Tag: Motley Fool

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.

Boy, the good volatility sure is nice. The Nasdaq Composite Index (NASDAQ: .IXIC)  is up 329 points, or 2.7%, as of 2:34 p.m. ET on Aug. 3, 2022. Some of the biggest Nasdaq gainers include Moderna (NASDAQ: MRNA) and PayPal (NASDAQ: PYPL), both up after reporting earnings, and MercadoLibre (NASDAQ: MELI), ahead of earnings.

Shares of Okta (NASDAQ: OKTA) are on the rise, as well, after a competitor was acquired at a nice premium. Shares of social media giant Meta Platforms (NASDAQ: META) are up 5%, finally starting to reverse some of the losses of the past year following its relatively solid earnings results a few days ago. 

Upbeat earnings, high hopes leading to today’s bounce

Both biotech-giant Moderna and payments-king PayPal reported second-quarter results before trading today. Moderna investors loved the 7% revenue growth and were happy with the $5.24 earnings per share that smoked expectations. In short, shareholders (and buyers) continue to have high expectations for the company.

However, it’s not all roses (and COVID-19 booster shots). The company took a $499 million write-down for expired vaccine inventory — more than double the amount in the first quarter — and COVID-19 booster-shot volume and revenue has slowed. Moderna’s biggest unanswered question: What is its next act if COVID-19 vaccines aren’t the same cash cow in the coming years?

PayPal similarly reported better-than expected second-quarter results, with 13% payment volume pushing revenue up 10%, adjusting for currency exchange. While the company reported much slower growth than it has experienced over the past few years, double-digit growth in an environment where people are returning to more in-person shopping is a very real positive. CEO Dan Schulman pointed out that the company’s investment in digital wallets and online-checkout solutions is paying off with increased market share. 

Shares of Latin American e-commerce and payments-giant MercadoLibre are also rocketing higher today, ahead of the company’s earnings report, which is scheduled after market close on Wednesday. Like other e-commerce and web-based companies over the past year, its stock has been pummeled. PayPal and Amazon both turned in results investors liked this week, and it seems like investors have high hopes for MercadoLibre, too. 

Okta gets a buyout premium

Cybersecurity is one of the hottest segments out there right now. Billions of dollars will flow into the sector from corporate budgets in the years to come as companies take steps to protect their data and infrastructure from bad actors.

Private-equity firm Thoma Bravo certainly sees the potential. Today’s deal for it to buy Ping Identity (NYSE: PING) for a 63% premium to its prior share price is strong evidence of that. 

Investors also seem to believe that Okta, a leader in identity verification and access management, might very well be worth a good bit more than Mr. Market has been valuing it lately. 

Has Meta finally bottomed?

Meta Platforms investors may have finally seen peak pessimism pass. The shares are still down more than half from the company’s all-time high. This occurred after it reported that second-quarter revenue fell, which was the first revenue decline in the company’s history as a public company.

Since then, however, it seems that investors have processed the results and realized that active users grew on all its social media platforms and ad volume was up by double digits. In other words, the company’s biggest challenge right now seems to be weak ad demand overall, and that’s pulling down prices. This is a cyclical, temporary concern and maybe not as big a problem as it has seemed.

Despite its challenges, Meta remains head and shoulders above every other social media company as an ad platform. At 14 times trailing earnings and 17 times expected forward earnings, Meta’s shares are getting very attractive, and today’s upwards movement supports that. 

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

The post 5 tech stocks sending the Nasdaq higher on Wednesday appeared first on The Motley Fool Australia.

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Jason Hall has positions in MercadoLibre. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms 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. has positions in and has recommended MercadoLibre, Meta Platforms, Inc., and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Zip Co Ltd (ASX: ZIP) share price is performing strongly again today. It is up by a further 7%. That means it is currently up by almost 200% over the last month.

It’s not the only ASX 200 buy now, pay later (BNPL) share that’s doing well today. The Sezzle Inc (ASX: SZL) share price is up 6.9% and the Splitit Ltd (ASX: SPT) share price is up around 4%.

FY23 has seen an extraordinary rise in the Zip share price. It started at $0.44 and now it’s at $1.44. That’s a rise of more than 220%!

A substantial part of the recent rise could be due to market expectations that there could be a reduction of interest rates either near the end of 2023 or in early 2024. If interest rates don’t go (or stay) as high as expected, then perhaps that won’t hurt the profitability of Zip or the valuation of the Zip share price as much as previously expected.

Recent developments

Investors have also been digesting the news that Zip is no longer going to merge with Sezzle, which should bring forward cash flow profitability.

Zip has also told investors how it performed in the three-month period ending 30 June 2022.

Quarterly revenue rose 27% year over year to $160.1 million. Customer numbers rose 64% year over year to 12 million, while merchants on the platform increased by 77% year over year to 90,700. The cash transaction margin was 2.4%, while the revenue margin was 7.5%. Zip is focusing on its core markets of ANZ and the US, which aim to reduce cash burn.

The post Zooming higher: The Zip share price is up 7% appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Sezzle share price surging 8% on Wednesday?
• Up 10%, what’s going on with the Zip share price today?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Kogan.com Ltd (ASX: KGN) share price has jumped out of the gates to open the session on Thursday.

At the time of writing, Kogan shares are 2.84% higher at $4.35 apiece after hitting $4.54 earlier this morning. That’s a rise of more than 7% despite no news out of the company today.

In broader market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is also up 1.67% while the S&P/ASX 200 Index is 0.26% higher so far today.

What’s up with the Kogan share price?

Kogan shares received a boost last month when the company posted a business update for the 12 months to June 30, 2022.

In the update, Kogan reported it expects gross revenue of $1.18 billion and gross profit of $184 million, up 9.4% on 2021.

It also expects an increase in EBITDA for the period of $19.1 million, up from a loss the prior quarter.

Perhaps one key standout was a reported reduction in Kogan’s inventory value, down to $161 million from $193 million in March.

The results, while not fantastic in absolute terms, “wasn’t as bad as the market was expecting,” TMF reported.

‘Bad news is good news’

It seems this is a classic case of the ‘bad news is good news’ phenomenon that’s been reported across various financial news outlets recently.

Last week, Bloomberg reported “[t]he stock market is wrestling with a ‘bad news is actually good news’ scenario”.

Basically, when we’re in a bear market and the mood is chronically pessimistic, news that ‘isn’t as bad as expected’ can be deemed good news.

It’s quite the paradox, however, as the market may have already priced in the prospect of recession, rising interest rates, and inflation, Bloomberg says.

That aside, consumer cyclical shares such as Kogan have caught a bid lately and are up 9% for the month, reversing a period of heavy downside, as shown below.

Share price snapshot

The Kogan share price has outperformed the sector gaining 52% in the past month. However, even with those gains, it’s shed 60% over the last 12 months.

The company has a current market capitalisation of $458 million.

The post Why is the Kogan share price kicking goals on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares having such a stellar run today?
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• 5 things to watch on the ASX 200 on Thursday
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• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. 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 Mesoblast Limited (ASX: MSB) share price is on pause following a company requested halt to trading of its securities.

The ASX granted the company’s request before market open today. Prior to being put on ice, the Mesoblast share price closed yesterday’s session at 93 cents apiece.

Why is the Mesoblast share price frozen?

It appears the company is gearing up to raise additional capital from equity investors.

In the release, it said it “requests a trading halt in its securities effective immediately pending an announcement…in relation to a proposed private placement.”

It is not yet understood what the capital raise is for, or what amount the company is seeking to raise from investors.

However, it intends to make the impending announcement between now and 8 August, when the trading halt will then be lifted.

Mesoblast shares have caught a bid lately and are now up more than 36% over the past month of trading, as seen in the chart below.

This gain is in line with the broad healthcare sector, which has realized similar levels of upside in the new financial year.

Despite this, the Mesoblast share price is down 54% for the last 12 months or 34% this year to date

The post Why is the Mesoblast share price on ice today? appeared first on The Motley Fool Australia.

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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.

What happened

Shares of Apple Inc (NASDAQ: AAPL) climbed higher on Wednesday, adding as much as 4.1%. At the end of the trading day, the stock was still up 3.8%.

The broader market indexes rallied, which no doubt contributed to the iPhone-maker’s rise. However, news also broke that Apple was making a further push into the digital-advertising space, which could spell additional upside for the stock.

So what

As a result of its push to protect consumer privacy, Apple has been widely credited with the growing disarray for other companies in digital advertising. That said, it isn’t above generating a new revenue stream in the ad-tech space.

Apple’s entry into an adjacent field shouldn’t be taken lightly, as it has the resources to establish a beachhead and a long history of building the necessary expertise from the ground up. It isn’t yet clear if this step by Apple is intended to serve ads solely within the company’s digital footprint, or if it has designs to expand beyond its own ecosystem. It could also signal the upcoming launch of an ad-supported version of its streaming-video platform, Apple TV+.

Recently, Netflix became one of the last holdouts to embrace a lower cost, ad-supported tier, leaving Apple as the only major subscription streaming service without one.

Specifically, Apple is looking to hire a senior manager to run a demand-side platform (DSP) in the company’s advertising business, according to a report from Digiday. The job listing suggests that Apple is planning to design its own DSP. 

The successful applicant will be responsible to “drive the design of the most privacy-forward, sophisticated demand side platform possible,” according to the report. Additionally, Apple is looking for a candidate with experience building a mobile-focused DSP and the experience necessary to optimize “mobile campaigns using measurement and attribution.”

Apple is targeting a candidate with a minimum of eight years of technical experience and product management, as well as a proven track record of initiating “advertising-related products for audiences in the hundreds of millions.”

Now what

Apple’s services segment has been wildly successful, generating nearly $20 billion in revenue in its fiscal third quarter (ended June 25). The company now boasts more than 860 million paid subscribers. This move could open up a world of possibilities and take Apple stock to the next level.

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

The post Why Apple stock popped today appeared first on The Motley Fool Australia.

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Danny Vena has positions in Apple and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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S&P/ASX 200 Index (ASX: XJO) tech shares are enjoying a great run today.

While the ASX 200 is up a healthy 0.4% in late morning trade, the S&P/ASX All Technology Index (ASX: XTX) – which contains some smaller tech shares outside of the ASX 200 – is up an impressive 2.41%.

Australia’s big tech stocks are broadly charging higher following a strong lead from US technology companies yesterday (overnight Aussie time).

What happened with US tech stocks?

Yesterday saw some more strong earnings results from some of the biggest US tech stocks.

Moderna Inc (NASDAQ: MRNA) closed 16% higher on the back of its earnings report.

And PayPal Holdings Inc (NASDAQ: PYPL) leapt 9.3% on the back of its results.

Along with some other strong performers, this saw the tech-heavy NASDAQ 100 close up 2.7%, reaching its highest level since 4 May.

Commenting on the strength of the US reporting season, chief market strategist at B. Riley Wealth Art Hogan said (courtesy of Bloomberg), “Now that we’re 70% through the earnings reporting season, we can clearly say that it’s not the earnings Armageddon that many had feared. That’s important.”

And that strength looks to be offering some helpful tailwinds for ASX 200 tech shares today.

ASX 200 tech shares leaping higher

It’s a sea of green among the ASX 200 tech shares.

The Xero Ltd (ASX: XRO) price is up 1% at the time of writing, having earlier posted gains of 3.4%.

Shares in the online accounting and business services closed at $96.90 yesterday and are currently trading for $97.85.

WiseTech Global Ltd (ASX: WTC) is also enjoying a healthy boost today. Though like Xero, it’s given back much of its early morning gains.

After leaping 4.2% higher earlier today, shares in the global logistics software solutions provider are up 1.22% at the time of writing.

As for Nextdc Ltd (ASX: NXT), the data centre operator is up 1.69%.

The biggest gains among the ASX 200 tech shares today are being realised by Block Inc (ASX: SQ2), owner of Afterpay.

The Block share price is up a whopping 9.69% at the time of writing, currently trading for $127.00 per share.

This comes after a stellar run for Block’s US-listed shares, which closed up 11.4% on the NYSE yesterday.

The post Why are ASX 200 tech shares having such a stellar run today? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for the gold price in FY23?
• 5 things to watch on the ASX 200 on Thursday
• Experts name 2 beaten down ASX shares that could be going cheap
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., PayPal Holdings, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has recommended PayPal Holdings. 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 Megaport Ltd (ASX: MP1) share price is surging into the green early in the session on Thursday morning.

At the time of writing, the Megaport share price is 6% higher at $9.21 apiece, extending gains to 75% for the past month for shareholders.

In wide market moves, the S&P/ASX All Technology index (ASX: XTX) is also clicking higher on Thursday and trades 2% higher on the day.

What’s up with the Megaport share price?

Investors have bid up the Megaport share price today on no news. Noteworthy however is that tech shares have also caught a bid and are the leading sector on the ASX today.

The tech benchmark has curled up from yearly lows on 20 June and has pushed back 20% higher over the past month.

As seen on the chart below, both the tech index and the Megaport share price have tracked each other with striking similarity these past 3 months. It’s the same on all other time frames.

Hence, whilst there’s been nothing market sensitive out of Megaport’s camp today, with the sector climbing back past previous highs, it stands to reason this strength has carried over to individual names.

Brokers are also constructive on the share, with Goldman Sachs giving it a buy in a note last month. The firm said it “remain[s] positive on the product leadership of the company, and the rapidly growing NaaS/SD-WAN addressable markets”.

In the last 12 months, the Megaport share price has slipped more than 46% into the red, or 50% this year to date.

The post Why is the Megaport share price lifting 6% on Thursday? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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 Medical Developments International Ltd (ASX: MVP) share price is on ice today following a company requested trading halt.

The ASX granted the trading pause before market open. Prior to being put into the trading halt, the last bid for the Medical Developments share price was $2.40 apiece.

What was announced?

Medical Developments advised that it will complete a fully underwritten capital raising of $30 million.

This will be comprised of a $15 million placement and a $15 million pro rata accelerated non-renounceable entitlement offer.

It hopes to achieve a cash balance of $49 million post offer to fund three core areas. Per the announcement:

Post transaction MVP’s cash balance will be A$49m which will fund:

– continuing execution of the Company’s direct sales strategy in the large European
market

– expansion of the Australian business into the emergency sector and further growth in
the ambulance sector

– further investment in business capability to enable global growth

The 1 for 9.5 pro-rata accelerated non-renounceable entitlement offer seeks to raise $15 million. It comes with 1 attaching option to acquire 1 fully paid ordinary share for every 2.5 new shares
issued.

Whereas the placement is targeted towards sophisticated investors with 1 option for every 2.5 new shares issued.

Speaking on the announcement, chairman Gordon Naylor said the company was “pleased with [its] strong revenue growth in FY22and expect this to continue into FY23”.

“With a strong funding position following the capital raising, we look forward to investing to continue to deliver on our growth strategy.”

The Medical Developments share price is down more than 42% this year to date.

The post Medical Developments share price halted amid ‘significant near-term opportunities’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International Limited. 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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Qantas Airways Limited (ASX: QAN) shares have climbed nearly 4% in the past month, but what is the outlook ahead of FY22 earnings?

Qantas shares are lifting 0.22% today and are currently trading at $4.61. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.57% today.

Let’s take a look at the outlook for the Qantas share price.

What’s the outlook for the Qantas share price?

Analysts at Citi have downgraded Qantas from neutral to sell, according to a Thomson Reuters report cited on NAB trade.

Citi is concerned about the impact of fuel costs and hiring more staff on the company’s profit margins. Analysts said:

We expect short term, higher fuel prices and over-staffing will put pressure on margins, decrease capacity and increase difficulty for management 

Analysts also noted Qantas has reduced flight capacity by 10% and hired 3% more staff. In a market update in late June, Qantas advised it has recruited 1,000 new operational team members and hundreds more call centre staff.

Citi is also predicting lower capacity growth and greater cost of available seat kilometres than the market expects, The Australian reported. Analyst Samuel Seow said:

Additionally given what we estimate as a slow start to FY23, we are cautious heading into results given what we expect might be more muted guidance.

Citi has cut the price target by 21% from $5.47 to $4.28.

Qantas has recently been hitting headlines amid flight cancellations and delays. Qantas is due to report FY22 earnings on 25 August.

Qantas share price snapshot

The Qantas share price has climbed 2% in the past year, but it has lost 8% in the year to date.

For perspective, the benchmark ASX 200 index has fallen nearly 7% in the past year.

Qantas has a market capitalisation of nearly $9 billion based on the current share price.

The post Are Qantas shares worth buying ahead of this month’s earnings result? appeared first on The Motley Fool Australia.

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More reading

• Why is Rex smashing the Qantas share price on Tuesday?
• Qantas share price lifts despite airport mayhem
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• What’s happening to the Qantas share price today?
• ‘At tipping point’: Qantas share price slides as chaos continues

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://www.fool.com.au/2022/08/04/are-qantas-shares-worth-buying-ahead-of-this-months-earnings-result/

The gold price has pushed higher this week and now trades at US$1,763 per ounce. That’s around the same levels as it was in October 2021.

Pressure from an upswing in the US dollar and further interest rate hikes from central banks around the world have weighed the yellow metal down this year.

It fell from a peak of US$2,052/t oz in March and has been on a downward slope ever since, as illustrated below.

What’s projected for the gold price?

Many analysts have had a hard time forecasting the trajectory of gold’s price action this year. Traders have reversed trends with sharp recourse on several occasions over the past 12 months.

This week, US House of Representatives Speaker Nancy Pelosi embarked on a trip to Taiwan, the highest level US official to visit the island nation in 25 years.

As Reuters reported, this geopolitical event seemed to impact the price of gold.

“Gold prices advanced on Wednesday as the dollar fell and U.S.-China tensions rose,” it reported.

However, according to Kinesis Money analyst Rupert Rowling, the turbulence may be short-lived, as US Treasury yields and interest rates still dominate the talk of the town.

“Market focus will return to interest rates and the negative long-term impact that is likely to have on gold,” he said.

The impact of interest rates

On Tuesday, the Reserve Bank of Australia (RBA) met for its monthly policy meeting and lifted the cash rate by another 50 basis points to 1.85%.

The cash rate futures market is pricing a 65% probability of a rate increase to 2.35% in the RBA’s next meeting on 3 September, 2022.

The prospect of entering a world of rising interest rates takes some of the shine away from the yellow metal, as the opportunity cost of holding gold while yields are high increases. As the axiom goes, gold pays no interest.

So it becomes a rates story and, with further interest rate hikes likely, this could weigh down the gold price, according to Refinitiv Eikon analysis:

Gold prices rebounded last week after labour market data showed that U.S. jobless claims hit [a] fresh 8 months high, however, anticipation of further rate hikes by the Federal Reserve limited gains.

Gold may hit US$1,650/oz if the Federal Reserve hikes the interest rate as expected.

With that, analysis suggests that investors should pay attention to interest rates, inflation data, and potential geopolitical risks in addition to watching the gold price in FY23.

The post What’s the outlook for the gold price in FY23? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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