Tag: Motley Fool Australia

The CSL Limited (ASX: CSL) share price was a positive performer on Thursday despite the market selloff.

Investors were buying the biotherapeutics company’s shares after it announced another new acquisition.

What is CSL acquiring?

CSL has signed an agreement with Nasdaq-listed gene therapy company, uniQure, to acquire the exclusive global license rights to commercialise an adenoassociated virus (AAV) gene therapy program, AMT-061 (etranacogene dezaparvovec).

AMT-061, which is currently in Phase 3 clinical trials, could be one of the first gene therapies to provide potentially long-term benefits to patients with haemophilia B.

One dose of AMT-061 has been shown to increase Factor IX (FIX) plasma levels to a degree that reduces or eliminates the tendency for bleeding for many years. FIX is the blood clotting protein lacking in people with haemophilia B.

This means that should AMT-061’s trials be successful, appropriate candidate haemophilia B patients will be able to have a one-time treatment to restore FIX activity to functional levels which are capable of eliminating the need for frequent and ongoing replacement therapies.

While this therapy may ultimately cannibalise the sales of its Idelvion therapy for haemophilia B, purchasing it appears to be a smart move. This is because it should help defend CSL’s leadership position in the market in the future.

What are analysts saying?

A note out of Goldman Sachs this morning reveals that its analysts remain very positive on CSL after this acquisition. They have reaffirmed their buy rating and $336.00 price target.

Commenting on the new acquisition, Goldman said: “CSL generates >$1bn revenues in haemophilia and, although the current standard of care for Heme B (Idelvion) has been a significant growth/value driver since launch in 2016, the market is becoming increasingly competitive.”

“Furthermore, gene therapy has the potential to transform the treatment paradigm and, in EtranaDez [AMT-061], we believe CSL has acquired rights to the first-in-class and potentially best-in-class for this indication, which should serve to complement/expand the existing franchise and potentially extend its sustainability,” it added.

However, the broker has warned that the deal may not be a foregone conclusion and notes that it will be subject to regulatory review in the US, UK and Australia. It points out that the review of Roche’s acquisition of Spark (gene therapy) became a protracted process, eventually completing within 10 months.

Goldman commented: “In our view, that transaction has similarities to this, in that the company with the leading drug in Heme A (Roche, Hemlibra) sought to complement its portfolio with a promising gene therapy candidate targeting the same market. In this case CSL’s Idelvion is the leading drug in Heme B, whilst uniQure is potentially both first and best-in-class with a gene therapy in this space.”

What is the potential of AMT-061?

AMT-061 certainly could have a bright future ahead of it. According to Goldman’s analysts, it currently ascribes an 85% probability of success for the AMT-061 program.

If successfully developed and commercialised, the broker is modelling US$932 million in global peak sales in 2027. This is based on a biologics license application submission in 2021, US launch in 2022, and an EU and Rest of the World launch in 2023.

As a comparison, Idelvion is expected to generate sales of US$460 million in FY 2020.

More reading

• These are the 4 cheapest ETFs on the ASX
• ASX 200 drops 2.5%, ASX travel shares dumped
• ASX 200 down 1.8%: CSL announces new acquisition, Qantas to raise $1.9bn
• Why Accent, CSL, Kogan, & Redbubble shares are pushing higher
• CSL share price on watch after US$450 million acquisition news

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 CSL Ltd. 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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Up and down the S&P/ASX 200 Index (INDEXASX: XJO) the winners and losers from the pandemic are becoming clear. There are also still a few companies where the future remains uncertain.

Share price winners

The Kogan.com Ltd (ASX: KGN) share price has risen by ~265% since the market low on 23 March. The pandemic and lockdown hastened a trend towards online shopping that was already underway. In a 5 June report, the company announced a 100% increase in sales for the Q4 FY20 to date and a 130% growth in profit.  

The same could be said for City Chic Collective Ltd (ASX: CCX). This share price is up by ~263% from 23 March. City Chic declared that two-thirds of its sales came from online channels. Moreover, it announced a 57% increase in online sales during the company’s store closures versus the same period last year.

The grey zone

There is a range of companies that I am not certain about, even now. For example, Aristocrat Leisure Limited (ASX: ALL) sells machines, platforms, software and online gaming. In its Q3F20 report, it showed a decrease of 14.2% in net profit after tax (NPAT). However, the company is rapidly expanding its digital business. The company enjoyed double-digit growth in revenue and profits over the period compared to the previous corresponding period. 

Personally, I do not think the Crown Resorts Ltd (ASX: CWN) share price can return to prior levels without full international tourism. Nonetheless, I am not sure that the same goes for Aristocrat. Partly because of the diversified revenue streams, partly due to the international footprint. 

Even more so, I think that embattled cinema and theme park companies such as Village Roadshow Ltd (ASX: VRL), or Event Hospitality and Entertainment Ltd (ASX: EVT) are too close to call. Even without full international tourism, these companies can make profits. Unfortunately, most of the movies due for release by the end of this year have been moved into 2021. I do not see a good medium-term future for the share price of these companies. 

Jumbo Interactive Ltd (ASX: JIN) is surrounded by speculation in relation to a mysterious trading halt. Media sources seem to think there is a conflict occurring due to negotiation with LotteryWest, sparking a high-level discussion with 11% stakeholder and licensor, Tabcorp Holdings Limited (ASX: TAH). Nevertheless, the company forecast an FY20 NPAT just under that of FY19. It seems even the company is unsure whether the lockdowns will drive sales up or down. 

The hardest hit

There is a strong chance that Qantas Airways Limited (ASX: QAN) share price will take another hit during today’s trading. It announced a combination of cost-cutting, layoffs and restructuring that highlights how different the world will be. The Qantas share price is already depressed. 

I find this company to be well managed. It has a 10-year average return on equity (ROE) of 17.5% which is impressive. However, personally I find it hard to envisage a world where governments allow us to travel internationally as freely as we used to. At least not yet.

Aside from Qantas, there are a number of other companies that will likely not be the same again for 3–5 years. Most of these are in the international travel space. Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) need to open international borders. Sydney Airport Holdings Pty Ltd (ASX: SYD) also needs full international tourism to see the level of footfall it had in January. 

More reading

• REA Group share price has charged 60% since the market bottomed
• Appen share price up 99% since March. Is it still in the buy zone?
• Qantas share price down 6% after completing $1.4bn institutional placement
• These are the 4 cheapest ETFs on the ASX
• Could Qube Holdings shares make you rich in 2020?

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited and Webjet Ltd. The Motley Fool Australia has recommended Crown Resorts Limited, Flight Centre Travel Group Limited, and 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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The Appen Ltd (ASX: APX) share price has rallied strongly over the past few months. It fell from $27.18 in mid February to $17.14 in mid March, during the early phase of the coronavirus pandemic. However, the Appen share price has since steadily climbed and is now well beyond even its February levels. Despite a few ups and downs along the way, the Appen share price is now trading at $34.17. That’s a whopping increase of 99% since March.

Although the company was partially impacted by coronavirus, so far it appears to have come through the pandemic relatively unscathed.

So, is the Appen share price still a buy?

What does Appen do?

Let’s first take a recap of the Appen business model.

Appen is global leader in providing data for use in machine learning and artificial intelligence (AI). This includes speech and natural language data, image and video data. It also includes text and alphanumeric data, and data to improve search and social media engines.

In more basic terms, Appen studies how people speak and interact with each other and with technology applications. It then packages the data, and sells it on to tech companies to improve their AI applications. For example, Appen assists Apple and Google in training their virtual assistants like ‘Siri’ so they can better interact with their audiences.

As well as servicing major tech companies, Appen also works across a range of industries including the automotive and government sectors.

Continuing to grow at a rapid pace

Appen continues to experience strong demand, especially from many of the world’s largest technology firms. This has translated into very high revenue growth, assisted by recent acquisitions.

Appen’s full-year financial results for 2019 delivered a 47% increase in total revenue to $536 million, while its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 42% to $101 million.

Appen’s earnings base has remained fairly resilient in the face of the coronavirus pandemic. Its staff continue to work efficiently and successfully in remote locations, driven by the company’s at-home ‘crowd’ base of employees spread across the globe.

Appen also has a strong balance sheet with cash in excess of $100 million. Although its current investment pipeline may soften a little, the company expects negligible impact from the pandemic over the months ahead.

Is the Appen share price in the buy zone?

I believe that Appen is very well placed to see continued strong growth over the next five years. This growth will be driven by the rapidly rising demand for AI and machine learning products globally as well as Appen’s entrenched market position.

I’m confident this is likely to lead the Appen share price to outperform the S&P/ASX 200 Index (ASX: XJO) during this period.

Despite a strong share price rise since March, Appen is an ASX tech share that I would be happy to hold for at least the next five years and beyond.

More reading

• Why National Storage shares are a great “set and forget” option for your portfolio
• These are the 4 cheapest ETFs on the ASX
• Could Qube Holdings shares make you rich in 2020?
• 5 things to watch on the ASX 200 on Friday
• In today’s market, should you buy ASX shares, buy gold, or hold cash?

Motley Fool contributor Phil Harpur owns shares of Appen Ltd. The Motley Fool Australia owns shares of Appen 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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I believe that one of the best ways to grow your wealth is to put what you can into the share market on a consistent basis and with a long term view.

For example, if you were to invest $500 every three months (a total of $2,000 a year) and earned a 9% per annum return, in 30 years your investments would be worth $300,000.

Think you can afford a little bit more every three months? Well, if you can invest $1,250 every three months (a total of $5,000 a year) and earn the same level of return, your investments will be worth almost $750,000 in 30 years.

With that in mind, I have picked out three top shares which I think would be great long term options for investors. They are as follows:

Nearmap Ltd (ASX: NEA)

The first option to consider buying is Nearmap. It is an aerial imagery technology and location data company with operations in the ANZ and North American markets. I believe it has the potential to grow materially in the future thanks to its high quality software and its leading position in a highly fragmented market currently worth $2.9 billion per year. This is materially more than the annualised contract value (ACV) of $103 million to $107 million it expects to achieve in FY 2020. In addition to this, Nearmap has the option to increase its addressable market by expanding into other territories in the future.

Ramsay Health Care Limited (ASX: RHC)

Another option to consider buying for the long term is Ramsay Health Care. Times may be hard for the leading private healthcare company right now, but I’m optimistic that many of the headwinds it is facing will ease in the near term. After which, I believe it is well placed for solid long term growth thanks to the ageing populations tailwind. Ramsay is better positioned than most thanks to its massive footprint. It is currently operating 480 facilities across 11 countries.

Zip Co Ltd (ASX: Z1P)

A final share to consider buying with a long term view is Zip Co. I think the buy now pay later provider has been a very impressive performer over the last few years and believe there is a lot more to come in the future. Especially given its recent expansion into the U.S. market through the acquisition of QuadPay. Management estimates that this key market is worth $5 trillion per year, which is materially larger than the combined value of the other markets it is operating in. And given the growing popularity of the payment method with consumers and merchants, Zip Co’s future looks very bright.

More reading

• Purchasing Openpay shares in March in would have pocketed you this return
• 3 stellar ASX tech shares to buy in July
• 3 ASX payments shares that could double your money
• Australian businesses are running out of cash
• 3 ASX shares I’d buy if the market crashes again

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 Nearmap Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Nearmap Ltd. and Ramsay Health Care 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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National Storage REIT (ASX: NSR) shares have proved surprisingly resilient throughout the COVID-19 pandemic. Despite plummeting 50% from the pre-coronavirus high of $2.43 to $1.20 by 19 March, National Storage has recovered much of that ground. The company had crept back to $1.87 as at the time of writing. Despite all the volatility, National Storage shares have still gained a little over 2% so far this year.

National Storage owns and operates more than 170 self-storage facilities across Australia and New Zealand. The company services a broad range of customer segments. It offers business and personal storage as well as insurance, packaging and vehicle and trailer hire services.

The impact of COVID-19 

Back in April, the company was forced to downgrade its FY20 earnings guidance due to the coronavirus’ negative economic impacts. The previous earnings target was 10 cents per share, but the company reduced this to between 8.5 cents and 9.5 cents.

While this is disappointing, it still compares favourably against many other blue chip companies. This includes healthcare giant Cochlear Limited (ASX: COH) which withdraw its FY20 guidance completely due to COVID-19.

What it proves is that the company can remain profitable even in challenging conditions. The company’s Managing Director, Andrew Catsoulis said as much in the press release for the earnings downgrade. Catsoulis noted how the business’ “resilient nature” was “exemplified through this result in such a challenging and volatile environment.”

This could make National Storage shares a great defensive option for your portfolio to reduce volatility. While self-storage doesn’t look to have the explosive growth potential like tech darlings Appen Ltd (ASX: APX) or Afterpay Ltd (ASX: APT), demand for these services is pretty sticky. Just because the country is going through an economic downturn doesn’t mean people will magically find extra storage space in their homes. So National Storage should be able to generate reasonably dependable income streams regardless of the economic environment.

Should you invest in National Storage shares?

At their $1.87 price, National Storage shares are trading well below the February 52-week high of $2.43. This means they could offer good value to new investors. The company has a resilient income stream and has proved it can still remain profitable even in an economic downturn.

Plus, despite announcing their lowest dividend in years of just $0.034 a share, the company’s annual dividend yield is still over 4%. So, while it may not excite all investors, National Storage does make for a great “set and forget” income earner to add to your portfolio.

More reading

• Appen share price up 99% since March. Is it still in the buy zone?
• Purchasing Openpay shares in March in would have pocketed you this return
• Could one of these ASX shares be ‘the next Afterpay’?
• Why Xero and these ASX tech shares just hit record highs
• 3 high quality ASX shares I would buy if there were another market crash

Rhys Brock owns shares of AFTERPAY T FPO and Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended 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.

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The Qantas Airways Limited (ASX: QAN) share price has returned from its trading halt this morning and tumbled lower.

The airline operator’s shares are currently down 6% to $3.92.

Why was the Qantas share price in a trading halt?

Qantas requested a trading halt on Thursday while it launched a $1.9 billion equity raising.

This equity raising comprises a $1,360 million fully underwritten placement to institutional investors and a ~$500 million share purchase plan.

This morning Qantas revealed that it has successfully completed its placement through the issue of approximately 372.7 million new shares to institutional investors at a price of $3.65 per new share. This represents a 12.9% discount to its last close price.

According to the release, Qantas received high levels of interest from both existing institutional shareholders and new investors. This led to demand for the placement significantly exceeding the funds that Qantas was seeking to raise.

The proceeds of the equity raising will be used to accelerate its recovery, strengthen its balance sheet, and position Qantas to capitalise on opportunities aligned with its strategy.

Qantas CEO, Alan Joyce, commented: “The fact that there was significant demand for this offer shows clear support for our recovery plan and confidence in the fundamentals of this business. The plan involves some difficult decisions but we are extremely well positioned to get through this crisis and start growing again on the other side.”

What now?

Qantas will now push ahead with its $500 million non-underwritten share purchase plan.

Eligible shareholders will be able to apply for up to $30,000 of new shares free of any brokerage, commission, and transaction costs.

These shares will be priced at the lower of the placement price and a 2.5% discount to the five-day volume weighted average price of Qantas shares up to, and including, the closing date of the share purchase plan (expected to be 22 July 2020).

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 2.5%, ASX travel shares dumped
• Oil price fall creates buying opportunities
• ASX 200 down 1.8%: CSL announces new acquisition, Qantas to raise $1.9bn
• Why Evolution, IDP Education, Oil Search, & Webjet shares are dropping lower

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. 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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When the market moves as one it usually results in creating a lot of good shares to buy. If I had $5,000 on hand, I would place $1,000 into each of the following shares as I’m confident they will rebound strongly in the near term. 

Mining sector

Fortescue Metals Group Limited (ASX: FMG) has fallen by 2.19% since the close of trading on Wednesday. Yet the iron ore market remains very strong. In addition, production opportunities have opened up due to a raft of issues facing Brazilian miner, Vale. The company also has several multi-billion-dollar projects underway right now. 

In the short term, the iron ore price is likely to stay around the $100 mark as the world is spending billions of dollars on infrastructure stimulus as a means of reducing the economic impact of the lock-downs. For me, Fortescue remains a strong buying opportunity and I think it is well priced right now. I already own Fortescue shares, yet I would happily invest another $1,000 here. 

BHP Group Ltd (ASX: BHP) has also fallen by 2.42% from close of trading on Wednesday to the close of trading on Thursday. Yet the company is the world’s largest miner. It is also a major player in iron ore, copper, and nickel. The last 2 metals are very future-facing and likely to see increasing demand as the world moves to electric cars. I think a $1,000 investment here would be of good short-term value. 

Downer EDI Limited (ASX: DOW) has dropped by over 9% from the close of trading last Friday to the close of trading on Thursday. Yet the company has recently sealed a deal with Fortescue for $450 million in construction works over 5 years at the Eliwana iron ore mine.

Real estate shares to buy

The Vicinity Centres (ASX: VCX) share price has fallen by 9.4% from Friday to the close of trading on Thursday. This company has been the subject of very heavy trading over the past 3–4 weeks. The retail sector is the only focus of Vicinity Centres. 

However, I think that this company is oversold. At this price, the company has a 12-month trailing dividend yield of 11.62%. This is still a good entry point even with suspended dividend payments. The company recently reduced its gearing via a capital raising and is undertaking a raft of cost-cutting measures. A great company to buy with $1,000. 

Tech shares

I think Tyro Payments Ltd (ASX: TYR) has been oversold. The company has seen its share price fall by more than 9.4% since the close of trading on Friday. However, the company has increased its transaction value by 16% in FY20 to date compared with the previous corresponding period. It has muscled its way to fifth place in the nation’s payments processor sector of all authorised deposit-taking institutions (ADI). This is just after the big 4 banks.

I am very bullish on this company and I think that it is a wonderful share to buy at this price. I would happily invest $1,000 into Tyro.

More reading

• These top ASX dividend shares could be great option for income investors
• The BHP share price has jumped 40% higher in the last 3 months
• 3 quality ASX shares offering shareholders generous dividends
• You don’t have to time the market to get rich with ASX shares
• Why I would buy these outstanding ASX 50 shares right now

Daryl Mather owns shares of Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. 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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It certainly has been a positive three months for the Macquarie Group Ltd (ASX: MQG) share price.

Since dropping to a multi-year low of $70.45 in March at the height of the pandemic, the investment bank’s shares have recovered strongly.

On Thursday the Macquarie share price closed at $117.19, over 66% higher than its March low.

Why is the Macquarie share price up 66% in three months?

Investors have been buying Macquarie and the big four banks over the last few months on the belief that the economic impact of the pandemic won’t be as bad as first feared.

In addition to this, last month Macquarie released its full year results and revealed that it had a solid 12 months, all things considered.

In FY 2020, the bank reported a net profit of $2,731 million, which was down 8% on the prior corresponding period.

This reflected a high level of asset realisations in FY 2019 and higher impairments in FY 2020 because of the potential economic impacts of the pandemic. Macquarie’s credit and other impairment charges came to $1,040 million in FY 2020, up from $552 million in FY 2019.

Macquarie Group Managing Director and Chief Executive Officer, Shemara Wikramanayake, commented: “Macquarie’s full-year result has also been subject to the effects of this crisis and a strong underlying financial performance in FY20 was impacted by a material increase in credit and other impairment charges, primarily reflecting the deterioration in current and expected macroeconomic conditions as a result of COVID-19.”

Also supporting its share price was management’s positive comments about the future.

Although Ms Wikramanayake acknowledged that it was a time to be cautious, she believes Macquarie’s conservative approach to capital, funding, and liquidity positions the bank well to respond to the current environment.

She also notes that the longstanding fundamentals that have resulted in Macquarie being profitable every year since inception are unchanged.

This appears to have sparked hopes that the bank will find a way to excel in the current market. Which, considering its history, I wouldn’t bet against.

Should you invest?

While it may not be the bargain buy that it was in March, I still see value in Macquarie’s shares at the current level.

Especially for income investors that are looking for yield in this low interest rate environment. I estimate that its shares offer a partially franked 3.9% FY 2021 dividend yield.

More reading

• These top ASX dividend shares could be great option for income investors
• Add some diversity to your portfolio with these quality ETFs
• Top brokers recommending you buy these ASX shares in this market sell-off
• Why the risk of a market correction for the ASX 200 is rising
• Ready to invest $5,000? I’d buy these ASX dividend shares today

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

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

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

The digital advertising market will recover sooner than many investors currently expect — and Facebook (NASDAQ: FB) stands to profit handsomely.

So says Baird analyst Colin Sebastian. On Thursday, Sebastian reiterated his “Outperform” rating on Facebook’s stock and boosted his target price from $240 to $300. His new target represents potential gains of 27% for investors, based on Facebook’s current share price of $236.

The digital ad market slumped during the early stages of the coronavirus pandemic, when many companies pulled back on their marketing investments. However, with the U.S. and many other countries now working to reopen their economies, Sebastian says advertisers are beginning to ramp up their spending on Facebook and other ad platforms.

“Our latest checks with agencies and advertisers suggest the gradual recovery in digital ad spending continues, benefiting from high user engagement and improving pricing,” Sebastian said. 

Moreover, Sebastian believes the digital ad market will benefit as many businesses shift their operations online at an accelerated pace, due to the COVID-19 crisis.

“While still a far cry from the amazing and historic growth levels in e-commerce, the digital ad market likely emerges stronger from the current environment, and large platforms such as Facebook are well-positioned to capitalize on these trends longer term,” he said. 

Is Facebook’s stock headed to $300?

Yes, I believe it is. Sebastian’s arguments are spot on. Digital ad spending should recover along with the economy, and Facebook stands to benefit from this perhaps more than any other company.

More importantly, a coronavirus-related acceleration in the growth of e-commerce and online entertainment should fuel demand for digital advertising — and, by extension, Facebook’s sales and profits — over the long term. Thus, it’s likely only a matter of time before the social media titan’s stock price surpasses $300 — and it could happen much sooner than many investors currently expect.

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

More reading

• Can these 5 FY20 dogs of ASX 200 bounce back in the new financial year?
• Why MOAT is my favourite ASX ETF
• ASX investors brace to ride the next wave of “irrational exuberance”

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Facebook. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Facebook. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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One of the biggest appeals of an exchange-traded fund (ETF) investment vehicle is the extremely low fees that many ETFs charge. It’s not uncommon to see a traditionally-managed fund charge a management fee of 1.5%, 2% or even 3%. But ETFs can offer a fraction of these costs. Unless a managed fund can massively outperform every year (which is uncommon), the average investor will often be better with a low-cost ETF.

So with this in mind, I’ve scoured the ASX for the cheapest ETFs out there. Here are 3 that I’ve found:

These 2 ETFs cover US shares

The US market is one of the cheapest markets for investors to gain exposure to, even cheaper than our own ASX.

If you’re after exposure to the S&P 500 (the most popular index in the US), then the cheapest option is the iShares S&P 500 ETF (ASX: IVV). This ETF by iShares charges a management fee of just 0.04% per annum. That’s $4 a year for every $10,000 invested.

If you would like broader exposure to the US markets than the S&P 500, you can look to the Vanguard US Total Markets Shares Index ETF (ASX: VTS). This ETF is even cheaper than iShares with a management fee of just 0.03% per annum. Rather than holding 500 companies like iShares, this Vanguard ETF invests in almost 3,500 individual companies across the US markets.

Regardless of which of these funds you go with, you are still getting heavy exposure to top-weighted American companies like Apple Inc. (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) and Amazon.com, Inc. (NASDAQ: AMZN) with both ETFs.

The cheapest ASX ETF

If you consider yourself a patriot and want to just stick with Australian shares, then I’ve got some bad news. Despite being ‘our local’, ASX-based ETFs are more costly than those covering US shares.

If you want exposure to the largest ASX companies like CSL Limited (ASX: CSL), Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd (ASX: TLS), then the Betashares Australia 200 ETF (ASX: A200) is your cheapest option. The Betahsares ETF comes with a 0.07% per annum management fee and covers the S&P/ASX 200 Index (INDEXASX: XJO), which includes the largest 200 companies on the ASX.

For broader exposure to Aussie companies, there’s the Vanguard Australian Shares Index ETF (ASX: VAS). This ETF covers the top 300 shares instead of the ASX 200. But this ETF is a little pricier and will set you back 0.1% per annum.

An all-world fund

For true diversification, you could consider Vanguard All-World ex-US Shares Index ETF (ASX: VEU). This fund holds over 3,400 companies from multiple countries (excluding the United States). Japan, China, the United Kingdom, Switzerland and France are the largest contributors, but 39 other countries are also represented here. For all this diversification, VEU only charges a management fee of 0.08% per annum. Not bad if you’re after exotic companies like Alibaba, Nestle, Tencent, Toyota and Samsung.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares) and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended Alphabet (A shares). 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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