We Fools like to look at the kinds of shares that ASX investors have been buying in recent weeks. Not only does it give an insight into what the market finds ‘hot’ right now, but it’s also just plain interesting. Yesterday, my Fool colleague James Mickleboro looked at the top ASX shares investors have been buying recently.

So today, we’re going to be checking out the most traded international shares. The data comes from Commonwealth Bank of Australia (ASX: CBA)’s CommSec brokering platform and covers the period from 3–7 August. Since CommSec is the most widely used broker in the country, I think its data gives us a good snapshot of the entire ASX investing community.

Most popular international shares:

1) Apple Inc. (NASDAQ: AAPL)

Taking out the crown last week was the one and only Apple, famous for its iPhone line as well as its Mac and iPad products. Apple reported some mind-blowing numbers on 30 July, which included an 11% year-on-year increase in revenue. That’s a big deal for a ~US$1.9 trillion company and is probably why ASX investors were keen to get their hands on Apple shares. The announced 4-for-1 stock split probably didn’t hurt either.

2) Microsoft Corporation (NASDAQ: MSFT)

The old Apple–Microsoft rivalry is continuing on the CommSec servers it seems. Yes, the purveyor of the Windows operating system and the Office suite can’t be held down it seems. Although Microsoft has already run up more than 30% this year, it seems ASX investors don’t mind at all.

3) Tesla Inc. (NASDAQ: TSLA)

Never far from the headlines this one, Tesla (of course) makes this week’s list at number 3. Shares of Elon Musk’s electric car and battery manufacturer has seemingly stopped climbing (for now) after rising around 350% between March and July. Although 1 Tesla share will set Aussies back nearly $2,000, that doesn’t seem to have got in investors’ way last week.

4) Amazon.com Inc. (NASDAQ: AMZN)

Speaking of expensive shares, it’s only fitting that this eCommerce juggernaut slid in at fourth place last week. Amazon shares continue to defy gravity at more than $US3,000 (A$4,200) each. But again, that doesn’t seem to bother Aussie investors, who can’t get enough of the Bezos, it seems. And that’s despite a trailing price-to-earnings (P/E) ratio of 121 and a market capitalisation of more than US$1.5 trillion.

5) Square Inc. (NASDAQ: SQ)

Last but not least, we have payments company Square. Square was founded by Twitter’s Jack Dorsey, who remains CEO. Aussies might not be familiar with this company, but its card readers and Cash app are very popular over in the USA. Square shares are also popular with investors right now, perhaps as a result of the company exploding from around US$40 a share in March to around US$140 today. Too late to invest? Clearly ASX investors don’t think so.

More reading

• ASX 200 down 0.3%: CBA delivers $7.3bn cash profit, gold miners sink, SEEK’s outlook disappoints
• As CBA slashes its dividend, the brutal reality is bank shares have been dogs for 5 years, with more pain ahead
• Tesla plans five-for-one stock split
• MoneyMe share price surges, but is it sustainable?
• CBA delivers $7.3bn cash profit and declares 98 cents per share final dividend

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon, Apple, Microsoft, Square, and Tesla and recommends the following options: long January 2021 $85 calls on Microsoft, short January 2021 $115 calls on Microsoft, short September 2020 $70 puts on Square, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon and Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX investors have been buying these international shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3kC3kQs

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to snap its winning streak. At the time of writing the benchmark index is down 0.3% to 6,121.4 points.

Four shares that have not let that hold them back are listed below. Here’s why they are pushing higher:

The Aurizon Holdings Ltd (ASX: AZJ) share price is up 3.5% to $4.74. This appears to have been driven by a positive broker note out of UBS this week. In response to its full year results, the broker has retained its buy rating and $5.55 price target on the rail operator’s shares. While its FY 2021 outlook wasn’t overly positive, it believes its shares are good value at the current level.

The Cochlear Limited (ASX: COH) share price is up 4% to $201.53 despite there being no news out of the hearing solutions company. However, with Russia claiming to have successfully developed a coronavirus vaccine, investors may believe that the tough trading conditions the company is facing could soon ease. Though, it is worth noting that there are many doubts over Russia’s claims.

The Magellan Financial Group Ltd (ASX: MFG) share price is up 2.5% to $63.31 after the release of the fund manager’s full year results. For the 12 months ended 30 June 2020, Magellan delivered a 20% increase in adjusted net profit after tax to $438.3 million. This allowed the company to declare a final dividend of 122 cents per share, up 10% on the prior corresponding period. Magellan also announced the proposed launches of MFG Core Series and the Magellan Sustainable Fund.

The Westpac Banking Corp (ASX: WBC) share price is up almost 2% to $18.10. This appears to have been driven by a reasonably robust full year result by rival Commonwealth Bank of Australia (ASX: CBA) this morning. CBA reported an 11.3% decline in cash net profit after tax from continuing operations to $7,296 million.

More reading

• The latest ASX stocks leading brokers are urging you to buy today
• Flight Centre and Zip Co were among the most traded shares on the ASX last week
• Why this reporting season is different, and now’s a great time for ‘buy to hold’ investors in ASX shares
• Should you buy CBA shares before the dividend announcement?
• ASX 200 jumps 1.2%: Big four banks rise, Qantas update, Mesoblast surges

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Aurizon Holdings Limited and Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Aurizon, Cochlear, Magellan, & Westpac shares are pushing higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2DUtSLQ

The Commonwealth Bank of Australia (ASX: CBA) share price is down 0.80% this morning after the bank slashed its dividend. The bank released its full year results this morning revealing an 11.3% decline in cash profits thanks to higher loan impairment expenses due to COVID-19. 

What were CBA’s full year results?

Australia’s largest lender reported a decline in cash net profit after tax (NPAT) from continuing operations, which fell 11.3% to $7,296 million, largely due to higher loan impairment expenses. As at 31 July, the bank had 135,000 COVID-19-related home loan deferrals and 59,000 business loan deferrals. Loan impairment provisions increased to $2,518 million, a $1,317 million increase on FY19. Surprisingly, statutory NPAT increased 12.4% to $9,634 million, thanks to gains on the sale of divestments. 

Commonwealth Bank was able to report a strong underlying business performance with volume growth across its core businesses. Above market growth was achieved in home lending and deposits. Home lending grew at 1.3x system growth while household deposits grew by $25 million or 9.8%. Business lending increased 5.1% over FY19 showing momentum due to investments in new products, service, and technology. 

What happened to the dividend? 

Bank shares have long been a staple of dividend investors, but these same investors have been disappointed by falling bank dividends in recent times. There had been speculation CommBank might even fail to pay a final dividend. This morning the bank declared a final dividend of 98 cents per share, fully franked.

This means investors received total dividends of $2.98 from the bank over the year, a 31% decrease on FY19. The reduced dividend reflects APRA’s guidance that banks should retain at least 50% of earnings. The final dividend payout ratio was 49.95% of second half statutory earnings. 

What’s next for Commonwealth Bank? 

The bank has now substantially completed the divestment of its wealth management businesses in line with its simpler, better bank strategy. Commonwealth Bank says it has prepared for a range of economic scenarios as the economy moves from crisis to recovery. Operational performance remains strong despite the challenging environment. The group has a strong capital position with a capital ratio of 11.6%, above APRA’s 10.5% benchmark. Commonwealth Bank intends to focus on retail, business, and digital banking to deliver long-term performance and returns for shareholders. 

More reading

• MoneyMe share price surges, but is it sustainable?
• CBA delivers $7.3bn cash profit and declares 98 cents per share final dividend
• 5 things to watch on the ASX 200 on Wednesday
• Why this reporting season is different, and now’s a great time for ‘buy to hold’ investors in ASX shares
• ASX reporting season reveals some upside surprises

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post As CBA slashes its dividend, the brutal reality is bank shares have been dogs for 5 years, with more pain ahead appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2XPAiCY

After a positive start to the day, the S&P/ASX 200 Index (ASX: XJO) has given back its gains and is dropping lower. In late morning trade the benchmark index is down 0.3% to 6,118.2 points.

Four shares that are falling more than most today are listed below. Here’s why they are sinking lower:

The Mesoblast limited (ASX: MSB) share price has continued its slide and is down 8.5% to $3.07. Investors have been selling the biotechnology company’s shares amid doubts over the likelihood that the U.S. FDA will approve its remestemcel-L product candidate as a treatment for paediatric steroid-resistance acute graft versus host disease. Mesoblast is due to meet with the Oncologic Drugs Advisory Committee (ODAC) on Thursday evening. The ODAC is a key player in the regulation of cancer drugs and plays a big role in whether a drug gets approval or not.

The Northern Star Resources Ltd (ASX: NST) share price has fallen 6% to $14.38 after the gold price crashed lower overnight. Increasing investor risk appetite because of improving economic data and a potential coronavirus vaccine led to the precious metal losing almost 6% of its value during overnight trade. It isn’t just Northern Star sinking lower. The S&P/ASX All Ordinaries Gold index is down 4.8% at the time of writing.

The SEEK Limited (ASX: SEK) share price has sunk over 10% to $19.21 following the release of its full year results. The job listings giant reported a 51% decline in net profit after tax to $90.3 million for FY 2020. While this was largely expected by the market, its outlook for FY 2021 appears to have underwhelmed. Due to the pandemic, SEEK has suggested that its EBITDA and net profit after tax could drop 20.5% and 78%, respectively.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 6% to $19.40. This appears to have been driven by a broker note out of Citi this morning. Its analysts have downgraded the logistics solutions company’s shares to a sell rating with a reduced price target of $18.40. It made the move after revising its earnings estimates lower due largely to the tough macroeconomic environment.

More reading

• SEEK share price on watch after COVID-19 profit hit
• Is the CSL share price the best ASX biotech buy right now?
• ASX gold miners on watch after gold price crashes lower
• ASX 200 rises 0.5%, Mesoblast plunges
• Mesoblast share price crashes 29% lower on FDA doubts

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Mesoblast, Northern Star, SEEK, & WiseTech Global shares are sinking lower appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2DKtCiH

Plus-size women’s clothing retailer City Chic Collective Ltd (ASX: CCX) has emerged as a surprising success story. 

Despite retail being one of the hardest hit sectors during COVID-19 lockdowns in Australia and New Zealand, City Chic has remained profitable by pivoting to e-commerce sales channels.

How has the City Chic share price fared?

In a May COVID-19 trading update, City Chic reported a 57% increase in online sales versus the same period last year, with online sales now making up two thirds of the company’s total global sales.

Prudent cost-cutting – such as working capital efficiencies and lower rental agreements negotiated across its retail stores – means the company is emerging from this crisis with a solid foundation for future growth.

This is reflected in the City Chic share price. After crashing to a low of around $0.80 back in March, the City Chic share price has skyrocketed 320% to $3.31 at the time of writing. The company has also successfully completed an $80 million institutional placement and announced the potential acquisition of US-based plus-size women’s brand Catherines.

Can the growth story continue?

By pivoting away from traditional brick and mortar retailing and embracing online sales channels, City Chic has laid the foundation for a more resilient long-term business model. Other companies in the consumer discretionary space, like health and beauty specialist McPherson’s Ltd (ASX: MCP), have adopted a similar strategy.

City Chic reported unaudited sales revenues for FY20 of $194.5 million, an increase of 31% year-on-year. Underlying unaudited earnings before interest, tax, depreciation and amortisation expenses (EBITDA) has come in at $26.5 million. These are strong results for a company operating in challenging retail conditions.

Should you invest?

Despite the recent rally in the City Chic share price, I think the company still offers some great long-term growth potential. The company’s market cap is still only around $760 million, which is about the same as struggling outdoor clothing brand Kathmandu Holdings Ltd (ASX: KMD).

But City Chic is still a small player in a big industry: it estimates the value of the global plus-size women’s clothing market to be more than $50 billion annually.

I think there is much to recommend about City Chic. It has shown it can remain profitable in difficult market conditions. It has a large addressable international market. And it has flagged its intentions to continue to expand internationally.

In addition, after its $80 million institutional placement, City Chic has a significant war chest to spend on growth initiatives and acquisitions.

More reading

• Are ASX retail shares buys right now?
• 3 ASX shares to buy and hold for the next decade
• Leading brokers name 3 ASX shares to buy today
• ASX marching higher despite COVID-19: Where should you invest?
• My ASX share of the week

Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why I think the City Chic share price will keep climbing appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33Plp7z

As the pandemic wears on, ASX travel shares that went into hibernation in March remain in a state of suspended animation. With predictions a vaccine may not be widely available until well into 2021, international travel remains off the cards for the foreseeable future. Domestic travel is severely restricted thanks to the ongoing coronavirus outbreak in Victoria. So where does this leave ASX travel shares? We take a look at how they are managing. 

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Sydney Airport launched a capital raising yesterday alongside the release of its half year results, which revealed the unprecedented impact of the pandemic. The airport saw 9.4 million passengers in 1H20, a 56.6% decline from 1H19. Revenue fell 35.9% to $511 million, resulting in a 35.4% decline in earnings before interest, taxes, depreciation and amortisation (EBITDA), which fell to $300.4 million. No distribution was declared, and none is expected to be declared for 2020 given the current outlook. 

Sydney Airport is a crucial component of Australia’s infrastructure. As the country’s largest airport, accounting for almost half of Australia’s air cargo by weight, Sydney Airport serves as an international gateway. International passengers contribute approximately 70% of passenger generated revenues, a source of funds that will remain missing for the foreseeable future.  

In order to reinforce its balance sheet and ensure it remains well capitalised for a range of recovery scenarios, Sydney Airport launched a $2 billion entitlement yesterday. Funds will be used to reduce net debt to $7.1 billion from $9.1 billion. The company took action early in the pandemic to put in place extra liquidity, however after six months of pandemic impacts, significant uncertainty continues as to how long aviation markets will take to recover to pre-COVID-19 levels. 

The Sydney Airport share price took a nosedive with the introduction of travel restrictions in February and March. As coronavirus cases rose, the Sydney Airport share price plummeted, falling 45% from a February high of $8.63 to a March low of $4.70. Sydney Airport was trading at $5.39 prior to yesterday’s announcement and trading halt. Shares are being offered under the entitlement offer at $4.56. 

Corporate Travel Management Ltd (ASX: CTD) 

Corporate Travel Management is due to report its full year results on Wednesday 19 August. The travel company last updated the market about the impacts of the pandemic in May, revealing it had reached agreement with its banking group to waive all financial covenants for calendar year 2020. At that point, Corporate Travel had a net cash position of approximately $30 million. When combined with low cash burn and revised banking facility terms, this left the company “in a strong liquidity position and well placed to rebound once travel resumes,” according to Managing Director, Jamie Pherous. 

One of the few ASX travel shares not to raise capital in the current downturn, Corporate Travel Management implemented comprehensive cost reductions at the start of the pandemic. These actions combined with the company’s strong liquidity position should enable it to withstand an extended period of reduced activity. The company has no retail footprint and uses technology to deliver its services, meaning a high proportion of its cost base is variable. 

In March, the company said that many of its clients across all regions are continuing to travel, albeit at low levels. Nonetheless, Corporate Travel chose to delay payment of the interim dividend of 18 cents ($19.62 million) until October. The decision is to be reviewed closer to the time, however with no signs of travel resuming, it seems unlikely the dividend will be paid. In stress testing performed at the start of the pandemic, the company presumed no international travel for a period of six months. With six months past and no signs of a resumption of international travel, the company’s revenues will no doubt take a hit when it reports full year results. 

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre cancelled its interim dividend in March as the pandemic spiralled out of control. The 40 cent per share dividend would have seen a total of $40.1 million flow to shareholders. Uncertainty meant the company felt it appropriate to preserve cash in order to protect long-term shareholder value. Shares were suspended for two days while the travel operator developed its response to travel restrictions and engaged in discussions with stakeholders on how to manage the financial impacts. 

Flight Centre then hit the market with a $700 million capital raising in April, designed to shore up the balance sheet. The company confirmed its cost control measures were anticipated to reduce annualised operating expenses by approximately $1.9 billion. Operating expenses were to be reduced to $65 million per month by the end of July 2020. Flight Centre reported total transaction values in April were just 5% – 10% of normal levels. 

The Flight Centre share price plunged from a high of over $40 in January to a low of $8.92 in March. Although the share price has since recovered somewhat to $11.48, at the time of writing, Flight Centre’s future depends on the lifting of government travel restrictions. The company says it has continued to win new corporate accounts during the shutdown period, which should help drive growth when conditions recover and normalise. 

In May, Flight Centre agreed to sell its Melbourne head office located in St Kilda Road, with the $62.15 million sale completed in July. The company acquired the property in 2008 for $32 million. The sale, along with government support initiatives, is expected to have a net positive cash impact. In July, the company secured access to a debt facility of up to 65 million British pounds. The funding was made available by the Bank of England’s COVID Corporate Financing Facility, which is designed to support short-term liquidity as firms work to overcome disruption caused by the pandemic. 

Foolish takeaway

ASX travel shares are still largely stuck in limbo – existing in a state of suspended animation as the pandemic prevents them from plying their trade. Investors will no doubt be hoping for a lifting of restrictions sooner rather than later to give the recovery of ASX travel shares a boost. 

More reading

• Up 30% in a week, is the Webjet share price a strong buy?
• ASX 200 rises 0.5%, Mesoblast plunges
• Flight Centre and Zip Co were among the most traded shares on the ASX last week
• ASX 200 up 1%: Challenger disappoints, Sydney Airport to raise $2bn, a2 Milk names new CEO
• Sydney Airport to raise $2 billion after COVID-19 profit collapse

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX travel shares stuck in suspended animation appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2DAfxEM

The Computershare Limited (ASX: CPU) share price has dropped by 1.5% in early morning trade following the release of the company’s full year financial results.

Total revenue and EBITDA decline in FY 2020

Computershare reported total revenue for FY 2020 of $2.3 billion. This was slight decline on 1.9% on the prior year. Full year earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 3.7% to $650 million, while EBIT declined by 15.2% to $500.2 million. Margin income for Computershare was impacted by significant headwinds during the 12 month period, falling by 18.3% to $201 million.

Computershare revealed that it had been operating ahead of its internal forecasts during the financial year up until March. However, since then, revenues in its market-facing and event divisions had been impact by lower activity levels. In particular, falling interest rates had negatively impacted Computershare’s margin income.

A final dividend of 23 cents per share was declared by Computershare, as had been anticipated. This took the company’s full year dividend distribution to 46 cents per share.

Growth is anticipated to pick up in early FY 2021

On a positive note, Computershare commented that it had seen improved performance during May and June. The company is hopeful that it will see further operating profit growth during the initial part of the current financial year.

Computershare forecasts that EBIT (excluding margin income) for FY 2021 to be up around 10%. However, management earnings per share (EPS) is anticipated to decline by around 11%.

Stuart Irving, CEO said, “I am pleased to report that our operating business has proven its resilience, continuing to perform during the last few months of the financial year despite the deepening impact of COVID-19 and the associated volatility it’s brought to our markets.”

Strong balance sheet fuelling expansion strategy

Pleasingly, Computershare has been able to maintain a strong balance sheet. $506 million of free cash flow was generated during FY 2020. The company has been using some of this cash to fuel its expansion strategy. This includes its investment in US mortgages services business that will provide the company with a base for additional scale in the years to come. In addition, Computershare completed the acquisition of Corporate Creations. It also completed the necessary diligence for its acquisition of Verbatim Global Compliance.

Net debt remains unchanged

Net debt at the end of the financial year remain unchanged on FY 2019. Computershare’s leverage ratio ended up below the midpoint of its target range at 1.93x. Computershare also successfully refinanced its US$500 million debt facility and extended the debt’s duration to 2024.

How has the Computershare share price performed lately?

The Computershare share price has lost ground over the last 12 months, particularly during the early phase of the pandemic. It fell from $15.05 a year ago to now be trading at $13.46.

More reading

• Link share price buoyed by appointment of new CEO
• All Technology Index celebrates 6 months with stunning outperformance
• How I’d build a $100,000 ASX portfolio of growth shares

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Computershare share price dips on FY 2020 earnings release appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2PIRyFR

If you’re just starting out with investing, you may not have tens of thousands of dollars to invest into the share market.

But I wouldn’t let that put you off starting your investment journey. This is because even small investments can grow into something meaningful over a long enough timeframe thanks to compounding.

Even if you can only afford to invest $500 into the share market every quarter, it has the potential to grow into something material in the future.

For example, if you invested $500 in the share market each quarter ($2,000 per year) and earned a 10% return annually, your investments would be worth over $360,000 after 30 years.

And if you’re able to increase your investments as the years go by, you could grow your wealth even more.

But which shares should you start with? I believe thinking long term would be the best thing to do and the three shares listed below could be great options. Here’s why I would invest $500 into them:

Megaport Ltd (ASX: MP1)

The first share to consider investing $500 into is Megaport. It is an elasticity connectivity and network services company. Megaport’s service allows businesses to increase and decrease their available bandwidth in response to their own demand requirements. This has proven very popular with businesses that don’t want to be tied to a fixed service level on long-term and expensive contracts. Demand for its service has been growing very strongly, leading to stellar recurring revenue growth. Given the accelerating shift to the cloud, I believe it is well-placed to continue its positive form for the foreseeable future.

Nearmap Ltd (ASX: NEA)

Another top ASX share to consider investing $500 into is Nearmap. It is one of the leading aerial imagery technology and location data companies. At present the company has operations in the ANZ and North American markets and is generating sizeable recurring revenues from both regions. Looking ahead, I remain very confident in its long term growth prospects. This is due to its high quality offering and its strong position in a fragmented market worth an estimated $2.9 billion per year.

Pushpay Holdings Group Ltd (ASX: PPH)

A final option for the $500 investment is Pushpay. It is a fast-growing donor management platform provider in the faith and not-for-profit sectors. While this is a niche market, it is a very lucrative one. In FY 2020 the company delivered a 39% increase in total processing volume to US$5 billion and a 33% increase in operating revenue to US$127.5 million. Pleasingly, this strong growth is expected to continue in FY 2021, with management forecasting its operating earnings to double.

More reading

• If you have $12,000, you should invest in these 3 ASX shares now
• 5 quality ASX shares to buy in August
• 3 exciting ASX growth shares to buy with $3,000
• Leading brokers name 3 ASX shares to buy today
• Here’s the best mid-cap growth share to buy on the ASX

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. and PUSHPAY FPO NZX. The Motley Fool Australia has recommended MEGAPORT FPO, Nearmap Ltd., and PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Where to invest $500 into ASX shares immediately appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33PbAqn