The Cardno Limited (ASX: CDD) share price is flying higher this morning after the engineering services company announced it will undertake a strategic review.

At the time of writing, the Cardno share price is trading at 95 cents, up 31%

What’s going on with the Cardno share price?

Cardno is a global engineering company operating across infrastructure, environmental, and social developments.

The engineering consulting company has commenced a strategic review process following a number of unsolicited approaches from interested parties. This process will seek to determine how to maximise shareholder value, given the recent outsider interest.

According to the release, there are no assurances that Cardno will pursue any transactions from the review.

Furthermore, the company has appointed Baird and Gresham Advisory Partners as its financial advisors. Meanwhile, Gilbert + Tobin will operate as Cardno’s legal advisor during the strategic review.

The outsider interest might indicate the market has been underpricing the Cardno share price.

Intega-resting news

It looks like Intega Group Ltd (ASX: ITG) is jumping on the strategic review bandwagon. Intega is another engineering services company that was demerged from Cardno in late 2019.

In an announcement of its own, the company advised it has also commenced a strategic review following increased activity and interest in the sector. Intega’s chairman, Neville Buch said:

Intega is performing well, and the business is ideally positioned to benefit from the strong pipeline of infrastructure investment in the US and Australia. The business has significant organic and inorganic growth potential, particularly in our core US markets as well as adjacencies. The board however believes that the business is undervalued by recent prices at which Intega shares have traded on the ASX…

Greenhill & Co have been engaged for financial advisory. While Intega has also gone with Gilbert + Tobin for its legal advisory.

Much like the Cardno share price, Intega shares are trading higher on the news. At the time of writing, the Intega share price is up 8.7% to 50 cents a share.

The post Cardno (ASX:CDD) share price skyrockets 30% on strategic review appeared first on The Motley Fool Australia.

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• Brickworks (ASX:BKW) share price jumps 8% on record property earnings
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• 2 ASX 200 blue chip shares named as buys

Motley Fool contributor Mitchell Lawler 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 Brickworks Limited (ASX: BKW) share price has pushed into record territory this morning after the company released a trading update for FY21.

At the time of writing, the building products company’s shares are up 8.14% to $22.73, topping their previous record high of $21.54 reached on 7 May.

What’s driving the Brickworks share price?

The Brickworks share price is on the move this morning after the company announced a $100 million revaluation profit within its Joint Venture Industrial Property Trust.

Management commented on the industrial property scene in Sydney, saying:

Since the end of the first half, there has been a number of significant industrial property transactions in western Sydney. The pricing of these transactions has reinforced the strong investor appetite for prime industrial property assets.

Given the number of sales and the steep movement in transaction pricing, an independent valuation of our Property Trust assets has been completed, and this process has resulted in further compression of capitalisation rates across our portfolio. As such, a revaluation profit of around $100 million will be recorded in the second half, representing Brickworks’ 50% share of the valuation gain.

Brickworks now expects to deliver record earnings from its property portfolio for FY21, with property earnings before interest and tax (EBIT) in the range of $240 million to $260 million, up from $129 million a year ago.

Building products segment gathering momentum

Beyond real estate, Brickworks is also a leading manufacturer of a broad range of building products. Within the trading update, the company reported that sales momentum was picking up in both Australia and North America.

Management reported that:

In Australia, the significant uptick in housing approvals is now translating to increased building activity, with our sales particularly strong in Queensland and Western Australia over recent months. That said, the availability of some materials, such as timber for house trusses, is an issue in some areas, with the resultant delays likely to flatten and extend the duration of the existing pipeline of work.

While no dollar figure guidance was provided, the company expects EBIT from building products in Australia to deliver a year-on-year increase in FY21.

The company’s North American division has been the hardest hit by the pandemic, especially in the first half of FY21. However, the update advised that building activity in the United States is now ramping up, underpinned by the country’s vaccine program.

Management believes there will be better days ahead, suggesting that “a strengthening of commercial sales is anticipated as delayed and deferred projects re-commence over the coming months”.

Despite the challenges in the first half, Brickworks expects US dollar EBIT from its North American building products division to finish FY21 with a year-on-year improvement as well.

How has the Brickworks share price been performing?

The Brickworks share price is up by around 18% year to date compared to the 11.33% increase in the S&P/ASX 200 Index (ASX: XJO).

A key catalyst that has helped prop up the company’s share price recently, alongside today’s announcement, was its half-year results delivered on 25 March. The Brickworks share price jumped by more than 5% on the day of the announcement.

The post Brickworks (ASX:BKW) share price jumps 8% on record property earnings appeared first on The Motley Fool Australia.

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

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

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

Amazon (NASDAQ: AMZN) announced today that it is launching a new prescription program for members of its Prime loyalty program, less than a day after Walmart (NYSE: WMT) said it was offering Walmart+ members a discounted prescription service as well.

Having acquired PillPack in 2018, Amazon has been looking to leverage its ability to buy prescription medicine in bulk and provide savings to members in a bid to take a large slice of the $360 billion prescription drug market.

Like the Walmart program, Amazon’s new service is looking for patients who take just a small number of fairly common medicines, such as those used to treat high blood pressure and diabetes; they’ll pay as little as $1 per month and receive a six-month supply.

Six months is typically longer than what insurance companies will pay for, so consumers could see real savings by enrolling in the healthcare prescription program. As Prime members, they’d also be entitled to receive free two-day delivery.

The new offer is an expansion of the Amazon Pharmacy benefit announced last month that allows Prime members to comparison shop for savings through its network of 60,000 pharmacies. It noted Prime members save 80% on generic medications and 40% on name-brand ones through Amazon Pharmacy.

Walmart just introduced Walmart+ RX, which also provides significant discounts on commonly used medications. It notes that members of Walmart+, a loyalty program the retailer launched to challenge Amazon Prime, can get some common medications free while saving up to 85% on others.

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

The post Amazon launches six-month $6 prescriptions to Prime members appeared first on The Motley Fool Australia.

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Rich Duprey has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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Talk about the death of credit cards may be premature as Paypal Holdings Inc (NASDAQ: PYPL) looks to issue an old-school plastic to take on Afterpay Ltd (ASX: APT) and ASX banks.

The move is interesting on two fronts. Firstly, the posterchild and early fintech innovator seems to be going backwards in embracing a plastic card.

PayPal’s new credit card goes against the grain

This is happening at a time when credit card usage is falling and younger consumers are shunning that method of payment.

Data released by the Reserve Bank of Australia (RBA) this week showed a 29% decline in the value of goods purchased with a credit or charge card.

How PayPal could be pressuring the Afterpay share price

Secondly, PayPal’s move could put pressure on the Afterpay share price. The only offering Afterpay has is Buy Now Pay Later (BNPL) while competitors have a wider range of products, reported the Australian Financial Review.

Whether it’s Zip Co Ltd (ASX: Z1P) or Humm Group Ltd (ASX: HUM), these BNPL me-toos offer other credit solutions.

Don’t cut-up your credit card just yet

PayPal recently launched its own BNPL product and its move to plastic is in response to user demand, it said.

The online payment giant has 9.1 million active Australian users. PayPal found that many of them want a credit card. Demand is especially strong for cards with no annual fees and a rewards program that can be used on a wide range of options, according to the AFR.

“There is no silver bullet when it comes to payments,” the AFR quoted Andrew Toon, general manager of payments for PayPal Australia. “We are focused on delivering a one-stop payments shop.”

Taking on ASX banks at their own game

He added that many credit card users have been left with frequent-flyer points that cannot be used due to COVID-19 border restrictions.

But the PayPal card will hold points in a digital wallet and these can be redeemed via discounts at 300,000 Australian merchants on its platform.

That can’t be good news for ASX banks, which are a major issuer of credit cards. These include the Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and friends.

Foolish takeaway

But PayPal isn’t the only one that’s inventing new payment channels for Australia. Qantas Airways Limited (ASX: QAN) is also striking deals to extend the reach of its frequent flyer program. The AFR reported that home loan providers like Symple Loans have signed up.

Borrow big and get a free flight! Fingers crossed this doesn’t come crashing back to earth.

Meanwhile, CBA reported that its no-interest credit card, Neo, accounts for 30% of all credit card applications at the bank. And this number is growing to 40%.

The old-fashion credit card might just be coming back into vogue.

The post PayPal taking fight to Afterpay (ASX:APT) and ASX banks appeared first on The Motley Fool Australia.

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• S&P Global gives ASX bank shares the thumbs up

Brendon Lau owns shaes of Commonwealth Bank of Australia and Westpac Banking Corp. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, PayPal Holdings, and ZIPCOLTD FPO. 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 Humm Group Limited and 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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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.

Cryptocurrency is the latest phenomenon in the investing world, even with the beating it has taken over the past few weeks. Many cryptocurrencies have seen their prices plummet, and Dogecoin (CRYPTO: DOGE) is no exception.

The price of Dogecoin is down more than 40% since its peak in mid-May. However, it’s still up by more than 12,600% over the past 12 months, making it one of the fastest-growing cryptocurrencies. By comparison, Bitcoin (CRYPTO: BTC) is up around 250% over the past year, and Ether (CRYPTO: ETH) has increased by close to 1,000% in the same time frame.

Because Dogecoin has experienced such explosive growth, it might seem like a smart investment. If the cryptocurrency continues surging at this rate, you could stand to make a lot of money by investing now. 

Dogecoin isn’t the right investment for everyone, though, and it can be downright dangerous. So before you buy, make sure you’ve answered these three important questions.

1. Are you investing for the right reasons?

Getting rich in the stock market is certainly possible, but it’s not easy. If you’re investing solely for the purpose of trying to become a millionaire overnight, you’ll likely end up disappointed (and potentially broke).

No matter where you choose to invest, you should only be buying investments that you believe will succeed over the long term.

Dogecoin has grown significantly over the short term, but that growth may or may not be sustainable. If you choose to invest, it should be because you believe in its potential and think it will be around for the long haul — not because you’re hoping to make a quick buck.

Whether Dogecoin has any staying power is uncertain right now. Its fundamentals might not be as strong as those of larger cryptocurrencies like Bitcoin and Ether, but its supporters still believe it can continue growing. Before you invest in Dogecoin, make sure you’re willing to hold on to it for the long term.

2. Can you afford to lose your investment?

All investments are subject to some degree of volatility, but cryptocurrency is especially turbulent. And of all the cryptocurrencies, Dogecoin is one of the riskier options. This means that if you choose to buy, don’t invest any money you can’t afford to lose.

Right now, Dogecoin lacks real-world utility. The vast majority of merchants don’t accept it as a form of payment, and without widespread adoption, it will be challenging for it to become a mainstream form of currency. In addition, there are other cryptocurrencies that have lower transaction fees and use less energy, meaning that Dogecoin doesn’t have much of a competitive advantage in the industry.

In addition, its skyrocketing price has more to do with online investors pumping up its price than its fundamentals. Dogecoin has been going down a route similar to companies like GameStop and AMC Entertainment Holdings, where short-term investors inflate the stock price only to sell soon after and make a profit.

For those reasons, Dogecoin is a high-risk option. That doesn’t mean it’s impossible to make money with it, but be sure you’re prepared to potentially lose whatever you invest.

3. Have you considered all your options?

Dogecoin is one of the most well-known cryptocurrencies, but it’s not your only choice. If you only invest in Dogecoin because it’s trendy, you could end up missing out on a better alternative.

There are countless types of cryptocurrency, but two of the biggest names in the industry are Bitcoin and Ether. Bitcoin is the most popular cryptocurrency, and it’s also the one most widely accepted by merchants. Because it has the longest track record and the most name recognition, if any cryptocurrency were to succeed over the long term, it could be Bitcoin.

Ether is the second-most-popular cryptocurrency. The terms “Ether” and “Ethereum” are often used interchangeably, but technically speaking, Ether is the cryptocurrency itself while Ethereum is the blockchain technology behind it. Ethereum is one of the biggest names in blockchain, and it has a variety of uses outside of cryptocurrency. This gives Ether an advantage because it has a better chance of succeeding if Ethereum succeeds.

Dogecoin could become a real competitor in the cryptocurrency space if it continues to improve and gain supporters. But before you invest, it’s important to do your research and make sure it’s the best option for you.

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

The post Dogecoin: 3 questions to tell whether it’s time to invest appeared first on The Motley Fool Australia.

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Katie Brockman 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.

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

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The illustrious S&P/ASX 200 Index (ASX: XJO) is home to a good number of shares with true blue chip status.

So many, in fact, it can be hard to decide which ones to include in your portfolio.

In order to narrow things down, I have picked out two blue chip ASX 200 shares which are highly rated right now. They are as follows:

CSL Limited (ASX: CSL)

The first ASX 200 blue chip share to look at is CSL. It is one of the world’s leading biotechnology companies, responsible for the CSL Behring and Seqirus businesses. CSL Behring is the leader in plasma therapies, whereas Seqirus is the number two player in flu vaccines.

CSL has been a relatively positive performer during FY 2021 despite facing a number of headwinds. It is expecting to report profit of US$2,170 million to US$2,265 million in constant currency this year. This represents year on year growth of just 3% to 8%.

And while its near term performance is likely to be impacted by plasma collections headwinds, these are now easing.

Looking ahead, CSL appears well-placed for growth thanks to strong demand for its core therapies, growing demand for flu vaccines, and its lucrative R&D pipeline. The latter has a number of potentially lucrative products in development that could be a big boost to its sales.

Analysts at UBS currently have a buy rating and $330.00 price target on the company’s shares.

REA Group Limited (ASX: REA)

Another ASX 200 blue chip ASX share to look at is property listings company REA Group.

Trading conditions have been tough for REA Group in recent years because of the housing market downturn and then the pandemic. However, thanks to the strength of its business model, it still delivered robust profit growth.

So with the housing market booming, the wind is well and truly in its sails now. Combined with its growing international operations, price increases, and new revenue streams, this bodes well for its growth in the coming years.

One broker that is particularly positive on REA Group is Macquarie. It has an outperform rating and $179.10 price target on its shares.

The post 2 ASX 200 blue chip shares named as buys appeared first on The Motley Fool Australia.

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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 CSL 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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If you’re looking for ways to boost your income in retirement, then you might want to look at the shares listed below.

These high quality ASX shares could be great options for retirees. Here’s what you need to know about them:

Suncorp Group Ltd (ASX: SUN)

The first ASX share to consider for a retirement portfolio is Suncorp. It is one of Australia’s leading insurance and banking companies. As well as the eponymous Suncorp brand, it also owns the AAMI, Apia, Bingle, GIO, Shannons, and Vero brands.

After a tough year during the pandemic, Suncorp has returned to form in FY 2021. During the first half, the company reported a 39.5% increase in cash earnings to $509 million.

Pleasingly, Goldman Sachs believes this solid form can continue. As a result, it recently retained its buy rating and lifted its price target to $12.08.

Goldman is positive on the company’s outlook and is forecasting a 60 cents per share fully franked dividend this year. Based on the current Suncorp share price of $11.24, this will mean a 5.3% dividend yield.

Telstra Corporation Ltd (ASX: TLS)

Another ASX share to look at for a retirement portfolio is Telstra. After several years of struggles, the word “growth” is finally being talked about.

In February, Telstra’s CEO, Andy Penn commented: “After a decade of disruption following the creation of the nbn, and with its rollout now declared complete, we can clearly see the path to underlying growth ahead of us.”

“Our investment in innovation and technology, digitisation and networks, improving our customer experience and being disciplined in our capital management, mean that at the start of this decade, as Australia digitises its economy, Telstra is in a strong position to grow,” he added.

Analysts at Goldman Sachs appear confident that the telco giant will deliver on this. Its analysts currently have a buy rating and $4.00 price target on its shares.

The broker is also forecasting 16 cents per share fully franked dividends for the foreseeable future. Based on the latest Telstra share price of $3.56, this will mean 4.5% yields.

The post Why Telstra (ASX:TLS) and this ASX share could be top options for a retirement portfolio 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 owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Sonic Healthcare 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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Technology shares have taken a pummelling in recent months, but some have weathered the storm better than others.

Growth stocks that rely on low interest rates for high valuations have been punished by the market over the past 6 months. Investors have been shifting to value shares that are more likely to be resilient to rising inflation.

Wilson Asset Management portfolio manager Oscar Oberg said this year had been a time of reckoning for high-flying ASX tech shares.

“We’ve really been able to differentiate the winners and losers in the technology sector,” he told a Wilson video.

“For a number of years, if you were a company that had ‘pay’ at the end of your name, you seem to get a huge re-rating, and you trade at 20 times sales. It does feel like those days are coming to an end.” 

Some of those deflated tech stocks include Afterpay Ltd (ASX: APT), which has fallen almost 40% from its 53-week highs; and Appen Ltd (ASX: APX), which is down nearly 70% from highs.

But not every high-flying tech stock has been absolutely hammered.

Why has Xero been so resilient?

One business that surprised Oberg with its resilience during the tech sell-off is cloud accounting software provider Xero Limited (ASX: XRO).

Its shares closed Tuesday at $132.01, not ridiculously far from $148.46 at the start of the year. The current price is also only 16% below the 53-week high of $157.99.

Oberg credited multiple factors in the New Zealand business for its success in retaining its valuation.

“It’s got such a high level of recurring revenues, it’s a SaaS [software-as-a-service]-based business, and it has very low levels of churn.”

Looking ahead, Oberg viewed Xero’s future favourably.

“Really confident around their market share growth they can get in the United Kingdom, Australia and the US over time.”

Oberg isn’t the only one who likes Xero for those reasons. On Tuesday, brokers at Goldman Sachs had a buy rating with a price target of $153, with a forecast that the Kiwi monster has potential for decades of strong revenue growth.

“Xero is still only scratching at the surface of its overall market opportunity,” The Motley Fool’s James Mickleboro reported.

“In FY 2021, the company reported an 18% increase in revenue to NZ$848.8 million, which was driven by a 20% increase in subscribers to 2.74 million. This compares to the cloud accounting subscriber total addressable market of 45 million.”

Xero is one of the largest technology companies listed on the ASX. It started life on the NZX and was dual-listed until 2018.

The post This surprising ASX tech share refuses to dive: analyst appeared first on The Motley Fool Australia.

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Tony Yoo owns shares of AFTERPAY T FPO, Appen Ltd, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, and Xero. 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 data centre shares are seeing ever-growing demand from cloud computing, spurred on by COVID-19 work-from-home changes.

Which leads me to ask this question…

Do you remember the first time you heard the term ‘in the cloud’?

For me, it was back in 2007. The Netherlands-based company I was working for at the time had its own mainframe computers humming away in a back room.

While the wardrobe­-sized machines did the job, they were expensive to maintain. And that back room got hot! So the company’s president, eager to be at the cutting edge of technology, investigated shifting a huge trove of data into what he called ‘cloud computing’.

Now I knew he couldn’t be talking about sending data into the literal clouds – of which you tend to find plenty in the Netherlands. But it took a while to understand that, really, all the cloud represents is banks upon banks of computers located offsite in data centres.

We’ll get to those, and the fast-growing demand for cloud computing, shortly.

But first…

Who coined the term ‘cloud computing’?

The idea of storing your digital data offsite has been around for more than 50 years.

But it seems that Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) – Google to you and me – gets the credit for coining the term cloud computing. Or more specifically, Google’s CEO Eric Schmidt, who first used the term at a conference in August 2006.

With remarkable prescience, Schmidt said at the time (quoted by MIT Technology Review):

What’s interesting [now] is that there is an emergent new model. I don’t think people have really understood how big this opportunity really is. It starts with the premise that the data services and architecture should be on servers. We call it cloud computing – they should be in a cloud somewhere.

Emergent new model indeed…

The growth and growth of cloud computing

For an idea of just how fast cloud computing is growing Down Under, we turn to the Australian Bureau of Statistics (ABS). According to the ABS Characteristics of Australian Business report, released last week, 55% of Australian businesses are leveraging paid cloud computing. That’s up from 42% in 2017-18 and up from 31% in 2015-16.

Commenting on the ABS data on cloud-computing growth, Karl Durrance, director of enterprise at Amazon Web Services (AWS) said: “The past year accelerated our shift to a digital world and highlighted an even more urgent recognition of the problems we need to address together to drive our economy and society forward.”

AWS pointed to a report it commissioned from consulting firm AlphaBeta, titled ‘Unlocking APAC’s Digital Potential: Changing Digital Skill Needs and Policy Approaches’. The report found “43% of Australia’s digital workers, who are not applying cloud-computing skills today, believe it will be a requirement to perform their jobs by 2025”.

Then there’s the IDC Australia Future of Work Survey 2020 that AWS also pointed to. According to the survey, “69% of local organisations indicated that working from home, or a hybrid mix of working from home and in the workplace, will become the norm”.

As most of us don’t have our own servers stuffed in our back rooms, arguably the demand for cloud computing and the ASX data centre shares that secure the data could be set to keep growing.

Which brings us back around to…

2 ASX shares focused on data centres

NextDC Ltd (ASX: NXT) is one of Australia’s leading independent operators of data centres. The company has a network of nine data centres spread across the biggest capital cities.

NextDC shares began trading on the ASX in 2010. Today, the ASX data centre share has a market capitalisation of around $5.1 billion and is part of the S&P/ASX 200 Index (ASX: XJO).

The NextDC share price was up by 4.23% to $11.33 by yesterday’s close. That puts the company’s shares up by around 23% over the past 12 months. Year to date, NextDC shares have gone the other way, down around 7% so far this year.

A second ASX data centre share is better known as one of Australia’s largest housing developers, which also has a large commercial property footprint.

I’m talking about Stockland Corporation Ltd (ASX: SGP), which isn’t technically a data centre share just yet. In fact, the company doesn’t actually own any data centres – but that’s about to change.

As the Australian Financial Review reported yesterday, Stockland is getting ready to build its first data centre at its M Park development in Sydney:

The NSW Government rushed through approval for the data centre, which it said has an end value of $264 million, as a State Significant Development (SSD).

‘Fast-tracking data centre assessments are a key part of the NSW government’s planning reforms,’ said Planning Minister Rob Stokes.

It’s understood the five-storey data centre will be a hyper-scale facility leased to a major cloud computing provider, believed to be Amazon Web Services.

Stockland has a market cap of around $11.4 billion and pays a dividend yield of 4.6%, unfranked.

The Stockland share price, which edged 1.27% higher in Tuesday’s session, is up by around 21% in the past 12 months. Year to date, the company’s shares have gained around 15%.

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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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. 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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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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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