The electrification trend has been thrown around a lot since electric vehicle (EV) makers, such as Tesla Inc (NASDAQ: TSLA), rose to prominence. In the process, ASX lithium shares have been caught in the updraft of rising lithium prices.

In the space of 12 to 18 months, lithium shares have gone from being the undesirables to being the spice of the time. An expected flood of demand has plenty of investors and speculators alike chasing the next potential gold rush.

Some analysts also believe the trend could have legs, citing the push for a global energy transition as a major structural tailwind.

While the returns from some ASX lithium shares have been downright phenomenal over the past year, various brokers are pointing towards a potential for greater things to come.

More to come?

It might be easy to dismiss the swiftly ascending lithium share prices as nothing but rampant speculation.

However, recent sales data would indicate otherwise, as EV sales continue to surge globally. Preliminary data from Research and Research show substantial increases year on year in August. For instance, German, France, and Norway sales rose 62%, 60%, and 92% respectively.

Our preliminary August global #EV sales data for Germany, France, Norway, UK, Sweden, Netherlands, Italy and Spain have been completed.

Total EV sales in these 8 countries grew 57% YoY and -7% MoM.

And here you can find that Norway surpassed the UK. pic.twitter.com/Nl1AG4iTKe

— Researcher and Research (@thernrcorp) September 7, 2021

https://platform.twitter.com/widgets.js

Similarly, in the first half of the year, China EV sales soared 164% year on year to 271,000 units, according to the China Association of Automobile Manufacturers.

Additionally, the electric vehicle market is broadening out from the pack of initial disruptors. Even the likes of BMW AG and Toyota Motor Corp are spending on batteries and battery technology.

The German luxury carmaker has contracts for A$32 billion worth of batteries. Meanwhile, Toyota is set to splurge US$13.5 billion on its own battery supply system by 2030.

Due to the cost of lithium-ion batteries dropping significantly, analysts expect this to be the standard for the foreseeable future. With lithium being a critical material in this battery design, this obviously bodes well for increased demand over time.

Head of mining research at Canaccord Genuity, Reg Spencer commented on the electric shift, stating:

What you see here is a global structural change in how people move and what powers that movement. In itself, we haven’t seen anything like this since the Industrial Revolution.

Furthermore, Spencer expects a continued surge in lithium demand as lithium maintains its critical role in the electrification shift.

Setting the stage for ASX lithium shares

Some might find it interesting to know that lithium itself isn’t considered a scarce resource. However, the lack of investment in supply in the years prior to the recent boom has meant the volume of lithium required is simply not available.

As a result, the price of lithium carbonate has sprung from about US$5400 per tonne a year ago, to approximately US$19,000 as of today. In a similar fashion, lithium spodumene prices have flown from around US$370 per tonne to more than US$900 per tonne.

The momentous prices have led to an incredible acceleration in events for ASX-listed lithium shares. One major event involves the merger of Galaxy Resources Ltd (ASX: GXY) and Orocobre Limited (ASX: ORE). This unification of companies is set to create the fifth-largest lithium chemicals company on the planet.

Concurrently, other ASX lithium shares have waged staggering comebacks in their own right. For example, the Pilbara Minerals Ltd (ASX: PLS) share price has skyrocketed 553% in the past year. This is backed up by surging revenues in FY2021, with revenue increasing 108.9% to $175.8 million in FY21.

Final remarks

While lithium shares remained exposed to the cyclic nature of mining, Spencer forecasts positive prices for years to come.

Specifically, the analyst expects spodumene prices to hold above US$900 per tonne until FY2026. This is based on the expectation of continued supply deficits as the demand for lithium remains elevated.

The post Is the party only just getting started for ASX lithium shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BMW. The Motley Fool Australia has recommended BMW. 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 Qube Holdings Ltd (ASX: QUB) share price is in the red today following its 4.7% gain yesterday.

Yesterday, the export and logistics service provider announced it is to acquire the Newcastle Agri Terminal.

While the market initially responded positively to the news, it has seemingly backflipped today.

Right now, the Qube share price is $3.31, 3.22% lower than its closing price yesterday.

Let’s take a closer look at this week’s news from Qube.

Qube’s new acquisition

The Qube share price has had a turbulent time on the ASX this week following news of the company’s latest acquisition.

Yesterday, the company announced it will be acquiring the Newcastle Agri Terminal for $90 million. The terminal is a grain exporting hub.

According to Qube, it’s positioned to take advantage of northern New South Wales’ grain production, which sees 4.8 million tonnes of grain produced in an average year.

The facility comes with around 60,000 tonnes of silo storage, modern rail receival infrastructure, road discharge facilities, and the capability to load 2,000 tonnes of grain per hour.

The $90 million needed for the acquisition will come from Qube’s currently undrawn debt facility.

The transaction is expected to be completed by the end of this month.

Commentary from management

Qube’s managing director Paul Digney commented on the news sending the company’s share price loopy this week, saying:

The acquisition of [Newcastle Agri Terminal] will further strengthen Qube Agri export bulk service offering to growers and traders the ability to now ship from Newcastle…

The addition of this quality asset to the Qube Agri capability will ensure customers in the northern draw zone can benefit from an efficient export terminal.

Qube share price snapshot

Despite today’s dip, the Qube share price has been performing well on the ASX lately.

It has gained 10% year to date. It is also currently 25% higher than it was this time last year.

The post The Qube (ASX:QUB) share price is on a rollercoaster this week appeared first on The Motley Fool Australia.

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• Qube (ASX:QUB) share price struggles despite record profit

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 Macquarie Group Ltd (ASX: MQG) share price has been very impressive over the medium to long term.

Over the past 5 years, shares in the bank have appreciated a whopping 120% to their current price of $177.47 a unit. The next closest big bank, Commonwealth Bank of Australia (ASX: CBA), is up 43% over the same timeframe.

No other major bank cracks even a 10% value gain over the past 5 years.

If you’re an investor who came in a little late to the game, say 1 year ago, then the CBA share price would be your friend. In 12 months, shares in Australia’s biggest bank are up 52% while the Macquarie share price is 40% higher. For context, the S&P/ASX 200 Index (ASX: XJO) is 39% higher over 5 years and up 26% in 1 year.

It should also be noted that when the COVID-induced market crash of March 2020 occurred, CBA and Macquarie lost all of the gains they had made over the course of years in a matter of days.

Since then, the value of both companies has exceeded their pre-pandemic levels. Therefore, it would be more meaningful to focus on developments that have occurred since last year’s market crash.

What affected the Macquarie share price?

When Macquarie released a third-quarter update in February this year, the Macquarie share price rocketed 7% in a single day.

As Motley Fool reported, for the three months ended 31 December, Macquarie Group experienced improved trading conditions. At the time, the company said the combined third-quarter net profit contribution from its annuity-style businesses was up on the prior corresponding period (pcp).

Yesterday, the Macquarie share price gained a further 6% when the group released an update on its short-term prospects.

The company advised that it expected results for the first half of FY22 to be “slightly down” on the second half of FY21. Macquarie said stiffer competition in the banking sector, rising expenses, and falling commodity returns were to blame.

How about the CBA share price?

When CBA released its first-quarter update for FY21 in November last year, the CBA share price skyrocketed 10.7% over the space of 2 weeks.

At the time, CBA revealed a “stronger than expected” cash net profit after tax of $1.8 billion. While it was down on the pcp, the results were better than many analysts had forecast.

Also in that release, CommBank said that by the end of October 2020 there was a net reduction in total loan deferred facilities of 59%, representing a monthly net reduction in deferred balances of about $21 billion. This may have also been a reason for the rising CBA share price at the time.

More recently, the release of the CBA full-year results last month was a boon for shareholders of the company.

Recording a 20% rise in net profits and paying a fully franked dividend of $2.00 per unit, CBA shares were very popular that day. The company also announced a $6 billion off-market share buyback to return further capital to shareholders.

What’s next for the Macquarie share price?

As Motley Fool has previously reported, brokers at Goldman Sachs, while fans of the company, aren’t fans of its valuation.

Goldman Sachs analysts have given Macquarie a neutral rating. They think fair value is about $171 per share. They believe the Macquarie share price may have peaked for the time being.

However, The Australian newspaper is reporting today that some analysts believe Macquarie will become only the third company in ASX history, after CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH), to crack the $200 per share mark.

Quoted in the national broadsheet, Cadence Capital’s managing director Karl Siegling said:

As long as they sustain it (earnings) they can grow into a new valuation, and that’s what’s happening.

These guys just keep on keeping on and they just keep delivering, and it’s just a matter of time (before the share price hits $200).

Foolish takeaway

All in all, it seems to be a profitable time for long-term investors of either CBA or Macquarie Group.

While the Macquarie share price does have the upper hand, this analysis does not take into account the impact of dividends and their franking percentages. For some investors, this may be more important than just the share price.

The post The Macquarie (ASX:MQG) share price has gained 3 times that of CBA over 5 years appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday
• ASX 200 falls, Macquarie jumps, Aussie Broadband climbs

Motley Fool contributor Marc Sidarous 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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The Cettire Ltd (ASX: CTT) share price is backtracking during early afternoon trade. This comes as the online retailer announced that one of its board members has sold a parcel of the company’s shares.

At the time of writing, Cettire shares are swapping hands for $3.41 a pop, down 6.32%. In comparison, the All Ordinaries Index (ASX: XAO) has also fallen to 7,719 points, a drop of 1.13%.

Non-executive director selling

The Cettire share price is falling following an announcement by the company today.

According to the release, Cettire non-executive director Bruce Rathie executed an on-market trade on 2 September.

Rathie’s New South Wales-based private company, Nestegg No 1, disposed of 200,000 ordinary shares at a price of $2.55 apiece. The sale accounts for around 20% of Rathie’s portfolio in Cettire.

As a result, Rathie now holds a total of 810,000 shares, comprising of 10,000 shares in direct interest. The remaining shares are through two indirect companies, Katrat Investments and Rathie Super, each holding 400,000 shares.

Interestingly, the sale comes after the company revealed it beat its FY21 prospectus forecast and upgraded guidance.

Cettire founder and CEO Dean Mintz commented on the full-year results:

It has been an exceptional year for Cettire, with the company rapidly growing. I am particularly proud of the substantial increase in active customers, very strong revenue growth, robust product margins and the increasing proportion of revenues from repeat customers.

The achievements over the past 12 months, both operationally and financially, demonstrate the traction we have with consumers, the scalability of our business model and the benefits of our proprietary technology platform.

The positive news led the Cettire share price to reach an all-time high of $3.68 yesterday.

Cettire share price snapshot

Despite today’s fall, Cettire shares have accelerated by almost 600% in the past year, and are up 640% year-to-date.

Based on today’s price, Cettire presides a market capitalisation of around $1.3 billion, with approximately 381 million shares on issue.

The post Why the Cettire (ASX:CTT) share price is slumping 5% today appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire 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 Coles Group Ltd (ASX: COL) share price is seesawing this Thursday.

At the time of writing, Coles shares are down 0.17% to $17.39 a share. They sunk as low as $17.36 in early trade, rebounded strongly to $17.58, before retreating to their current price.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has gone backward by 1.08% so far today to 7,431 points.

Year-to-date so far in 2021, the Coles share price remains a disappointing investment, down by almost 6%.

Over the past 12 months, Coles shares are up by more than 3%. Both of those numbers trail the ASX 200, which has gained around 11% year to date, and 26% over the past year.

So it seems investors have reacted poorly to Coles’ FY21 earnings report that the company released on 18 August.

That was when the grocer reported modest revenue growth of 3.1%, as well as an increase in earnings before interest, tax, depreciation, and amortisation (EBITDA) by 5.4% to $3.43 billion.

That helped Coles raise its final dividend to 28 cents per share, fully franked. That means Coles’ total dividend for FY21 was 61 cents per share, a record high and a 6.1% increase over FY20’s payouts.

Despite all of those metrics, investors evidently haven’t been too impressed. That’s because, since 18 August, the Coles share price has fallen by around 5% by today’s pricing.

So, at today’s levels, where does the Coles share price stand? Could this possibly be a buying opportunity?

Could Coles shares be a buy today?

Well, as my Fool colleague Tristan covered yesterday, there is one broker who is optimistic about Coles shares right now. That would be Morgans.

Morgans currently rates Coles as a ‘buy’, with a 12-month share price target of $19.80 a share. That implies a potential future upside of around 13.8% over the next year.

The broker is bullish on Coles due to the shape of its balance sheet, which Morgans thinks will enable both future dividend increases, as well as continued investment in the business’s future.

No doubt Coles investors will be hoping that all comes to pass.

At the current Coles share price, the supermarket giant has a market capitalisation of around $23 billion, a price-to-earnings (P/E) ratio of 23.26 and a dividend yield of 3.48%.

The post What does the future look like for the Coles (ASX:COL) share price? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The Crown Resorts Ltd (ASX: CWN) share price is down as the company faces further legal troubles.

At the time of writing, shares in the casino operator are trading for $9.75 – down 1.61%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.99% lower. It comes after The Australian reported Crown had filed its defence in a nearly $5 million lawsuit brought by a former patron of the business.

Let’s take a closer look at the news.

Crown’s latest lawsuit

Today’s news may be unsettling investors, judging by the falling Crown share price.

Ahmed Hasna, a self-described problem gambler, is suing the $6.7 billion company for allegedly failing to act on his problem gambling at its Melbourne casino between the years 2016 and 2020. He claims he lost $4.59 million during those years – the amount he is suing to recuperate.

He also alleges the company were aware or should have been aware, of his addiction. In its defence, Crown calls the claim of observable problems in Hasna “vague and embarrassing”.

As The Australian reports, despite Hasna indefinitely self-excluding himself from the casino four times, Crown allegedly allowed him to revoke these bans while providing him with a flow of benefits to encourage his patronage such as free dinners, Phil Collins concert tickets and a family holiday to Crown’s Perth casino.

Crown’s general manager of VIP Customer Service, Peter Lawrence, told the Victorian Royal Commission – which looked at Hasna’s case as part of its examination into the suitability of Crown to retain its casino licence – that Crown’s treatment of Hasna was “possibly” predatory.

Crown denies it failed to take reasonable steps to offer Hasna help or inquire about his financial, mental and emotional wellbeing. It does concede it offered incentives to Hasna to continue gambling.

This latest headache for Crown comes while the Victorian Royal Commission is actively considering whether to rescind the company’s gaming licence in the state. While a blanket ban on Crown in the state is seen as unlikely, the damning evidence has seen heads roll at the company – including Chair Helen Coonan and Melbourne CEO Xavier Walsh.

The Crown share price has lost all of its gains since an initial takeover bid on the company because of the considerable uncertainty facing the company.

Crown share price snapshot

Over the past 12 months, the Crown share price has increased 6.67%. This is around 20 percentage points lower than the ASX 200. Year-to-date, shares in the company have fallen in value by 0.66%.

The post Crown (ASX:CWN) share price slumps as problem gambler lawsuit heats up appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is having a day to forget and is deep in the red. The benchmark index is currently down 1.1% to 7,428.8 points.

Here’s what is happening on the ASX 200 today:

Tech shares fall

The Australian tech sector is acting as a drag on proceedings on Thursday. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) has followed the lead of the Nasdaq index and is down a sizeable 1.4%. The Afterpay Ltd (ASX: APT) share price is among the worst performers with a decline of 2.5%.

Fortescue shares upgraded

The Fortescue Metals Group Limited (ASX: FMG) share price is trading lower today despite being upgraded by a leading broker. According to a note out of Citi, its analysts have upgraded the iron ore mining giant’s shares to a buy rating with an $18.50 price target. Citi believes iron ore prices could hold at US$100 a tonne for longer than the market expects.

Macquarie shares downgraded

The Macquarie Group Ltd (ASX: MQG) share price is trading lower today after being downgraded by a top broker. A note out of Morgans reveals that its analysts have downgraded the investment bank’s shares to a hold rating with an improved price target of $181.10. The broker made the move on valuation grounds after a strong run.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the ResMed Inc. (ASX: RMD) share price with a 3% gain. This is despite there being no news out of the sleep treatment company. The worst performer is the Omni Bridgeway Ltd (ASX: OBL) share price with a 6% decline. This follows an update on the Brisbane Floods class action.

The post ASX 200 (ASX:XJO) midday update: Tech shares fall, Fortescue upgraded 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 AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Macquarie Group Limited. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX travel shares were among the first victims of the COVID-19 pandemic, and may be some of the last to recover.

Reporting in the latest earnings season laid bare the economic impacts of the pandemic on the travel sector. Many major players reported substantial losses, as border closures and lockdowns wreaked havoc on the industry.

But hope is on the horizon as the vaccine rollout gathers pace and the border openings become more likely. 

Australia closed international borders in March 2020 in a bid to control the pandemic’s spread. The states rapidly followed, closing borders on each other.

The result drained the travel industry of both international and domestic customers. Since then, intermittent state border openings have seen strong demand for interstate travel, with Sydney Airport Holdings Ltd (ASX: SYD) reporting strong rebounds in passenger numbers when borders were open during FY21. 

A full recovery appears some way off yet for the travel industry, although many are predicting pent-up demand will see a boom in business when borders open.

In the meantime, key ASX travel shares such as Qantas Airways Limited (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT) have restructured operations to adjust for the change in demand. 

How have ASX travel shares performed against the market?

Travel share prices have been volatile this year but buoyed by investor hopes for reopening.

The Qantas share price is up 9.1% year-to-date, while shares in Flight Centre have lifted more than 13%. The Webjet Limited (ASX: WEB) share price has also gained ground since January, up 17.5%.

In comparison, the All Ordinaries Index (ASX: XAO) is 12.5% higher over the same period.

The Sydney Airport share price was largely flat in the first half of the year, but received a boost in July in the form of a takeover bid.

Who are the winners this earnings season? 

It is difficult to declare any ASX travel share a winner this reporting season — all have seen business significantly disrupted by the ongoing pandemic.

Sydney Airport reported a loss before income tax expense of $97.4 million for the half year to 30 June. The airport’s half year results revealed a 36.4% decline in passenger numbers compared to the prior corresponding period. International passengers were down 91% with domestic passengers down 3.1%. 

The Sydney Airport share price, however, has been boosted by the takeover bid. Sydney Airport rejected a bid priced at $8.25 cash per stapled security in July. The consortium of bidders returned to the table last month with an offer of $8.45 cash per stapled security.

The board concluded the bid was not in the best interests of shareholders, but the Sydney Airport share price remains elevated, trading at around $7.70 compared to closer to $6 before the initial takeover bid was made. 

Webjet released its results for the nine months to March 2021 in May, moving to a new March financial year end.

The travel company revealed a loss of $156 million for the period, but has since confirmed it will be cash flow positive for 1H22 (excluding investing and debt repayments). Webjet says it stands to benefit from consumers shifting to buy travel online.

Initiatives are underway to expand market share and reduce costs by at least 20% once the company gets back to scale. Strong demand for travel is reported, with business rebounding in markets that have reopened, such as the United States. 

And the losers? 

Qantas reported the largest loss of the ASX travel shares this earnings season, with an underlying loss before tax of $1.83 billion.

The airline suffered a $12 billion revenue impact from the COVID-19 crisis in FY21, but says it is in a better position to manage its recovery compared to 12 months ago. Net debt was reduced to $5.9 billion in the second half, with total liquidity of $3.8 billion providing a buffer against uncertainty.

The airline said periods of open domestic borders saw Qantas and Jetstar generate significant cash which helped reduce debt from $6.4 billion in February 2021. A record performance by the freight division assisted in offsetting the cost of the idling international operations. 

Qantas has been undertaking a sizing and restructuring program which is largely completed. The program will give the company the ability to better manage costs in the face of sudden border closures, providing cost benefits of $650 million in FY21. Qantas is targeting at least $1 billion in permanent annual savings from FY23 onwards.

Flight Centre likewise undertook a drastic cost reduction program in response to COVID-19, recording an underlying loss of $507 million for FY21. 

Flight Centre reports that its priorities have evolved from emergency cost cutting at the beginning of the crisis to maintaining those significantly reduced expenses. The travel company says recovery is gaining momentum, particularly in the United States.

Strong and immediate rebounds have been noted in markets where travel restrictions have been lifted, although ongoing lockdowns are impacting the Australian and New Zealand markets.

The company is targeting a return to monthly corporate and leisure profitability during FY22, with corporate volumes tracking at 40% of pre-COVID volumes in FY21. 

What is the outlook for ASX travel shares?

Qantas says that recent COVID-19 outbreaks and border closures are expected to have an impact of around $1.4 billion on the company’s underlying EBITDA in the first half of FY22. The airline is anticipating a recovery in the travel market as vaccination targets are reached later this year.

A surge in domestic travel demand is anticipated followed by a gradual return of international travel. The airline is currently estimating domestic capacity will rise to 110% in 2H22, with international border closures and quarantine restrictions eased from December. 

Flight Centre declined to provide FY22 guidance, citing the lack of clarity around government timeframes for border re-openings and removal of other travel restrictions. Nonetheless, the company says its leaner and more productive structure means it is well placed to benefit as the travel industry globally starts to take off again.

Webjet has flagged strong pent-up demand for travel, particularly leisure travel, but says the environment remains inherently uncertain. 

The post How have ASX travel shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

More reading

• Why is the Sydney Airport (ASX:SYD) share price in focus this week?
• With liquidity of $3.8b, Qantas (ASX:QAN) shares are still exciting these retail investors
• Why A2 Milk, Flight Centre, Medibank, & St Barbara shares are dropping
• Leading broker reveals why these 10 big-name shares have been firing up its clients
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Motley Fool contributor Katherine O’Brien 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 Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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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The Temple & Webster Group Ltd (ASX: TPW) share price is seemingly recovering from a poor week’s performance today.

Before today’s gains, it had slipped 8.5% since this time last week.

Right now, the Temple & Webster share price is 3.23% higher than its previous close. Shares in the online retailer are currently trading for $13.12 a piece.

So, what’s spurring today’s gains? Let’s take a look at what Temple & Webster has been up to lately.

Temple & Webster’s woes

The Temple & Webster share price is in the green today after a disastrous week’s trade for the online furniture and homewares retailer.

Interestingly, the company’s fall followed a period of grace in which it gained 13.4% on the back of its financial year 2021 earnings.

Temple & Webster reported $14 million of profits after tax and an 85% increase in its revenue compared to that of the prior period. It also provided an exceptionally positive outlook, which no doubt boosted the market’s spirits.

The market reacted positively to the company’s results, boosting its share price 10.5% higher on the day of their release and another 2.5% the following day.

However, in a seemingly dramatic correction, the Temple & Webster share price returned all its between then and yesterday’s close despite no news being released by the company.

Though, Australian Securities and Investments Commission (ASIC) data revealed around 5.8% of the company’s shares were reported as in short positions last week.

Luckily, today seems to be a brighter one for Temple & Webster on the ASX.

Temple & Webster share price snapshot

Despite their recent dip, Temple & Webster’s shares have been performing well on the ASX lately.

It is currently 11% higher than it was at the start of 2021. It has also gained 40% since this time last year.

At its current share price, the company has a market capitalisation of around $1.5 billion

The post The Temple & Webster (ASX:TPW) share price is having a bad week but is up 3% today appeared first on The Motley Fool Australia.

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• Which ASX companies are starting off the week as the top movers in the ASX 300 today?
• Why Adore Beauty, Fortescue, InvoCare, & Temple & Webster are charging higher

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Afterpay Ltd (ASX: APT) share price has slipped to a 1-month low on Thursday, down 2.73% to $127.04.

This comes after rival PayPal Holdings (NASDAQ: PYPL) announced the acquisition of a Japanese company.

Buy now, pay later M&A continues to intensify

PayPal has once again headlined the buy now, pay later (BNPL) industry following its US$2.7 billion Japan acquisition.

According to CNBC, PayPal said it would acquire Japanese BNPL firm Paidy. The transaction is expected to close in the fourth quarter of 2021, paid mostly in cash.

“The acquisition will expand PayPal’s capabilities, distribution, and relevance in the domestic payments market in Japan, the third-largest e-commerce market in the world, complementing the company’s existing cross-border e-commerce business in the country,” said PayPal.

What else is dragging the Afterpay share price?

Square slides on Wednesday night

The Afterpay share price has largely tracked the performance of Square Inc (NASDAQ: SQ) following the takeover offer on 2 August.

Under the terms of the takeover, Square plans to acquire Afterpay for approximately US$29 billion worth of stock.

Afterpay shareholders will receive a fixed exchange ratio of 0.375 shares in Square Class A common stock for each Afterpay share they hold on the record date.

On Wednesday night, the Square share price tumbled 4.18% to US$254.72. At the fixed exchange ratio, this equates to US$95.52 (A$129.88).

Broader market weakness

The Afterpay share price might also be pressured by the broad-based selling taking place across the market on Thursday.

The S&P/ASX 200 Index (ASX: XJO) has tumbled 1% to 7,436, headlined by losses across resources, information technology, industrials, and communication services.

To add further insult to injury, the S&P/ASX Information Technology (INDEXASX: XIJ) index is one of the worst-performing sectors today, down 1.54%.

Major ASX-listed BNPL shares Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL) are both in negative territory, down 0.29% and 0.76% respectively.

Afterpay share price snapshot

The Afterpay share price has had a relatively flat year-to-date performance, up around 7%. It has also gained more than 70% over the past 12 months.

The post Afterpay (ASX:APT) share price slumps after PayPal’s latest acquisition appeared first on The Motley Fool Australia.

More reading

• Here are the 3 hottest ASX shares to buy right now: expert
• What comes after Afterpay?
• How have ASX technology shares performed during the August 2021 earnings season?
• Here’s why Afterpay (ASX:APT) is making news again
• How have ASX BNPL shares performed during the August 2021 earnings season?

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. owns shares of and has recommended AFTERPAY T FPO, PayPal Holdings, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings. 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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