Yesterday, the Federal Government announced a $1.2 billion support package that includes around 800,000 half-price airline tickets. 

News sites are reporting that the first round of travel vouchers in Victoria only lasted six minutes before allocations were exhausted at 10 am on Friday. A total of 40,000 vouchers were up for grabs, allowing Victorians to receive a $200 rebate after spending money on accommodation, attractions, and tours in regional Victoria. 

Brokers have run the ruler with new share price updates regarding how this domestic tourism stimulus package could impact ASX travel shares. 

Flight Centre Travel Group Ltd (ASX: FLT) 

Citi retained its sell rating with a $16.80 target for the Flight Centre share price. The broker doesn’t see much revenue upside from the stimulus package, noting that Australian domestic leisure accounts for approximately 9% of its pre-COVID-19 group total transaction value (TTV) and around 5% of the group’s profit. 

The Flight Centre share price rallied as much as 13% yesterday before closing 9% higher at $19.44. While its shares have given back some of its gains today, the Flight Centre share price is still around 5% higher since the news was announced. 

Qantas Airways Limited (ASX: QAN) 

Citi upgraded the Qantas share price from neutral to buy with a $6.14 target price. The broker believes that a leisure led recovery will have a negligible impact on Qantas revenues. But thinks that such a significant government investment will pressure state governments to keep borders open.  

The Qantas share price has only nudged 1.50% higher since the stimulus package was announced. 

Sydney Airport Holdings Pty Ltd (ASX: SYD) 

Citi believes the domestic tourism stimulus package will have a limited revenue impact on the Sydney Airport share price. The broker notes that the package is largely focused on domestic travel and leisure routes, which were already experiencing a recovery. 

Citi believes that the Sydney Airport share price will get a major re-rate when international travel restarts. However, the timing of this catalyst remains uncertain. The broker remains neutral rated with a $6.61 price target. 

More reading

• Brokers name 3 ASX shares to buy right now
• Why Flight Centre, Northern Star, Southern Cross Media, & Treasury Wine are sinking
• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Can the Flight Centre (ASX:FLT) share price recover in 2021?
• Why the Qantas (ASX:QAN) share price could shoot higher in 2021

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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It appears the recent selloff in speculative sectors has done very little to spoil the appetite for risk for some. The fear-of-missing-out (FOMO) could be stronger than ever as we see a slight bounce back in tech shares and speculative investments like Bitcoin (CRYPTO: BTC) today.

So, have you ever felt like you are about to miss the boat on ‘the next big thing’? Well, fear not, the FOMO exchange-traded fund (ETF) may soon be listed on a US stock exchange. However, before you go FOMO into the fund, let’s take a look at what it will involve, and what risks come with it.   

Sentiment driving decisions

According to Bloomberg, FOMO will be an actively managed ETF – dabbling in everything from special-purpose acquisition vehicles (SPACs) to emerging companies of any market capitalisation.

The FOMO aspect is centred around how the fund selects its investments. Typically, an ETF would have its own criteria for investment selection that would include evaluation metrics, earnings growth rate, etc. However, this fund will employ its “proprietary tactical model” to make these decisions.

Effectively, the fund will look for investments that are ‘trending’ across different timeframes to capitalise on growing sentiment towards the asset.

Sentiment-based investments are not a new phenomenon. Many momentum investments are essentially playing on social sentiment, riding the trend upwards as people FOMO in. This is where the risk comes in. Sentiment changes, and it can change unforgivingly fast.

The danger of FOMO

There are a couple of areas of concern when looking at this type of fund. Firstly, investing based on emotion is a far cry from the tried-and-true principles of value investing. If the fund invests in assets where the sentiment has people fearing they’ll miss out, then the fund is being greedy when others are greedy.

This begs the question, will the fund be getting in on the bottom floor, or could it be entering at the top?

Secondly, the filing for the ETF notes its approach may result in a “high portfolio turnover rate”. What that really means is it will likely have high management fees. The issue with this is that the fund will have to perform exceptionally well in order to make the high fees worthwhile.

Otherwise, you’d be better off parking your wealth in a low-fee fund, such as Vanguard Australian Shares High Yield ETF (ASX: VHY).

More reading

• Why the Bitcoin price is rocketing towards new record highs again
• Warning: Latest trap that could cost you more than 3% a year
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• The simple yet incredibly effective way to generate term-deposit busting income from just one quoted ASX fund
• Cryptocurrency, autonomous vehicles, and energy efficiency are key to NVIDIA’s growth

Mitchell Lawler owns shares of Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. 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 Oneview Healthcare PLC (ASX: ONE) share price is by far one of the best performers on the ASX market today. This comes after the company announced that it has entered into an agreement with StocksDigital.

In early-afternoon trade, the healthcare technology solutions company’s shares are up an astonishing 106.2% to 16.5 cents. Almost 100 million shares have swapped hands between investors.

What’s the detail in the Oneview agreement?

The Oneview share price rocketed to a new 52-week high as investors appear upbeat about its latest announcement.

According to its release, Oneview advised that it has signed an investor awareness agreement with S3 Consortium trading as StocksDigital. This will see Oneview provided with in-depth research, commentary and investment advice services.

The company stated that this is an important measure taken as no formal research coverage had been relatively conducted. Oneview believes that this will further strengthen the balance sheet and boost investor awareness to build its profile. Indeed, this is a perfectly timed announcement as the company gears up to launch its Oneview Cloud for Enterprise globally. Sales and marketing campaigns are also planned in the near future for the United States and Australia.

The agreement, effective immediately, will run for a period of 18 months. Oneview will pay $375,000 for StocksDigital’s services and allocate 6.25 million CHESS depositary interests over fully-paid ordinary shares (CDIs).

In addition to the deal, StocksDigital and investors within its network will invest $1 million into Oneview. In return, the 16,666,666 CDIs will be allotted from Oneview to the participating investors. The offer price will be set at 6 cents apiece. This represents a discount of 18.9% on the volume-weighted average price of CDIs on the last 5 trading days.

The company plans to use the funds to achieve its growth strategy of the new Cloud platform.

About the Oneview share price

The Oneview share price has performed well over the past 12 months, gaining 117%. However, the companies shares have surged to more than 250% year to date, hitting a 52-week high of 19 cents today.

Based on the current share price, Oneview has a market capitalisation of around $65.6 million.

More reading

• ASX stock of the day: Why Advance Nanotek (ASX:ANO) shares are rocketing 7%
• Australian Unity Office Fund (ASX:AOF) share price up after $31.5 million real estate deal
• Vulcan Energy (ASX: VUL) share price up as revenue soars over 1,000%
• Morgans just added this ASX 200 share to its model portfolio
• Why the PPK Group (ASX:PPK) share price is climbing 8%

Motley Fool contributor Aaron Teboneras 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.

The post Here’s why the Oneview (ASX:ONE) share price has exploded 106% higher appeared first on The Motley Fool Australia.

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The Advance Nanotek Ltd (ASX: ANO) share price is on fire today, rocketing 7.44% at the time of writing to $4.33. Advance Nanotek shares closed at $4.03 yesterday, but opened at $4.10 this morning before surging as high as $4.50 in early morning trading (up almost 12%).

Even though the company’s share price has cooled slightly since then, it’s still a hefty move upwards. Especially if you consider this company was asking $3.40 per share as recently as 15 February. That means Advance Nanotek is up close to 30% in just under a month.

So what is this strangely-named ASX company? And why are its shares enjoying their day in the sun today?

Advancing to sunscreen

Advance Nanotek describes itself as Australia’s leading manufacturer of zinc oxide powder. It also manufactures aluminium oxide (also called alumina). The company has been around since 1997 and listed on the ASX back in 2003.

Since then, Advance Nanotek shares have had a rather wild ride. The company was trading around the $2 mark back just before the global financial crisis. But the years that followed were not kind, and the company sank as low as 8 cents per share.

However, its fortunes were revived in 2019 when it reached a new high of more than $7. An investor who made a well-timed trade buy at 8 cents per share in mid-2012 would have seen an incredible gain of nearly 9,000% by mid-2019. But there’s no use crying over spilled milk.

Zinc oxide is a chemical with widespread industrial applications (some of which aluminium oxide also share). These include as an additive in foods, medicines and cosmetics, as well as in industrial materials like batteries, concrete, paints, plastics and glass.

It is also used in sunscreens and cosmetics that offer supplementary sun protection. This is the area that Advance Nanotek specialises in. Its flagship products are ZinClear XP and ZinCare IN. There are zinc oxide dispersion solutions that are designed to be easily incorporated into the manufacturing process for toothpaste, sunscreens and sunsafe cosmetics.

What’s with the Advance Nanotek share price today?

Well, it’s not immediately obvious. There have been no major ASX announcements out of the company since mid-February. But there could be a macro factor at play here.

Back in September last year, Advance Nanotek delivered a depressing sales update to investors. At the time, it told the markets its poor sales over the previous few months were largely due to the coronavirus pandemic. More specifically “due to the significant travel restrictions caused by the second and third waves of COVID-19 in Europe and the US”.

That makes sense. If people are travelling less, it’s logical to assume they need less sunscreen.

Now yesterday, Prime Minister Scott Morrison announced a significant $1.2 billion stimulus package for the travel industry. This included a major subsidy for airline travel, also known as ‘cut-price tickets’, of which there will be 800,000.

Further, according to the ABC, this morning (our time) US President Joe Biden announced that all Americans can be vaccinated against COVID-19 by the end of April 2021.

That’s a double whammy of good news for a company that has claimed a drop in tourism has been catastrophic for its business. This could well be the reason why the Advance Nanotek share price has been popular with investors today.

More reading

• Why the Advance Nanotek (ASX:ANO) share price tumbled 12% today
• Why Advance NanoTek, Incitec Pivot, Starpharma, & Zoono are tumbling lower

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Advance NanoTek Limited. 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 Australian Unity Office Fund (ASX: AOF) share price is trading higher in afternoon trade. 

Late yesterday, the real estate investment trust (REIT) announced the $31.5 million sale of one of its Brisbane properties. The fund also announced it would be suspending its dividend reinvestment plan (DRP) for this quarter.

Shares in Australian Unity are trading at $2.27, up 2.25%. For comparison, the S&P/ASX All Ordinaries Index(ASX: XJO) is up 0.8%.

What did Australian Unity announce?

Australian Unity announced it had reached an agreement to sell 241 Adelaide Street, Brisbane. The $31.5 million sale price is equal to the asset’s book value as of 31 December 2020.

Australian Unity is selling the building along with the lease to the Brisbane Club. 42 years are remaining on the lease.

Speaking on the deal, fund manager James Freeman commented:

[241 Adelaide Street] was identified as non-core to AOF and we are pleased to have entered into a conditional contract to dispose of this asset. The purchaser has also entered into arrangements with the Brisbane Club to acquire the freehold. AOF’s sale is conditional upon completion of the acquisition of the freehold. We are targeting settlement prior to 30 June 2021.

In addition to the asset sale, Australian Unity also announced the suspension of its DRP for Q3 FY21.

According to the Commonwealth Bank of Australia (ASX: CBA), a DRP is an alternative method for dividend payments. Instead of the company reimbursing you its profits through cash, it will automatically invest the payment into new shares for the owner. These shares are sometimes issued at a discount. No fees are associated with the issuance of new shares.

Finally, Australian Unity confirmed it would meet its FY21 FFO guidance of 18.3 – 18.7 cents per share.

Australian Unity share price snapshot

Shares in the fund crashed at the height of the COVID-19 pandemic, reaching a low of $1.50. While they have recovered since then, the share price is still 16.23% down on this time last year.

Australian Unity has a market capitalisation of $361.6 million.

More reading

• ASX stock of the day: Why Advance Nanotek (ASX:ANO) shares are rocketing 7%
• Vulcan Energy (ASX: VUL) share price up as revenue soars over 1,000%
• Morgans just added this ASX 200 share to its model portfolio
• Why the PPK Group (ASX:PPK) share price is climbing 8%
• Why Flight Centre, Northern Star, Southern Cross Media, & Treasury Wine are sinking

Motley Fool contributor Marc Sidarous 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.

The post Australian Unity Office Fund (ASX:AOF) share price up after $31.5 million real estate deal appeared first on The Motley Fool Australia.

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The Vulcan Energy Resources Ltd (ASX: VUL) share price has fired up 5.6% at the time of writing to trade at $5.89.

This comes after the company released its half-year results yesterday.

Here’s a rundown of what Vulcan reported.

Vulcan Energy HY20 financials

For the HY20 period ended 31 December 2020, Vulcan posted revenue that beat the previous corresponding period (PCP) by 1,182%. Vulcan’s HY20 revenue totalled $372 thousand compared to $29 thousand in the PCP.

The lithium producer posted a total comprehensive loss of $6 million for HY20 vs a $1.8 million loss in HY19.

As of 31 December 2020, Vulcan held $5.8 million of cash and cash equivalents compared to $3.1 million in the PCP.

Expenses related to employee benefits and investor relations both increased as Vulcan expands its operation.

Vulcan continues to push battery production

The company commissioned a series of Direct Lithium Extraction (DLE) tests during HY20 to support its battery production efforts.

The results discovered that the geothermal brine produced from the company’s Upper Rhine Valley site in Germany had a lithium recovery rate that exceeded 90% on the first pass.

In the HY report, Vulcan emphasises its intention to provide an electric vehicle (EV) battery-quality lithium to suit the European market.

The EU is the fastest-growing adapter of EVs and has strict environmental restrictions on lithium. Currently, China is the largest provider of lithium-ion batteries to the EU. Vulcan is hoping to fill that spot.

Notably, from 1 January 2026, lithium-ion batteries in the EU will require a certain class label. From 1 July 2027, carbon thresholds will be added to environmental compliance measures.

Vulcan believes it is well-positioned within its strategy to meet these needs in the future.

Vulcan Energy share price snapshot

Over the past year, the Vulcan Energy share price has exploded 2,957% higher.

At the current share price, the company’s market capitalisation is $590 million. There are 107.5 million shares outstanding.

More reading

• Why the Vulcan Energy (ASX:VUL) share price is jumping 12% today
• The Vulcan Energy (ASX:VUL) share price has fallen 17% in 2 weeks
• Vulcan (ASX:VUL) share price slumps despite new partnership
• Why the Vulcan Energy (ASX:VUL) share price is charging higher again

Motley Fool contributor Gretchen Kennedy 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.

The post Vulcan Energy (ASX: VUL) share price up as revenue soars over 1,000% appeared first on The Motley Fool Australia.

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The Suncorp Group Ltd (ASX: SUN) share price is outperforming its peers after Morgans added it to its model portfolio.

The Suncorp share price jumped 1% to $10.67 during lunch time trade with the major banks lagging behind.

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price gained 0.5% and Commonwealth Bank of Australia (ASX: CBA) share price was flat.

Meanwhile, the Westpac Banking Corp (ASX: WBC) share price dipped 0.4% and National Australia Bank Ltd. (ASX: NAB) share price lost 0.1%.

The ASX ugly duckling turning into a swan?

But even today’s outperformance, the Suncorp share price is lagging behind the big four ASX banks. Shares in the banking and insurance group only managed a 3% rise over the past 12-months when the big banks rallied by at least 26%.

Even the S&P/ASX 200 Index (Index:^AXJO) is faring better with its 18% uplift.

However, this could leave the Suncorp share price with extra room to outperform as the shares is the latest addition to Morgan’s balanced portfolio.

Strong results justifies model portfolio addition

“SUN’s February result beat market expectations in all divisions, with supportive economic trends pointing to improved earnings into FY22,” said the broker.

“The group is benefitting from reduced impairments on an improving economic outlook, strong positive reserve releases, an ongoing focus on growth and efficiency through automation and digitisation, and an extremely robust excess capital position supporting future capital management/ special dividends.”

Suncorp share price looking cheap

The broker also pointed out that the Suncorp share price is trading on an undemanding price-earnings (P/E) multiple of around 15 times. If Morgans prediction of a near-term capital management initiative is true, the stock could be trading on a yield of around 5%.

As an aside, the ASX big four banks are also in the broker’s balanced model portfolio, which aims to have the best mix of ASX shares with income return and capital growth potential.

Getting cleaned away

But to make way for Suncorp, the broker dropped Cleanaway Waste Management Ltd (ASX: CWY) from its model portfolio.

“CWY has been a strong performer, and we think a large part of its premium rating reflects the performance of management in optimising the business in recent years,” added Morgans.

“We’re now cautious about CWY’s short term performance (and its market rating) as key management has now changed.”

More reading

• Why ASX income investors should consider this dividend ETF
• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Westpac (ASX:WBC) share price higher following APRA update
• 435,000 Aussies bought their first shares during the pandemic
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank Limited, and Westpac Banking. 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 PPK Group Limited (ASX: PPK) share price is surging by more than 8% today following two announcements from affiliates of the company.

Both the investment company’s subsidiary, Li-S Energy Limited, and its affiliate, Strategic Alloys Pty Ltd, had good news to share this morning.  

Let’s take a closer look at what has been announced.

Li-S moving to new, multimillion-dollar manufacturing hub

Li-S has confirmed it will be moving to a new home at Deakin University when a $20 million expansion of the university’s Geelong campus is complete.

The PPK subsidiary is in the process of developing its lithium battery insulation technology.

Li-S has announced it plans to work with Deakin to leverage the new technology at its proposed ManuFutures 2 advanced manufacturing hub.

Deakin Professor Iain Martin said the campus is becoming Victoria’s epicentre of research and innovation in advanced manufacturing, materials, energy, sustainability and technology.

Yesterday the university announced it will put a $10 million Higher Education State Investment Fund from the Victorian Government towards the expansion, which will double the size of the facility.

Li-S is one of the first confirmed tenants of the new addition.

A new commercialisation strategy for Strategic Alloys

Strategic Alloys is set to have a new line of customers, as its parent company partners with Rio Tinto Limited (ASX: RIO) to develop a supply chain.

Strategic Alloys is owned by three entities – 45% of the company is owned by PPK and 45% is owned by Amaero International Ltd (ASX: 3DA). Deakin University owns the remaining 10%.

Amaero provides Strategic Alloys with the essential ingredients for its High Operating Temperature Aluminium Alloy (HOT AI), while PPK delivers the company with Boron Nitride Nano Tubes (BNNT).

BNNT’s are extremely flexible thermal conductors that are chemically stable. They are able to withstand extreme temperatures and are electrical insulators.

Strategic Alloys’ latest news is regarding Amaero’s partnership with Rio Tinto. Rio Tinto has agreed to provide alloy billets to Amaero to process into powder for 3D printing. The two companies will then work together to scale production of HOT AI domestically and internationally.

PPK Group share price snapshot

At the time of writing, the PPK share price is trading at $5.80, up 8.41% from yesterday’s closing price.

Over the past 12 months, the PPK Group share price has risen by more than 96%. However, year to date, the company’s shares have fallen by 3.2%.

Based on the current PPK share price, the company has a market capitalisation of around $476 million with approximately 89 million shares outstanding.

More reading

• Small-cap ASX minerals explorer inks JV agreement with Rio Tinto (ASX:RIO)
• Here’s why the Amaero (ASX:3DA) share price rocketed 20% on open
• Is it ok to buy ASX 200 shares at a 52-week high?
• 5 things to watch on the ASX 200 on Thursday
• Why the Rio Tinto (ASX:RIO) share price is among the worst performers today

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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In afternoon trade on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a strong gain. At the time of writing, the benchmark index is up 0.75% to 6,764.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 4% to $18.64. This appears to have been driven by profit taking after a strong gain on Thursday following the Government’s announcement of a $1.2 billion stimulus package for the tourism industry. In addition, analysts at Citi have responded to the news by retaining their sell rating and $16.80 price target on the company’s shares.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price has fallen 3% to $9.46. Investors appear to be selling safe haven assets like gold miners on Friday and buying risk on assets such as tech shares. This follows a very positive night of trade on Wall Street, which saw the Nasdaq index rise 2.5%.

Southern Cross Media Group Ltd (ASX: SXL)

The Southern Cross Media share price has plunged 9.5% to $2.00. The media company’s shares have come under pressure today after Channel Nine advised that it will not be extending its regional affiliation with Southern Cross Media after it expires in June. Nine Entertainment Co. Holdings Ltd (ASX: NEC) has instead signed a deal with WIN.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down over 3% to $11.11. This decline means that the wine company’s shares have now given back almost all their gains from earlier this week. A mixed response to its plans in the Americas has been behind the volatility. Yesterday Citi retained its sell rating and $9.30 price target on the company’s shares.

More reading

• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Why the Southern Cross Media (ASX:SXL) share price is tumbling 14%
• Can the Flight Centre (ASX:FLT) share price recover in 2021?
• Top brokers name 3 ASX shares to sell today
• Should the JobKeeper payment be replaced with discounted airfares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended Flight Centre Travel 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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ASX growth shares have had a rather tumultuous few weeks. We’ve seen something of a readjustment in this area as rising bond yields have forced investors across both the United States and here on the ASX to re-evaluate growth shares’ valuations. Luckily, that also means it’s a great time to take a second look at this formerly high-flying space.

So here are 2 ASX growth shares that might be worthy of such consideration today:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price hasn’t had a great month, or a great six months, for that matter. The Bubs share price is today (at the time of writing) trading at 52 cents a share, down over 16% over the past month. It’s down an even nastier ~35% since mid-September and is more than 50% down from the all-time high we saw back in May last year.

Like it’s competitor A2 Milk Company Ltd (ASX: A2M), Bubs has been hard hit by the narrowing daigou trade to China sparked by the coronavirus pandemic. Daigou involves customers buying Bubs’ products in Australia and shipping them to China to be resold or distributed. However, in its half-year earnings report released last month, Bubs reported that the other parts of its business were performing well. Its Australian market share has tripled with Bubs’ strong product presence across supermarkets and pharmacies, and its balance sheet remains strong.

Afterpay Ltd (ASX: APT)

The Afterpay share price is having a great day today (up close to 4%). However, this buy now, pay later (BNPL) pioneer is still in one of its worst corrections in years. Afterpay shares have fallen dramatically from the all-time high of $160.05 the company set just last month. At today’s price of $115.22 (at the time of writing), the company is down around 30% from those highs.

And yet, Afterpay continues to grow at breakneck speed. In its half-year earnings report also released last month, Afterpay reported that gross sales volumes were up 106% to $9.8 billion. Big numbers there. But Afterpay’s surge in earnings before interest, tax, depreciation and amortisation (EBITDA) was even bigger at 521%. Pleasingly for the company, its North American expansion plans also seem to be booming. Afterpay reported that its customers from this region were up 127% year on year to more than 8 million. It’s also putting in rapid plans to expand into Europe and Asia.

More reading

• ASX 200 up 0.95%: Afterpay rises, Westpac’s APRA update, Qantas upgraded
• Why Afterpay, Piedmont Lithium, ResApp, & Santos are charging higher
• 5 things to watch on the ASX 200 on Friday
• ASX 200 unmoved, Flight Centre soars, Afterpay keeps falling
• Will the Afterpay (ASX:APT) share price bounce back?

Sebastian Bowen owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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