The BetMakers Technology Group Ltd (ASX: BET) share price is on course to end the week on a positive note.

In morning trade, the betting technology company’s shares are up 6% to $1.12.

Why is the BetMakers share price rising?

Investors have been bidding the BetMakers share price higher on Friday following the release of an update on its partnership with the Waterhouse Group.

In partnership with the Waterhouse Group, last year BetMakers provided data and technology for two significant wagering products – tomwaterhouse.com betting application and MTS Global. Management notes that the two products not only contributed to BetMakers’ revenue growth over the last year but also helped establish it as one of the leading B2B technology providers for the racing industry.

According to the release, BetMakers has recorded revenues of $6.2 million under the conditional commercial agreements with the Waterhouse Group. This is from the commencement of the agreement on 22 May 2020 through to 30 June 2021.

Options issued

As a result of this revenue generation, the Waterhouse Group has been issued 34,564,921 options with an exercise price of 18 cents per share.

Unsurprisingly, with the BetMakers share price trading materially higher than this exercise price, the Waterhouse Group has elected to exercise them immediately at a total consideration of $6.2 million. These shares are now worth a cool $38 million.

BetMakers’ CEO, Todd Buckingham, commented: “As a result of the Company’s exceptional performance over the period, we’re extremely pleased to be able to issue Waterhouse VC with the first tranche of Shares. The deal with the Waterhouse Group not only contributed to BetMakers’ growth revenues over the past year but also has helped BetMakers develop these unique products and establish itself as one of the leading B2B technology providers for the racing industry.”

Tom Waterhouse, CEO of Waterhouse VC, commented: “BetMakers is an attractive investment proposition in global racing, with unique access to valuable race data and bespoke pricing through their Managed Trading Service platform. Waterhouse VC is delighted to convert its first tranche of Performance Rights to provide further funding to this exciting business. We look forward to our ongoing relationship with BetMakers over the years to come.”

Following today’s gain, the BetMakers share price is up 57% since the start of the year.

The post Why the BetMakers (ASX:BET) share price is racing 6% higher on Friday appeared first on The Motley Fool Australia.

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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

Facebook (NASDAQ: FB) has certainly had its glory days as a company and as a stock, but we can’t count Thursday among them. The social media giant traded down for much of the day, eventually settling at a marginal decline of just under 1%. A big new company initiative is being greeted with a lot of investor shrugs.

So what

On Wednesday, CEO Mark Zuckerberg announced in — of course — a post on his Facebook page that the company is establishing a $1 billion fund for content creators. These grants will be provided to people who make content both for Facebook’s flagship site and for its photo/video-sharing companion Instagram.

“We want to build the best platforms for millions of creators,” Zuckerberg wrote. “Investing in creators isn’t new for us, but I’m excited to expand this work over time. More details soon.”

True to “Zuck’s” word, the tech giant followed up with some of the nitty-gritty in an official company blog post. It said that it would channel that $1 billion into seed funding for creators to make their work, bonuses (likely depending on viewership), and milestone payments for reaching certain goals.

Now what

Facebook’s obvious aim is to steal the thunder away from specialty content sites like TikTok and Clubhouse, which have been hotly and durably popular in the short video and audio chat realms, respectively. Investors might feel that this is a throw-money-at-the-problem lunge at becoming more competitive in such spaces; their very tepid reaction indicates doubt that it’ll be overly successful.

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

The post Why Facebook slumped on Thursday appeared first on The Motley Fool Australia.

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Eric Volkman owns shares of Facebook. 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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The Rio Tinto Limited (ASX: RIO) share price is dropping on Friday following the release of its second quarter update.

At the time of writing, the mining giant’s shares are down 1% to $130.25.

How did Rio Tinto perform in the second quarter?

As you might have guessed from the Rio Tinto share price performance today, the mining giant had a softer than expected quarter.

According to the release, Pilbara iron ore production came in at 75.9 million tonnes for the three months. This was 9% lower than the prior corresponding period due to above average rainfall in the West Pilbara, shutdowns to enable replacement mines to be tied in, processing plant availability, and cultural heritage management.

Also on the decline were Rio Tinto’s iron ore shipments. They came in at 76.3 million tonnes, which was 12% lower than the second quarter of FY 2020. Ongoing COVID-19 restrictions and a tight labour market have further impacted the company’s ability to access experienced contractors and particular skill sets.

It was a similar story for mined copper production. It fell 13% over the prior corresponding period to 115.5 thousand tonnes. Management advised that this was driven by lower recoveries and throughput at Escondida. This was the result of the prolonged impact of COVID-19 and a planned relocation of the in-pit crusher at Kennecott in April.

Finally, Bauxite production fell 6% to 13.7 million tonnes, aluminium production rose 4% to 0.8 million tonnes, and titanium dioxide slag production increased 14% to 298,000 tonnes.

Iron ore shipments guidance

Also weighing on the Rio Tinto share price is management’s guidance for FY 2021.

It advised that it expects its iron ore shipments to be at the low end of its guidance range. Though, this remains subject to COVID-19 disruptions, the tie-in and ramp up of brownfield replacement mines, and management of cultural heritage.

In addition, Rio Tinto’s Pilbara iron ore FY 2021 unit cost guidance is now US$18 to US$18.50 per tonne. This is up from US$16.70 to US$17.70 per tonne previously. Though, positively, it is still materially lower than the price is commanding. Management advised that Rio Tinto achieved average first half pricing of $154.9 per wet metric tonne on an FOB basis. This is the equivalent to $168.4 per dry metric tonne, at 8% moisture assumption.

Mined copper and bauxite production is also expected to be at the low end of the guidance range. Whereas its full year titanium dioxide slag production guidance has been removed. This is due to risks around the timing of resumption of operations at RBM in South Africa following an escalation in the security situation.

Management commentary

Rio Tinto’s Chief Executive, Jakob Stausholm, appears disappointed with the quarter. He said: “The global economy, in particular China, recovered strongly and we are intensely focused on servicing our customers with as much product as we can. However, we faced some challenges in the first half notably at our Pilbara operations, which were impacted by replacement mine tie-ins and materially higher rainfall.”

“Heightened COVID-19 constraints, which resulted in numerous travel restrictions, added further pressure on the business and limited our ability to access additional people, particularly in Western Australia and Mongolia, in order to deliver operational improvements or maintenance initiatives and accelerate projects,” he added.

Mr Stausholm acknowledged that the company needs to improve operationally so it can deliver superior returns for shareholders.

He explained: “Safety is our first priority and our performance in this area remains robust in challenging conditions. However, as identified shortly after my appointment, operationally we are not where we want to be. Our first half performance has reaffirmed my belief that we have identified the right priorities to strengthen the business: to become the best operator, strive for impeccable ESG credentials, excel in development and secure a strong social licence.”

“We have made initial progress against our priorities, but a large volume of work remains to make Rio Tinto even stronger, so we can continue to deliver superior returns to shareholders, invest in sustaining and growing our portfolio, and make a broader contribution to society,” he concluded.

The Rio Tinto share price is up 13% in 2021.

The post Rio Tinto (ASX:RIO) share price lower on Q2 update 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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Boral Limited (ASX: BLD) shares are inching into the green this morning after Seven Group Holdings Ltd (ASX: SVW) nabbed more than 50% of the voting rights in the construction supplies company. Since Seven Group’s holding has surpassed the much-anticipated milestone, its takeover bid will be in play for another 14 days.

In the opening minutes of trade, the Boral share price is trading 0.07% higher at $7.385, 1.5 cents lower than Seven Group’s offered price.

The Seven Group share price is also currently trending higher, up 0.13% to $23.23.

Let’s take a look at what Seven Group’s success in grabbing Boral might mean for the companies.

Seven Group takes Boral on the final stretch

The Boral share price may be in for an interesting day after the company confirmed Seven Group managed to cover a gap in its holdings before the final bell rang for its takeover bid.

The takeover bid was to close at 7pm last night unless the group successfully nabbed another 0.68% of Boral’s voting rights during Thursday’s trade.

Boral announced the takeover offer had been extended yesterday afternoon but didn’t elaborate on the situation. The takeover bid will now close on 29 July.

However, after the market closed, Boral confirmed Seven Group had gained a majority voting power over Boral and once again urged its shareholders to reject the $7.40 per share bid.

Boral maintains Seven Group’s offer undervalues Boral shares. An independent expert valued Boral shares at between $8.25 and $9.13 apiece last month.

The Boral share price has gained 14.6% since Seven Group first made a play for control of the company. Seven Group’s first offer, handed down on 10 May, was just $6.50 per share – a nil premium on Boral’s closing price the previous day.

Boral also says Seven Group’s takeover could decrease the liquidity of its shares, which may result in Boral’s removal from some S&P/ASX market indices.

It also said Seven Group plans to maintain a majority of independent directors on Boral’s board, however, “these intentions may change at any time and without notice”. It further pointed out that Seven Group will now have control over Boral’s dividend policy.

The Motley Fool Australia reported on changes Seven Group supposedly plans to make to Boral’s board yesterday.

The ASX is yet to release notice on how much Seven Group’s hold in Boral’s voting power increased yesterday. However, the group’s hold in Boral has increased roughly 4% each day this week.

Boral share price snapshot

The Boral share price is having a good 2021, it’s gained around 48% year to date.

It has also gained approximately 97% since this time last year.

Seven Group share price summary

Seven Group shares haven’t been doing so well.

They’ve fallen by around 3% since the start of 2021. However, they’re 32% higher than they were 12 months ago.

The post Boral (ASX:BLD) share price edges up as Seven Group wins control appeared first on The Motley Fool Australia.

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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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The Medical Developments International Ltd (ASX: MVP) share price has come under pressure on Friday.

At the time of writing, the medical device company’s shares are down 8% to a 52-week low of $4.03.

This means the Medical Developments International share price is now down a very disappointing 40% in 2021.

Why is the Medical Developments International share price under pressure?

Investors have been selling down the Medical Developments International share price this morning following the release of an update on a balance sheet review.

According to the release, following its annual asset impairment review, the company expects to recognise a non-cash charge of $7.5 million to $8.5 million after tax in FY 2021.

Management advised that this charge relates to its respiratory business, which has been adversely impacted in FY 2021 by the COVID-19 pandemic. This has moderated its growth outlook, resulting in an impairment of the associated intangible assets.

While this is disappointing, management advised that it remains convinced that its Flow technology will deliver long-term value beyond the manufacture of Penthrox. Though, it acknowledges that it has failed to unlock this value at this point. Nevertheless, it will continue to pursue licensing and other opportunities for the technology.

One positive, though, is that the review strongly supported the carrying value of its key Penthrox related assets.

What impact will this have?

The release explains that based on its preliminary unaudited accounts, the company was expecting to post a loss after tax of $4.2 million to $5.2 million pre-impairment.

As a result, this will increase its loss after tax to a range of $11.7 million to $13.7 million for the 12 months.

Medical Developments International’s CEO, Brent MacGregor, remains positive on the future. He commented: “Since taking the role of CEO in November 2020, we have undertaken an extensive review of all aspects of the business to lay the foundation for future growth. Our European Penthrox market access strategy is now in place alongside a range of structural changes to support our growth aspirations. I am enthused about the opportunity ahead, and our ability to deliver on this opportunity.”

This sentiment was echoed by the company’s Chair, Gordon Naylor. He said: “I continue to be pleased with our progress. We are only a few months into the turnaround of the Company and our evaluation of the business is largely complete.”

The post Why the Medical Developments International (ASX:MVP) share price is sinking 8% today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Medical Developments International Limited. The Motley Fool Australia owns shares of and has recommended Medical Developments International 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 Archer Materials Ltd (ASX: AXE) share price has landed firmly in the green since last Friday’s close.

Archer shares finished yesterday’s close at $1.27, a 30% gain for the Australian semiconductor company. In early trading today, the shares are swapping hands for $1.26 — a fall of 0.78%.

Let’s take a look at two key events that might help explain Archer’s share price movements lately.

But first — what is Archer Materials?

Archer classifies itself as a materials technology company that has unique expertise in building semiconductors.

The company is currently in the process of developing its “12CQ quantum computing chip”, and is the only ASX-listed company doing so.

To illustrate, the 12CQ chip is a “world-first qubit processor”, aiming to increase the accessibility of quantum computing.

At the time of writing, Archer has a market capitalisation of $290 million.

Presenting at the Proactive Technology Webinar

On 13 July, Archer chief executive Mohammad Choucair presented the 12CQ chip to an audience of global tech investors, Proactive Investors reported.

During Tuesday’s webinar, Choucair described to investors the “global-scale opportunity its technology represents”.

This opportunity stems from growth in the “multibillion-dollar quantum computing economy”, Choucair said on Tuesday.

Speaking on the product’s potential end-uses, Archer’s top executive stated:

The 12CQ chip would allow for quantum computing onboard mobile devices for speedups and increased power in AI, big data and fintech applications … We expect Archer’s quantum chip technology to create entirely new quantum computing-powered mobile devices that enable industry-wide innovation.

The Archer Materials share price has climbed a further 10% into the green following the webinar.

Significant progress in 12CQ development

The company announced on July 12 “significant” progress had been made on its 12CQ chip development.

According to the company, its discovery of on-chip qubit control in “microscopic-scale qubit material” is a key milestone in 12CQ’s growth narrative.

In the release, Archer stated it recorded “continuous wave electron spin resonance” using a device that integrates this material.

Consequently, Archer is progressing forwards with its focus on achieving qubit control, claiming Monday’s announcement is a “major technological feat” for 12CQ.

Investors seem to feel the same way, having rewarded Archer shares over the previous few days following the announcement.

The Archer Materials share price has gained 15% since Monday’s closing price following the announcement.

Archer Materials share price snapshot

Archer shares have spent this year to date in the green, posting a return of 71% before today’s open. This extends the previous 12 month’s return of 145%.

Both returns have beaten the S&P / ASX 200 Index (ASX: XJO)’s return of 22% over the same period.

The post Why the Archer Materials (ASX:AXE) share price is up 30% in a week appeared first on The Motley Fool Australia.

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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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So what’s happening with the growth versus value debate? Is long-lasting inflation still a worry?

The market has been grappling with those questions all year, and we’re no closer to any answers as July quickly runs out.

But what if there were stocks that were both growth and value? Wouldn’t that save investors immense headaches from trying to predict inflation and interest rates?

According to Montaka chief investment officer Andrew Macken, the answer was right in front of us the whole time.

“There is no doubt that the world’s annual $120 trillion economy increasingly depends on just 6 mega-tech businesses to function properly,” he wrote on a company blog.

“You would think they would continue to all be obvious inclusions in portfolios.”

The businesses he refers to are Alphabet Inc (NASDAQ: GOOGL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB), Tencent Holdings Ltd (HKG: 0700) and Alibaba Group Holding Ltd (NYSE: BABA).

“Investors shouldn’t rotate out of mega-tech to value because mega-tech are value,” said Macken.

“For the patient investor who can look through the short-term noise, the rewards will be substantial.”

Haven’t tech shares had a pretty good run already?

Macken acknowledged many investors would think the massive technology companies have already had their big run.

“After a strong 2020, many investors are worried all the ‘easy money has been made’ – a commonly used phrase we hear in our industry (which also suffers from acute hindsight bias).”

Investors are also worried about higher interest rates, he admitted, and the compression on earnings multiples that would have on growth stocks.

Then there are the qualitative worries.

“Mega-tech investments also seem boring now – a surprisingly strong criterion some investors seek to avoid,” Macken said.

“And, of course, there are the never-ending headlines pointing to regulatory pressures across the sector.”

But contrary to perception, technology shares have underperformed this year so far, according to Macken.

“Our analysis shows that mega-tech stocks not only offer some of the best growth opportunities, but also offer some of the best ‘value’ opportunities in the market today,” he said.

“We see material upside in all 6 of these mega technology businesses. Given the combination of strong and growing advantages, enormous growth opportunities, and material undervaluation today, we believe these names should form – or continue to form – the core of any global equities portfolio.”

Macken cited 3 reasons why he thinks these massive companies should be counted as value.

Mega-techs are the best businesses in human history

The fund manager is glowing about the quality of the ‘big 6’ tech shares.

“The business quality of today’s mega-techs is among the highest that humans have ever created,” he said.

“They dominate global data, benefit from enormous ecosystems, and have superior economics and scale.”

The massive cash flows the mega-caps make can be ploughed back into the business to search for new opportunities.

“These mega-techs all have a vast array of high-probability growth options in enormous new TAMs (total addressable markets).”

He took cloud computing as an example.

“For the leading cloud providers, their advantages in scale, data and customer captivity will only continue to strengthen over time,” said Macken.

“Said another way, this is a space for which enormous growth is largely assured and for which the winners have already been defined today. This means that the future revenues and earnings power of these businesses will also be multiple of their current levels.”

Inflation worries are overblown

Macken simply doesn’t share in the fears of other investors when it comes to the prospect of higher inflation.

“While we note the same strong headline inflation numbers as everyone else, we struggle to see an extended acceleration in core inflation,” he said.

“We… expect structural disinflationary forces – such as aging populations, labour-disrupting automation technologies and global corporate and government indebtedness – to persist for decades.”

Besides, even if prices went up, these 6 giants could have enough market power to simply charge more.

“We believe the latent pricing power in these businesses is likely very strong – and in some cases, extraordinarily so,” he said.

“Take Microsoft 365, for example… This costs just US$32/month, vastly below any reasonable estimate for the value it adds, strongly supporting our latent pricing power hypothesis.”

Current valuations for these tech shares are underdone

Macken’s team has calculated that future expectations priced into the current tech shares are too conservative.

He took the example of the 3 US players that provide cloud infrastructure. Consensus estimates for their collective cloud revenues by 2030 are “in the order of just US$650 billion” more than current levels.

“This is a tiny fraction of the US$8 trillion increment that Microsoft CEO Nadella expects to accrue to the tech space over the next decade,” said Macken. 

“If Nadella’s forecast above is even remotely accurate, then these cloud providers will see much higher revenues (and earnings) in 2030 than what is currently being implied by consensus estimates.”

And the valuation of Facebook alone, with a forward price-to-earnings ratio of just 14, has Macken absolutely puzzled.

“Some of the businesses trading at a higher multiple than this today include Australia’s Wesfarmers Ltd (ASX: WES), Scentre Group (ASX: SCG), and plumbing parts supplier, Reece Ltd (ASX: REH),” he said.

“At the current stock price, the market is effectively giving investors all of the upside from eCommerce, the monetisation of the creator economy, WhatsApp, Messenger and Reels, as well as Facebook’s growth in VR/AR for free!”

The post Now’s the time to buy up mega-cap tech shares appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns shares of Alphabet (A shares) and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, and Microsoft. 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 owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and Facebook. 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 50 index is home to 50 of the largest listed companies on the Australian share market. This means the index hosts many of the highest quality and most well-known companies that the ANZ region has to offer.

While not all the shares on the index are necessarily in the buy zone, two that could be are listed below. Here’s what you need to know about them:

Goodman Group (ASX: GMG)

Goodman Group could be an ASX 50 share to look closely at. It is one of the world’s leading integrated commercial and industrial property companies.

Goodman owns, develops, and manages industrial real estate globally. This includes warehouses, large scale logistics facilities, and business and office parks. At the last count, Goodman had $52.9 billion of total assets under management globally, 366 properties under management, and 1,600+ customers.

It has been growing at a solid rate over the last decade thanks to the overwhelming success of its strategy. Goodman focuses on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally.

This is where demand is strong and transformational changes are driving significant opportunities. Key locations include gateway cities such as LA, Paris, Sydney, Shanghai, and Tokyo.

One leading broker that appears confident its positive form will continue is Morgan Stanley. The broker currently has an overweight rating and $23.00 price target on its shares.

Ramsay Health Care Limited (ASX: RHC)

Another ASX 50 share to look at is Ramsay Health Care. It provides quality healthcare services through a global network of facilities that extend across 10 countries. Each year there are over eight million admissions/patient visits across its 500 locations.

But it isn’t stopping there. Ramsay is currently in the process of trying to bolster its network in the United Kingdom market with the proposed acquisition of Spire Healthcare for ~$1.9 billion. This is expected to create a leading private health care services provider in the UK.

Outside this, the company looks well-positioned for growth in the short term from a post-pandemic backlog in surgeries and in the long term from the global ageing populations tailwind.

Citi is positive on the company. The broker recently upgraded the company’s shares to a buy rating from neutral and increased its price target to $76.00.

The post 2 outstanding ASX 50 shares named as buys 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 recommended Ramsay Health Care 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 Santos Ltd (ASX: STO) share price has been on something of a run in the last year. Shares in the Aussie energy giant have climbed 34.2% higher in the last 12 months after closing at $7.06 per share on Thursday.

That means Santos now boasts a market capitalisation of $14.7 billion and is starting to approach its $7.84 52-week high. However, Santos isn’t the only Aussie oil and gas share doing well right now.

Shares in Woodside Petroleum Limited (ASX: WPL) are up 11.2% in the last year. Keen-eyed investors, however, will note that the Santos share price has been outperforming Woodside in 2021. Here’s why.

Why the Santos share price is outpacing Woodside right now

Woodside shares have actually edged 0.4% lower in 2021 to $22.97 per share. A pullback in oil prices combined with a softer second quarter update saw the company’s value fall 1.0% in Thursday’s trade.

Woodside reported a 4% decline in quarterly production to 22.7 million barrels of oil equivalent (MMboe) yesterday. The company cited scheduled maintenance and adverse weather impacts as key mitigating factors during the quarter. It wasn’t all bad news, however, with Woodside reporting a 15% quarter-on-quarter increase in sales revenue to $1,285 million.

At the same time, the Santos share price climbed 0.1% higher yesterday. The group is yet to release its own second quarter report which investors will be watching closely.

However, Santos was recently assigned a BBB credit rating with a “stable” outlook from Fitch Ratings. Fitch cited the company’s long-term, fixed-price domestic gas contracts as providing portfolio diversification against its oil-linked revenues. Fitch also said the company has “some flexibility over timing and expenditure” with the ability to manage leverage.

The company generated US$302 million in first-quarter free cash flow with higher commodity prices boosting revenues. These numbers and a focus on a diverse range of growth projects has had investors driving up the Santos share price 2021.

Santos has been focused on capital investment in recent years and this focus on new and expanded assets has increased its potential production output in the short to medium term.

Foolish takeaway

Of course, 6 months is a very short-term perspective in investing. The Santos share price has performed well to start the year but rising crude oil prices is good news for both major Aussie operators.

It’s worth keeping an eye on both Woodside and Santos as the commodities landscape continues to take shape in the post-COVID recovery phase.

The post Why the Santos (ASX:STO) share price is outperforming Woodside in 2021 appeared first on The Motley Fool Australia.

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• ASX 200 drops, Woodside down, Sezzle rises
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• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall 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 AMP Ltd (ASX: AMP) share price has been under the pump of late. Shares in the embattled financial services company have slumped 10.5% in the last month to $1.11 per share at Thursday’s close.

What’s with the AMP share price?

The sharpest decline in value over the past month came on Monday 21 June. The AMP share price slumped 6.4% to start that trading week despite no market announcements or other major news. However, it did coincide with investors selling off across the financial services sector.

In terms of company news, arguably the most dominant has been the recent restructuring of the company. AMP announced on 8 July that Macquarie Group Ltd (ASX: MQG) would acquire AMP Capital’s Global Equity and Fixed Income business for up to $185 million.

AMP Capital and the private markets business as a whole have long been the most profitable segments within the AMP empire. However, there was a muted reaction from the market to this piece of news, with the AMP share price broadly unchanged.

The latest sale to Macquarie comes as AMP readies a spin-off of its private markets business. The proposed demerger comes after acquisition talks with global private equity group Ares Management fell flat.

While the last month has been underwhelming for shareholders, longer timelines don’t necessarily paint a better picture. The AMP share price is now down 28.9% year to date, 36.6% in the last 12 months and 80.1% in the last 5 years. Of course, these figures don’t include the impact of dividends on overall returns.

However, it doesn’t paint a pleasant picture for the financial services group. Former Australia and New Zealand Banking Group Ltd (ASX: ANZ) executive Alexis George is set to take over from current CEO, Francesco De Ferrari in the third quarter of this year. Investors will be hoping a change in leadership will provide a change in fortunes for the AMP share price as well.

The post Here’s why the AMP (ASX:AMP) share price is down 10% in the last month appeared first on The Motley Fool Australia.

More reading

• AMP (ASX:AMP) share price struggles amid management fee cuts
• It hasn’t been a great 2021 so far for the AMP (ASX:AMP) share price
• ASX 200 rises, Macquarie up, Rural Funds launches capital raising
• ASX 200 midday update: Zip rockets, AMP asset sale
• Is the Macquarie (ASX:MQG) share price a buy for dividends?

Motley Fool contributor Ken Hall 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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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