

    Looking ahead, thanks to its dominant market position, the thriving housing market, and new acquisitions and revenue streams, REA Group appears well-positioned for growth over the 2020s.

    The team at Macquarie are very positive on the company’s outlook. As a result, the broker has an outperform rating and $185.00 price target on its shares.

    The post 2 excellent ASX growth shares named as buys appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of August 16th 2021

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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 shares of and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended REA 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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  • How has the Rio Tinto (ASX:RIO) share price performed since reporting results?

    industrial asx share price on watch represented by builder looking through magnifying glass

    The Rio Tinto Limited (ASX: RIO) share price closed up 0.6% yesterday to finish the day at $106.66 per share.

    That gain was a welcome reprieve for the S&P/ASX 200 Index (ASX: XJO) listed iron ore miner.

    The Rio Tinto share price has been trending steadily lower since early August, under pressure from sliding iron ore prices, which have dropped 23% over the past 4 weeks.

    With some 6 weeks having now passed since Rio reported its half-year financial results for the 6 months ending 30 June, we take a look at a brief recap of those results, and how the Rio Tinto share price has been tracking since then.

    What results did the ASX 200 miner report for H1FY21?

    The company released its half-year results after market close on 28 July.

    That meant the Rio Tinto share price wasn’t impacted by those results until the following day. We’ll look at those moves below. But first, here are some of the key metrics the miner reported.

    The company’s consolidated sales revenue hit US$33.1 billion. That was up 71% from the prior corresponding period. Cash flow also leapt to US$10.2 billion, up 262% from the prior corresponding half year.

    Little wonder then that the company shared the wealth with its investors.

    Rio declared an interim dividend of $3.76 per share, fully franked. If investors weren’t already pleased with that, they likely were satisfied with the declaration of a special dividend of US$1.85 per share, also fully franked.

    Rio Tinto’s CEO Jakob Stausholm highlighted that the company’s future isn’t dependent on iron ore alone.

    Stausholm said: “We are further strengthening the portfolio with our commitment to fund the high-quality Jadar lithium project, which signals our large-scale entry into the fast-growing battery materials market.”

    How has the Rio Tinto share price performed since the results?

    On 29 July, the first day investors had to digest the half-year results, the Rio Tinto share price closed up 1.5%.

    As mentioned up top, it’s since come under increasing pressure from falling iron ore prices.

    Rio Tinto shares are down around 20% since the company released its half-year financial results. By comparison, the ASX 200 is up 1% over that same time.

    The post How has the Rio Tinto (ASX:RIO) share price performed since reporting results? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Rio Tinto right now?

    Before you consider Rio Tinto, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    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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