Commonwealth Bank of Australia (ASX: CBA) shares have been on a handy run of late. Shares in Australia’s biggest bank are up 18.8% year-to-date and 37.3% in the last year.

Investment decision-making is a very individual process and whether or not to buy will vary greatly depending on financial position, investment horizon and investment strategy.

However, the bank’s shares are trading just shy of $100 per share and aren’t far off an all-time high. So, is it a good time to buy CBA shares?

When is a good time to buy CBA shares?

Some investors may be wary of purchasing CBA shares so close to an all-time high. However, an all-time high isn’t a bad thing in and of itself.

For instance, in order for a share price to continue climbing over time, you’d expect it to be at an all-time high at several points. That means that record highs, or even 52-week highs, aren’t something to be afraid of.

What might help in assessing CBA shares right now is the relative value that they offer versus peers. A comparable peer group for CBA could be its fellow Big Four banks.

CBA shares currently trade at a price to earnings (P/E) ratio of 22.1 times earnings with a 2.5% dividend yield. Let’s see how that stacks up against Australia and New Zealand Banking Group Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Based solely on the P/E ratio, ANZ is the best value at 16.8x earnings compared to NAB (19.9x) and Westpac (21.1x). For those hunting for income, ANZ also leads the pack with a 3.8% dividend yield. CBA (2.5%) is notably the lowest with NAB (3.5%) and Westpac (3.6%) both trading higher.

Based purely on these metrics alone, it does look like CBA shares are trading at a slight premium to their peers. CBA’s 22.1x P/E ratio is above the group average of 20.0x with a lower dividend yield. However, investing isn’t as easy as buying whatever is cheapest based on a couple of easy numbers.

There are many reasons why a share may trade at a premium to its peers. For instance, a large price drop would be bad for total returns but if the earnings and dividends estimates remained unchanged, the relative value would look more attractive.

P/E ratios and dividend yields could also be reflecting demand for greater governance, a stronger capital position, a better balance sheet or even a preferred strategy.

Foolish takeaway

Whether now is a good time to buy CBA shares will depend on the individual.

There’s no doubt they’ve performed well in the last year or so and aren’t far away from an all-time high. If I were considering buying, I’d keep a close eye on CBA’s full-year results on 11 August.

The post Is it a good time to buy Commonwealth Bank (ASX: CBA) shares? appeared first on The Motley Fool Australia.

More reading

• Plumbing, health, tech: 3 ASX shares to buy for instant diversification
• 5 things to watch on the ASX 200 on Tuesday
• Westpac (ASX:WBC) share price on watch after asset sale blow
• What to expect from the ASX 200 during earnings season
• Own ANZ (ASX:ANZ) shares? Here’s what to look for during reporting season

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.

from The Motley Fool Australia https://ift.tt/3ldR9w7

The Ioneer Ltd (ASX: INR) share price has jumped into the green in afternoon trading.

Today’s gain comes as the company released its quarterly results this morning.

Ioneer shares are now exchanging hands at 41.5 cents apiece, a 2.47% walk into the money on the day.

Here we comb over Ioneer’s results in a bit finer detail.

A bit more on Ioneer

Ioneer is in the minerals exploration business. Its flagship project is the Rhyolite Ridge lithium-boron project, located in Nevada, USA.

As such, it has a meaningful footprint across Australia and North America. Ioneer has a market capitalisation of around $790 million at the time of writing.

Ioneer’s quarterly results

Ioneer outlined several progress points it had achieved this quarter.

Firstly, it announced the signing of its first “binding offtake supply agreement” with Korean company EcoPro Innovation Co. Ltd.

It explained that EcoPro is the world’s “second-largest NCA cathode materials manufacturer” and that the agreement is valid for 3-years.

Under the agreement, Ioneer will supply EcoPro with up to 7,000 tonnes per annum (TPA) of lithium carbonate.

The stipulated TPA represents ~33% of Rhyolite Ridge’s annual output for “the first three years of production”.

Ioneer also announced it had received regulatory approval at Rhyolite Ridge by means of a “State Class II air quality permit and water pollution control permit”. Both permits are required to commence project construction at the site.

Additional takeouts

Ioneer also started “formal evaluation procedures” in the pursuit of a secondary listing of its shares “on a major US stock exchange to increase exposure to US capital markets”.

The secondary listing is “likely” to take place in 2H 2021, according to the company.

Finally, it detailed that engineering work progressed with US$122 – $148 million in “major work packages under negotiation”.

This includes the “cumulative completion” of ~870 execution variables and a suite of vendor engineering packages.

Speaking on the progress, Ioneer managing director Bernard Rowe said:

As the most advanced lithium development project in the US, Ioneer is in a strong position to capitalise on the increased demand for lithium products in line with the US Government’s efforts to secure critical minerals supply chains for end uses like EVs and renewable energy infrastructure in the US.

Ioneer share price snapshot

The Ioneer share price has posted a year to date return of 50% on the nose, extending the previous 12 months’ return of 223%.

These returns have outrun the S&P/ASX 200 Index (ASX: XJO)’s return of ~23% over the past year.

The post Ioneer (ASX:INR) share price jumps following quarterly results appeared first on The Motley Fool Australia.

More reading

• Why the Ioneer (ASX:INR) share price is on the rise today
• ASX lithium shares are surging on Tuesday. Here’s why
• Here’s why the Ioneer (ASX:INR) share price is edging higher
• Here’s why Ioneer’s (ASX:INR) share price is climbing higher

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.

from The Motley Fool Australia https://ift.tt/3y3fesS

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.

The chatter calling for Amazon.com (NASDAQ: AMZN) to execute a stock split is diminishing, but that’s surprising. The stock continues to rise, making the arguments for a lower share price via a split all the more tantalizing.

There are also a couple of good reasons why Amazon should announce a stock split as soon as later this week. You might think these bookkeeping moves are silly zero-sum games, and that’s fair. However, a lot of other market watchers see an Amazon split as the key to attracting even more retail investors while also making life easier for options traders. Let’s see why Amazon could be the next major stock to declare a stock split.

Amazon is rocking

It’s good to be Amazon. The e-tail king was doing just fine before the pandemic shifted e-commerce into an even higher gear. The 38% increase in net sales that Amazon posted last year was its heartiest top-line gain in nine years.

Things aren’t slowing down in 2021. Revenue soared 44% during the first three months of this year.

Investors are paying attention. Amazon held up better than most growth stocks during the correction earlier this year. It enters this trading week within 3% of the all-time high it hit two weeks ago.

There are only three U.S.-exchange-listed stocks trading at higher price points than the roughly $3,700 that Amazon is fetching as of Monday morning. Amazon’s market cap is more than double those of the three higher-priced stocks combined. It’s time for a stock split.

The clock is rolling

Amazon reports its second-quarter results after market close on Thursday. Stock splits are often announced during an earnings release, whether the report itself is positive or negative.

Adding to the likelihood of a stock split is that CEO Jeff Bezos officially stepped down as CEO earlier this month. If new CEO Andy Jassy wants to break the mold, there is no easier move than declaring the stock split that Bezos never cared to execute.

A stock split is a zero-sum game. A single share of Amazon at $3,700 would be the same thing as 50 shares at $74. However, it’s not easy to trade options on a $3,700 stock. We’re not just talking about throwing speculators a bone, as there are plenty of conservative risk-management tools available for long-term Amazon investors through the options market.

Stock splits may not seem to matter as much as they did just a few years ago. Investors can buy fractional shares through a growing number of brokers. Zero-commission trading makes it easier than ever to buy a couple of shares at a time. However, there is still a natural attraction to low stock prices.

A lower stock price would also make Amazon a no-brainer addition to the Dow Jones Industrial Average the next time the archaic but still relevant index shakes up its 30 members. In short, you don’t have to be a fan of stock splits to see how an increase in retail and possibly institutional ownership can make Amazon even more valuable.

Your legacy begins now, Jassy. A stock split makes more sense than you probably think.

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

The post Stock split watch: Is Amazon next? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Bubs (ASX:BUB) share price is down 4% on Monday
• The 2 best shares to hang your hat on: fund managers
• ASX investors were buying GameStop (NYSE:GME) shares last week
• Here’s our secret software ASX share that just keeps giving: analyst
• I’m investing for my kids. Any advice?

Rick Munarriz owns shares of Amazon. 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.

from The Motley Fool Australia https://ift.tt/3eYUZVV

The Rio Tinto Limited (ASX: RIO) share price is on track to finish the day higher. It appears the latest reports of production cuts in Canada isn’t slowing down the mining giant on Tuesday.

At the time of writing, shares in the multinational mining company are 1.99% higher at $132.70. Elevated iron ore and copper prices have helped Rio shares to achieve a gain of 27.6% over the past year.

Let’s take a closer look at what has instigated the company’s production cuts.

Union troubles lead to production cuts

Investors are buying up Rio Tinto shares today despite the latest news of production cuts at the company’s Canadian aluminium smelter.

According to a release, production at BC Works smelter in Kitimat, Canada will suffer a significant cut after the company failed to reach an agreement on a new collective labour agreement with a local union.

Production will be reduced to 35% of the smelter’s 432,000 tonne annual capacity. This is so it can operate safely under an essential services order granted by the BC Labour Relations Board.

Rio Tinto aluminium managing director of atlantic operations Samir Cairae stated:

Reducing production will have a significant impact on the business and community, but we are committed to taking the necessary steps to operate safely with a reduced workforce.

We have made every effort to reach a mutually beneficial agreement through negotiating in good faith over the past seven weeks, including proposing an independent mediator which was rejected by Unifor Local 2301. We will continue to look for longer-term solutions with the union and work closely with customers and suppliers to minimise disruptions.

Similarly, a reduced workforce is also in place at the Kemano hydro-power facility to ensure safe operations.

The Unifor Local 2301 union represents approximately 900 of the 1,050 employees at the smelter.

Rio Tinto share price on upcoming results

ASX-listed Rio’s half-year results are slated for release tomorrow. Investors might be squeezing in last minute in expectation of solid results.

However, the company recently noted iron ore shipments will be at the lower end of its guidance range. Despite this, the continued strength in iron ore prices appears to have maintained optimism towards the Rio Tinto share price.

The post Rio Tinto (ASX:RIO) share price rises despite aluminium production cuts appeared first on The Motley Fool Australia.

More reading

• Lynas share price soars, BHP and Rio on watch, A2 on the naughty list. Scott Phillips on Nine’s Late News
• What to expect from the ASX 200 during earnings season
• Why City Chic, Lynas Rare Earths, Rio Tinto, & Stavely Minerals are charging higher
• Own Rio Tinto (ASX:RIO) shares? What to look for when the miner reports on Wednesday
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs

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.

from The Motley Fool Australia https://ift.tt/2Wk6aSp

With the S&P/ASX 200 Index (ASX: XJO) hitting a new all-time high today, there is understandably a lot of excitement on the markets this Tuesday.

It’s not just the ASX 200 either. Markets around the world are thriving. The US Dow Jones Industrial Average (INDEXDJX: .DJI) crossed 35,000 points for the first time ever last week. Ditto with the S&P 500 Index (INDEXSP: .INX) crossing 4,400 points.

Whilst it’s always fun and fuzzy to see markets at all-time highs, it might also be provoking the question of ‘where to from here’ for some investors out there.

After all, it was only a few months ago that investors were getting nervous. Both US and Australian government bond yields were rising and this was sparking concerns about future inflation — and the higher interest rates that normally come with it. But these concerns are well and truly off the boil.

Back in April, investors were getting nervous after the US 10-year government bond yield hit a post-COVID high of roughly 1.75% (it was around 0.55% in August 2020). But according to CNBC today, that yield stands far lower at 1.29%.

Lower rates fuel higher shares?

Could these lower rates be calming investors? Well, the strange thing is that although the ASX blue chips are pushing the ASX 200 to the all-time highs we see today, the rising tide has not lifted all boats.

Some ASX shares, such as Afterpay Ltd (ASX: APT), Xero Limited (ASX :XRO) and Zip Co Ltd (ASX: Z1P) are nowhere near their all-time highs today.

Afterpay was $160 a share back in February. Today, it’s going for under $103 a share. Xero hit $157.99 back in January, but is trading at just over $141 a share today. And Zip Co is down more than 50% from its own February all-time high at today’s pricing.

We see something similar happening over in the US. Sure, companies like Apple Inc (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) and Microsoft Corporation (NASDAQ: MSFT) are at, or near, all-time highs.

But other, ‘growthier’, companies like Zoom Video Communications Inc (NASDAQ: ZM), Tesla Inc (NASDAQ: TSLA), Palantir Technologies Inc (NYSE: PLTR) and Coinbase Global Inc (NASDAQ: COIN) are far from it.

So what do we make of this market disparity and volatility?

BlackRock says take advantage of volatility

BlackRock is the largest fund manager in the world. And according to a report in the Australian Financial Review (AFR) today, it sees some buying opportunities out there.

According to BlackRock analysis, the fund manager reckons any volatility that we may see as a result of inflation concerns or new COVID variants is hands down a buying opportunity going forward.

BlackRock predicts that the central banks around the world, including our own Reserve Bank of Australia (RBA), will be very slow to respond to any rise in overall prices. This, in turn, will keep “nominal bond yields lower and real rates negative – a positive for risk assets [read shares]”.

Here’s some more of what it said:

Market volatility is on the rise, as worries about new virus strains have been exacerbated by stretched positioning and light summer trading. Recent swings in market sentiment reflect the unusually wide range of potential outcomes beyond the current economic restart, in our view.

Market overreactions may create opportunities to readjust portfolios to a pro-risk stance as we maintain high conviction in our new nominal investment theme that implies low real yields.

So long story short, BlackRock believes that rates will stay low for some time and this will inevitably support rising share markets as a result. By extension, it also implies that any short-term volatility is a buying opportunity through this lens.

Something to keep in mind if you’re getting nervous about the ASX 200 at an all-time high!

The post World’s largest fund manager says ASX volatility a great buying opportunity appeared first on The Motley Fool Australia.

More reading

• Xero (ASX:XRO) share price lower following broker downgrade
• Is the Zip (ASX:Z1P) share price a buy or a sell?
• ASX 200 midday update: BlueScope & OZ Minerals updates impress
• Leading brokers name 3 ASX shares to sell today
• Could it be time to consider buying Afterpay (ASX:APT) shares?

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. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares), Coinbase Global, Inc., Tesla, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Alphabet (A shares), Alphabet (C shares), Apple, Microsoft, Palantir Technologies Inc., Tesla, Xero, ZIPCOLTD FPO, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Apple, and Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3BIimN9

The Service Stream Limited (ASX: SSM) share price is gaining today following the opening of the company’s retail entitlement offer.

Service Stream released its retail offer booklet before the ASX opened this morning.

As part of the retail offer, eligible Service Stream shareholders will be able to purchase 1 share for every 3 shares they already own, paying 90 cents per share for the extra holding.

Right now, the Service Stream share price is 94 cents – 1.08% higher than its previous close.

Service Stream is a provider of telecommunication and network services.

Let’s take a closer look at today’s news from Service Stream.

Retail entitlement offer

The Service Stream share price is gaining today following the company announcing its retail entitlement offer was open as of 10am this morning. 

The retail entitlement offer is the final piece of the company’s capital raising puzzle. It follows a $130 million institutional entitlement offer and placement that successfully closed on 22 July.

The retail entitlement offer is expected to raise another $55 million. It’s set to close at 7pm on 9 August.

To be eligible for the retail entitlement offer, Service Stream shareholders must have been a registered shareholder as of 23 July and live in Australia or New Zealand.

The company is raising the cash to purchase Lendlease Group‘s (ASX: LLC)  non-core services business for $310 million.

The Lendlease Services business provides services across the telecommunication, utilities, and transport sectors.

Service Stream’s acquisition of Lendlease Services was announced on 21 July.

Service Stream share price snapshot

The Service Stream share price is badly in need of today’s gains.

Right now, it is 47% lower than it was at the start of 2021. It has also fallen 48% since this time last year.

The company has a market capitalisation of around $381 million, with approximately 416 million shares outstanding.

The post Here’s why the Service Stream (ASX:SSM) share price is gaining today appeared first on The Motley Fool Australia.

More reading

• ‘Unloved’ for 5 years, this ASX share is ready to rocket
• Why Kogan, Service Stream, Whispir, & Zip shares are sinking
• Why the Service Stream (ASX:SSM) share price is heading south today
• Here’s why the Service Stream (ASX:SSM) share price is halted
• ASX 200 midday update: Kogan FY 2021 update, Altium sinks

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.

from The Motley Fool Australia https://ift.tt/3rAkYYJ

The market may be pushing higher today but the Xero Limited (ASX: XRO) share price hasn’t been able to follow its lead.

In afternoon trade, the cloud accounting and business platform provider’s shares are down 1.5% to $141.65.

Why is the Xero share price under pressure today?

The Xero share price has come under a spot of pressure today following the release of a broker note out of Macquarie Group Ltd (ASX: MQG).

According to the note, the broker has downgraded the company’s shares to an underperform rating and held firm with its $130.00 price target.

Based on the current Xero share price, this implies potential downside of 8% over the next 12 months.

What did the broker say?

The note reveals that Macquarie made the move largely on valuation grounds. The broker doesn’t believe that its growth outlook warrants its shares trading on such lofty multiples. It would prefer to see them trading on fairer multiples before becoming more positive.

The reason Macquarie isn’t as bullish on Xero’s growth outlook as some analysts is due to its belief that the company is running out of room to grow in the ANZ market.

Macquarie notes that Xero now has a 53% share of the small to medium sized business market in the region. In light of this, it feels that its organic subscriber growth in the market will slow to the low single digits in the coming years.

This is disappointing because the lifetime value of its ANZ subscribers is more than double that of its international subscribers.

What do others think?

One broker that doesn’t appear to agree with Macquarie is Goldman Sachs. It recently retained its buy rating and lifted its price target to $165.00.

Based on the latest Xero share price, this implies potential upside of 27% over the next 12 months.

Goldman doesn’t appear concerned that its ANZ growth will slow. It is expecting ANZ EBITDA to increase 142% between FY 2022 and FY 2030 from NZ$512 million to NZ$1,225 million.

Time will tell which broker has made the right call.

The post Xero (ASX:XRO) share price lower following broker downgrade appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• ASX 200 Weekly Wrap: Just like that… ASX back to record highs
• 3 ASX 50 shares named as buys
• Why the 4DS (ASX:4DS) share price is rallying today
• Here’s why the Xero (ASX:XRO) share price is up 5% in a week

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 Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2V7x2Vb

The Vmoto Ltd (ASX: VMT) share price is in the green today following a business update on its second quarter performance.

At the time of writing, the electric-powered scooter manufacturer’s shares are up 2.74% at 37.5 cents, after earlier reaching an intraday high of 39 cents.

What’s driving the Vmoto share price higher?

Investors appear pleased with the company’s latest release, sending Vmoto shares higher.

According to the announcement, Vmoto stated it delivered strong operational and commercial performance for the second quarter of FY21.

For the 3 months ending 30 June, the company achieved sales of 7,854 units, reflecting a 23% increase on the prior corresponding period. International sales accounted for 7,503 units with Vmoto experiencing strong momentum in overseas markets. Surprisingly, just under 5% of units were sold in China, indicating significant growth runway.

The company declared a healthy cash balance of $16.7 million with no bank debt. The group noted that the strong cash position allows it to pursue revenue-generating initiatives.

In addition, Vmoto recorded 9,636 units on its order book. This comes after the company secured and delivered the 5,904 units to Greenmo Group during the first half of FY21.

Pleasingly, the company expects sales to continue to increase from both new and existing customers in H2 FY21.

A number of international distributors were appointed for the warehousing, distribution, and marketing of its B2C range of electric vehicles. These included distributors across Indonesia, Mauritius, Bolivia, Czech Republic, Brazil, Cayman Islands, and Azerbaijan.

Vmoto also supplied samples and is engaged in discussions with potential B2B and B2C distributors and customers around the world. Its biggest markets could be Mexico, Pakistan, Russia, Singapore, South Africa, Spain and the United States, along with others.

About the Vmoto share price

It’s been a volatile 12 months for Vmoto shares, down almost 22%. The company’s share price appears to have been hampered by the ongoing impact of COVID-19, forcing restrictions on movement.

At today’s price, Vmoto has a market capitalisation of around $104 million with approximately 278 million shares on issue.

The post Why the Vmoto (ASX:VMT) share price is scooting today appeared first on The Motley Fool Australia.

More reading

• Xero (ASX:XRO) share price lower following broker downgrade
• The Archtis (ASX:AR9) share price slides on quarterly update
• Why Tesla stock bounced ahead of earnings
• Is the Zip (ASX:Z1P) share price a buy or a sell?
• Analysts rate these ASX lithium miners as buys

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://ift.tt/3zBWgdi

The Archtis Ltd (ASX: AR9) share price is down today, though rebounding strongly from earlier losses. At time of writing Archtis shares are down 2.94% after earlier posting losses of more than 7%.

Below, we take a look at the ASX cyber security company’s quarterly update for the quarter ending 30 June (Q4).

What quarterly update did Archtis report?

Archtis’ share price remains down at time of writing despite the company reporting a record-breaking quarter.

According to the release, total unaudited revenue for Q4 in the 2021 financial year came in at $1.25 million. That’s an increase of 80% on Q3 revenue. It’s also up 1,289% from Q4 in the 2020 financial year, when revenue came in at $162,000.

Archtis said the leap in revenue was mostly thanks to a 39% increase in annual recurring licensing revenue, as well as consulting services derived from its Australian Department of Defence contract.

The innovative software developer also realised an 86% increase in gross profits quarter-on-quarter, to $1.48 million, up from $797,000 in Q3.

With more money going into sales and marketing, operating expenses for the quarter were $2.3 million. This was up 8.6% from the prior quarter. As at 30 June, the company has a cash balance of $12.7 million, compared to $12.0 million in Q3.

Commenting on the results, Archtis’ CEO Daniel Lai said:

Archtis delivered a strong record-breaking quarter. We set out with a plan to scale the business through the expansion of a global sales distribution network, increased market awareness and technology-leading product innovation. This has provided shareholders with another quarter of record revenue growth, strong customer cash receipts and an increasing recurring licensing business.

The company credited the strong growth to some large new customer wins as well as renewals across government agencies, defence contractors and corporations around the world.

Archtis share price snapshot

The Archtis share price has gained 43% over the past 12 months, compared to a gain of 25% on the All Ordinaries Index (ASX: XAO) over that same time.

Year-to-date the Archtis share price is up 6%.

The post The Archtis (ASX:AR9) share price slides on quarterly update appeared first on The Motley Fool Australia.

More reading

• ASX 200 companies take heed: Telstra (ASX:TLS) boss says Australia faces ‘unprecedented’ cyber threat

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.

from The Motley Fool Australia https://ift.tt/2Wgcdr4

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

While Tesla (NASDAQ: TSLA) stock has been a big winner over the last year and a half, it’s actually down about 6% year to date, underperforming the overall market. That is one reason investors are awaiting the company’s second-quarter results due after the closing bell today. That anticipation has Tesla shares trading about 3% higher Monday, as of 1 p.m. EDT.

So what

The leading electric car company’s second-quarter earnings report comes on the same day that a closely watched potential rival began trading publicly. Lucid Motors, which expects to deliver its first luxury electric sedans later this year, is now listed on the Nasdaq stock market. But for today, investors are focused more on what Tesla will say later this afternoon.

Now what

Tesla’s second-quarter report comes after the company previously announced it produced more than 206,000 vehicles in the three months ended June 30. That’s more than twice the 82,272 vehicles the company manufactured in 2020’s second quarter. Analysts think that large increase helped the company generate record revenue and profits in the second quarter.

Expectations are for revenue to soar to about $11.4 billion, compared to $6 billion in the year-ago period. The average analyst estimate is for profit of $1.20 per share, according to data from MarketWatch.

Tesla investors will also be watching how Lucid will perform once it ramps up production. The Lucid Air sedan is expected to be the first electric vehicle to provide a range of more than 500 miles, and could potentially challenge Tesla’s Model S domination of the high-end electric car market. But for today, the upcoming financial report this afternoon is what investors are looking forward to.

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

The post Why Tesla stock bounced ahead of earnings appeared first on The Motley Fool Australia.

More reading

• Zip share price falls, Pilbara Minerals flies. And the BHP share price gets a Tesla bounce. Scott Phillips on Nine’s Late News
• Bitcoin gains after Musk, Wood, and Dorsey spruik the crypto
• The 2 best shares to hang your hat on: fund managers
• ASX investors were buying GameStop (NYSE:GME) shares last week
• Why Tesla slipped Thursday

Howard Smith owns shares of Lucid Motors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. 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.

from The Motley Fool Australia https://ift.tt/3zHqpaW