Shares in Immutep Ltd (ASX: IMM) are soaring today following news of its latest drug trial. Currently, the Immutep share price is trading at 56 cents, 5.6% higher than its previous close.

The biotechnology company has received approval from both the United States Food and Drug Association (FDA) and Institutional Review Board (IRB) to begin the trial.

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

New trial gets US approval

Immutep can now begin a phase IIb trial, combining its lead product candidate, eftilagimod alpha (efti), with MSD’s immunotherapy treatment, Keytruda (pembrolizumab).

The company — which develops immunotherapy treatments for cancer and autoimmune disease — is focussing on Efti, an antigen-presenting cell activator.

Immutep advised that the TACTI-003 trial will be a randomised, controlled clinical study. It aims to find if efti and pembrolizumab can be combined to treat head and neck squamous cell carcinoma (HNSCC).

Immutep plans for the trial to involve around 154 patients. It hopes it will take place in Australia and Europe, as well as the United States.

The trial is pending approval from authorities and ethics committees in Australia and Europe.

Immutep expects patient recruitment for the trial to begin in the United States in the current quarter, with Australian and European sites to follow.

Commentary from management

Immutep chief scientific officer and chief medical officer Frédéric Triebel said:

We are delighted to start our new TACTI-003 trial in 1st line HNSCC patients to evaluate efti in combination with pembrolizumab vs pembrolizumab monotherapy.

Results we reported from this therapeutic combination earlier in June at [the American Society of Clinical Oncology] in the 2nd line setting were robust, with sustained and durable responses. We look forward to deepening these results with a larger group of 1 st line HNSCC patients in TACTI-003.

Immutep share price snapshot

2021 has been a good year so far for the Immutep share price on the ASX.

It’s currently 34% higher than it was at the start of the year, and has gained 232% since this time last year.

The company has a market capitalisation of around $407 million, with approximately 648 million shares outstanding.

The post The Immutep (ASX:IMM) share price is up 6% today appeared first on The Motley Fool Australia.

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

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There are a group of ASX shares that might be exciting ideas because of the business growth that they are generating.

The below companies are ones that are producing fast double digit profit growth and have plans for more growth to come:

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is an asset manager outfit. It takes strategic stakes in some of the leading asset managers in the country and helps them grow, as well as allowing them to just focus on the investing side of things.

Some of the managers that it’s invested in includes Firetrail, Coolabah, Hyperion and Plato.

One of the brokers that likes Pinnacle Investment Management is Macquarie Group Ltd (ASX: MQG).

Pinnacle can grow profit as its affiliate fund managers grow their funds under management (FUM). Macquarie believes Pinnacle’s FUM can grow to $90 billion by the end of FY21.

The rising FUM is lead to growing profits, and is leading the broker to expect that profit growth can continue for at least the next couple of financial years. Net inflows and improving profit margins can help the business continue to produce returns.

In the ASX growth share’s latest update, total affiliate FUM at 30 April 2021 was $84.9 billion, compared to $70.5 billion at 31 December 2020 (up 20.4%) and compared to $58.7 billion at 30 June 2020 (up 44.6%).

Total net inflows for the four months to 30 April 2021 was $9.9 billion. That included $8.1 billion of institutional money (including $1.2 billion from offshore). It also saw $1.8 billion of retail inflows.

Pinnacle recently said that most affiliates and strategies continue to deliver performance to expectations, or better. However, there are short-term challenges in a couple of affiliates.

In the FY21 half-year result it grew net profit by 120%.

According to Macquarie, the Pinnacle share price is valued at 25x FY22’s estimated earnings.

MNF Group Ltd (ASX: MNF)

MNF Group is a telecommunications software business. It boasts that it enables companies like Zoom, Google and Twilio to launch and scale communication services without constraints.

It’s currently rated as a buy by the broker Morgan Stanley with a price target of $6.30. That suggest a potential return of almost 20% over the next 12 months.

The broker likes the recent sale by MNF of part of its direct business to Vonex Limited for $31 million. The sale is in-line with the ASX growth share’s strategy to simplify the business, grow recurring revenue and focus on growing the MNF wholesale business, Symbio.

The business is generating growth. In the FY21 half-year result, it saw recurring revenue growth of 15% to $55.7 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 16% to $19.6 million and underlying net profit jumped 30% to $8.4 million.

MNF is guiding that EBITDA for FY21 will be between $40 million to $43 million.

In Singapore it’s conducting its final technical trials with several customers, before officially going live in the Singapore market. Customer technical trials are ongoing and have been successful. It had a go-live date of 1 July 2021, pending final regulatory approval.

According to Morgan Stanley, the MNF share price is valued at 19x FY22’s estimated earnings.

The post 2 exciting ASX growth shares that might be worth buying appeared first on The Motley Fool Australia.

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

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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.

Generally speaking, growing companies tend to avoid dividends, opting instead to funnel any excess cash back into the business. However, that doesn’t mean it’s impossible to find dividend-paying growth stocks.

For instance, Warren Buffett’s Berkshire Hathaway owns stock in Apple (NASDAQ: AAPL) and Mastercard (NYSE: MA), and both companies pay quarterly dividends while still having solid prospects for future growth. Here’s what investors should know.

Apple

Apple has built a consumer electronics empire. From Macs and iPhones to the Apple Watch and AirPods, the company’s hardware rarely fails to captivate its customers. In fact, Apple had a worldwide installed base of over 1.65 billion devices as of its fiscal 2021 first quarter, and that number is likely to climb with the recent launch of its M1-powered iMac and iPad Pro.

So what’s driving that popularity? One of Apple’s greatest advantages is iOS, the operating system that powers its mobile devices. Unlike Android, iOS is closed-source, meaning no third party can install it on their own hardware to create a cheaper “Apple-like” experience. In other words, if you want the Apple experience, you have to pay for it.

That advantage allows Apple to charge a premium for its products. For instance, the average iPhone sold for $873 in the fourth quarter of 2020. By comparison, the average Android smartphone sold for $250 last year. That pricing power has been a tailwind for Apple’s business.

Not surprisingly, the company has delivered solid financial results over the long term.

Data by YCharts.

Since 2016, Apple’s share price has surged over 375%, but shareholders have also benefited from regular dividend payments. Currently, the quarterly payout sits at $0.22 per share, but that figure has gone up every year since 2012. And with Apple’s strong balance sheet, investors should expect that trend to continue.

Moreover, I think Apple stock is poised to beat the market in the coming years. Its high-margin services business is gaining momentum, and the company reportedly has at least two augmented reality (AR) products in the pipeline, including a pair of AR glasses. Given Apple’s past success with such hardware, I wouldn’t be surprised if both of these products were big winners.

The company is also developing an autonomous electric vehicle (EV): the so-called Apple Car. In fact, a recent article from Reuters suggests that this AI-powered EV may launch as soon as 2024.

As a final thought, Apple is Warren Buffett’s largest holding, representing 40% of Berkshire’s portfolio. If the Oracle feels comfortable owning that much Apple stock, I think any investor should consider adding a few shares to their portfolio.

Mastercard

Mastercard’s platform connects consumers, merchants, and financial institutions, facilitating electronic payments in over 210 countries and territories. In 2020, the company handled 24% of all card-powered purchase transactions, making Mastercard the third largest payments network in the world.

For decades, credit and debit cards have been at the core of Mastercard’s business. And despite widespread adoption, this market is still far from saturated. In fact, management believes cash and check transactions account for $68 trillion in global spend each year. For context, card-based transactions account for just $30 trillion.

However, Mastercard has an even bigger opportunity. Management believes account-based transactions total $139 trillion each year. And rather than rest on its laurels, Mastercard has introduced several new products in an effort to take market share in that category.

For instance, Mastercard Track targets commercial use cases, simplifying and automating account-based payments between buyers and suppliers. Similarly, Mastercard Send supports account-based P2P payments and disbursements (e.g. government-to-consumer payments).

Last year, the pandemic created significant headwinds for Mastercard. Even so, the company has managed to grow at a modest pace in recent years.

Metric	2015	Q1 2021 (TTM)	CAGR
Revenue	$9.7 billion	$15.5 billion	9%
Free cash flow	$3.8 billion	$6.2 billion	10%

Data source: Mastercard SEC Filings. TTM: trailing 12 months. CAGR: compound annual growth rate.

Since 2015, Mastercard stock has more than tripled, surging 285%. At the same time, its dividend payments have increased like clockwork every four quarters, even during the pandemic. That underscores the company’s financial stability, and it gives me confidence that Mastercard can weather just about anything.

Currently, the quarterly dividend sits at $0.44 per share, representing a payout ratio of just 31%. In other words, investors have good reason to believe those annual dividend increases will continue.

Moreover, given its massive market opportunity and strong competitive position, Mastercard could be a market-beating investment long term. That’s why you should consider adding this stock to your portfolio.

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

The post Warren Buffett owns these dividend-paying growth stocks — should you? appeared first on The Motley Fool Australia.

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Trevor Jennewine owns shares of Mastercard. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Apple, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple, Berkshire Hathaway (B shares), and Mastercard. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The SRG Global Ltd (ASX: SRG) share price is rocketing in morning trade, up 7%.

Below we take a look at the engineering-led mining services and construction group’s guidance update and outlook for the 2022 financial year.

What guidance update did SRG report?

SRG Global’s share price is soaring after the company reported it expects earnings before interest, taxes, depreciation and amortisation (EBITDA) to come in at the high end of the $45–47 million range previously forecast.

The group’s cash position improved from a net debt of $8.4 million in the 2020 financial year to net cash of $12.2 million in FY21.

It reported that due to the nature of the work it carries out, COVID-19 shutdowns have only had a minor impact on its performance and labour. In fact, the company has record work in hand of $1 billion, a 41% increase year-on-year.

Commenting on the revised guidance, David Macgeorge, SRG Global’s managing director said:

SRG Global continues to take significant steps forward in the execution of our strategy. We expect our FY21 EBITDA result to be at the top end of previous guidance, underpinned by new contract wins, strong operating cashflows and continued margin improvement through delivering for our blue-chip client base…

I am particularly pleased that we have continued to transition the business towards annuity earnings whilst winning a number of new term contracts in FY21. We have also managed the operational startup and contract execution exceptionally well throughout this period.

The SRG Global share price also appears to be getting a lift from its FY22 expectations. Looking ahead, Macgeorge added that with available funds to drive growth of $88.2 million, plus undrawn equipment facility of $27.7 million, he expects EBITDA in the 2022 financial year to be around 15% higher than in FY21.

SRG Global reports its full year audited results on 24 August.

SRG Global share price snapshot

Over the past 12 months SRG Global shares have gained 106%, compared to a gain of 24% on the All Ordinaries Index (ASX: XAO) over that same time.

Year-to-date, the SRG Global share price has gained 30%.

The group pays a 3% annual dividend yield, fully franked.

The post Why the SRG Global (ASX:SRG) share price is rocketing 7% today appeared first on The Motley Fool Australia.

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• Why the Mineral Resources (ASX:MIN) share price is moving higher
• Why the Payright (ASX:PYR) share price has surged 10% today
• Rhipe (ASX:RHP) share price drops after accepting takeover bid
• A2 Milk (ASX:A2M) share price falling despite trademark settlement

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

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The Xref Ltd (ASX: XF1) share price has been one of the best performers on the Australian share market on Tuesday.

In morning trade, the human resources technology company’s shares jumped 32% to a record high of 49 cents.

The Xref share price has eased slightly since hitting its high but remains up 26% at 46.5 cents currently.

Why is the Xref share price rocketing higher?

Investors have been bidding the Xref share price higher today following the release of a strong fourth quarter update.

According to the release, Xref expects to report record sales of $6.37 million and cash receipts of $5.93 million for the quarter.

A key driver of this growth was the introduction of several big-name customers during the period. This includes the RACV, NIB Holdings Limited (ASX: NHF), and Prospa Group Ltd (ASX: PGL) in Australia. Outside Australia, the company added the New Zealand Ministry of Health, Brighton FC, Ferrovial Construction, and Eurofins Scientific.

Management notes that COVID-19 has accelerated the global demand for remote working. This has led to organisations seeking better ways to perform candidate verification, leading to growing demand for its self-serve platform.

Another positive which is likely to be giving the Xref share price a boost today, is that the company was cash flow positive during the fourth quarter. Management notes that its operating cash outflows were $3.43 million, compared to cash receipts of $5.93 million. This meant an operating cash surplus of $2.5 million.

As a result of this, the company ended the period with a cash at bank of $8.19 million. This is up from $2.94 million a year earlier.

Management commentary

Xref’s Executive Director and CEO, Lee-Martin Seymour, said: “The extreme unpredictability of market conditions in FY21 meant it was one of our most challenging financial years to date. However, we are proud of the many strategic decisions we made which resulted in us emerging from the pressures of the pandemic in our strongest position to date.”

“Over recent years we have focussed on building Xref’s online brand presence, third party ratings and self-serve products. This digital-first approach has been vital to our growth in 2021 as global employers search online for better ways to verify and measure talent. Our results not only reflect the critical nature and demand for the Xref platform but demonstrate the brilliance and professionalism of the Xref team. The year ahead will bring new products, sustained profitability and continued growth. We are all very excited to discover what FY22 will hold.”

The Xref share price is up over 150% since this time last year.

The post Why the Xref (ASX:XF1) share price is rocketing 32% to a record high appeared first on The Motley Fool Australia.

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• Why the Mineral Resources (ASX:MIN) share price is moving higher
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xref Limited. The Motley Fool Australia has recommended Xref Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mineral Resources Limited (ASX: MIN) share price is gaining in morning trade, up 1.33%.

Below we take a look at the mining services provider’s latest drilling exploration update.

What did Mineral Resources announce?

Mineral Resources’ share price is moving higher after the company reported that Energy Resources Limited (its wholly owned subsidiary) had secured a drilling rig for the Lockyer Deep 1 well.

The conventional gas exploration well is located in the onshore Perth Basin in Western Australia.

The Lockyer Deep Prospect sits on exploration permit EP368. Energy Resources Limited is the operator of the EP368 in a joint venture in which it holds an 80% interest with Norwest Energy NL (ASX: NWE) holding the remaining 20% interest.

The Ensign 970 rig is expected to start drilling later this month.

Energy Resources Limited operates permits covering more than 7,300 square kilometres in the Perth Basin. Combined with its petroleum acreage in the onshore Northern Carnarvon Basin, Mineral Resource’s subsidiary company has 13,629 square kilometres of petroleum acreage to its name.

Commenting on the progress of its subsidiary, Mineral Resources managing director Chris Ellison said:

The drilling of Lockyer Deep1 will be a significant milestone for MRL because it will signify the start of an extensive conventional gas exploration program in our onshore Perth Basin and Northern Carnarvon Basin acreage in line with our strategy to secure our own energy at the lowest cost and lowest emissions possible.

Ellison said that if the well is successful, it will help Mineral Resources’ goal of achieving net zero emissions by enabling it to use the natural gas it pumps in place of diesel fuel.

“We are fully committed to achieving Net Zero Emissions by 2050,” Ellison said, adding that the company believes “owning our own natural gas supply will complement the significant advances we are making in renewable energy, particular around solar and wind power”.

With the ever-growing focus on ESG compliance, the Mineral Resource’s share price could get some new tailwinds if the company makes marked progress on its net zero goals.

Mineral Resources share price snapshot

Mineral Resources shares have gained 161% over the past 12 months, far surpassing the 23% gains posted by the S&P/ASX 200 Index (ASX: XJO).

Year-to-date, the Mineral Resources share price continues to outperform, up 52% so far in 2021.

The post Why the Mineral Resources (ASX:MIN) share price is moving higher appeared first on The Motley Fool Australia.

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

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Shares in Payright Ltd (ASX: PYR) are shooting up this morning after the company announced a positive trading update for the fourth quarter of FY21. At the time of writing, the Payright share price has surged 9.8% higher, trading at 56 cents.

Payright is an emerging buy now, pay later (BNPL) company specialising in “more considered” purchases valued between $1,000 and $20,000.

What did Payright announce?

The Payright share price has opened stronger this morning after the company revealed that it had exceeded FY21 forecasts across all key metrics with a record fourth quarter.

In the quarter ending 30 June 2021, the company reported a record quarterly gross merchandise value (GMV) of $26.1 million, up 134% against the prior corresponding period (pcp). June saw a record monthly GMV of $9.2 million.

Payright also achieved a record ~6,000 new customers joining the platform in the June quarter, bringing total customer numbers to ~53,400 as at 30 June, up 58% on pcp.

Merchant stores had also increased in line with the company’s guidance, hitting 3,400 by the end of FY21. This represents a 41% increase compared to a year ago.

What did management say?

Payright Co-CEO Piers Redward welcomed the record-setting update, saying:

In what has been a record quarter for the business, we are pleased to have surpassed guidance in all key metrics, reiterating our ability to deliver on our growth strategy.

We are experiencing an increased interest and awareness of Payright’s business offering as a result of our ongoing national marketing campaign, which is helping the company build its presence in Australia and New Zealand.

Payright Co-CEO Myles Redward said the company had delivered on platform upgrades to merchant dashboard, customer application and checkout processes in the quarter. He said Payright expected to roll out “a healthy pipeline of new innovations, including our ‘Tap & go’ card technology” in the coming months.

The continued growth in customer and merchant numbers provides us further validation of the need and demand for Payright’s targeted offering, and we remain very optimistic about Payright’s growth outlook.

A long way to go for the Payright share price

Despite today’s advance, the Payright share price has tumbled 45% from $1.00 to 54.5 cents since its ASX debut on 23 December 2020.

The journey has been more painful for investors that participated in the Payright initial public offering (IPO), where the listing price was $1.20.

The post Why the Payright (ASX:PYR) share price has surged 10% today appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Rhipe Ltd (ASX: RHP) share price is falling today after the company said it had agreed on terms with Norwegian company Crayon, to sell 100% of its shares for $2.50 each.

At the time of writing, shares in the company are trading for $2.48 – down 1.59%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.35% higher.

Let’s take a closer look at this latest update.

Why the Rhipe share price is in focus

In a statement to the ASX, Rhipe confirmed it will recommend that shareholders accept the bid Crayon submitted last week. The news sent the Rhipe share price surging to a new 52-week high of $2.56.

The bid for $2.50 per share represents a 30% premium on the 1-month volume weighted average price (VWAP) and a 37% premium on the 3-month VWAP of $1.82. Rhipe intends to pay a special dividend of up to 13 cents a share, fully franked before the transaction is finalised. Any amount paid by the board will be deducted from Crayon’s final payment. The deal is not conditional on finance or due diligence.

Shareholders should be able to vote on the deal in September, and if all goes to plan, the sale will be finalised by October.

In other news, Rhipe says its foreshadowed operating profit for FY21 of $18 million will be met. It also expects earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the financial year to be around $17 million.

Management commentary

Rhipe Chair, Gary Cox, said

The rhipe Board has unanimously concluded the Scheme represents an attractive outcome for our shareholders, partners and customers, and staff. In the rhipe Board’s view, all cash price at a significant premium to the recent VWAP trading performance reflects the inherent value of rhipe’s business operations, platform, and growth strategy throughout Asia Pacific.

rhipe’s partners and customers will benefit from the broader global service capability from a combined Crayon and rhipe. In addition, Crayon’s offer is positive news for rhipe’s staff, as we believe there will be increased opportunities to develop new technologies and products and grow their careers.

The post Rhipe (ASX:RHP) share price drops after accepting takeover bid appeared first on The Motley Fool Australia.

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

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The A2 Milk Company Ltd (ASX: A2M) share price has dropped this morning despite the settlement of a legal stoush. At the time of writing, A2 Milk’s share price is down 1.49% to $6.63.

The fall comes despite The Australian reporting the dairy company has settled its trademark dispute with Oklahoma family-owned ice cream chain Braum’s.

Let’s have a closer look at the details.

A2 Milk brand protection

Brand recognition and protection are incredibly important in a competitive industry. A2 Milk has fought fiercely to fend off other companies from using the ‘A2 milk’ definition. Previously, the milk company has won bouts against Lion and the ABC.

In its recent trademark dispute, A2 Milk issued Braum’s a cease and desist for its range of dairy products in May 2020.

These products are sold exclusively through the company’s 280 restaurants throughout Oklahoma, Kansas, Texas, Missouri, and Arkansas. A2 Milk took issue with the use of ‘A2 milk’ branding on Braum’s products.

Reportedly, the dispute has now been settled with the specific terms of the settlement confidential. However, sources are reporting that Braum will be given a grace period to make changes on its website and labels so they can advertise themselves as “A1 free”, rather than “A2 milk”.

A2 Milk Company US Chief Executive Blake Waltrip said:

We will always vigorously protect our trademark rights in the A2 Milk trademarks and are happy we have been able to reach a mutual agreement with Braum’s.

Curdling as competition heats up

ASX-listed A2M is not the only milk-maker attempting to trample competition over trademark infringements.

Similarly, US-listed oat milk producer Oatly Group AB (NASDAQ: OTLY) has been caught in a stoush with Glebe Farm Foods over a similar deal. Oatly suggests the smaller Glebe is infringing on its trademark with its name and packaging too similar.

(6/9) “Oatly says the name and packaging is too similar to theirs, but when we compare the two products side by side, we are surprised by this.” says Glebe Farm owner Phillip Rayner. I’m with Phil on this. pic.twitter.com/wrW75bq2pW

— Dave Rapson (@D_Rapson) June 17, 2021

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

The case is being heard in the High Court in London and is ongoing.

Past year for A2M on the ASX

A2 Milk’s share price has taken a hit over the past year. The closure of international borders brought the company’s daigou channel to a halt. As a result of the excess supply, the dairy company’s products were severely marked down in value.

Over the year, the A2 Milk share price eroded by 65.7% to $6.73 a share. Consequently, the market capitalisation of A2M is now $4.85 billion.

The post A2 Milk (ASX:A2M) share price falling despite trademark settlement appeared first on The Motley Fool Australia.

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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 recommended A2 Milk. 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.

Instagram CEO Adam Moserri recently released a video outlining the company’s second half priorities for 2021. While he outlined four areas of focus for the Facebook (NASDAQ: FB) company — creators, video, shopping, and messaging — Moserri spent most of his time discussing the potential product changes around video.

“We’re no longer a photo-sharing app,” he said. “The number one reason people say that they use Instagram, in research, is to be entertained.” With that in mind, Instagram is experimenting with more full-screen recommended videos in the main feed. That’s a major shift for Instagram and makes it more like TikTok.

Instagram wants to be TikTok

Over the last couple of years, TikTok has exploded in popularity. Its U.S. user base grew more than 87% in 2020, and it’s set to grow another 18% this year, according to estimates from eMarketer. What’s more, its users are highly engaged, spending more time, on average, on the social video app than the users of any other social media app. Younger users, in particular, are spending huge amounts of time on the app, even more than YouTube.

It’s no wonder Instagram has been working to copy the secret sauce that makes TikTok so addictive. It released Reels last summer, and it’s been quick to expand the feature to new markets and add functionality over the last year. In June, Instagram started showing ads between Reels, indicating it’s seeing strong engagement that’s worth monetizing.

But what makes TikTok so engaging is that you see fresh content every time you open the app. Instead of seeing videos from the users you follow, the default view is TikTok’s recommendations. And the recommendations are really good.

Instagram’s certainly capable of developing an algorithm that surfaces the most interesting videos for each user when they log in. It, along with its parent company, has a ton of data on its users’ likes and dislikes. In fact, it already has a version of algorithmic recommendations in the Explore section of Instagram.

Putting that algorithm to work earlier in the user experience, right when users open the app, and highlighting the best content on Instagram can increase engagement. And with the new monetization tools Instagram introduced in June, it could lead to more revenue as well.

Stemming the flow of users to TikTok

As mentioned, TikTok has seen enormous user growth over the last couple of years. While growth will slow in 2021, it’s still expected to add users at a faster pace than any other major social media app.

What Instagram needs to accomplish is to stem the flow of users from its app to TikTok. It’s not that users are abandoning Instagram, it’s just that they’re splitting their time between Instagram and other apps. If Instagram can capture the engagement it’s bleeding to other apps, it’ll be in a stronger position to monetize its users. Not only will it have more time to show ads, but marketers will find its competitors less appealing since they won’t have the mass engagement and reach of Instagram’s billion-plus users.

Instagram successfully accomplished this when Snap‘s (NYSE: SNAP) Snapchat threatened its engagement. The launch of Stories had a noticeable effect on the competitor’s growth for a couple of years before Snap could pivot to more of a media and entertainment focus.

One of the biggest reasons for its success with Stories is that the format is prominently featured in the app when users open it. Stories sit right at the top of the main feed. Giving Reels, its TikTok clone, a similar treatment by putting recommended videos in the feed could have a similar effect.

So, not only does Instagram hope to meet the demands of its users for more entertainment in the app, it’s hoping it can prevent them from looking elsewhere, too. If it works out, Reels could become a significant growth driver for engagement and revenue, just as Stories has over the last few years.

This is just the latest move from Facebook and its subsidiaries that helps ensure it keeps its dominant position in social media and digital advertising despite increased competition and regulatory pressure. That makes the stock very appealing, even with shares priced near the stock’s all-time high.

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

The post Instagram’s top priority for the rest of 2021 appeared first on The Motley Fool Australia.

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

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

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