The Aristocrat Leisure Limited (ASX: ALL) share price is charging higher on Monday morning.

At the time of writing, the gaming technology company’s shares are up 9% to $40.86.

Why is the Aristocrat Leisure share price is charging higher?

Investors have been buying Aristocrat Leisure shares following the release of a trading update this morning.

As you might have guessed from the Aristocrat Leisure share price reaction, the company has been performing very positively.

According to the release, the Aristocrat Gaming business has experienced exceptional product performance and customer engagement. Together with stronger than expected consumer sentiment and economic conditions in the United States and ANZ region, its profits are growing quicker than expected.

In addition to this, the Aristocrat Digital business has delivered above industry-average growth in bookings. This is translating into revenue and profit growth comparable to the prior corresponding period.

Management notes that the Digital business is benefiting from a diverse portfolio of world-class titles, as well as strong investment in User Acquisition (UA), Live Ops, new game content and features. Overall demand continues to be elevated, compared to pre-COVID levels.

What does this mean for its first half result?

In light of the above, for the six months ended 31 March, Aristocrat Leisure expects to report a normalised net profit after tax and before amortisation of acquired intangibles (NPATA) of $412 million.

This represents growth of 12% compared to the six months ended 31 March 2020.

Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be $750 million, representing growth of 6%.

Management commentary

Aristocrat’s Chief Executive Officer and Managing Director, Trevor Croker, commented: “These results reflect the fact that we have the right strategy, and made the right choices to sustain our investment in outstanding people and product, customers, talent and culture throughout the COVID-impacted period.”

“As a result, we have continued to take share and maintained our leadership of key Gaming markets and segments, while also growing our share in Digital games, where we are now a top 5 game publisher in tier 1 Western markets.”

However, the chief executive has warned that economic conditions remain uncertain across its key markets.

He said: “We expect economic conditions across key markets over the full year to remain uncertain, as a result of ongoing COVID-driven volatility. We are closely monitoring key factors including consumer sentiment, gaming venue patronage and currency headwinds. We will continue to rigorously execute our strategy over the second half of fiscal 2021, with increased investment in D&D, UA to support new game launches and existing games and strategic capabilities that will sustain our longer term growth.”

More reading

• 3 buy-rated ASX growth shares for investors in May
• Aristocrat (ASX:ALL) share price up 7% this month, tipped to go higher
• 4 ASX shares to boom when inflation goes up: fundie
• The ASX 200 shares brokers think you should watch out for

Motley Fool contributor James Mickleboro 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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Shares in ASX technology company Appen Ltd (ASX: APX) have continued to tumble this month. Since the beginning of May, Appen shares have shed almost 30% of their value, dropping to just $11 by the close of trade on Friday.

This means they are now down more than 50% this year and are a whopping 75% short of the 52-week high price of $43.66 they reached in August of 2020. They even recently fell to $10.65, their lowest price in more than two years.

That’s a pretty stunning fall from grace for a former ASX darling and member of the much-vaunted WAAAX group of companies – along with WiseTech Global Ltd (ASX: WTC), Altium Limited (ASX: ALU), Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO).

Let’s take a look at what might have caused the big drop in the Appen share price.

Company background

Appen specialises in machine learning and artificial intelligence (AI). The company collects large amounts of data which it then provides to its clients to assist in ‘training’ their AI applications. For example, Appen might provide visual data to a company developing self-driving vehicles in order to assist the AI to recognise crucial objects like traffic lights, other cars and pedestrians.

Appen already has an impressive list of clients that it has partnered with over the years, including international tech giants like Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc. (NASDAQ: AMZN).

What sparked the Appen share price decline?

This time last year, things were looking great for the Appen share price. It had shrugged off the March COVID market sell-off and was on its way to an all-time high of $43.66. However, things took a turn for the worse in August and haven’t improved since.

The initial sell-off came around the time Appen released its results for the half-year ended 30 June 2020. Although Appen reported revenue growth of 25% versus the prior comparative period, and a 44% uplift in statutory earnings before interest, tax, depreciation and amortisation expenses (EBITDA), shareholders were clearly unimpressed. It probably didn’t help that the company merely maintained – rather than increased – its full-year outlook. In the week following the release of the results, Appen shares dropped over 20% lower.

Then, in December, Appen was forced to issue a guidance downgrade. Due to a sluggish fourth quarter, Appen revealed that underlying EBITDA for the year ended 31 December 2020 was now expected to fall in the range of $106 million to $109 million. This was a pretty significant drop from the original guidance of between $125 million and $130 million, which had been reaffirmed in the company’s half-year report.

The company finally released its full-year results in February. Underlying EBITDA at least came in towards the top of the revised target, at $108.6 million. Revenues increased by 12% during the year (to $599.9 million), with rapid growth particularly coming from the Chinese market, where revenues increased by 60% quarter-on-quarter.

Appen stated that it expected underlying EBITDA growth of between 18% and 28% during 2021, to around $120 million to $130 million. Even if Appen was to reach that target, it would be hitting those annual earnings levels a year later than it had originally forecast, demonstrating how much of an impact COVID-19-related business headwinds had on its earnings.

More reading

• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears
• Has COVID-19 killed the ASX WAAAX shares?
• Is the Appen (ASX:APX) share price a bargain or should you wait?
• ASX shares that will benefit from the upcoming index changes
• Why a2 Milk, American Pacific Borate, Appen, & Incitec Pivot are tumbling lower

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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. Rhys Brock owns shares of AFTERPAY T FPO, Altium, Appen Ltd, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Altium and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia owns shares of Altium. 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.

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The BWX Ltd (ASX: BWX) share price is one to watch closely on Monday morning.

This follows the personal care product company’s announcement that it’s set make an acquisition to expand its e-commerce business offering.

What did BWX announce?

In a statement to the ASX, BWX advised that it has entered into an agreement to acquire Flora & Fauna.

Established in 2014, Flora & Fauna is a Sydney-based online retailer that is focused on selling vegan, ethical, and sustainable products. The company has grown to service over 94,000 active customers, with more than 300 brands across multiple categories.

Under the deal, BWX will pay somewhere between $27.9 million to $30.8 million for Flora & Fauna. This is provided that the latter is able to achieve a minimum multiple revenue-based performance for FY21. BWX expects the sale to represent 1.6 times to 1.8 times of actual FY21 revenue.

Flora & Fauna recorded strong sales growth last financial year, with FY20 revenue hitting $12 million. For the current FY21 period, the company is forecasting revenue to reach in the range of $16.4 million and $17.1 million.

BWX noted that the acquisition is unconditional and it has a right to terminate if the pre-agreed conditions are not satisfied. This includes if there is a significant material change or revenue drop below the pre-determined floor before the close of the sale.

BWX will fully fund the deal through its available debt facilities. Completion of the sale is estimated to be in July 2021.

What did management say?

BWX group CEO and managing director Dave Fenlon commented on the acquisition:

We are thrilled to welcome the Flora & Fauna team to the BWX family, and alongside Nourished Life, create a best-in-class ethical online retail platform.

With complementary categories and minimal consumer and SKU overlap, the two brands will benefit from a strategic approach to customer experience and promotions, as well as operational efficiencies.

Flora & Fauna founder and CEO Julie Mathers added:

This is a really exciting step for Flora & Fauna and the wider industry. BWX offers Flora & Fauna the opportunity to grow even further as a business with strong alignment about having a positive impact on the planet, people and animals.

BWX share price snapshot

Over the past 12 months, the BWX share price has posted a gain of almost 30%, with year-to-date performance above 10%.

Based on the current share price of $4.59, BWX commands a market capitalisation of around $644 million.

More reading

• US market bounces back, ASX 200 tech shares on watch
• These are the 10 most shorted shares on the ASX
• Why our most popular ASX mining shares are set to tumble this morning
• The Domino’s (ASX:DMP) share price is up 22% this year
• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX 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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Wall Street staged a much-needed rebound on Friday, softening what was otherwise a challenging week for most sectors. What does this mean for S&P/ASX 200 Index (ASX: XJO) tech shares?

The Nasdaq Composite (NASDAQ: .IXIC) led the pack, running 2.32% higher while the S&P 500 Index (SP: .INX) and Dow Jones Industrial Average Index (DJX: .DJI) improved a respective 1.49% and 1.06%. 

The strength of the US market, especially in the Nasdaq, could carry over to ASX 200 tech shares on Monday. Let’s take a closer look. 

Will ASX 200 tech shares follow Nasdaq? 

US tech mega-caps including Tesla Inc, Facebook Inc, Apple Inc, Amazon.com Inc, Netflix Inc, Microsoft Corporation and Alphabet Inc all finished Friday’s session between 1.90% and 3.50% higher.

This could see some life come back into the beaten up S&P/ASX 200 Info Tech Index (ASX: XIJ), which slipped 6.8% last week and is down an ugly 19.4% year to date. 

The blame could be attributed to weakness in ASX 200 tech heavyweights including Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO) and Wisetech Global Ltd (ASX: WTC). 

Following the Nasdaq’s bounce on Friday, investors are likely to be keeping a close on these ASX 200 tech shares today.  

Could ASX 200 BNPL shares catch a break? 

The buy now, pay later (BNPL) sector has come under relentless selling pressure of late with the likes of Afterpay breaking below the $100 level earlier this month and closing at an 8-month low of $86.35 on Friday.

Shareholders will be hoping the rebound in US tech and 11.64% surge in US-listed BNPL company Affirm Holdings Inc (NASDAQ: AFRM) will bring some strength back into embattled ASX BNPL shares. 

PointsBet share price on watch 

The PointsBet Holdings Ltd (ASX: PBH) share price has struggled this month despite positive announcements from the company including a strong third-quarter update, the launch of its iGaming platform in Michigan and a small US$2.9 million acquisition. 

Similar to the Affirm situation above, PointsBet’s largest US competitor, Draftkings Inc (NASDAQ: DKNG) and key US partner Penn National Gaming Inc (NASDAQ: PENN) both jumped a respective 9.51% and 6.19% higher on Friday. Investors will be hoping this translates into gains for the PointsBet share price when the market opens this morning.

Foolish takeaway

After being major beneficiaries of the pandemic, ASX 200 tech shares have been struggling recently. If tech shares do manage a partial rebound on Monday, the question will be whether the move is just a one-off bounce or part of a broader recovery.

More reading

• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears
• 3 great ASX tech shares to buy
• These were the worst performing ASX 200 shares last week
• ASX 200 rebounds, Treasury rises, Xero falls
• Why De Grey, GrainCorp, Pilbara Minerals, & Xero shares are dropping

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, Netflix, Pointsbet Holdings Ltd, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, WiseTech Global, and Xero and recommends the following options: long January 2022 $1920 calls on Amazon, short March 2023 $130 calls on Apple, short January 2022 $1940 calls on Amazon, and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Netflix, and Pointsbet Holdings 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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At the start of each week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) is now the most shorted ASX share after its short interest rose to 10.4%. Short sellers have been increasing their positions since the release of a trading update out of the travel agent. That update revealed that its second half loss is expected to be as large as the one recorded in the first half. This was materially more than the market anticipated.
• Kogan.com Ltd (ASX: KGN) isn’t far behind after its short interest jumped to 10%. Once again, a recent trading update has caught the eye of short sellers. That update revealed that the ecommerce company’s growth has slowed, margins have contracted, and that it is having issues with inventory.
• Resolute Mining Limited (ASX: RSG) has seen its short interest rise week on week to 9.8%. This gold miner’s shares have come under pressure due to regulatory issues at its Bibiani operation in Ghana and its disappointing production and guidance.
• Tassal Group Limited (ASX: TGR) has short interest of 9.6%, which is flat week on week. This high level of short interest appears to have been driven by weakness in salmon prices.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest remain firm at 9.4%. This online furniture and homewares retailer appears to have been targeted by short sellers due to plans to invest materially in its growth at the expense of margins.
• Webjet Limited (ASX: WEB) has seen its short interest rise week on week to 8.9%. Concerns over the stuttering travel market recovery and its valuation appear to be weighing on investor sentiment.
• Megaport Ltd (ASX: MP1) has short interest of 8.1%, which is up again week on week. Short sellers may be going after the Network as a Service provider due to concerns over rising bond yields and its premium valuation.
• Inghams Group Ltd (ASX: ING) has 7.9% of its shares held short, which is down slightly week on week. Investors may be nervous about its major contract renewal negotiation with Woolworths Group Ltd (ASX: WOW) and the sudden exit of its CEO.
• Zip Co Ltd (ASX: Z1P) has short interest of 7.2%, which is up week on week. This high level of short interest is likely to be due to valuation concerns. Zip and fellow BNPL providers trade on very high multiples.
• Metcash Limited (ASX: MTS) has seen its short interest edge lower again to 7.1%. Reports that trading conditions are reverting back to normal again in the supermarket industry could be weighing on sentiment. These trends appear to be favouring the big two supermarket chains ahead of independents.

More reading

• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears
• 2 growing ASX dividend shares to buy
• 2 top ASX growth shares rated as buys in May
• 2 fast-growth ASX tech shares that are being sold off
• These were the best performing ASX 200 shares last week

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 recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd, Temple & Webster Group Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Kogan.com ltd, MEGAPORT FPO, and 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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Several popular ASX mining shares are set to fall even as the market is predicted to open firmly in the black this morning.

The futures market is pricing in a 0.7% jump in the S&P/ASX 200 Index (Index:^AXJO). This is thanks to positive leads from Wall Street over the weekend.

But mining heavyweights like the BHP Group Ltd (ASX: BHP) share price, Rio Tinto Limited (ASX: RIO) share price and Fortescue Metals Group Limited (ASX: FMG) have not been invited to the party.

Iron ore price crash

This is because the Fastmarkets MB iron ore price crashed 12.1% to US$208.79 a tonne on Friday, reported the Australian Financial Review.

The big sell-off comes on reports that Chinese regulators are clamping down on raging prices after the commodity hit a record high of US$237.57 a tonne on Wednesday.

The BHP share price and Rio Tinto share price on the London Stock Exchange dived 1.3% and 2.8%, respectively. The ASX prices for these mining giants are likely to follow in sympathy.

China trying to derail iron ore’s record bull run

Chinese authorities in steel producing cities of Shanghai and Tangshan warned steel mills “against price gouging, collusion and spreading false market information”.

Some experts believe the iron ore price was set to pullback even without the intervention of the Chinese government. The price of the steel-making ingredient has been rocketing and a period of consolidation is to be expected.

But the jawboning by China has certainly exacerbated the fall. No one has any doubt that the authorities there will wield a big stick to ensure compliance.

Price increases “forbidden”

The Shanghai market regulator said in a statement on Friday forbidding steel producers to increase prices significantly unless it was due to a big rise in production costs.

The high price of steel is one major tailwind for the strong iron ore price increase. If steel mills can make solid profit margins, they would be happy to chase the iron ore price higher.

Ironically, the Chinese Community Party has a part to play in the iron ore windfall that they are trying desperately to quell.

ASX mining shares benefitting from China-Australian tensions

One of the other reasons for the mineral’s bull run is fear that China would ban the import of Australian iron ore – just as it’s done with coal, wine, barley and a host of other Aussie exports.

The big question now for investors is whether this marks the end of the iron ore bull run. Some experts believe that the iron ore price has peaked this cycle, while others think this is only the start of a supercycle.

Have iron ore prices peaked?

The bulls point to a drop in iron ore inventories at Chinese ports. The Mysteel’s weekly survey of 45 ports showed that inventory dropped for the third week to a three-month low of 125.3 million tonnes on May 13.

OCBC economist Howie Lee predicting that the iron ore price will test US$250 a tonne in the next 12 to 18 months.

“China’s new infrastructure projects have been estimated to total 10 to 20 trillion RMB from 2021 to 2025, which means the demand for raw materials now is only just beginning,” The AFR quoted Mr Lee as saying.

ASX mining shares set for a profit upgrade

Regardless of whether the bulls are right, ASX mining shares are set for profit upgrades unless iron ore crashed by more than 50% from here.

Most analysts have only assumed a price or US$100/tonne or less in their valuation calculation for ASX miners.

More reading

• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears
• Which ASX 200 iron ore share has gained 45% in 2021?
• Top brokers name 3 ASX dividend shares to buy today
• The ASX miners with the biggest valuation upside to record iron ore prices
• ASX 200 shares hit all-time high! How did we get here?

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, and Rio Tinto Ltd. Connect with me on Twitter @brenlau.

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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has had a bumper start to 2021.

Shares in the pizza behemoth have soared more than 22% since the start of the year. Despite recent market volatility, the Domino’s share price has remained resilient to trade near all-time highs.

Read on to find out more about the Domino’s share price.

What’s been fuelling the Domino’s share price?

Along with online retailers, fast food chains like Domino’s have been beneficiaries of the COVID-19 pandemic. During the last year, Domino’s has reported promising international growth and delivered a strong performance in the first half. 

Analysts are also bullish on the outlook for Domino’s, citing the company’s operating leverage to fuel growth. In addition, analysts have also noted the company’s strong balance sheet that could help Domino’s expand its brand.  

How has Domino’s been performing?

Earlier this year, Domino’s released mouth-watering results for the first half of FY21. For the 6 months ending 31 December, the company delivered strong sales and earnings growth.

For the first half, Domino’s reported a 16.5% increase in total global food sales of $1.84 billion. In addition, the company grew earnings before interest and tax (EBIT) by 32.3% for the period to $153 million. Domino’s also reported strong top-line growth for the period. In the first half, the company opened 131 new stores whilst also reporting an 8.5% increase in same store sales growth.

Furthermore, Domino’s also delivered on the bottom line. The company reported a 32.8% increase in underlying net profit after tax of $96.2 million. Free cash flow also improved by 50.3% for the period to $124.4 million.

According to Domino’s management, the strong performance during the pandemic is a reflection of the company’s long-term strategy. The Domino’s share price jumped by around 7.5% on the day the company’s half-year results were released.

Outlook

Domino’s holds the master franchise licence to the Domino’s brand in Australia, New Zealand, France, Belgium, the Netherlands, Germany, Japan and Denmark. The company currently operates more than 2,700 franchised and corporate-owned stores in these locations.

According to its latest shareholder meeting, Domino’s has a target of 5,550 stores by FY25. The company also noted that Germany and Japan are key growth markets that continue to go from strength to strength.

Domino’s expects Japan to overtake its Australian and New Zealand stores as the company’s largest market by October. In addition, Domino’s expects sales and profits in Japan to overtake Australian market results in the next few years.

Domino’s share price snapshot

In addition to rallying 22% so far in 2021, the Domino’s share price has climbed by almost 83% over the past 12 months. At Friday’s close, Domino’s shares closed the day 0.37% higher at $105.83. The company has a market capitalisation of around $9.16 billion.

More reading

• 2 top ASX growth shares rated as buys in May
• 2 quality ASX shares that could be fantastic buy and hold options
• 2 top ASX growth shares rated as buys
• Wrong… but still right!
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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We have just seen a rather dramatic week on the S&P/ASX 200 Index (ASX: XJO) and the Australian sharemarket. The ASX 200 started off the week in spectacular fashion, finally breaking the pre-COVID all-time high of 7,162 points by smashing through to 7,172 points on Monday. 

As we discussed at the time, it was a case of Australian shares playing catchup. The US markets crossed their old pre-COVID highs in August last year, with a couple of months to spare until Christmas. In fact, today the US S&P 500 Index (SP: .INX) is more than 23% above its old pre-COVID high. Well, it took the ASX 200 another 9 months to reach its high watermark after the US, but here we are.

Investors can largely thank the strength of the ASX banking sector, as well as the big miners like BHP Group Ltd (ASX: BHP) for the surge that finally put the ASX 200 over the top last Monday. Over the past month, investors have pushed ASX bank share prices above their own pre-COVID highs in the wake of strong half-year earnings reports from previous weeks.

In fact, Commonwealth Bank of Australia (ASX: CBA) did one better last week, breaking its own all-time high on Friday to set a new record of $97.38. BHP also set another record share price, this one on Monday to coincide with the ASX’s new record. Galloping iron ore and commodity prices were to thank.

Hero to… Xero for ASX 200?

But as quickly as the new high was made, things took a turn for the worse for ASX shares. Tuesday, Wednesday and Thursday all saw the ASX 200 take backwards steps, which quickly dragged investors’ attention away from Monday’s new highs. The catalyst for this turn in sentiment appeared to be some interesting economic statistics coming out of the American economy.

We learned mid-week that consumer prices in the US economy increased by 0.9% over April (or 4.2% if annualised), the highest pace since 2009. Investors have already spent more than a few days in 2021 so far fretting about future inflation, given the size and scale of the US government’s stimulus response. So these numbers caused some panic, as you might expect.

US markets sold off hard over Tuesday and Wednesday, which of course immediately spilled over into the ASX. That’s despite no comparable inflationary concerns down under.

The brunt of this selloff was borne by the tech sector, both here and in the US. ASX tech shares were smashed over the week, with the S&P/ASX All Technology Index (ASX: XTX) losing more than 5% over the week. But that was nothing compared to what some ASX shares copped.

Afterpay Ltd (ASX: APT) shed 9.5% last week, with an 8.75% loss on Tuesday alone. Xero Limited (ASX: XRO) was down over 15%, although that can also be attributed to a lukewarm reception for its full-year earnings. Appen Ltd (ASX: APX) was another ASX tech loser, dropping more than 10%.

How did the markets end the week?

Despite the new all-time high for the ASX 200, it wasn’t enough to stop the index from shedding 0.94% for the week, starting at 7,080.8 points and finishing up at 7,014.2 points. Monday saw the ASX 200 hit its new all-time high with a gain of 1.3% for the day. But Tuesday, Wednesday and Thursday all saw drops of 1.06%, 0.73% and 0.88% respectively. Friday turned things around slightly with a gain of 0.45%, but it wasn’t enough to stem the bleeding from earlier in the week.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a disappointing week. The All Ords started out at 7,325.2 points and finished up at 7,239.4 points for a loss of 1.17%.

Which ASX 200 shares were the biggest winners and losers?

Worst ASX 200 losers	% loss for the week
Perenti Global Ltd (ASX: PRN)	(28.6%)
A2 Milk Company Ltd (ASX: A2M)	(21.2%)
Xero Limited (ASX: XRO)	(15.9%)
Pointsbet Holdings Ltd (ASX: PBH)	(13%)

Mining services company Perenti Global was the ASX 200’s wooden spoon recipient last week. Investors were pulling the pin on Perenti after the company downgraded both its revenue and earnings guidance for the current financial year… as well as FY2022. Perenti blamed COVID-19, difficult labour conditions and a rising Aussie dollar for the weakness. Investors weren’t too forgiving though, and sent Perenti home with only a little more than two-thirds of its value intact.

A2 Milk also had a shocker last week, falling a touch more than 20%. The cause for this drop was yet another earnings downgrade from the company, A2’s fourth in FY2021. The company continues to suffer from the collapse of the daigou trade. It also notified investors of some inventory build-up. It was evidently a case of ‘fool me a fourth time’ for shareholders, who were pretty scathing in their response.

Xero was also feeling the pain last week, as we discussed earlier. And finally,  Pointsbet seemed to just be caught up in investors’ sudden distaste of the tech sector with no other major news.

Now with the losers out of the way, let’s take a look at last week’s winners:

Best ASX 200 gainers	% gain for the week
Omni Bridgeway Ltd (ASX: OBL)	11.1%
Crown Resorts Ltd (ASX: CWN)	7.6%
Resolute Mining Limited (ASX: RSG)	7.5%
Whitehaven Coal Ltd (ASX: WHC)	7.45%

The rather oddly named Omni Bridgeway took the crown for the best performing ASX 200 share last week with an 11% bump to its value. This litigation company announced a large settlement of a class action it has been managing, which naturally involves a healthy cut of the spoils for Omni. Investors seemed to approve.

Next up we had Crown Resorts, which is never far from the headlines these days it seems. Investors were renewing their interest in Crown last week after its rival Star Entertainment Group Ltd (ASX: SGR) put a merger proposal between the two companies on the table. This ups the ante in the fight for Crown, which was already considering an offer from Blackstone.

Resolute Mining was another winner last week. Investors have been giving ASX gold shares a second look after some price appreciation and the renewed fears over inflation. Resolute appears to have been the pick of the bunch last week.

Finally, we had Whitehaven Coal, which continues to ride happily in the slipstream of high coal prices at the moment.

A wrap of the ASX 200 blue-chip shares

Before we go, here is a look at the major ASX 200 blue-chip shares as we start on yet another week in paradise:

ASX 200 company	Trailing P/E ratio	Last share price	52-week high	52-week low
CSL Limited (ASX: CSL)	37.31	$277.68	$320.42	$242
Commonwealth Bank of Australia (ASX: CBA)	21.48	$96.58	$97.38	$58.65
Westpac Banking Corp (ASX: WBC)	21.75	$25.41	$26.43	$14.91
Australia and New Zealand Banking Group Ltd (ASX: ANZ)	16.61	$27.42	$29.55	$15.07
National Australia Bank Ltd (ASX: NAB)	20.12	$26.22	$27.84	$15.11
Fortescue Metals Group Limited (ASX: FMG)	8.67	$22.79	$26.40	$11.56
Woolworths Group Ltd (ASX: WOW)	36.22	$40.58	$42.57	$33.82
Wesfarmers Ltd (ASX: WES)	32.69	$54.20	$56.40	$36.76
BHP Group Ltd (ASX: BHP)	28.29	$49.57	$51.82	$30.20
Rio Tinto Limited (ASX: RIO)	16.39	$125.43	$132.94	$81.51
Coles Group Ltd (ASX: COL)	20.79	$16.35	$19.26	$14.95
Telstra Corporation Ltd (ASX: TLS)	23.15	$3.45	$3.58	$2.66
Transurban Group (ASX: TCL)	–	$14	$15.64	$12.36
Sydney Airport Holdings Pty Ltd (ASX: SYD)	–	$5.70	$7.49	$4.99
Newcrest Mining Ltd (ASX: NCM)	18.08	$27.63	$38.15	$23.08
Woodside Petroleum Limited (ASX: WPL)	–	$22.58	$27.60	$16.80
Macquarie Group Ltd (ASX: MQG)	19.2	$158.34	$162.06	$101.55
Afterpay Ltd (ASX: APT)	–	$86.35	$160.05	$39.70

And finally, here is the lay of the land for some leading market indicators:

• S&P/ASX 200 Index (XJO) at 7,014.2 points.
• All Ordinaries Index (XAO) at 7,239.4 points.
• Dow Jones Industrial Average at 34,382 points after rising 1.06% on Friday night (our time).
• Bitcoin (CRYPTO: BTC) going for US$49,013 per coin.
• Gold (spot) swapping hands for US$1,844 per troy ounce.
• Iron ore asking US$208.50 per tonne.
• Crude oil (Brent) trading at US$68.71 per barrel.
• Australian dollar buying 77.76 US cents.
• 10-year Australian Government bonds yielding 1.73% per annum.

That’s all folks. See you next week!

More reading

• 2 growing ASX dividend shares to buy
• 5 things to watch on the ASX 200 on Monday
• 3 great ASX tech shares to buy
• Top brokers name 3 ASX shares to buy next week
• Top brokers name 3 ASX shares to sell next week

Sebastian Bowen owns shares of A2 Milk, Bitcoin, National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin and Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd, CSL Ltd., and Xero. The Motley Fool Australia owns shares of and has recommended A2 Milk, Macquarie Group Limited, and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears appeared first on The Motley Fool Australia.

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More reading

• 3 stellar small cap ASX shares to watch
• 2 top ETFs to buy for growth
• 2 growing ASX dividend shares to buy
• 5 things to watch on the ASX 200 on Monday
• 2 top ASX growth shares rated as buys in May

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.

The post LIVE COVERAGE: ASX slumps; AusNet drops 7% on lower full year revenue appeared first on The Motley Fool Australia.

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The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here’s why they should be on your watchlist:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap share to look at is Bigtincan. It is a leading provider of enterprise mobility software to businesses globally. Bigtincan’s popular software unlocks new and more effective ways for teams to perform at higher levels and deliver better business results by creating more positive and efficient buying experiences. The company notes that it empowers sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively. Demand for its software has been growing quickly, underpinning strong annualised recurring revenues (ARR) growth.

Booktopia Group Ltd (ASX: BKG)

The second small cap ASX share to watch is Booktopia. It is an online book retailer which has been growing at an explosive rate in FY 2021. During the first half, the company reported a 51.1% increase in revenue to $112.6 million and a 502.3% jump in underlying EBITDA to $8 million. It then followed this up with a 53% increase in quarterly revenue during the third quarter. This strong growth is being driven by the shift to online shopping and its new distribution centre. The latter is allowing the company to take advantage of the increased demand by shipping more books than ever.

Damstra Holdings Ltd (ASX: DTC)

A final small cap to watch is Damstra. It is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses globally to track, manage, and protect their workers and assets. Damstra has been a solid performer over the last couple of years and has continued this strong form in FY 2021. During the first half of FY 2021, the company delivered a 29.6% increase in revenue to $13.3 million. The good news is that management estimates that its total addressable market will be worth US$20 billion by 2022. This this gives it a very long runway for growth. 

More reading

• 2 exciting small cap ASX shares to watch in May
• Top brokers name 3 ASX shares to buy next week
• 3 exciting small cap ASX shares to watch in May
• Why Beach Energy, Bigtincan, Pointerra, & ResMed are sinking today
• Booktopia (ASX:BKG) share price lifts on strong quarterly update

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 recommends BIGTINCAN FPO and Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Booktopia Group Limited. The Motley Fool Australia has recommended BIGTINCAN FPO and Damstra Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 stellar small cap ASX shares to watch appeared first on The Motley Fool Australia.

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