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The Galileo Mining Ltd (ASX: GAL) share price is seeking direction today.

Shares in the ASX resource explorer closed yesterday at $1.23 and are currently trading for $1.21. That puts shares down 1.6% at the time of writing after opening 2% higher.

This comes after the miner reported on a fresh round of promising drill results.

What results did Galileo announce?

The Galileo share price is dipping into the red despite a positive update. The news is regarding its second reverse circulation (RC) drill campaign at Galileo’s Callisto discovery at the Norseman project in Western Australia.

The miner has completed 11 new drill holes. It reports that all 11 holes intersected disseminated sulphide mineralisation similar to what was intersected in its first round of drilling. Assays show the sulphide layer to be associated with palladium, platinum, gold, rhodium, nickel and copper metal.

According to the release, mineralisation is open in all directions and dipping to the east further onto Galileo’s granted mine lease.

Galileo managing director Brad Underwood commented on the fresh results:

The results again confirm the consistency of the geology over the target area and all drill samples are now at the laboratory for analyses with assays expected in August.

A new Program of Works has been approved by the Department of Mines which allows us to complete wide-ranging drill programs along two kilometres of prospective strike length. Preparation for the next round of drilling will now begin and we expect to have RC drilling commencing again in late July, followed by diamond drilling in August.

With a nod to the costs involved in the ongoing exploration, Underwood adds, “Our recent well-supported capital raise means we are fully funded to undertake the significant amount of drilling required to define a discovery of this nature.”

Galileo share price snapshot

The Galileo share price has been a top performer for 2022 since lifting off in early May.

Year to date shares in the ASX resource explorer are up 432%. For context, that compares to a calendar year loss of 15% posted by the All Ordinaries Index (ASX: XAO).

The post Up 430% in 2022, Galileo share price wobbles today despite strong drill results appeared first on The Motley Fool Australia.

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More reading

• Why is the Galileo Mining share price galloping 17% higher today?
• What’s behind the frozen Galileo Mining share price today?
• Why Beach, BHP, Bubs, and Galileo Mining shares are sinking
• Here’s why the Galileo Mining share price is charging higher today

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 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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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is trading lower on Wednesday morning.

At the time of writing, the ANZ share price is down 1% to $22.47. This compares to modest declines by the rest of the big four banks.

Why is the ANZ share price falling?

Investors have been selling down the ANZ share price this morning after the bank finally confirmed speculation that it is interested in making a major software acquisition.

According to the release, the banking giant is currently in discussions with private equity firm Kohlberg Kravis Roberts & Co. (KKR) about a potential acquisition of MYOB.

MYOB is a leading business platform provider taking on QuickBooks and Xero Limited (ASX: XRO). It delivers end-to-end business and accounting solutions direct to businesses employing between 0 and 1000 employees, alongside a network of accountants, bookkeepers and consultants.

Based on the ANZ share price performance, it appears as though not everyone is convinced that this is the right move by the bank.

What’s the latest?

The release reveals that discussions between ANZ and KKR are ongoing and the parties have yet to reach an agreement in relation to the acquisition. In light of this, the bank has warned that there is no certainty it will proceed.

However, should the transaction proceed, it would be subject to regulatory approvals. This includes approvals from the Australian Competition and Consumer Commission (ACCC) and the New Zealand Overseas Investments Office.

ANZ advised that it will make an announcement to the market if the negotiations are successfully completed and an agreement is entered into.

How much would ANZ pay for MYOB?

No details have been provided in respect to a potential acquisition price. However, it is worth noting that KKR paid $2.4 billion to acquire MYOB in 2019. So, it certainly won’t be small acquisition.

Furthermore, Xero has a market capitalisation of $12.75 billion on revenue of ~A$1 billion during the 12 months to 31 March.

MYOB reported revenue of approximately $500 million for calendar year 2021.

The post ANZ share price drops amid MYOB takeover talks appeared first on The Motley Fool Australia.

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• Are falling BNPL shares pushing the ASX banks higher today?
• Here are the 5 best ASX 200 bank shares of FY22
• ANZ shares offer the best dividend yield of the big four in July
• Why did the ANZ share price plunge 22% in FY22?
• Here are 2 ASX 200 dividend shares analysts rate as buys

Motley Fool contributor James Mickleboro 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 Regis Resources Limited (ASX: RRL) share price had a tough financial year. However, it is bouncing back at the start of FY23 following strong gold production results in the June quarter.

This ASX gold explorer’s shares descended from $2.39 at market open on 1 July 2021 to $1.30 at market close on 30 June 2022. This is a nearly 46% fall. In today’s trade, the Regis Resources share price is rising 0.68%.

Let’s take a look at how this ASX gold explorer performed during the year.

Share price falls

The Regis Resources share price fell in FY22, but it was not alone among ASX gold explorers. The Evolution Mining Ltd (ASX: EVN) share price dropped nearly 48% between market open on 1 July 2021 and 30 June 2022.

Regis explores gold in the north eastern goldfields in Western Australia and the central western area of New South Wales.

In January, the Regis share price suffered amid a negative note out of Goldman Sachs. The broker retained a sell rating and cut the price target on the company’s shares to $1.90.

The company’s share price also fell following an update on its FY22 guidance. Production guidance was cut to between 420,000 to 475,000 ounces of gold, down from 460,000 to 515,000 ounces.

In early April however, Regis shares benefited from a positive broker note released by Credit Suisse. Analysts maintained an outperform rating and lifted the price target on the company’s shares.

In May, Regis shares were among the top most shorted stocks on the ASX. As my Foolish colleague Zach reported, this short interest may have been related to cost pressures and labour shortages. The gold price also fell 2% during the month. However, multiple analysts still kept a buy rating on the stock.

Bouncing back

Regis reported record gold production in the June quarter of 123,901 ounces.

For FY22 overall, the company reported record gold production of 437,300 ounces. The company also reported that its cash and bullion jumped to $227 million at 30 June 2022 from $167 million at the end of March.

Managing director Jim Beyer said:

We are very pleased to deliver a record quarter of gold production for the June 2022 quarter. We have seen reliable delivery on our improvement plans that were developed and implemented to address the operational challenges we experienced in the first half of the year.

This has seen the company deliver an improved performance despite the challenging external conditions

On the back of this update, the company’s share price appears to be bouncing back. Regis shares have jumped more than 13% since market close on 30 June.

This ASX gold explorer has a market capitalisation of about $1.1 billion based on its current share price.

The post Down 46% in FY22, could this ASX gold explorer’s shares be bouncing back? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 midday update: BHP and Fortescue sink, EML and ZIP jump
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher

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.

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While the ASX moves sideways ahead of the United States June inflation report, the South32 Ltd (ASX: S32) share price is backtracking today.

South32’s shares are in decline amid an announcement by the company regarding the partial acquisition of its portfolio of royalties.

At the time of writing, the mining outfit’s shares are down 2.54% to $3.46.

For context, the S&P/ASX 200 Index (ASX: XJO) is just 0.02% lower to 6,604.8 points.

South32 offloads non-core base metals royalties

Investors are offloading South32 shares on the back of the company’s release to the ASX late Tuesday afternoon.

In its statement, South32 advised it has entered into a binding agreement with the Anglo Pacific Group. This will see the sale of four non-core base metals royalties for an initial amount of US$185 million.

The base metals royalties concern advanced development stage copper and nickel projects in Australia, Chile, and the United States.

South32 stated there are no conditions required to proceed with the transaction which will be completed within five business days.

The fixed consideration includes US$103 million in cash and US$82 million in Anglo Pacific shares to be issued to South32.

However, a further US$15 million is subject to a contingent payment.

Once the transaction is wrapped up, South32 will hold an approximate 16.9% interest in Anglo Pacific.

South32 CEO Graham Kerr commented:

Today’s sale of another non-core royalty package is a further step forward in unlocking latent value from our portfolio.

The proposed transaction will realise an immediate cash payment, while also retaining long-term exposure to these royalties through our shareholding in Anglo Pacific.

Following the sale, we still retain an exciting package of 36 royalties at different stages of maturity, weighted towards base metals.

About Anglo Pacific

Listed on the London Stock Exchange, Anglo Pacific is a global natural resources royalty and streaming company.

With a diversified portfolio of 16 assets, its business model provides investors with a de-risked exposure to the mining sector.

Anglo Pacific has a strong balance sheet and uses its free cash flow to grow its portfolio and pay dividends.

South32 share price snapshot

Regardless of today’s decline, it has been a positive 12 months for South32 shares, climbing close to 18%.

However, in 2022 alone, its share price is down by around 14% following a fall in commodity prices, such as for aluminium and nickel.

South32 has a price-to-earnings (P/E) ratio of 11.59 and commands a market capitalisation of roughly $16 billion.

The post South32 share price backtracks amid sale of royalties appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Broker names 2 blue chip ASX 200 shares to buy this month
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Aaron Teboneras 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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It’s not an easy job to run an ASX-listed company.

You have the financial fate of thousands of investors, creditors and staff in your hands. That’s a massive load of responsibility few of us would ever feel.

But does that justify their high take-home pay?

It’s the perennial “pub test” that the corporate world grapples with.

Many Australians feel that no one’s skill and expertise is worth tens of millions of dollars each year.

But we accept that elite athletes earn huge salaries because they possess a rare skill. So why is the Average Joe so contemptuous about people who use their brains receiving just as much?

Is there a bias towards physical prowess over the intellectual?

While we mull over these issues, the Australian Council of Superannuation Investors this week released its latest annual list of the 10 highest-paid chief executives in the S&P/ASX 100 (ASX: XTO).

The rankings are based on “realised pay” in the 2021 financial year.

Rank	Chief executive	Company	Realised pay
1	Anthony Eisen and Nick Molnar	Afterpay (now Block Inc (ASX: SQ2))	$264,222,249
2	Paul Perreault	CSL Limited (ASX: CSL)	$58,914,531
3	Greg Goodman	Goodman Group (ASX: GMG)	$37,105,490
4	Shemara Wikramanayake	Macquarie Group Ltd (ASX: MQG)	$14,693,343
5	Brad Banducci	Woolworths Group Ltd (ASX: WOW)	$11,788,098
6	Elizabeth Gaines	Fortescue Metals Group Limited (ASX: FMG)	$11,119,309
7	Mike Henry	BHP Group Ltd (ASX: BHP)	$10,464,599
8	Chris Ellison	Mineral Resources Limited (ASX: MIN)	$9,452,857
9	Magnus Nicolin	Ansell Limited (ASX: ANN)	$9,292,432
10	Andrew Barkla	IDP Education Ltd (ASX: IEL)	$9,252,820

Bonuses out of control?

Afterpay co-founders Anthony Eisen and Nick Molnar set a joint record, taking home more than $100 million each. This massive payday happened after they exercised their $1 options when the actual share price was almost $90 last year.

“Even without their windfall, a new record high would have been set by CSL’s Paul Perrault (who also set the last record in FY20) with realised income of $58.9 million.”

The take-home pay for CEOs has ballooned significantly after an initial COVID-19 pandemic dip, according to ACSI.

The organisation attributed this to a return of large bonuses. The proportion of bonuses out of total pay increased from 31% to 76.7%, setting a new record.

“After their lowest year on record, big bonuses have… hit new heights,” said ACSI executive manager Ed John.

“That’s why investors, and ACSI, will be scrutinising closely the results-reporting season to see if this concerning trend of bonus ‘catch-up’ continues.”

John insisted that bonuses should not be awarded for business-as-usual performance but be a genuine reward.

“Payments to senior executives have to be aligned with value created for shareholders and reflect true outperformance,” he said.

“This year’s outcomes will be judged against a backdrop of difficult financial markets and an uncertain economic outlook.”

The post $264 million! The 10 highest-paid CEOs on the ASX appeared first on The Motley Fool Australia.

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• Why this broker says the IDP Education share price can rise almost 50%
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• Investors were seeking out ASX shares in June. Here’s why

Motley Fool contributor Tony Yoo has positions in CSL Ltd. and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., CSL Ltd., and Idp Education Pty Ltd. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Ansell Ltd. and Macquarie Group 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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It’s easy to become hyper-focused on bad times, but investors in Wesfarmers shares might want to look at the company’s strong long-term performance instead. While this year has been rough on the Wesfarmers share price, the S&P/ASX 200 Index (ASX: XJO) stock has been dutiful over the last five years.

In fact, investors who have held the retail-focused conglomerate’s stock for that time have been rewarded in spades.

Not only have they watched the Wesfarmers share price grow 50%, but the company has also handed out nearly a quarter of its current share price in dividends.

At the time of writing, Wesfarmers shares are trading for $45.23.

Read on to find out how much of the company’s earnings it has handed back to shareholders over the last five years.

Wesfarmers shares offer $10.49 in dividends over 5 years

Yes, you read that right. Wesfarmers has handed investors $10.49 per share in dividends over the last half-decade.

Here’s a breakdown of all the dividends paid by Wesfarmers shares in that time:

Wesfarmers dividends	Amount offered
August 2017 (final)	$1.20
February 2018 (interim)	$1.03
August 2018 (final)	$1.20
February 2019 (interim and special)	$1 and $1
September 2019 (final)	78 cents
February 2020 (interim)	75 cents
August 2020 (final and special)	77 cents and 18 cents
February 2021 (interim)	88 cents
September 2021 (final)	90 cents
February 2022 (interim)	80 cents

The largest dividend offered by the company in that time was $1.20. It handed investors such an amount twice — first at the end of financial year 2017 and again at the end of financial year 2018.

It also offered two special dividends worth $1 and 18 cents respectively. The latter was offered in 2020 and included proceeds from the sale of a significant stake in Coles Group Ltd (ASX: COL).

It’s also worth mentioning that each of Wesfarmers’ payouts have been fully franked, meaning they could save some shareholders some extra coin at tax time.

As of Tuesday’s close, Wesfarmers’ shares were trading with a 3.8% dividend yield.

The post How much have Wesfarmers shares paid in dividends over the last 5 years? appeared first on The Motley Fool Australia.

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More reading

• Broker names 2 more blue chip ASX 200 shares to buy in July
• What’s the outlook for the Wesfarmers share price over the rest of 2022?
• Does the FY23 outlook make ASX retail shares look like bargains?
• Analysts name 2 ASX 200 blue chip shares to buy
• What’s the outlook for ASX 200 dividend shares in FY23?

Motley Fool contributor Brooke Cooper 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 positions in and has recommended COLESGROUP DEF SET and Wesfarmers 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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The Evolution Mining Ltd (ASX: EVN) share price was among the worst performers on the ASX 200 during the 2022 financial year.

The gold miner’s shares lost 47% of their value during the 12 months.

Why did the Evolution share price get crushed?

Interestingly, the majority of this decline came in the final month of the financial year following the release of an abject update.

Investors were selling down the Evolution share price in June after the company revealed that it expects to record a decline in production in FY 2022 with higher than expected costs.

Evolution is forecasting total production of 640,000 ounces with an all-in sustaining cost (AISC) of approximately $1,250 an ounce.

This compares to 680,788 ounces and an AISC of $1,215 an ounce a year earlier.

What are brokers saying?

This update didn’t go down well with analysts at Credit Suisse. In response, the broker reiterated its underperform rating and slashed its price target by 28% to $2.70.

Elsewhere, analysts at Citi responded by retaining their neutral recommendation (now with a high risk rating) and cutting their price target by 28% to $3.30.

Citi appears to believe the company’s outlook is extremely cloudy and isn’t expecting any cash generation for a few years.

Citi explained:

There’s a lot to unpack after today’s higher-cost, lower ounce outlook including read-through to the rest of our coverage. In Nov’21, EVN had expected to do +900koz in FY24 @ A$1050/oz vs today’s 800koz @ $1240/oz. We’ve cut our TP from $4.60/sh to $3.30/sh trimming EBITDA by almost 20% next year.

After today’s +21% sell off vs XGD -7%, EVN is now trading on ~0.90x P/NAV. EVN’s usually hefty valuation premium is gone. On our gold deck and including debt repayments, we’re not expecting EVN to make any cash until FY25, and that hinges on Red Lake. We thus assign a High Risk rating; without conviction on the Red Lake turnaround, Mungari plus our sideways tracking gold price it’s hard to be more positive here.

All in all, it looks set to be a tough few years for the company. In light of this, it isn’t overly surprising to have seen the Evolution share price fall so hard over the last 12 months.

The post Why did the Evolution share price crash 47% in FY22? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
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• 2 ASX 200 gold mining shares getting plastered with new multi-year lows
• Is now the time to be buying beaten down ASX 200 mining shares?
• Losing their shine: 3 ASX 200 gold shares hitting new 52-week lows today

Motley Fool contributor James Mickleboro 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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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.

One of the more dramatic stories of 2022 is closing — Elon Musk is terminating his deal to buy Twitter (NYSE: TWTR). News of this sent Twitter’s stock about 6% higher after hours to $34, still well short of the $54.20 per share Musk was offering.

While Musk may be through, is this an opportunity for investors to take a position in Twitter? After all, Twitter is one of the most popular social media companies.

Shaky user data

First, it may be good to understand why Musk terminated the deal. The biggest sticking point for the deal was Twitter’s refusal to provide complete data on fake or spam bots. This data is critical, as it determines how many of its users can be monetized. Most of Twitter’s revenue is derived from advertising (93% during the first quarter). If Twitter can’t guarantee that most ad viewers are humans, then the price companies are willing to spend on ads is substantially reduced.

Twitter has long claimed the number of bots is less than 5% of total users, but Musk wanted to confirm those numbers for himself.

In the first quarter, Twitter reported monetizable daily active users (mDAU) of 229 million. However, they also had to revise previously stated mDAUs for the last five quarters due to an error in how they were calculated. This mistake instils less confidence in management’s ability to report mDAUs accurately. 

Throw in their refusal to provide Musk with the data he wants, and it makes investors wonder what they can trust.

Twitter fires back

Twitter’s management isn’t just going to let a $54.20 per share offer walk away (especially when there’s a $1 billion breakup fee Musk is claiming he wouldn’t need to pay). It responded by issuing a letter that claimed Twitter had not violated any of the obligations under its agreement. It also stated that Musk and his party “knowingly” and “willingly” breached the terms of the initial contract.

This breakup will get ugly and will likely end up in court.

While not legally required to do so, the letter did not disclose if Twitter had actually given Musk the user data he was requesting. Whether this was intentionally left off or not, it does leave outsiders wondering what is really going on.

What’s next?

As mentioned above, this acquisition will likely end up in court. This battle would incur significant legal fees and consumer time from Musk and Twitter executives. A few ways it could shake out:

• Musk (or Twitter) pays the $1 billion breakup fee, and each entity goes its separate ways without the long, drawn-out court battle.
• The courts force Twitter to disclose the data Musk wants, which still leaves the question open if management was truthful or not, leaving Musk a door to still back away.
• The courts side with Twitter, and Musk would need to decide if he wants to continue his acquisition.

None of these options are ideal, and with the growing animosity between the two parties, each may want to prove that they are right.

However, with the stock now trading well below its buyout price, is this a prime opportunity to make an even larger arbitrage gain?

Should you use this opportunity to buy Twitter stock?

Unlike user data, financials are much easier to audit. However, they also aren’t much better.

In Q1, revenue rose 16% YOY (year-over-year) to $1.2 billion. But, expenses rose faster at a 35% clip. This increase was primarily driven by an astounding 60% increase in stock-based compensation, diluting shareholders.

Twitter was profitable in the quarter, but only because it sold MoPub (a mobile ad publishing platform) for $1.05 billion. Without that, it would have lost about $128 million in the quarter.

However, many companies are likely reading the termination letter sent by Musk and noting Twitter’s refusal to provide relevant user data. This refusal will likely have long-term damaging effects on Twitter’s advertising brand. If management can’t provide a suitor the data he needs to close a deal, what makes prospective customers believe the 5% spam account figure is accurate?

As an investor, I don’t have a lot of faith in management. This sentiment was echoed by Musk and former CEO and co-founder Jack Dorsey. So if these two have no confidence, why would I?

There are plenty of better investments available in the market, and I think investors should appreciate the entertainment value of this acquisition more than the potential investment value.

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

The post What’s next in the Elon Musk and Twitter saga? appeared first on The Motley Fool Australia.

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Keithen Drury 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 Twitter. 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.

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

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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 

Apple (NASDAQ: AAPL)‘s stock, like most other technology stocks, has taken investors on a rollercoaster ride this year. While the company’s share price was volatile in the first few months of 2022, a significant downward trend began after the company reported second-quarter results in late April. 

The stock hasn’t recovered since. Year to date, Apple is down 17%, according to data provided by S&P Global Market Intelligence. This is mostly because investors are concerned that Apple won’t escape the effects of supply chain shortages and a potentially slowing economy. 

So what 

Investors fell into a pessimistic mode in late April after Apple released its second-quarter financial results. Apple beat analysts’ consensus estimates for both top and bottom lines, but investors latched on to comments made by the company’s management.

On the company’s earnings call, CEO Tim Cook said that Apple was “not immune” to supply chain problems caused by COVID-19, chip shortages, and the war in Ukraine. 

Apple’s chief financial officer, Luca Maestri, spoke more specifically about the company’s supply chain problems and said they could hurt Apple’s sales in the third quarter by as much as $8 billion. 

“Supply constraints caused by COVID-related disruptions and industrywide silicon shortages are impacting our ability to meet customer demand for our products. We expect these constraints to be in the range of $4 billion to $8 billion, which is substantially larger than what we experienced during the March quarter,” Maestri said. 

Clearly, investors didn’t want to hear that Apple’s sales could be affected to this degree and sent the stock on a downward path. 

Now what 

Apple investors will want to keep a close eye on the company’s third-quarter results, which will be released on July 28. The results should shed some light on how bad supply chain difficulties have become for Apple and if the company has experienced any pullback in consumer demand. 

With inflation still at its highest level in nearly 40 years and the Federal Reserve focused on hiking the federal funds rate in order to bring it back down, it’s likely that Apple investors could experience some more short-term volatility from the stock as the market reacts to a potential economic slowdown. 

But long-term investors should also consider that while temporary supply constraints could affect the company, Apple still has the potential to be a great investment. First off, the company still generates tons of cash — $28 billion in operating cash flow in the recent quarter — which will help it weather any potential economic slowdown better than other companies. 

And while Apple’s stock isn’t necessarily cheap right now, its shares trading at 23 times the company’s forward earnings, the recent stock sell-off does give investors an opportunity to add some shares of this immensely profitable company at a relative discount. 

Lastly, Apple continues to both add value to shareholders through buybacks and invest in new products. The company added $90 billion to its share repurchase program in the most recent quarter and could enter a new product segment within the next year. 

With Apple’s shares down this year — and the company still in a very strong financial position — investors may want to consider snatching up some shares of Apple right now.

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

The post Why Apple stock is down 17% so far this year appeared first on The Motley Fool Australia.

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• Why Meta, Amazon, and Apple shares were falling today

Chris Neiger has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. 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. 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 Xero Limited (ASX: XRO) share price has had a rough time over 2022, falling by over 40%. However, according to experts, the ASX tech share could be a leading opportunity for the next year.

Xero is one of the biggest technology businesses on the ASX, with a market capitalisation of $12.6 billion.

Like many other businesses, the Xero share price has sunk amid rising interest rates and strong inflation.

While a lower price doesn’t automatically make a business a better investment, it can certainly give a bigger margin of safety.

Broker ratings

Citi currently has a buy rating on Xero, with a price target of $108. This implies a potential rise of around 28% over the next year. A key reason for that optimism is the company’s plans to increase prices for subscribers in New Zealand, Australian and United Kingdom markets.

As I reported in June, these increases are for high-single-digit to mid-teen increases in percentage terms.

With these increases, Citi believes the average revenue per user (ARPU) will increase by high single digits, which will help grow operating revenue. The broker notes that Xero is increasing prices more regularly, which could suggest Xero believes it has a strong market position.

Morgans is another broker with a positive outlook. The broker has an add rating on Xero and a price target of $90.25. Ongoing growth of subscribers and ARPU could help things.

Latest growth numbers

The latest that investors have heard is Xero’s FY22 result. Many of its numbers went the right way.

Operating revenue rose by 29% to NZ$1.1 billion. Total subscribers rose by 19% to 3.3 million. And annualised monthly recurring revenue (AMRR) rose 28% to NZ$1.2 billion. The ARPU increased 7% to NZ$31.36. Xero’s gross profit margin went up 1.3 percentage points to 87.3%. It also said that the total lifetime value of subscribers jumped 43% to NZ$10.9 billion. Further growth of these statistics could be supportive for the Xero share price.

Xero CEO Steve Vamos spoke of why the company is seeing growth and what it’s planning to do:

The value Xero brings to our small business customers and the trust they place in us is illustrated by this result. Our strong revenue and subscriber growth gives us confidence to continue to invest for growth consistent with our long-term strategy.

Our performance reflects the quality of our customer and partner relationships as more people realise the benefits that cloud accounting and digital tools provide.

We are committed to delivering the world’s most insightful and trusted business platform by focusing on driving cloud accounting adoption, growing the small business platform and building for global scale and innovation. We continue to prioritise investment in building products and growing partnerships by investing cash generated to help deliver our strategy, drive long-term growth and meet customer needs.

Xero share price snapshot

Over the past month (since market close on 14 June), the Xero share price has risen by nearly 3%.

The post This broker sees 30% upside for the Xero share price over the next year appeared first on The Motley Fool Australia.

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More reading

• Here’s why Goldman Sachs sees lots of value in the Xero share price
• Down 40% in 2022: Is the Xero share price a buy today?
• Here are the top 10 ASX shares today
• Why are ASX 200 tech shares sprinting higher today?
• How did Xero shares do in the 2022 financial year?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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