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

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

The first two and a half months of 2021 haven’t been particularly great for Amazon.com Inc (NASDAQ: AMZN) shareholders. The Amazon share price is down about 5% for the year while the Nasdaq Composite (NASDAQ: .IXIC) index is up over 3% and the S&P 500 Index (SP: .INX) is up 5%.

While I’m extremely bullish on Amazon shares — it’s my largest holding and I bought more last month — it’s worth noting there are a few reasons the stock could continue to underperform this year. 

Here are three big ones.

No more COVID-19 tailwind

Amazon was a big beneficiary of the shift to online shopping amid the COVID-19 pandemic. U.S. e-commerce sales grew more than 36% over the past three quarters of the year, according to the U.S. Census Bureau. 

North American e-commerce grew nearly 32% for the full year, according to estimates from eMarketer. And global e-commerce wasn’t too far behind, with 28% growth.

But Amazon will move beyond that tailwind this spring, and as brick-and-mortar stores reopen, shoppers may shift some of their purchases back to in-store transactions. eMarketer expects worldwide e-commerce sales growth to slow to 14% this year, and U.S. e-commerce may grow only 6%, according to its analysts’ estimates. 

A stark slowdown in revenue growth could scare off a lot of investors. Any top-line miss versus Wall Street’s expectations could easily send shares lower.

Amazon’s going to spend a lot more on logistics this year

2021 will be a transformative year for Amazon Logistics. The company’s airhub at Cincinnati/Northern Kentucky International Airport will start operations later this year, with capacity for 200 flights per day. 

What’s more, Amazon is making deals for more planes, looking to own a greater piece of its logistics business. It bought 11 planes this year. It also now owns a minority stake in cargo airline partner Air Transport Services Group after exercising warrants it acquired in its previous deals with the company. It has similar positions with other cargo carriers it could exercise as well.

Amazon will spend a lot of money on logistics network capacity this year, and that ought to continue for several years to come. CFO Brian Olsavsky has warned investors that capital expenditures will move higher. “We do see continued expansion on capex, specifically in our transportation area. So that will be the start of probably a multiyear period where we’re higher on capex for that,” he said during Amazon’s third-quarter earnings call last year.

Amazon has historically done well by investing in additional shipping and logistics capabilities. The more in-depth expansion to truly own and control the logistics network could transform into an even bigger opportunity that more efficient shipping for the retail business. It could become a true competitor for logistics services. 

But increased spending will put a short-term damper on profits and cash flow, which could give investors of the high-priced stock concern.

Looming regulatory risk

One factor that’s affecting all big tech stocks right now is the risk of increased government regulations forcing them to dramatically change company policies and operations or divest assets.

As Amazon’s business has evolved to offer more third-party seller services for small businesses and advertising, it faces increased scrutiny to ensure it’s not creating an anticompetitive environment with its own retail operations and products.

That said, it’s likely in Amazon’s best interest to make its third-party merchant services, advertising products, and other services as attractive as possible. They offer better margin profiles than Amazon’s core retail business, and they offer greater revenue growth potential.

So while new regulations, or just the threat of regulations, could hurt Amazon’s share price in the short run, the risk that they’ll negatively affect Amazon’s business and profits appears minimal.

Still a long-term growth story

If Amazon stock continues to underperform the market in 2021, it could present another opportunity for investors to buy shares. The current pullback in the Amazon share price made the stock very attractive, but it wouldn’t be a surprise if there are additional opportunities to snap up shares later this year as well.

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

More reading

• We’re betting on ASX growth shares: global fund
• Don’t fall into the ‘rotation trap’
• How to invest in the Nasdaq Index on the ASX
• The tech-heavy Nasdaq is now in a correction!
• Here’s why you should think twice about chasing the next hot ASX trend

Adam Levy owns shares of Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Demand for shares from Airtasker Limited (ASX: ART) staff during its initial public offering (IPO) ended up 10 times what the company offered.

Company chair James Spenceley made the admission during a chat with The Motley Fool.

“We set aside a figure for [shares to] internal staff, and it ended up being 10x that number,” he said.

“We’re talking north of $1 million from internal staff. That blew me away.”

The gig economy platform is floating on the ASX on Monday after an IPO that sold its shares at 65 cents.

The market seems to be rotating away from high-growth technology shares, just as Airtasker is about to list. The S&P ASX All Technology Index (ASX: XTX) has dropped almost 14% since its recent peak on 10 February.

Spenceley, who was also the founder of Vocus Group Ltd (ASX: VOC), told The Motley Fool he was not worried about temporary market movements.

“Quality businesses are still doing well. The ones that have a lot of hot air in them are moving around quite a bit,” he said.

“We’re pretty confident. Both [chief executive] Tim and myself, we’re here for the long run. I’ve seen the power of this business.”

Labour market concerns for Airtasker?

Gig economy platforms have been under the spotlight in recent times for their relationship with the people who provide the service.

Those businesses have maintained them as independent contractors in order to avoid the overheads involved if they were counted as employees.

But the shortcomings of that model have attracted critics, who say many workers are underpaid and lack physical, legal and financial protections.

Just this week, a UK court ruling forced Uber Technologies Inc (NYSE: UBER) to reclassify 70,000 vehicle drivers as workers. This entitles them to benefits such as holidays and a minimum wage.

Potential labour regulations were not a concern for Airtasker, according to Spenceley, as its business model was different to transport and food delivery providers.

“[Other platforms] are incentivised to squeeze the person doing the work as much as possible so they make more money,” he said.

“We have the reverse – we only get paid when the task gets completed, and we only get paid a percentage of the task. There’s an incentive for us to have our taskers earn more money.”

Airtasker chief executive Tim Fung told The Motley Fool that in his discussions with unions and the government, everyone’s goals seemed to be aligned.

“We want the exact same things. We want to create high-quality work for Australians. And we want to have a positive impact on the future of work.”

Expansion and customer development

While the 6-month focus after the ASX listing will be amplifying the marketing within Australia, Fung is keen to grow internationally in the long run.

“We’ve launched a marketplace in the UK. And we’ve recently opened up markets in Singapore, New Zealand, Ireland and the US.”

The Motley Fool has previously reported Airtasker is increasing its average value per task.

The average dollar value in the early days almost 10 years ago was $97 per task. That had gone up to $159 for the 2020 financial year, while $189 is forecast by the end of the current year.

Fung attributed this to some taskers having built up tremendous trust and respect through performing thousands of tasks over the years.

“Customers are demanding more sophisticated and complex work through Airtasker,” he said.

“We’re starting to see people come to Airtasker and say, ‘I need someone to do tax advice for me. I need a lawyer to write up an agreement for me. I need an architect to design a home for me.’”

Airtasker shares will start general trade on the ASX on Monday with a market capitalisation of $255.4 million.

The company made a $5.2 million pro forma net loss after tax last financial year. It forecasts a loss of $6.2 million for the year in progress.

More reading

• Macquarie Group (ASX:MQG) is hungry for assets as its share price grows
• ASX 200 up 0.7%: Vocus jumps on takeover update, Afterpay crashes 9%
• Why AVZ, Legend Mining, Nuix, & Vocus shares are surging higher
• Vocus (ASX:VOC) share price on watch after accepting takeover offer
• Here’s why the Vocus (ASX:VOC) share price is pushing higher today

Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Uber Technologies. 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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More reading

• Airtasker IPO: staff demand 10 times the shares offered
• How I’d build a portfolio by investing in top shares now
• Beach, Santos, & Woodside shares on watch after oil prices crash
• We’re betting on ASX growth shares: global fund
• 2 great ASX growth shares to buy

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Determining which companies can be classed as ‘top shares’ is very subjective. However, they could include businesses that have a competitive advantage, and that trade at fair prices given their financial outlooks.

Through buying a diverse range of them, it is possible to build a portfolio that can deliver attractive returns over the long run. With many opportunities to buy undervalued shares still available despite the recent stock market rally, now may be the right time to start the process of capitalising on today’s top stocks.

Defining which companies are top shares

Businesses with competitive advantages over their peers may be more likely to be classed as top shares. For example, they may have a unique product that means they can generate higher margins than their rivals. Or, they could have a lower cost base and stronger brand loyalty that lifts their financial performance over the long run.

Similarly, the most appealing shares may be those companies with solid balance sheets and strong cash flow. This point may be especially relevant at the present time, since the outlook for the economy continues to be very uncertain. Financially-sound businesses may be better able to overcome threats to economic growth caused by the coronavirus pandemic.

Meanwhile, top shares may be those companies that have all of the above attributes, but yet trade at low prices. Their low valuations may, for example, be caused by weaker recent performance that can be reversed over the long run. Or, investor sentiment towards their sector could be downbeat. This may present an opportunity to buy high-quality companies trading at low prices.

Building a portfolio of attractive stocks

Once top shares have been identified, building a portfolio of them can be a challenging task. After all, it is tempting to simply focus on a small number of the best ideas that are available at a given point in time. However, this may lead to high company-specific risk that means an investor is very reliant on a small number of holdings for their returns. Through buying a wider range of businesses, it may be possible to reduce overall risks.

Furthermore, holding some cash in case of a stock market crash can be a shrewd move. This does not mean that an investor relies on savings accounts for their returns. Rather, they have a limited amount of cash available so they can add more stocks to their portfolio should appealing opportunities come along in future. This may mean lower returns in the short run, but can provide greater opportunity to capitalise on the stock market cycle when seeking to buy top stocks.

Taking a long-term view

As ever, even top shares can experience periods of disappointment. Therefore, it is important to take a long-term view of any portfolio that contains equities. The track record of the global stock market shows that it can deliver attractive returns relative to other mainstream assets.

More reading

• Beach, Santos, & Woodside shares on watch after oil prices crash
• We’re betting on ASX growth shares: global fund
• 2 great ASX growth shares to buy
• Are COVID-19 vaccine worries affecting the CSL (ASX:CSL) share price?
• 2 high yield ASX dividend shares to buy today

Motley Fool contributor Peter Stephens 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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It looks set to be a tough day for energy producers such as Beach Energy Ltd (ASX: BPT), Santos Ltd (ASX: STO), and Woodside Petroleum Limited (ASX: WPL) on Friday.

This follows a disappointing night of trade for oil prices which saw the price of both Brent and WTI crude oil crash lower.

What happened?

Oil prices sank for the fifth day in a row on Thursday night after a strengthening US dollar, a stuttering COVID-19 vaccine rollout, and rising US crude and fuel inventories weighed heavily on sentiment.

According to CNBC, the Brent crude oil price fell 7% to settle at US$63.28 per barrel and the WTI crude oil price settled 7.1% lower at US$60 per barrel.

In respect to inventories, on Wednesday the U.S. Energy Information Administration (EIA) revealed that U.S. crude inventories rose by 2.4 million barrels last week.

Where next for oil?

Tamas Varga from PVM Oil Associates told CNBC that he believes short term factors are weighing on prices and remains positive on oil for the longer term.  

He commented: “Short-term developments – stuttering vaccine rollouts and the build in U.S. oil inventories – are driving sentiment, but the longer-term oil outlook is still encouraging. Yesterday’s U.S. Federal Reserve meeting provided a boost to equities … U.S. economic growth has been revised upwards while unemployment is expected to decline.”

One spot of good news for oil prices this morning is that European regulators have found that the AstraZeneca COVID-19 vaccine is not linked to overall increased risk of blood clots.

There were fears that the suspension of this vaccine globally could lead to a return to lockdowns in some regions, tempering expectations for a recovery in fuel use. So, with its rollout likely to restart now, fuel demand could continue its recovery in the coming months.

More reading

• 5 things to watch on the ASX 200 on Friday
• Hydrogen far from ‘fool cells’: EV trends and the major ASX players
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday

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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One global investment house has announced it is going contrary to the current market trend.

The investment committee for T Rowe Price Group Inc (NASDAQ: TROW)‘s Australian arm this week revealed its latest allocation strategy.

Globally, share markets have been shifting to value stocks in light of higher bond yields, possible inflation, higher interest rates and post-COVID lifestyles. The S&P ASX All Technology Index (ASX: XTX) has lost nearly 14% since 10 February.

But despite this — or perhaps because of it — T Rowe Price is backing two categories of stocks:

Australia is looking good

The T Rowe Price committee acknowledged the market’s anxiety about higher interest rates.

But the group maintained high rates were “likely far” away.

“Central banks made it pretty clear that they want low yields to be maintained. For this reason we are skeptical about the ability for interest rates to derail the recovery,” the committee reported.

“Recent actions taken by the Reserve Bank of Australia to buy government bonds to bring down long-term interest rates are a strong indication that monetary policy will remain accommodative.”

And with the economy recovering strongly as shown in this week’s positive unemployment numbers, the committee is optimistic about the Australian equities market.

“[Company] earnings are following through, benefitting from high commodity prices and record low yields,” stated the T Rowe Price report.

“The economic momentum is firing on all cylinders, evidenced by the economic surprise index at record high levels.”

Growth shares are looking good

While the market is rotating hard to value stocks, the T Rowe Price committee thinks now is the time to turn to growth.

“We have tilted portfolio positioning towards more domestic exposures to reflect the stronger economic performance of the Australian economy and also expect growth stocks to continue to do well in a contained yield environment,” it reported.

The advice backs up DeVere Group chief executive Nigel Green’s warning earlier this week to avoid the “rotation trap” — that is, don’t go overboard dumping quality growth stocks.

“The danger is the massive hype surrounding rotation from growth stocks – those expected to grow sales and earnings at a faster rate than the market average – into value stocks,” he said.

“Does anyone suddenly seriously think Amazon.com Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) and Tesla Inc (NASDAQ: TSLA) are not companies of the future also?”

T Rowe Price Australia is taking the profit earned on value shares it rotated to last year, and ploughing the cash back into growth.

“We remain well positioned in Australia in cyclical growth, recovery growth and high-quality stocks we believe will benefit as economic conditions continue to improve,” the committee stated.

“To fund these portfolio changes we have taken profit on defensive growth names and somewhat reduced exposure to offshore earners.”

Similarly, the committee was optimistic on Japanese and emerging market stocks. It reported the golden growth from the US tech sector seen in 2020 would not repeat this year.

The T Rowe Price Australia investment committee consists of the following experts:

• Richard Coghlan, multi-asset portfolio manager
• Randal Jenneke, head of Australian equities
• Thomas Poullaouec, head of multi-asset solutions Asia-Pacific
• Wenting Shen, multi-asset solutions strategist
• Scott Soloman, associate portfolio manager, fixed income division

More reading

• Don’t fall into the ‘rotation trap’
• How to invest in the Nasdaq Index on the ASX
• Elon Musk reviews title and decides ‘Technoking of Tesla’ is more fitting
• ASX investors still can’t get enough of GameStop (NYSE:GME) shares
• Could this have moved the News Corp (ASX:NWS) share price today?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Tony Yoo owns shares of Alphabet (A shares) and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and Tesla and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX growth shares can be good ideas to think about because they may be able to generate good long-term returns.

Businesses that can generate good profit growth and re-invest strongly into the business can lead to good shareholder returns. 

These two ASX growth shares could be good considerations:

Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical is a fund manager that aims to offer a range of investment strategies that aim to invest in businesses that are doing good for the world and the environment.

The company boasts that it has been named as one of just six global leaders, out of 40, for ESG commitment by Morningstar. It was the only asset manager in Australia to receive this recognition.

There are three pillars to its investments. Regarding the planet, every decision is made with empathy and compassion for the planet and all those that inhabit it. Regarding people, Australian Ethical says that environmental and social concerns need to be given equal weight to financial outcomes. Finally, with regards to animals, it doesn’t invest in anything that’s unnecessarily harmful to animals.

The ASX growth share is seeing good levels of funds under management (FUM) inflows as well as solid investment performance.

In the result for the period ending 31 December 2020, FUM had grown to $5.05 billion – an increase of 30%. The ASX growth share saw record net inflows of $422 million (up 43%) and customer numbers were up 22% year on year.

Australian Ethical generated underlying profit after tax (UPAT) of 11% to $4.9 million and statutory profit went up 17% to $5.2 million. This allowed the board to increase the dividend by 20% to 3 cents per share.

The company continues to invest in growth initiatives, with $1.7 million of expenditure in the first half.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This could be one of the highest-quality exchange-traded funds (ETFs) on the ASX. The ASX growth share aims to invest in businesses, chosen by Morningstar equity analysts, that are believed to have sustainable competitive advantages, or wide economic moats.

Businesses with moats essentially mean that they’re hard to dislodge by competition. Imagine how much you’d have to spend to make a smartphone that people would buy rather than an Apple or Samsung one.

But this isn’t just a passive index. The holdings are businesses that are trading at attractive prices relative to Morningstar’s estimate of fair value. But it doesn’t come with an expensive active management price tag. The annual management fee is just 0.49% per annum.

All of the holdings in the ETF’s portfolio are listed in the US, but some of the names generate earnings from right across the world.

There are around 50 positions. Whilst there are names like Amazon.com, Alphabet and Microsoft in the portfolio, the top 10 holdings are not the typical largest positions in an ETF including: Charles Schwab, Wells Fargo, Corteva, Bank of America, US Bancorp, Boeing, Cheniere Energy, Intel, John Wiley & Sons and Blackbaud.

More reading

• Why VanEck Vectors Morningstar Wide Moat ETF (ASX:MOAT) could be the best ETF
• 2 high quality ASX ETFs to buy this month
• Brace for even more new ETFs to hit the ASX
• 2 top ETFs to buy in March
• Here’s why the Australian Ethical (ASX:AEF) share price is crashing 10% 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 Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and VanEck Vectors Morningstar Wide Moat ETF. 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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Investors may be anxious that the CSL Limited (ASX: CSL) share price could fall further on current COVID-19 vaccine worries. This comes as several European countries recently suspended the use of the Oxford-AstraZeneca vaccine after receiving reports of individuals developing blood clots.

Below we take a look at whether concerns over the vaccine could be impacting the CSL share price.

Is the COVID-19 vaccine safe?

According to AstraZeneca, around 17 million people have been vaccinated with its product across Europe and the United Kingdom. While some mild side effects are expected such as tiredness and aching muscles, a reported 37 people formed blood clots. In addition, there were 15 cases of deep vein thrombosis, and 22 cases of pulmonary embolism.

Overall, the Oxford-AstraZeneca vaccine has proved relatively safe when comparing these cases against the overall larger group. However, a number of European countries such as Germany, France, Italy, Sweden, Spain and others have paused administering the vaccine.

These nations called for an assessment from the European Medicines Agency (EMA) to see if there was a link between the vaccine and the reported side effects. So far, the EMA has found no evidence and looks set to recommend the continued rollout of the Oxford-AstraZeneca vaccine.

At home, Australia is pushing ahead to distribute its current stockpile of COVID-19 vaccines. The government has secured an order of 3.8 million doses which is set to be fulfilled in early 2021, with over 226,000 doses having already been administered. The other 50 million doses will be manufactured in Melbourne by CSL on behalf of AstraZeneca.

How important is this to CSL?

Interestingly, analysts have stated that CSL’s vaccine deal won’t deliver any meaningful earnings for the company when compared to other biotech companies. This is because CSL’s exposure to vaccines is considered quite low against its other performing business units. In its FY21 half-year results, CSL’s pandemic business contributed just $77 million in revenue to the group’s entire $5,739 million.

Furthermore, the company noted that the production of 50 million doses will not have any significant material impact on future revenue.

CSL shares have been hammered since late 2020 due to weak investor confidence. But nonetheless, the business still continues to grow at an impressive rate, up 15% on revenue from H1 FY20 to H1 FY21. As such, it seems market fear is the primary force continuing to weigh down its shares.

CSL share price performance

Over the past 12 months, the CSL share price is down around 5%, and almost 10% year to date. The company’s shares reached a 52-week high of $332.68 last April before hitting a recent low of $242.00 this month.

More reading

• 2 strong blue chip ASX shares rated as buys by brokers
• Bring your portfolio to life with these fantastic ASX healthcare shares
• Temperature check: How is the CSL (ASX:CSL) share price faring today?
• 3 beaten down ASX shares that could be great value
• Share market on watch over AstraZeneca vaccine fears

Aaron Teboneras owns shares of CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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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If you’re interested in bolstering your portfolio with some dividend shares, then the two listed below could be worth considering.

Here’s what you need to know about these ASX dividend shares:

Aventus Group (ASX: AVN)

Aventus is a fully integrated owner, manager, and developer of large format retail centres. Unlike many other retail landlords, it has been performing very positively over the last 12 months. This has been driven by its exposure to the household goods sector and everyday needs.

Solid demand for its properties and strong rental collections ultimately led to Aventus’ funds from operations (FFO) increasing 6.5% to $55.9 million during the first half. Positively, more of the same is expected in the second half.

This went down well with Goldman Sachs, which reiterated its buy rating and $3.04 price target on its shares. The broker is also forecasting a 16.6 cents per share full year dividend. Based on the latest Aventus share price of $2.86, this represents a very attractive 5.8% dividend yield.

Rural Funds Group (ASX: RFF)

Rural Funds is the owner of a diverse portfolio of high quality agricultural assets across five sectors: almonds, cattle, vineyards, cropping and macadamias. These assets are leased on ultra long term leases to highly experienced operators such as Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE).

Last month the company released its half year update and revealed a result in line with expectations. This means the company is on course to deliver on its FY 2021 distribution guidance of 11.28 cents per share. In addition to this, management revealed its distribution plans for next year. It intends to increase its distribution by its target rate of 4% to 11.73 cents per share.

Based on the current Rural Funds share price, this will mean yields of 4.7% and 4.9%, respectively.

More reading

• 2 top ASX dividend shares to buy for your income portfolio
• 2 high yield ASX dividend shares to buy next week
• Why Flight Centre, Northern Star, Southern Cross Media, & Treasury Wine are sinking
• Top brokers name 3 ASX shares to sell today
• This ASX dividend share has a very generous 5.9% yield

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Treasury Wine Estates Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was out of form again and dropped lower. The benchmark index fell 0.7% to 6,745.9 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 to fall

The Australian share market looks set to end the week on a disappointing note. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.5% lower this morning. This follows a poor night on Wall Street, which in late trades sees the Dow Jones down 0.2%, the S&P 500 down 1.1%, and the Nasdaq sinking 2.5% lower. Rising bond yields have spooked investors again.

ASX 200 tech shares under pressure

It looks set to be a difficult end to the week for Australian tech shares such as Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) on Friday. This follows another selloff of US tech stock overnight after US treasury yields surged higher. According to CNBC, the 10-year Treasury yield surged to 14-month high of 1.75% and the 30-year rate topped 2.5%. Given how the local tech sector tends to follow the Nasdaq’s lead, which is down 2.5%, this doesn’t bode well for today’s trading session.

Oil prices crash

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) are likely to end the week deep in the red after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price is down 8.1% to US$59.34 a barrel and the Brent crude oil price has fallen 8% to US$62.56 a barrel. A rising US dollar, a build-up of US crude and fuel inventories, and concerns over a stuttering vaccine rollout were behind the decline.

Gold price rises

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after a positive night of trade for the gold price. According to CNBC, the spot gold price is up 0.4% to US$1,733.90 an ounce. The precious metal rose despite bond yields hitting new 14-month highs.

Webjet shares given buy rating

The Webjet Limited (ASX: WEB) share price could be going higher from here according to Goldman Sachs. Following its investor update yesterday, the broker has reiterated its buy rating and $7.36 price target. Goldman notes that Webjet is aiming to grow its WebBeds business materially more than it was forecasting. It notes management’s target of a TTV of $10 billion, compared to its forecast of $3.9 billion.

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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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T 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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