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The PayGroup Ltd (ASX: PYG) share price hit a record high of 93.5 cents during early morning trade today.

This comes as investors race to catch up on the company’s latest takeover news.

Since then, shares in the human capital management (HCM) solution company have slightly retraced to 92.5 cents, up 153.43%.

Let’s take a look below at what the company updated the market on.

Deel advances acquisition of PayGroup

In its release, PayGroup announced it has entered into a Scheme Implementation Agreement with Deel, Inc. and Deel Australia.

Established in 2019, Deel helps businesses hire independent contractors and full-time employees by using a tech-enabled self-serve process. The company has a presence in over 150 countries and services more than 8,000 customers.

By way of a scheme of arrangement, Deel is seeking to acquire 100% of the ordinary shares in PayGroup.

Under the terms of the deal, PayGroup shareholders will receive cash consideration of $1 for each PayGroup share held. This represents a 174% premium when compared to yesterday’s closing price of 36.5 cents.

The consideration implies a total value of around $119.3 million, subject to certain customary conditions.

The PayGroup Board noted that it unanimously recommends that all shareholders vote in favour of the Scheme.

If approved along with the court order, the deal is expected to be complete in October 2022.

With investors digesting the company’s latest news today, the PayGroup share price has soared into uncharted territory.

PayGroup managing director, Mark Samlal commented:

We are delighted by this proposed transaction with Deel.

The value offered is testament to the strength of the PayGroup business we have grown over the last 4 years since listing on the ASX in 2018.

We have built a high-quality business with strong, recurring revenues from blue-chip customers across Asia-Pacific and beyond.

We are immensely proud of the achievements of the PayGroup team and we look forward to continuing to build this together as part of Deel, one of the world’s fastest growing and leading global compliance and payroll solution companies.

About the PayGroup share price

Adding to today’s euphoric gains, the PayGroup share price has accelerated by 172% since the start of 2022.

When looking at the past 12 months, the company’s shares are up 101%.

Based on today’s price, PayGroup commands a market capitalisation of around $43.19 million.

The post Guess which ASX software share just rocketed 150% on takeover news appeared first on The Motley Fool Australia.

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More reading

• Own PointsBet shares? Here’s what the SIG investment means for shareholders
• Is NDQ expensive or cheap compared to other ASX ETFs?
• 3 stocks Warren Buffett bought hand over fist as the market plummeted
• Stagflation and gold: Could it be an ideal match for ASX 200 gold miners?
• The Lake Resources share price has crashed 50% since joining the ASX 200 on Monday. What’s going on?

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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The Pointsbet Holdings Ltd (ASX: PBH) share price is tracking lower today and is 6.5% in the red at $2.56.

Despite a slight gain over the past month of trade, the share is down 64% this year to date, or 80% in the past 12 months.

On Monday, the company advised that SIG Sports Investment Corp (SIG) made a strategic $94 million investment via a share placement.

Shares were expected to be quoted from today.

What to expect for PointsBet shares?

PointsBet advised that SIG received 38,750,000 shares for its investment at a price of $2.43 per share.

The investment upped SIG’s stake to 12.8%, making it the company’s largest shareholder.

SIG is a proprietary trading giant, with firms dotted around the world. It also has its hands in many adjacent markets like brokerage, capital management, and sports analytics.

As such, the move gives PointsBet exposure to other markets, and the pair seem to have made a long-term commitment based on the language of the directors.

PointsBet also signed a deal with Nellie Analytics, a subsidiary of SIG.

Under the agreement, Nellie Analytics will provide sports analytics and quantitative modelling services to build out PointsBet’s existing technology.

It remains to be seen what the long-term value the SIG is set to provide, but it will be recognised throughout PointsBet’s financial statements in periods to come.

On the market side, things are much clearer.

Despite the vote of confidence with these two deals, the market was relatively mute to the news.

After a small gain from $2.55 to $2.78, PointsBet shares have continued in their longer-term downtrend today.

By that, we mean the shares have rolled from a previous high of $13 on 24 June last year to just above $2.50 today.

The PointsBet share price hasn’t managed to break away from the selling pressure, as seen below.

The post Own PointsBet shares? Here’s what the SIG investment means for shareholders appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why GrainCorp, PointsBet, Weebit Nano, and Westpac shares are racing higher
• 3 ASX All Ordinaries shares going great guns on Tuesday
• Broker still sees over 100% upside for the PointsBet share price
• Why Appen, Infomedia, PointsBet, and Vicinity shares are storming higher

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 BetaShares Nasdaq 100 ETF (ASX: NDQ) is a unique exchange-traded fund (ETF) on the ASX. It is the only ASX-listed ETF that covers the NASDAQ-100 (INDEXNASDAQ: NDX) Index and NASDAQ shares exclusively.

The NASDAQ is one of the two major stock exchanges over in the United States. It tends to house the newer, tech-focused companies on it, which is why NDQ is often called a tech ETF.

Its largest holdings would be familiar to many ASX investors. They include Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), Tesla Inc (NASDAQ: TSLA) and Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL).

All of these factors have made the NDQ ETF a popular one for ASX investors. The fund now has more than $2.2 billion in assets under management. Perhaps the performance history of this ETF has also helped. NDQ has proven to be one of the ASX’s best-performing ETFs in recent years.

Even though NDQ has taken a hit of more than 36% over 2022 year to date, this ETF has still managed an average performance of 19.94% per annum over the past three years, and 18.15% per annum over the past five.

But has this performance come cheap? What kind of fee does NDQ charge?

Is the NDQ ETF cheap or expensive?

So the BetaShares Nasdaq 100 ETF charges an annual management fee of 0.48% per annum. That’s $48 a year for every $10,000 invested.

That’s objectively on the high side of what many ASX ETFs charge their investors. For example, the most popular ETF on the ASX is the Vanguard Australian Shares Index ETF (ASX: VAS). VAS charges a management fee of 0.1% per annum, or $10 for every $10,000 invested.

Another popular ETF covering US shares is the iShares S&P 500 ETF (ASX: IVV). IVV only charges a fee of 0.04% per annum, or $4 for every $10,000 invested.

But even though these ETFs are cheaper than NDQ, investors would still have been better off in the NASDAQ ETF that VAS or IVV over the past few years.

That’s because VAS has returned an average of 8.95% per annum over the past five years. IVV has averaged 13.95% per annum. That’s not quite in the same ballpark as NDQ’s 18.15% per annum.

Even so, there’s no guarantee that the NASDAQ 100 will continue to beat out the ASX and the S&P 500 going forward. If these other ETFs outshine NDQ over the next five years, its management fee might start looking expensive.

But no doubt investors in the BetaShares Nasdaq 100 ETF would be happy with the returns they have enjoyed up to this point, even with the wobbliness we’ve seen over 2022 thus far.

The post Is NDQ expensive or cheap compared to other ASX ETFs? appeared first on The Motley Fool Australia.

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• Is it time to go bargain hunting for ASX shares?
• 3 high quality ETFs for ASX investors to buy now
• Here’s why the NDQ ETF is down almost 30% in 2022
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• Here’s why the BetaShares Nasdaq 100 ETF could be a buy today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Microsoft, and Tesla. 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 positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and iShares Trust – iShares Core S&P 500 ETF. 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.

Warren Buffett has famously advised to be fearful when others are greedy and greedy when others are fearful, and he has put his money where his mouth is as the market plunged this year. He bought 16 stocks in 2022’s first quarter as other investors were fleeing for the hills.

About half of the stocks he purchased through his holding company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), were additions to positions already owned, and the other half were new positions. Some were already disclosed, and others were surprises. Some of the more unexpected picks were Activision Blizzard (NASDAQ: ATVI), Paramount Global (NASDAQ: PARA), and Ally Financial (NYSE: ALLY). Should you consider them for your portfolio? Let’s take a look.

An easy merger arbitrage deal

Buffett already had a small stake in video game maker Activision Blizzard prior to 2022, so he obviously sees it as a worthwhile stock to own. However, his new interest in the company is in preparation for the company’s acquisition by tech titan Microsoft. The acquisition is set to go through in mid-2023, with Microsoft paying $95 per share, or about a 26% premium to the current price. This could be a risky strategy, since many things can happen between now and then. But the price is highly unlikely to go above $95, and it’s a simple way to see quick gains.

So why isn’t everyone doing this? First of all, although the merger was approved by both parties, there’s still a chance it won’t go through. It’s a riskier play for parties that aren’t backed by Buffett’s billions. The business itself is having a rough time, so individual investors shouldn’t count on a surprise beat to raise the price. In the first quarter, revenue and earnings per share (EPS) both declined. As we get closer to the acquisition date and it seems it will really happen, the price is likely to increase.  

What’s in it for Microsoft, or investors who are sticking around right now? It’s an easy way for Microsoft to enter the gaming space, for one thing. More than that, the company is still developing new games to launch. Gaming companies go through phases as they launch new products and see how well they do. For example, Activision has several launches in the second quarter that it expects to do well. In a positive sign, monthly active users (MAU) increased slightly from the 2021 fourth quarter to the 2022 first quarter.

Activision Blizzard stock has been a market beater, but for now, investors might not want to follow Buffett.

A new name in streaming

Paramount Global is the new name for what was formerly ViacomCBS. The company has jumped on the bandwagon and is investing in its streaming service, Paramount+, but it operates a number of media networks including traditional television (CBS) and cable channels such as Showtime and MTV. It’s not as big as competitors such as Disney and Netflix, but what it does have in its favor is a Buffett favorite — it looks undervalued. 

Revenue decreased 1% from 2021 in the first quarter as customers continued to cord-cut, but streaming, or the direct-to-consumer division, increased 82%. That included a 95% increase in subscription revenue as well as a 59% increase in ad revenue for its ad-supported platform, PlutoTV. Pluto also added 6.3 million new members for a total of more than 67 million MAUs.

Paramount+ added 6.8 million subscribers for a total of close to 40 million. Many of those are crossovers who view content on both platforms. The media company owns such franchises as Star Trek and Sonic the Hedgehog and has new content coming out in both of those series as well as much more. There are many growth levers here.

However, it’s competing with bigger guns, and as the field gets more crowded, Paramount Global may not have what it takes to keep adding viewers and subscribers. That’s the big question mark.

Meanwhile, the shares are down almost 20% this year despite Buffett’s big bet, and at this price they’re trading at only four times trailing 12-month earnings. That’s pitifully low for a company that grew revenue 13% year over year in 2021 and increased earnings per share (EPS) (from continuing operations) by 79%.

More bank stocks to love

Bank stocks make a strong showing in Berkshire Hathaway’s portfolio, and Buffett added a new one, Ally Financial, to the group last quarter. Ally fits right in with Buffett’s model, with cheap shares and a strong culture of giving back to shareholders.

Ally has a large auto-lending unit, which has been its core product for decades. But it also operates a consumer bank, which has been demonstrating sequential growth. It increased to 2.5 million retail banking customers in the first quarter, with $136 billion in deposits, a 6% increase year over year. One of its newer bank ventures, the Ally credit card, had 844,000 active users, up 73% year over year. Net income slightly decreased over last year as it moved money into provisions for credit losses, but revenue increased 10%. Return on common equity was a high 18%.

The company said it would issue $2 billion in share buybacks in 2022, which is a fifth of its entire market cap. It also pays a growing dividend that yields a high 3.7%. That’s partially because the share price has declined more than 30% so far this year. At the current price, the shares also trade at the dirt-cheap multiple of four times trailing 12-month earnings, and less than one times tangible book value, which means they’re trading for less than the value of its assets.

Out of these stocks, Ally looks the most like a no-brainer that individual investors should consider.

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

The post 3 stocks Warren Buffett bought hand over fist as the market plummeted appeared first on The Motley Fool Australia.

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• Representing 40% of Warren Buffett’s portfolio, here is why Apple is a great stock to own today
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Ally is an advertising partner of The Ascent, a Motley Fool company. Jennifer Saibil has positions in Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Activision Blizzard, Berkshire Hathaway (B shares), Microsoft, Netflix, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $145 calls on Walt Disney, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short January 2024 $155 calls on Walt Disney. The Motley Fool Australia has recommended Activision Blizzard, Berkshire Hathaway (B shares), Netflix, and Walt Disney. 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 gold price has wobbled lately having danced around the US$1,800/ounce mark since 9 May. At the time of writing, the yellow metal is priced at US$1,837 per troy ounce.

Meanwhile, according to the Reserve Bank of Australia (RBA), inflation in Australia was 5.1% in the March quarter, “which is the highest rate in many years”.

Among economist circles, there’s been chatter of a potential threat to growth called stagflation.

This is where we have stagnating economic growth/GDP mixed in with rising inflation. Normally, it’s one or the other. So a blend of the two is a threat to productivity and buying power.

Is Australia at risk?

Australia’s economy appears to be within an inflationary cycle, according to the RBA:

When the RBA published its latest set of forecasts in early May, we expected that inflation would peak at around 6% at the end of this year.

The information available since then has led us to push this forecast peak higher. Since early May, petrol prices have risen further due to global developments and the outlooks for retail electricity and gas prices have been revised higher due to pressures on capacity in that sector.

As a result, we are now expecting inflation to peak at around 7% in the December quarter.

Despite the outlook, economic growth forecasts appear robust and in line with longer-term averages.

The RBA also says GDP is forecast to grow by 4.5% over 2022, and by 2% in 2023. RBA data shows this is roughly the average level of growth seen per year from 2014–2018.

What does this mean for ASX 200 gold miners?

The price of gold has held steady in 2022 while equity markets try to regain footing after their sudden fall.

If stagflation were to creep in as an economic issue, historical data shows this could be bullish for gold.

“Of the four business cycle phases since 1973, stagflation is the one that is most supportive for gold and conversely the worst for risk assets,” World Gold Council analysts Johan Palmberg and Krishan Gopaul wrote in March.

Goldman Sachs head of Commodities research, Jeffery Currie also said the “perfect storm” of demand and geopolitical uncertainty could push gold to US$2,500/ounce.

Speaking to Livewire Markets, Perth Mint’s Jordan Eliseo said: “The outlook remains healthy, with several factors suggesting that rather than repeat the post-2011 experience, the bull market in gold will continue.”

He said that gold looks to be in a “far healthier” position than it was in its last bull run in 2011, and that it remains underbought compared to then as well.

“[T]he yield environment, valuations in financial markets, and inflationary dynamics are all more supportive for the precious metal today,” he added.

“Combined, these factors suggest gold’s bull market run could well continue.”

Should the gold price rally once more it would certainly be good news for ASX 200 miners such as Evolution Mining Ltd (ASX: EVN), Northern Star Resources Ltd (ASX: NST) and Newcrest Mining Ltd (ASX: NCM).

The shares are each down 17%, 16% and 5% this year to date respectively, whilst the energy portion of the ASX 200 commodity basket has soared into the green.

The post Stagflation and gold: Could it be an ideal match for ASX 200 gold miners? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Broker says the Northern Star share price weakness could be a golden opportunity
• The Evolution share price hit a 52-week low this month. Here’s why
• 5 things to watch on the ASX 200 on Tuesday

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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This week was supposed to be a celebratory one for the Lake Resources N.L. (ASX: LKE) share price.

On Monday, the lithium developer’s shares joined the crème de la crème when they were added to the illustrious ASX 200 index.

However, what should have been a dream week for shareholders has quickly turned into a nightmare.

With another 20% tumble to 67.5 cents on Thursday, the Lake Resources share price is now down a disastrous 56% this week.

What’s going on with the Lake Resources share price?

There have been a number of catalysts for the weakness in the Lake Resources share price this week.

The first and arguably the biggest catalyst for the selling has been the shock exit of its CEO, Steve Promnitz.

The departure of Promnitz was barely even touched on within the release, with the announcement focusing more on the appointment of chairman Stu Crow as its executive chairman.

Another ominous detail was the lack of any outgoing comments from Promnitz following his exit. Combined with the apparent sale of all of the former CEO’s 10.2 million shares the very next day, it doesn’t point to a happy exit.

What else?

Also weighing on the Lake Resources share price have been concerns over future lithium demand.

This has been driven by news that Germany is looking to backtrack from plans to ban petrol and diesel engine cars in 2035.

If this happens, then long-term electric vehicle numbers could fall short of forecasts, which would inevitably have an impact on demand for lithium.

Finally, another thing that may not have gone down well with the market is the company spruiking a research note from Red Cloud Securities on Twitter, saying “Buy opportunity on sudden stock dip post-CEO departure.”

While the company has done nothing wrong, it isn’t a good look, and it is worth highlighting that last year Red Cloud Securities was issued 1.5 million Lake options that are exercisable at 30 cents before 24 May 2023. It is also paying Red Cloud $10,000 per month in marketing fees.

So, this research report should be read with that firmly in mind.

The post The Lake Resources share price has crashed 50% since joining the ASX 200 on Monday. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why has the Lake Resources share price tumbled another 13% on Wednesday?
• Why Blackmores, Lake Resources, St Barbara, and Zip shares are dropping
• Is this why ASX lithium shares are being crushed 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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The Sayona Mining Ltd (ASX: SYA) share price is tumbling on Thursday despite seemingly good news about one of the company’s Western Australian lithium projects.

Exploration activities at the Mt Edon project have identified potential subsurface lithium targets.

At the time of writing, the Sayona share price is 12 cents, 7.69% lower than its previous close.

In comparison, the All Ordinaries Index (ASX: XAO) is up 0.03%.

Let’s take a closer look at what’s going on with this All Ords lithium share today.

Sayona share price stumbles despite lithium find

The Sayona share price is suffering amid a broader sell-off of ASX lithium shares today. That’s despite seemingly good news from its Mt Edon project.

Exploration at the project, conducted by Morella Corporation Ltd (ASX: 1MC), has mapped 53 pegmatite outcrops within two targets.

A total of 32 samples were taken from the pegmatites, with resulting assays finding the area has the potential for subsurface lithium mineralisation.

While many pegmatites appear narrow and discontinuous, others show apparent thickness and continuity that may evolve into a commercially viable mining opportunity, Morella said.

The two-target project is majority-owned by Sayona. The companies entered into an earn-out agreement last year allowing Morella to earn a 51% stake in the project’s lithium rights. It can do so by spending $1.5 million on exploration at the site over three years.

However, today’s news hasn’t been enough to save the Sayona share price from the broader sell-off among ASX lithium shares.

Other lithium stocks such as Liontown Resources Limited (ASX: LTR), Lake Resources NL (ASX: LKE), and Argosy Minerals Limited (ASX: AGY) are also falling. They are currently down 7.73%, 15.48%, and 3.51% respectively.

Today’s tumble also follows from the 7% fall the Sayona share price experienced yesterday. This came after the company released its investor presentation which highlighted its strategic direction.

The stock is now nearly 14% lower than it was at the start of 2022. Though, it has gained 100% since this time last year.

The post Sayona share price dives 8% despite lithium news appeared first on The Motley Fool Australia.

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More reading

• Considering investing in Sayona shares? Here’s the latest news from the company
• Is this why ASX lithium shares are being crushed today?
• The Sayona Mining share price has crashed 50% in a month. What’s going on?
• Which ASX lithium shares are producing and which are not?
• Why Macquarie still sees ‘material upside’ for ASX lithium shares

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 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 S&P/ASX 200 Index (ASX: XJO) is back in green territory so far today, with the ASX 200 presently up a robust 0.35%.

But the Block Inc (ASX: SQ2) share price is doing even better. Block shares are currently enjoying a healthy 4.14% bump to $88.29 each so far this Thursday.

This move must come with much relief for Block investors, who have had to watch the company slide a depressing 30% over the past month (even after the 8%-plus gains of the past week).

But Block (formerly known as Square) is still down by around half its value over 2022 thus far. So it’s certainly been a trying time for the company’s shareholders. Many of whom would still hold Block shares after the company took over the buy now, pay later (BNPL) pioneer Afterpay earlier this year.

Although Block is listed on the ASX, it is actually a US-based company, whose primary listing is Block Inc (NYSE: SQ) on the New York Stock Exchange.

SQ and SQ2 shares are essentially congruent in value though (factoring in exchange rates), so the company’s US stock has had a similar journey to Block’s ASX shares over this year.

Block shares have got a brand new buyer

We’ve recently got some news that a large buyer is swooping on Block following its steep falls over 2022.

As covered by our Fool colleagues over in the US, we’ve just found out that ARK Invest’s Cathie Wood has bought another US$5 million of Block shares.

Cathie Wood runs one of the most popular exchange-traded funds (ETFs) on the US markets – the ARK Innovation ETF (NYSE: ARKK).

This ARKK ETF has a reputation as the preeminent growth-based ETF on the US markets. It typically invests in companies like Tesla Inc (NASDAQ: TSLA), Shopify Inc (NYSE: SHOP) and Zoom Video Communications Inc (NASDAQ: ZM). 

ARKK has taken a fairly big hit over 2022, but ARKK was a top performer over 2020 and 2021.

According to our colleagues across the Pacific, ARK bought nearly 355,000 Block shares over May. It stopped buying when the company topped US$80 a share. But ARK has resumed buying this week, with another 82,000 shares (US$5 million worth) acquired on Tuesday alone.

Block’s US stock has been trading around US$60 for most of this week. So clearly Cathie Wood is seeing some value in the Block share price right now.

But only time will tell if Block’s current price proves to be a low point for the company going forward.

At the current Block share price, this US tech company has a market capitalisation of US$35.21 billion.

The post Block shares are back on the buy list for this big-name investor appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• These were the worst performing ASX 200 shares last week
• Why Block, Fortescue, GUD, and Humm shares are sinking today
• ASX 200 midday update: GUD crashes, tech shares tumble
• Block share price sinks again and is now down over 50% since its ASX listing

Motley Fool contributor Sebastian Bowen has positions in Block, Inc., Tesla, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Shopify, Tesla, and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Zoom Video Communications. 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 has started the day well and is now trading around 4% higher at 68.5 cents apiece.

Despite the gain today, Mesoblast shares have struggled since April. They are down around 40% since that time, in continuation of a longer-term downtrend.

Mesoblast is also down 51% this year to date, amid a heavy sell-off in ASX tech shares. In the last 2 weeks, a plunge in the broader market has pulled the share lower.

What’s up with the Mesoblast share price?

Investors have been selling the Mesoblast share price down on no news. The company did release its financial and operational highlights for the last quarter on 1 June, however, the market was unfazed.

In fact, shares have been trending south for over 1 year now, having fallen hard from a sharp peak of $4.60 in December 2020.

Since then, shares have rolled lower and now trade at both 2-year and 52-week lows.

With the trend in place, there’s been no support from the market, not in 2022 anyway. The S&P/ASX All Technology Index (ASX: XJO) is also at yearly lows having sunk 38% this year to date.

Furthermore, Mesoblast has seen proceedings started against it in a Federal Court of Australia back in May.

According to TMF at the time, the claimant – someone who bought shares between 2018-2020 – alleges Mesoblast “engaged in unlawful conduct that misled the market about remestemcel-L”.

“Mesoblast has reportedly faced multiple class actions in the US on similar allegations,” TMF added.

Nevertheless, the Mesoblast share price has tumbled more than 69% into the red over the last 12 months, as seen below.

The post Why has the Mesoblast share price crashed 40% since April? appeared first on The Motley Fool Australia.

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More reading

• Mesoblast share price spikes amid ‘substantial reduction in operational spend’

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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The Fortescue Metals Group Limited (ASX: FMG) share price is sliding today, down 3.8% to $17 per share.

And it’s not just Fortescue shares under pressure.

The BHP Group Ltd (ASX: BHP) share price is down 2.7% and rival S&P/ASX 200 Index (ASX: XJO) mining share Rio Tinto Limited (ASX: RIO) has dropped 2.9% today.

So, what’s going on?

All eyes on China

Iron ore prices have slipped again, down 5.6% overnight to US$109 a tonne.

Iron ore topped US$144 earlier this month as investors digested news that China was easing its pandemic lockdown measures and the government was ramping up stimulus measures.

That saw the Fortescue share price at $21.63 on 8 June. Shares are down 21% since then.

China is the world’s largest importer of iron ore, a core steel making ingredient, and it’s the chief destination for Aussie exports. But prices for iron ore and the companies that dig the metal from the earth have come under pressure amid a falling outlook for demand from the Middle Kingdom.

According to Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group Ltd (ASX: ANZ), courtesy of The Australian Financial Review, “The promise of more economic support in China failed to boost sentiment. Expectations of a rebound in the real estate sector have slowly fallen as renewed outbreaks of COVID-19 lead to further lockdowns.”

Lachlan Shaw, co-head of mining research at UBS added, “There was a lot of expectation built into the iron ore price about more stimulus and construction in China in the second half, so to have signals coming through that counter that is testing the market’s patience.”

As for the growth outlook for the latter half of 2022, Caroline Bain at Capital Economics said (quoted by the AFR):

We expect China’s output to grow in y/y terms in the second half of the year given the much lower base. However, we still only forecast growth of around 1% this year given the government’s ongoing efforts to reduce the energy intensity of activity and carbon emissions. Demand, particularly from the residential property sector, is also likely to be subdued.

Fortescue share price snapshot

The Fortescue share price hasn’t escaped the wider selling pressure in 2022, down 14%. That compares to a year-to-date loss of 14% posted by the ASX 200.

Longer-term, Fortescue shares have widely outperformed, up 265% in five years.

The post Why is the Fortescue share price sinking 4% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: Pilbara Minerals’ lithium price update, BHP tumbles
• Can the Fortescue share price hold up if the iron ore price falls?
• 5 things to watch on the ASX 200 on Thursday
• Could China ‘steel’ the show for the iron ore price?
• ‘I don’t know of a better industry to be pivoting towards’: Twiggy talks up hydrogen play amid soaring fuel costs

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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