Shares in Origin Energy Ltd (ASX: ORG) are climbing this morning following the release of the company’s third-quarter performance results. At the time of writing, the Origin share price is trading 0.73% higher at $4.14.

Origin’s recently updated guidance, released to the market on 16 April, saw its share price close nearly 9% lower than the previous session. 

Let’s take a look at how Origin Energy has performed over the three months ended 31 March.

Third quarter results

The Origin share price is in the green despite a mixed performance from the company’s gas and energy divisions.

Its integrated gas production was 4% less than the previous quarter. The company states this was due to maintenance which resulted in two fewer operating days. Gas sales revenue was also down 6% due to less production and cargo timing issues.

Its commodity revenue was up by 7%, reflecting higher oil and spot LPG prices – though, it was 32% less than the third quarter of 2020.

In Origin’s energy market, sales volumes were down 4% compared to the prior corresponding period, seemingly due to mild weather. Business volumes were also down by the same amount. Origin states that was due to COVID-19 and was offset by new contract wins.

Gas sales decreased 27%, with a 19% decrease in Origin’s business segment from expired contracts and impacts of the pandemic. The amount of gas the company used to generate electricity was also less, caused by lower electricity pool prices.

The company’s figures found weather-related electricity demand was 3% lower than it was prior to the global pandemic. Though, with many of us still working from home, household electricity volumes are slightly above pre-COVID-19 levels.

Commentary from management

Origin CEO Frank Calabria commented on the results published today. He said:

 Due to the lag in the LNG contracts, we expect recent higher oil prices to flow through to contract revenues in the 2022 financial year…

The combination of strong production and operating and cost discipline has helped to reduce the FY2021 distribution breakeven, with full-year cash distributions to Origin expected to be greater than $650 million…

We continue to target significant retail cost savings and are on track to achieve $100 million in savings by the end of FY2021.

Origin Energy share price snapshot

The Origin Energy share price is having a tough 2021 on the ASX. Currently, the company’s shares are trading just 3% higher than their lowest closing price of the last 5 years, which occurred in October 2020.

Origin shares are also down by around 14% year to date and 26% over the last 12 months.

The energy company has a market capitalisation of around $7.24 billion, with approximately 1.7 billion shares outstanding.

More reading

• 7 ASX 200 shares with emission reduction strategies
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• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• Leading broker says the Origin (ASX:ORG) share price is dirt cheap
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Brooke Cooper 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 PointsBet Holdings Ltd (ASX: PBH) share price is on course to end the week on a very positive note.

At the time of writing, the sports betting company’s shares are up 6% to $13.40.

Why is the PointsBet share price surging higher?

The catalyst for the rise in the PointsBet share price today has been the release of its third quarter update this morning. That update reveals that the company has continued to grow all key metrics at a rapid rate.

For the three months ended 31 March, PointsBet reported a 236% increase in turnover to $905.2 million. This was driven by a 137% jump in Australian turnover to $423.2 million and a 431% increase in US turnover to $482 million.

Also growing strongly was its net win metric. The company recorded a 246% increase in net win to $64.9 million for the quarter. This was the result of a 147% increase in Australian net win to $38.2 million and a 716% jump in US net win to $26.7 million.

At the end of the period, Pointsbet had 285,500 active clients. This is 169% higher than the prior corresponding period and comprises 158,000 Australian clients and 127,500 US clients. The latter is up 461% since this time last year.

Management commentary

Management was pleased with the performance of its Australian operations during the third quarter.

It explained: “Compared to the PCP [prior corresponding period], the Australian Trading business has seen improvement across a number of key KPIs as client behaviour shifts to the higher margin multi segment. Improvements in marketing tech tools also assisted with acquisition and retention compared to the PCP.”

“The performance of the Australia Trading Business remains an excellent blueprint for PointsBet’s aspirations in the United States. PointsBet’s ability to operate a growing, profitable business in the advanced and competitive Australian market, backed by continually improving product and growing brand recognition, provides confidence in the continued execution of its US strategy.”

Speaking of which, management appeared to be pleased with its progress in the US.

It said: “The US business achieved a quarterly Gross Win of $45.8 million, compared to Gross Win of $5.6 million in the PCP, with a Net Win of $26.7 million, compared to Net Win of $3.3 million for the PCP. This quarterly result was assisted by a reversal of the short-term negative variances experienced during the December quarter predominantly in New Jersey. As a result, the US business also achieved a record quarterly Gross Win Margin of 9.5% and a record quarterly Net Win Margin of 5.5%.”

“During the period, the Company had a successful Super Bowl LV, recording 4 times the handle and 12 times the number of first time bettors as compared to the previous year’s Super Bowl. Importantly, unlike some of the Company’s competitors who rely on third party platform providers, PointsBet suffered no technical issues or delays during this high-volume betting event.”

No guidance has been given for the fourth quarter or full year.

More reading

• Why the PointsBet (ASX:PBH) share price can rocket higher
• Why the Pointsbet (ASX: PBH) share price is in focus
• Is the PointsBet (ASX:PBH) share price back on track after this announcement?
• Why the PointsBet (ASX:PBH) share price shot up 7% today
• Why the PointsBet (ASX:PBH) share price was suddenly sold off in March 

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 Pointsbet Holdings Ltd. 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.

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The Marley Spoon AG (ASX: MMM) share price is on the move on Friday morning.

At the time of writing, the subscription-based meal kit provider’s shares are surging 11% higher to $2.80.

Why is the Marley Spoon share price surging higher?

Investors have been buying the company’s shares following the release of its first quarter update after the market close on Thursday.

That update revealed that Marley Spoon’s strong growth continued during the quarter, resulting in an upgrade to its full year guidance.

According to the release, for the three months ended 31 March, Marley Spoon reported an 81% increase in revenue to 77.4 million euros. This was driven by growth across all regions.

How did its businesses perform?

In the United States, revenue increased 82% thanks to continued demand across both its Martha Stewart & Marley Spoon and Dinnerly brands. Pleasingly, the company delivered a breakeven operating result in the lucrative market.

In Australia, Marley Spoon reported a 65% increase in revenue and also achieved a breakeven operating result.

And in Europe, revenue grew 108% over the prior corresponding period. However, it reported an operating loss of 1 million euros in the region for the period.

Overall, Marley Spoon recorded an operating loss of 5.7 million for the quarter. However, this was driven largely by its seasonal marketing investment.

Pleasingly, the company recorded positive operating cash flow of 5.3 million, leaving it with a cash balance at 38.4 million euros at the end of the period.

Outlook

Following its strong start to the year, management has upgraded its guidance for FY 2021. It is now expecting revenue to increase between 30% and 35% year on year. This compares to previous guidance of 25% to 30%. It continues to expect its contribution margin to be between 30% and 31%.

Marley Spoon’s CEO, Fabian Siegel, said: “We are pleased with this strong start to the year across all our regions. We delivered a record quarter in terms of new customer acquisitions, subscriber numbers and absolute revenue, demonstrating an ability to deliver strong growth during both pandemic-related lockdowns and as markets reopen. We also overcame some operational challenges, notably weather-related headwinds from the floods in Australia and winter storms across the US and Europe.”

“User behavior across the regions has mostly normalized to its pre-COVID state. While COVID19 brought forward the structural shift online, the penetration rate of online grocery is still in its infancy. The dramatic growth we have seen across all e-commerce verticals in 2020 has created some temporary operational challenges in logistics, labor and supply chain infrastructure in the industry. As the consumer switch to online shopping in our categories continues, and as our team grows, we will be focused on managing these operational challenges while we continue to build further scale in our large addressable markets and deliver ongoing growth through strengthening our direct-to-consumer brands.”

Following today’s gain, the Marley Spoon share price is now up 145% over the last 12 months.

More reading

• The Marley Spoon (ASX:MMM) share price is up 686% since the beginning of 2020

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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The Bubs Australia Ltd (ASX: BUB) share price is pushing higher today following the release of its third quarter update.

In early trade, the goat milk infant formula company’s shares are up 5.5% to 46.5 cents.

How did Bubs perform in the third quarter?

Bubs was out of form during the third quarter, reporting a 40% year on year decline in gross revenue to $11.8 million.

While this was driven largely by a surge in sales in the prior corresponding period due to COVID-19 pantry stocking, it is worth noting that revenue is also down 7.8% compared to its second quarter gross revenue of $12.8 million.

This is despite the company increasing its footprint across leading Australian retailers such as Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) during the quarter.

What were the drivers of its result?

Third quarter domestic sales (inc. daigou) were down 52% on the prior corresponding period. These sales account for 51% of its gross revenue.

Also declining during the quarter were its sales to international (ex. China) markets. They fell 4% over the prior corresponding period but rose 1% quarter on quarter.

Offsetting some of this decline was a 42% increase in China sales. These accounted for 30% or ~$3.54 million of gross revenue.

Interestingly, despite posting such a sharp decline in domestic sales, the company notes that it remains the fastest growing infant formula manufacturer across Woolworths, Coles and Chemist Warehouse. Though, it is worth remembering that with domestic quarterly sales of just $6.5 million (including the daigou channel), it is working from a very small base.

Overall, the decline in revenue ultimately led to an operating cash outflow of $3.7 million for the period. This left Bubs with a cash balance of $36.3 million at the end of March.

Beingmate joint venture scrapped

In August last year the company announced a joint venture agreement with China-based Beingmate. Management labelled the agreement a “pivotal breakthrough manufacturing arrangement to support obtaining SAMR registration for Bubs goat infant formula in China.”

This joint venture is now being scrapped and Bubs will go it alone in the China market instead.

It explained: “In order to drive the highest margin for our core products in the channels where we see the highest opportunity for growth, Bubs is simplifying its structure to be under the Company’s direct control. Bubs has reached agreement with Beingmate to unwind the Joint Venture, ‘Bubs Brand Management Shanghai Co. Ltd,’ of which Bubs holds 49% interest, resulting in the termination of the existing Trade Mark Licence Deed and Exclusive Distribution Agreement. Bubs has commenced the process of establishing a wholly owned operating subsidiary in China. Associated costs with the restructure are likely to be immaterial.”

Bubs’s Chairman, Dennis Lin, added: “This move is a direct reflection of the favourable results we have already seen in our direct supply and focus on the cross-border e-Commerce Channel, as well as our Online-to-Offline and General Trade customers. Under the new fully controlled China entity, we will have our own China sales structure and the flexibility to leverage profitable growth opportunities.”

Judging by the Bubs share price performance today, some investors appear to believe this is the right strategy.

More reading

• Will 2021 go down as the year A2 and other milk share prices turned sour?
• Why Bubs, Carbon Revolution, Paradigm, & Tyro shares are sinking
• Why the A2 Milk (ASX:A2M) share price hit a multi-year low today
• China’s dairy stocks rise: What does this mean for the A2 Milk (ASX:A2M) share price?
• 2 exciting small cap ASX shares to buy

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 BUBS AUST FPO. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. The Motley Fool Australia has recommended BUBS AUST FPO. 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 Bigtincan Holdings Ltd (ASX: BTH) share price is under pressure on Friday.

In morning trade, the sales enablement automation platform provider’s shares are down 5% to 94.5 cents.

Why is the Bigtincan share price under pressure?

Investors have been selling Bigtincan’s shares this morning following the release of its third quarter update.

For the three months ended 31 March, the company reported annualised recurring revenue (ARR) of $48.4 million. This was flat on its second quarter ARR. 

While this may have disappointed investors, it is in line with expectations for the full year.

Cash receipts for the quarter came in at $12.2 million. Though, this was offset by cash operating payments of $15.8 million. This reflects the first full quarter for the ClearSlide and Agnitio acquisitions and the payment for VoiceVibes acquired in January.

At the end of the period, Bigtincan had $59.1 million in cash and cash equivalents. It believes this leaves it well funded to continue its growth strategy.

Bigtincan’s CEO and Co-Founder, David Keane, said: “Bigtincan continues its leadership in Sales Enablement globally, with leading technology and a strong focus on execution. The importance of our vision of connecting every customer facing worker with the digital and remote economy has been highlighted through the pandemic and remains more relevant than ever before.”

Outlook

Based on its in third quarter deferred revenue, remaining performance obligations, and anticipated revenue from renewals, Bigtincan currently expects its revenue to be in the range of $43 million to $44 million in FY 2021. This compares to its previous guidance of between $41 million and $44 million.

In addition, management is now forecasting its ARR to be at the top end of its FY 2021 guidance range of $49 million to $53 million. This assumes a stable exchange rate and stable customer retention.

This compares to FY 2020’s ARR of $35.8 million, representing year on year growth of 36.9% to 48%.

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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 and recommends BIGTINCAN FPO. The Motley Fool Australia has recommended BIGTINCAN FPO. 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.

Earnings season has hit top gear for the stocks that make up the largest components of the Nasdaq Composite (NASDAQINDEX: ^IXIC). The Nasdaq has been near all-time record highs, but on Thursday, the index pulled back from what appeared to be the beginning of a record run. As of 12:30 p.m. EDT, the Nasdaq was down more than half a percent after having risen early in the session.

Investors still pay a lot of attention to the FAANG stocks, because they have such a large impact on the entire stock market. Today, investors got a chance to react to earnings reports from Facebook (NASDAQ: FB) and Apple (NASDAQ: AAPL), and even a big gain in one of the stocks wasn’t enough to keep the Nasdaq from losing ground. Below, we’ll take a closer look at the latest from the two powerhouse tech giants to see what they had to say.

Facebook is stronger than ever

Shares of Facebook climbed almost 6% Thursday afternoon. The social media giant’s first-quarter financial report showed just how dominant it has become as a global force in its niche.

Sales at Facebook climbed 48% from year-ago levels, lifted by a 46% rise in advertising revenue. The company implemented excellent cost-containment measures that kept expense expansion to a relatively low 25% figure, and that resulted in net income soaring 94%. Earnings of $3.30 per share were far above expectations and nearly doubled year over year as well.

Facebook’s audience kept growing as the pandemic continued. Daily active users came in at 1.88 billion, up 8% from year-earlier levels. Monthly active users accounted for 2.85 billion people, higher by 10%. When you include the full suite of Facebook’s platforms, including Instagram and WhatsApp, the numbers rise even further to 2.72 billion daily users and 3.45 billion monthly users.

In particular, Facebook has seen a huge rebound in advertising revenue in the first quarter of 2021, including a 30% boost in average prices per ad. Further pricing increases could help bolster Facebook’s potential for the rest of the year, and that would be good news for the stock as the company marches toward a $1 trillion market capitalization.

Sweet success for Apple

Elsewhere, Apple also reported favorable financial results. However, the stock price didn’t react the same way, falling about half a percent in early afternoon trading on Thursday.

Apple’s fiscal second-quarter numbers showed many areas of strength. Revenue climbed 54% year over year, with a 62% jump in product-related sales leading the way higher. Service revenue rose as well, albeit by a more modest 27%. Margin performance was noteworthy, as gross margin climbed more than 4 full percentage points.

Apple also held operating expenses in check. Costs climbed just 11% from year-earlier levels. That helped net income more than double from fiscal 2020’s second quarter, and earnings of $1.40 per share were far greater than the roughly $1-per-share consensus among those following the stock.

CEO Tim Cook reported that Apple set new all-time records in the Mac and services segments, and iPhone, wearables, home, and accessories all did better than they had ever done before in a March quarter. However, he also commented on shortages that Apple is facing with respect to vital components, and that could affect the iPad and Mac product lines going forward.

Both Facebook and Apple have growth opportunities that you wouldn’t expect to find in such massive companies. That should keep both FAANG stocks among the most influential in the Nasdaq for a long time to come, even if their strong past performance might make it difficult for their share prices to keep rising at recent rates.

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

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Dan Caplinger owns shares of Apple. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Facebook and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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Share investors are worried. They are worried that things have been too good.

That’s the sad life of a shareholder. When good times arrive, you fear that they can’t last. When bad times arrive, you wonder how much further damage could come.

After a boom year since the March 2020 coronavirus crash, many experts are worried equities are now overvalued.

However, Sydney’s Ophir Funds, in its latest investment strategy note, still has unwavering faith in the power of shares.

“That’s because, compared with other asset classes, equities are still offering investors the most compelling investment case in our opinion. And the most compelling chance to build long-term wealth.”

History is on shares’ side

Although past performance is never an indicator of future performance, over a very long period, shares outperform all other investments.

Ophir compared different investments over 121 years in the US.

“Equities performed best, returning 9.7% per year versus 5.0% on bonds, 3.7% on cash, and inflation of 2.9% per year,” it told investors.

“Furthermore, this study captures some notable setbacks: two world wars, the great depression, an OPEC oil shock, the GFC and COVID-19. In each case, equities eventually recovered and reached new highs.”

Fixed income and cash LOSE money

Near-zero or negative cash rates set by central banks around the globe have devastated fixed income and cash as investments.

“Although inflation is soft and likely to be contained, it still sits at a level above both short and long-term interest rates. Because of this, rates in Australia are negative in real terms,” Ophir’s memo read.

“This means that investment dollars sitting in these cash and fixed income asset classes are generally losing value after inflation.”

The investment firm advised that those aiming for long-term wealth creation should stay away from government bonds, and cash levels should be kept to “the bare minimum”.

Shares are still relatively cheap

While the stock market’s valuation may be higher now compared to other times in history, it’s still cheaper than bonds.

Ophir quantified this by calculating the price-to-earnings (P/E) ratio equivalent for bonds.

“The Australian equity market’s current PE of around 20x is often pointed out as expensive and a sign of poor future returns,” the memo read.

“But this 20x multiple – which implies a yield of 5% — looks cheap compared against the 55x multiple investors are effectively paying when buying Australia’s government bonds that currently yield just 1.8%.”

What should our expectations be for shares?

With such low returns from other asset classes, shares don’t have to do much to look appealing.

So what performance expectations should we have for our stock portfolio?

“In our opinion, when you combine earnings growth, dividends, and the boost from franking credits, a 10% annual return from the Australian share market overall should be achievable over the long term,” Ophir told investors.

“We acknowledge though that over the next few years it might be lower than this.”

The investment house also stated overseas shares “probably will not outpace” ASX shares after franking credits are taken into account. 

“Global stocks do, however, become competitive on risk-adjusted measures once market diversification and currency impacts are considered.”

The fact that markets are at or near all-time highs in itself shouldn’t deter investors.

“Even after record highs, subsequent 12-month returns from equities have generally been strong,” stated the memo.

“Furthermore, while buying into the market slowly in dribs and drabs (dollar-cost averaging), can help mitigate investors’ fears of bad market timing, history suggests that investing all at once into the share market generates higher returns than dollar-cost averaging on average.”

More reading

• 3 reasons why the Pushpay (ASX:PPH) share price is a great buy
• How the St Barbara (ASX:SBM) share price hit a 52-week low
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Motley Fool contributor Tony Yoo 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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There are a few reasons why the Pushpay Holdings Ltd (ASX: PPH) share price looks attractive right now.

What’s Pushpay?

Pushpay is an ASX share that predominantly operates in the digital donation space.

It provides services to the large and medium US church sector.

Some of the services it provides includes church management systems, donation tools and livestreaming.

The livestreaming option has been particularly useful in the last 12 months with all of the impacts from COVID-19.

Reasons why the Pushpay share price could be really good to look at right now:

Exposure to digital payments trend

There is an ongoing trend around the world of payments going from cash to digital payments.

For the businesses operating these payment networks, it can be a very profitable sector.

Pushpay is one of the businesses driving that change in the church sector. It’s very valuable for churches because it means that the donation doesn’t have to be received physically.

Over the long-term, the trend for more church donations to be done electrnically could continue. 

In the most recent Pushpay result, for the six months to 30 September 2020, it said that total processing volume increased by 48% to 3.2 billion.

Over the long-term, Pushpay is targeting a 50% market share. Management believe this will turn into $1 billion of annual revenue.

Expansion plans

The current earnings is generated by the large and medium US churches.

But Pushpay has further growth plans.

It’s looking to expand its offering into other countries and regions over time. Some of the target places include South America and South East Asia.

Pushpay also said that it has allocated an initial investment of resources into developing and enhancing the customer proposition for the Catholic segment of the US faith sector. Focused investment into the Catholic segment represents a significant milestone as Pushpay continues to execute on its strategy to become the preferred provider of mission critical software to the US faith sector.

There’s also the potential down the track for Pushpay to expand into non-profit organisations as well as education and tertiary sector donations.

Strong growth

Pushpay is generating a lot of growth at the moment, particularly over the last 12 months during this COVID-19 period.

In the six months to 30 September 2020, Pushpay saw operating revenue grow by 53%. This was powered higher by the processing volume increase.

However, Pushpay is also generating a lot of profit growth, cashflow and operating leverage.

In the six months to 30 September 2020 earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) jumped by 177% to US$26.7 million. The EBITDAF margin grew from 17% to 31%. This increase occurred with total expenses falling from 50% to 38% as a percentage of operating revenue.

Operating cashflow surged higher by 203% to US$27 million whilst the net profit after tax (NPAT) went up by 107% to US$13.4 million.

In FY21, Pushpay is expecting EBITDAF to be in a range of US$56 million to US$60 million.  

What’s the Pushpay share price valuation?

According to Commsec, the Pushpay share price is valued at 22x FY23’s estimated earnings. This forward valuation is lower than quite a few ASX shares in the technology space. 

More reading

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• Why Alumina, Delorean, Next Science, & Pushpay shares are tumbling lower

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 St Barbara Ltd (ASX: SBM) share price has had a tough time in 2021. Shares in the Aussie gold miner have slumped 23.5% lower to a new 52-week low on the back of weakening gold prices and some disappointing results.

Why has the St Barbara share price slumped in 2021?

The big news this week came in the form of St Barbara’s quarterly production update. The Aussie gold miner reported an 8.2% drop in production to 82,303 ounces compared to the December quarter.

St Barbara’s all-in sustaining cost (AISC) also climbed 8.7% higher to $1,649 per ounce on a disappointing note for shareholders. Quarterly gold sales slumped 28.3% against December numbers, albeit at a 5.7% higher average realised price of $2,247 per ounce.

That was enough to send the St Barbara share price tumbling 8% lower on Wednesday. It continued a disappointing run of form for the ASX gold share in 2021.

However, St Barbara is far from the only gold miner to see its valuation slide in 2021. Other big-name miners like Northern Star Resources Ltd (ASX: NST) have also been under pressure.

That’s largely a result of weakening commodity prices in 2021. The global gold price was strong in 2020 as investors turned to the traditional safe-haven asset amid the coronavirus pandemic.

However, renewed optimism and a strengthening US dollar have reversed that trend. Gold prices are down ~10% since the start of the year as a result of changing demand dynamics.

That’s likely to have an impact on forecast revenues for some miners and comes after a flurry of new projects capitalising on higher pricing conditions. The St Barbara share price is under pressure alongside many other miners and trading at a 52-week low right now.

Foolish takeaway

The St Barbara share price has been hammered lower to start the year after a strong run of gains in 2020. The Aussie gold miner still boasts a market capitalisation of $1.3 billion and currently trades at a price-to-earnings (P/E) ratio of 10.5 prior to Friday’s open.

More reading

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• ASX 200 rises, Kogan jumps, gold miners sold off
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Motley Fool contributor Ken Hall 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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There are two ASX 200 shares that are worth watching right now. That’s because both are outperforming the S&P/ASX 200 Index (ASX: XJO) in 2021 and continue to track the Aussie economy in its post-coronavirus recovery.

Why these ASX 200 shares are tracking the Aussie economy higher

The two shares that have had a solid start to the year are Seek Limited (ASX: SEK) and REA Group Limited (ASX: REA). Seek shares are up 22.1% since the end of February while the REA share price is up 16.9% in that same period.

These are two large cap ASX 200 shares that have been performing strongly in recent months. For context, the benchmark index is up 6.1% since the end of February and 6% year to date.

But more importantly, employment and real estate are two key factors in the Aussie economy right now. All eyes have been on the latest employment numbers as an indicator of our economic health.

Those figures for March showed signs of recovery as the unemployment rate decreased by 20 basis points to 5.6%. The number of unemployed people as defined by the Australian Bureau of Statistics fell from 805,200 to 778,100 in March. 

According to ABS head of labour statistics, Bjorn Jarvis, employment and hours worked in March 2021 were both up with indications that things are returning to their pre-COVID levels.

That means ASX 200 shares like Seek that drive revenue from a good labour market are worth watching. Then there’s the word on everyone’s lips right now: property.

ASX 200 real estate shares have been recovering in recent times as Aussie property booms. Capital city markets, in particular, have been strong with solid clearance rates and rising house prices.

The REA share price boom in the last 2 months or so has been boosted by strong listing numbers. People are beginning to cash in on the housing boom after subdued numbers throughout a COVID-impacted 2020. That has sent the REA share price surging in April as the CoreLogic home value index showed strong gains.

Foolish takeaway

REA and Seek are two ASX 200 shares worth watching as the Aussie economy continues to recover to pre-COVID levels. Both shares have very different but important ties to key economic drivers which are showing early signs of recovery in 2021.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Woolworths falls, Fortescue was flat
• Why ASX 200 oil shares are eyeing US$80 per barrel Brent crude prices
• Why ASX bank shares may be facing a big sell-off in the next few weeks
• Are Woolworths (ASX:WOW) shares too expensive?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These ASX 200 shares are tracking the Aussie economy higher in 2021 appeared first on The Motley Fool Australia.

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