The spread of coronavirus is reshaping our economic future and paving the way for new winners among ASX shares. Structural shifts have been accelerated with remote working, digital payments, and e-commerce benefitting from more widespread adoption. 

ASX shares have faced very different fates since borders closed in March. The banking sector has taken a hit with profits and dividends plummeting. The travel sector remains in limbo. The retail sector has suffered from store closures and declining sales. But some individual ASX shares are not just surviving, but thriving in this new COVID-19 world. 

Online shopping has surged as consumers in lockdown go to the web for everything from essentials to luxury goods. Companies leveraged to this trend are benefitting. Kogan.com Ltd (ASX: KGN) and Afterpay Ltd (ASX: APT) are 2 ASX shares that are emerging as potential winners in the post-COVID world. 

Kogan sales and customers surge 

Kogan added 139,000 active customers in April, bringing its total number of active customers to 1,948,000. Gross sales in April 2020 grew by more than 100% compared to April 2019, leading to growth in gross profit of 150%. Kogan is Australia’s only diversified online retailer, and customers have inundated it as an alternative to physical shopping. 

The Kogan business model relies on offering products at lower prices than competitors, aggressively building market share while operating on slim profit margins. As an online-only retailer, Kogan benefits from lower costs than competitors with a physical presence, saving on store rental and staffing costs. 

Kogan launched Kogan Marketplace last year which allows third parties to sell via its website. The venture has been performing well, with sales growing 7% quarter-on-quarter between December and March. March 2020 sales were up 69% on February 2020 sales. The venture reduces working capital demands which should allow for greater profitability in future. 

Afterpay benefits from shift to online 

Buy now, pay later provider Afterpay has also benefited from the surge in online shopping with March being its third-largest underlying sales month on record. Underlying sales in the March quarter increased 97% compared to Q3 FY19. For the year to date, Afterpay has reported underlying sales of $7.3 billion, growing at 105% compared to the prior corresponding period (pcp). 

Healthy growth in merchant and customer numbers was recorded during the March quarter – active customers grew to 8.4 million, up 122% on the pcp. Merchant numbers grew to 48,400 globally, up 78% on the pcp. 

Foolish takeaway

The future of shopping and payments is changing rapidly thanks to coronavirus. Kogan and Afterpay are at the forefront of this shift. 

More reading

• 3 common mistakes millennials make investing in ASX shares
• This ASX growth share has rocketed 150% higher since March. Is it too late to invest?
• 2 exciting ASX tech shares to buy right now
• Could these small cap ASX shares be the next Afterpay?
• 3 top ASX shares to buy now and hold for 10 years

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 Kogan.com ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 These ASX shares are set to dominate the post-COVID-19 economy appeared first on Motley Fool Australia.

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Most ASX investors make mistakes in their investing careers – none of us are perfect but millennials, through being the youngest and often the most inexperienced group of investors, often make a disproportionate amount.

Whilst this is totally normal, it doesn’t change the fact that making mistakes when investing is financially painful and it’s far better to learn from someone else’s mistakes than your own.

So here are three mistakes I often see millennials make when investing in ASX shares:

Mistake 1 – obsessing over share prices

This is one of the most common things I see with young investors out there. I have had excited friends tell me that one of their stocks was “up 1% today” and so they were ‘raking it in’. Whilst I think keeping an eye on your shares is a great idea, checking them every hour of the day isn’t. Investing is a long-term game, not something that should be tracked just based on normal market fluctuations. As Warren Buffett once said: “If you buy a farm, do you go up and look every couple of weeks to see how far the corn is up?”

Mistake 2 – buying too high, selling too low

This one is a common mistake and also one that will set you back dramatically. I have seen many millennial investors get very excited when their shares go up in value. So excited, in fact, that they think they have to ‘lock-in’ their gains, even if they’ve only owned their shares for a few months. On the other hand, they can pile more money in, chasing those ‘sweet gains’.

Conversely, I have also seen would-be investors buy shares and, after watching them go down 5% or 10%, sell out, thinking they’ve made a terrible mistake.

Again, this is letting the markets dictate what you do, which is a terrible habit to get into if you want decent returns over the long-term.

Mistake 3 – not diversifying

I once met a young investor who told me (very proudly) that he only owned two ASX shares – Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P). On one hand, I think everyone should invest in companies they find interesting and exciting. But there is a limit. If your entire portfolio consists of unprofitable payments companies, you are leaving yourself open to a lot of risk.

That’s why I think it’s important for new investors to build up a diversified portfolio of companies across at least a few different industries. That way you are not wiped out if the government bans buy-now, pay-later offerings, for instance. If you only find interest in one area, you can always use exchange-traded funds (ETFs) to give your portfolio a little more balance.

More reading

• 2 exciting ASX tech shares to buy right now
• Could these small cap ASX shares be the next Afterpay?
• 3 top ASX shares to buy now and hold for 10 years
• If you invested $10,000 in the Afterpay IPO, this is how much you’d have now
• Is the Zip share price in the buy zone?

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on them:

Amcor PLC (ASX: AMC)

According to a note out of Goldman Sachs, its analysts have retained their sell rating but lifted their price target on this packaging company’s shares to $12.50. Amcor delivered stronger than expected earnings growth in the third quarter. Its EBIT increased 10% compared to Goldman’s 7% forecast. However, it remains sell rated on valuation grounds. It notes that Amcor is trading at a notable premium to other packaging companies under its coverage. Amcor’s shares are changing hands for $14.10 this afternoon.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and cut the price target on this banking giant’s shares to $56.00. According to the note, following the release of its third quarter update, the broker sees little reason that Commonwealth Bank’s shares should trade at a premium to its peers. In addition to this, it has forecast a sizeable dividend cut in August and has concerns over margin pressures. The Commonwealth Bank share price is down almost 3% to $59.16 this afternoon.

Sigma Healthcare Ltd (ASX: SIG)

Analysts at UBS have retained their sell rating and 53 cents price target on this pharmacy chain operator and distributor’s shares following its trading update. Although Sigma reported strong sales growth in March because of the pandemic, it notes that management has decided against providing guidance for FY 2021 at this stage. So, with its shares trading at approximately 20x estimated forward earnings, UBS sees no reason to change its rating at this point. The Sigma share price is trading at 57.5 cents this afternoon.

More reading

• ASX 200 down 0.9%: Xero posts strong growth & Australian economy loses 594,300 jobs
• Why Beach, CBA, Qantas, & Xero shares are dropping lower
• What happens to ASX shares if Australian house prices do fall 30%?
• Is the CBA share price a buy?
• Negative interest rates coming? Here’s what it would mean for ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Amcor 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.

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Exchange-traded funds (ETFs) can be really good choices for easy investing and good returns.

It’s a lot easier to invest in exchange traded funds than identifying individual shares to buy. To outperform the share market you need to put in a lot of time to research the potential investments, think about how much it can grow, consider the balance sheet strength and so on.

Investing in an ETF needs less analysis. If you set up a regular investment plan then you don’t need to really think about much at all. Yet you still get access to the strong long-term returns. Some have very low annual management fees.

Option 1: Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE)

This is an ETF focused on the Asian share market. Predominately it’s invested in businesses located in China, Taiwan, South Korean, Hong Kong and India.

Before the coronavirus came along, Asian economies were growing at an attractive pace. Middle class wealth was rising quickly and eCommerce was growing strongly. I think that some Asian businesses are among the best in the world.

Among the top 10 holdings are: Alibaba, Tencent, Taiwan Semiconductor Manufacturing, Samsung and Ping An Insurance.

The ETF has a relatively low management fee of just 0.40% per annum, which is much cheaper than most Asian-focused Australian fund managers.

I think the returns of 8.9% per annum have been solid since inception in December 2015 (which includes the current decline).

It has over 1,200 holdings, a dividend yield of 3%, a p/e ratio of 12.3x and a return on equity (ROE) of 14.75%.  

Option 2: Betashares FTSE 100 ETF (ASX: F100)

The UK share market has been pummelled just like most other markets. With this investment you can get exposure to 100 of the biggest businesses listed on the London Stock Exchange.

One of the benefits of the UK share market is that the ETF’s top 10 holdings of the FTSE are in industries that are holding up quite well. There’s pharmaceuticals (Astrazeneca and GlaxoSmithKline), alcohol (Diageo) and consumer products (Unilever and Reckitt Benckiser).

Within the next group of 20 shares are shares like mining (Rio Tinto and BHP), electricity distribution (National Grid), a telco (Vodafone) and a supermarket (Tesco).

I think the UK share market is pretty defensive with a solid dividend yield. At the end of April this BetaShares offering had a trailing dividend yield of almost 6%, though this will probably reduce somewhat.

BetaShares charges an annual management fee of 0.45% per annum.

Foolish takeaway

Both of these ETFs look cheap today and have quality holdings that could be good for many years ahead. I’d probably prefer buying the UK ETF because of the defensive shares and high dividend yield, but getting exposure to Alibaba and Tencent sounds good to me too.

More reading

• 2 quality ETFs I’d buy today

Motley Fool contributor Tristan Harrison 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.

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The Kogan.com Ltd (ASX: KGN) share price has been experiencing a very strong rally. After dropping as low as $3.45 in mid-March, Kogan shares are now trading at $8.75, a massive 153.6% increase. In comparison, the S&P/ASX 200 Index (ASX: XJO) has seen a much more modest increase during this period.

So, is it too late for investors to take a stake in Australia’s largest locally-based, online specialist retailer?

Strong March quarter and record customer growth in April

Kogan released a trading update in April indicating that it saw a very strong 30% increase in gross sales and a 23% jump in gross profit during the March quarter. The final month of March saw particularly strong growth, with sales increasing by more than 50% on the prior corresponding period (pcp). The company also experienced its largest-ever monthly increase in active customers since its IPO.

Kogan revealed that it was able to successfully navigate through the disruptions caused by the coronavirus in all of its key markets.

Due to the harsh lockdown restrictions, there has been a surge in online spending at specialist retail sites such as Kogan and Amazon. In particular, Kogan has seen a strong rise in the sales of home office equipment, such as PCs and laptops, as well as home fitness equipment.

This ramp-up in sales accelerated further in the month of April, with sales growing by more than 100% in April compared to the pcp.

Profits during April were even more impressive, with gross profit growing by more than 150% and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increasing by more than 200%. This boost in sales during April meant that Kogan’s adjusted EBITDA was up by a very impressive 40% financial year to date compared to the same period last financial year.

This strong result was achieved despite the company heavily investing to build its brand, with overall operating costs increasing by 37% during the March quarter. 

Kogan continues to invest in its proprietary marketplace platform. It revealed that its pipeline for new sellers in the Kogan Marketplace remains strong and continues to grow despite its rapid onboarding of new sellers.

Is it too late to invest in Kogan?

With Kogan’s recent share price rally, I don’t think it offers investors compelling value at present, but it is still worthy of consideration as a long-term buy and hold option.

Kogan remains well-placed to leverage the growing adoption of online shopping, the increasing popularity of its Kogan-branded products and in particular, its fast-growing Kogan Marketplace.

Additionally, the company’s expansion into a broad range of verticals, including internet, mobile, energy, credit cards, super, travel, insurance and cars, provides it with a diversified business model and a wide range of future growth opportunities.

More reading

• Why I’d buy and hold Telstra shares for a decade
• How to invest $1,000 like Warren Buffett today
• ASX 200 down 0.9%: Xero posts strong growth & Australian economy loses 594,300 jobs
• Should you cash out of this ASX 200 rally?
• This ASX 200 share is rocketing higher after delivering more strong sales growth

Motley Fool contributor Phil Harpur owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com 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.

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Telstra Corporation Ltd (ASX: TLS) shares have outperformed in 2020 despite broad market volatility. While the S&P/ASX 200 Index (ASX: XJO) has fallen 19.91%, Telstra shares are ‘only’ down 12.57% this year.

But despite holding value better than many of its ASX 200 peers, is the Aussie telco in the buy zone?

Why I’d buy and hold Telstra shares for a decade

Telstra has been a staple of Australian share portfolios for decades. The Aussie telco was favoured for its 100% dividend payout policy before slashing it lower in recent years. However, its shares currently yield a tidy 3.20% and, I believe, still have some serious upside.

Telstra is shaping up as a potential leader in the 5G network space. The group continues to invest heavily in the future which I think is key in this hyper-competitive industry. With NBN Co breathing down its neck, Telstra is focusing strongly on maintaining market share.

Innovation is also a key reason I’d buy and hold Telstra shares for a decade. The company’s ‘Telstra 2022’ strategy illustrates forward thinking and, furthermore, the group is also focused heavily on slashing its costs. 

Having said that, the changing face of its competition has the potential to negatively impact Telstra’s profitability. The proposed merger between TPG Telecom Ltd (ASX: TPM) and Hutchinson Telecommunications (Aus) Ltd (ASX: HTA) is shaping up to be a real threat to Telstra’s long-term future. 

The merger would combine Vodafone‘s and TPG’s capabilities and create another major player alongside Telstra and Optus. However, there is also the opportunity for Telstra to capture more market share amid an industry shake-up.

This means shares in the Aussie telco could see some real gains if its Telstra 2022 strategy pays off. Given its strong dividend yield in the short to medium term and a solid long-term growth outlook, I think there are worse buys than Telstra.

I also think the move towards working from home more could benefit Telstra. More remote working means increased demand for mobile infrastructure, which could benefit this market leader.

Foolish takeaway

Telstra shares have fallen lower in 2020, but it’s important to invest for the long-term. I prefer to drown out the day-to-day noise and look at Telstra as a company to buy and hold for the decades ahead.

More reading

• How to invest $1,000 like Warren Buffett today
• ASX 200 down 0.9%: Xero posts strong growth & Australian economy loses 594,300 jobs
• Should you cash out of this ASX 200 rally?
• This ASX 200 share is rocketing higher after delivering more strong sales growth
• David Tepper believes we’re in the biggest stock bubble since 1999

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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.

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The Australian economy has just recorded its biggest monthly job losses since records began in 1978.

Today the Australian Bureau of Statistics released its employment data for the month of April. This was the first month which fully captured the impact of broad-based lockdowns implemented late in March.

According to the release, the 594,300 jobs were lost from the economy in April, bringing Australia’s unemployment rate to a seasonally adjusted 6.2%.

This compares to the 550,000 jobs that economists were expecting the economy to lose last month and the 450,000 jobs that Westpac Banking Corp (ASX: WBC) was forecasting.

Hours worked plunge.

Due to initiatives such as the JobKeeper program, this data doesn’t truly show the extent of the damage to the economy.

Arguably a more accurate representation is using the hours worked metric. The Australian Bureau of Statistics revealed that total hours worked fell by around 9.2% between March and April.

It commented: “When taken together with people leaving the workforce, around 2.7 million people (about 1 in 5 people employed in March) either left employment or had their hours reduced between March and April.”

As a result of this, the number of underemployed people rose by 603,300 people in April, to a total of 1.8 million people. This means the underemployment rate now stands at a record high of 13.7%, up 4.9 percentage points.

The Australian Bureau of Statistics also revealed a sharp increase in the underutilisation rate. This combines the unemployment and underemployment rates and rose to a record high of 19.9% in April.

In a press conference Prime Minister Scott Morrison acknowledged that this is a “tough day for Australia.”

He commented: “Almost 600,000 jobs have been lost. Every one of them devastating for those Australians, for their families, for their communities. A very tough day.”

But the Prime Minister remains optimistic on the future, saying: “Hard work, that’s the way out. It’s always been the way out for us. Australians hurting today, they can look forward knowing, on the basis of our national character and ingenuity and resolution, that we will see those better days.”

More reading

• What happens to ASX shares if Australian house prices do fall 30%?
• This is the best ASX big bank stock you can buy right now
• How can the ASX 200 soar with rising unemployment?
• Safe dividend stocks to buy today for the COVID-19 world
• 3 top ASX 200 shares you can buy on sale today

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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.

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Everyone wants to know how to invest like Warren Buffett. The ‘Oracle from Omaha’ has been one of the most successful investors ever. He’s built up his multi-billion dollar fortune by buying undervalued shares in companies with real growth potential.

It’s easy to imagine this strategy requires complicated algorithms and a touch of magic. The reality, however, is that Warren Buffett is human. In fact, his investment philosophy is actually very simple.

The man is known for his long-term investment horizon and ability to make calculated bets. If you want to know how to invest like Warren Buffett today, read on…

How to invest $1,000 like Warren Buffett today

I think it’s best to start with some quotes from the man himself. One of my personal favourites is, “Widespread fear is your friend as an investor because it serves up bargain purchases.”

It’s hard to think of something more appropriate to the current environment. COVID-19 shutdowns and an oil price war have smashed ASX share prices lower in 2020. In fact, the S&P/ASX 200 Index (ASX: XJO) is down 19.79% and that certainly has investors feeling fearful.

For every headline about a quick recovery there’s another about the impending end of the world. Personally, I think there’s still some short-term economic pain to come, but there are also some high-quality companies on sale right now.

If you want to invest like Warren Buffett today, there could be some ASX shares in the buy zone right now. One example the legend himself might like the look of is BHP Group Ltd (ASX: BHP). BHP’s shares have slumped 20.62% in 2020 and, I believe, could be undervalued. Particularly if we see Chinese demand continue to grow and more investment in Aussie infrastructure by the federal and state governments.

If you want to invest like Warren Buffett, buying undervalued shares is a great way to do it. Which brings me to another Warren Buffett quote I love: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

As such, just because shares in companies like Southern Cross Media Group Ltd (ASX: SXL) are down over 70% in 2020, this doesn’t necessarily make them a bargain. Many businesses are doing it tough right now and, whilst some will be undervalued, buying distressed companies could be a whole new ball game for the average Aussie investor.

Foolish takeaway

There are buying opportunities available to savvy investors at the moment. If you want to invest like Warren Buffett, remember to only look for companies with a long-term perspective.

More reading

• Why I’d buy and hold Telstra shares for a decade
• ASX 200 down 0.9%: Xero posts strong growth & Australian economy loses 594,300 jobs
• Should you cash out of this ASX 200 rally?
• This ASX 200 share is rocketing higher after delivering more strong sales growth
• David Tepper believes we’re in the biggest stock bubble since 1999

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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Looking for additional ASX tech shares to add to your portfolio?

While you may be aware of the WAAAX tech consortium, which includes well-known ASX tech companies such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO), there’s a range of other emerging, smaller ASX tech shares that are worthy of consideration.

Here are 2 of my top picks of these smaller ASX tech shares:

Bigtincan Holdings Ltd (ASX: BTH)

Bigtincan focuses on a fast-growing niche in the IT software market called ‘sales enablement’. The company provides organisations and their sales teams with a platform to access, customise, present, and collaborate on content and improve customer engagement. 

It also leverages artificial intelligence through features that include the ability for users to personalise and recommend content. Additionally, Bigtincan’s software neatly integrates with other leading customer relationship management solutions available on the market. 

Although its core offering is accessible to users on a range of desktop and mobile platforms, the tablet market, in particular, through devices such as iPads, provides Bigtincan with strong market differentiation.

Through its software-as-a-service (SaaS) business model, Bigtincan is a capital-light and highly efficient business that has a subscription type model with attractive margins.

The advantage of a SaaS business model is that the business is highly scalable – as each new user comes on board, the addition to overall operating overheads is marginal and the business gradually becomes more efficient and profitable. Bigtincan also has high customer retention rates.

The company only listed on the ASX in 2017 and is yet to become profitable. So, it is a relatively risky investment. Bigtincan must continue to keep costs under control and maintain its high customer retention rate. However, I believe the company appears to be reasonably on track to reach profitability in the years ahead as it gains further scale, driven by fast-growing market opportunities.

Dicker Data Ltd (ASX: DDR)

I am attracted to wholesale IT distributor Dicker Data because of its proven track record and very attractive fully franked dividends. Dicker Data currently pays investors a lucrative grossed-up, forward dividend yield of 7.12%.

Dicker Data has seen a recent uplift in sales, recording its highest ever revenue month to date in March. This came as a huge number of employees were suddenly required to work from home due to the coronavirus crisis.

In fact, the crisis could actually change the long-term working habits of many Australian businesses as they see the benefits of remote working for a higher proportion of their employees. This could lead to further long-term demand for Dicker Data’s products. In a recent announcement, the company also detailed a plan to grow its dividend by 31% in FY2020.

Dicker Data also recently announced a capital raising, with the proceeds to be used to provide additional balance sheet flexibility and support the company’s long-term growth objectives. The proceeds will also be used partly to fund the construction of Dicker Data’s new distribution centre.

In contrast to a number of other ASX shares raising capital, Dicker Data was not under significant financial stress before the raising, which is reflected in its recent strong share price growth. While many ASX shares have only seen a partial rebound in their share price since the market bottomed in late March, Dicker Data has managed to regain all of its recent losses.

More reading

• ASX 200 down 0.9%: Xero posts strong growth & Australian economy loses 594,300 jobs
• Why Beach, CBA, Qantas, & Xero shares are dropping lower
• Could these small cap ASX shares be the next Afterpay?
• 3 top ASX shares to buy now and hold for 10 years
• If you invested $10,000 in the Afterpay IPO, this is how much you’d have now

Motley Fool contributor Phil Harpur owns shares of AFTERPAY T FPO, Altium, and Xero. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO and Dicker Data Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, Altium, and Xero. 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 Two exciting ASX tech shares to buy right now appeared first on Motley Fool Australia.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. The benchmark index is down 0.9% to 5,371.4 points at the time of writing.

Here’s what has been happening today:

Big four banks tumble.

The big four banks are acting as a major drag on the Australian share market on Thursday. All four banks are trading notably lower at lunch, but the worst performer is the Commonwealth Bank of Australia (ASX: CBA) share price with a decline of greater than 3%. This morning analysts at Morgan Stanley retained their sell rating and cut the price target on its shares down to $56.00. It has forecast a big dividend cut in August.

Xero delivers strong full year result.

The Xero Limited (ASX: XRO) share price is dropping lower on Thursday after the release of its full year results. Although the cloud-based business and accounting software provider delivered very strong sales and EBITDA growth, its outlook appears to have spooked investors. Management advised that many small businesses are struggling during the pandemic and this is weighing on its performance. As a result, no guidance was given for the year ahead.

Record Australian job losses.

Australia has just recorded the biggest job losses since records began in 1978. During the month of April 594,300 jobs were lost, bringing Australia’s unemployment rate to a seasonally adjusted 6.2%. This was greater than the 550,000 jobs that economists were expecting to lose last month.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Graincorp Ltd (ASX: GNC) share price with a 17% gain. This morning the grain exporter released its half year results and reported an underlying net profit after tax of $55 million. This was an increase from a $48 million net loss after tax in the prior corresponding period. The worst performer has been the Unibail-Rodamco-Westfield (ASX: URW) share price with a 6% decline on no news.

Returns as of 7/4/2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. 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.

More reading

• Two exciting ASX tech shares to buy right now
• Why Beach, CBA, Qantas, & Xero shares are dropping lower
• What happens to ASX shares if Australian house prices do fall 30%?
• Why Breville, Graincorp, Mesoblast, & Newcrest shares are charging higher
• Should you cash out of this ASX 200 rally?

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