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It has been a disappointing year so far for the Aristocrat Leisure Limited (ASX: ALL).

Since the start of 2022, this gaming technology company’s shares have lost a quarter of their value.

Where next for the Aristocrat share price?

While the Aristocrat share price performance has been very disappointing for shareholders, it could prove to be a buying opportunity for others.

That’s the view of analysts at Morgans, which have recently named the company among its top picks on the Australian share market.

According to the note, the broker has an add rating and $43.00 price target on its shares. Based on the current Aristocrat share price of $33.91, this implies potential upside of 27% for investors over the next 12 months.

What did the broker say?

Morgans notes that Aristocrat has a leadership position in two growing markets and is generating significant recurring revenue.

Pleasingly, the broker expects this to continue and is tipping its pokie machine and digital businesses to continue winning market share. It explained:

ALL is a global market leader in the rapidly growing land-based gaming and mobile gaming industries. It has delivered revenue growth of 17% pa over the past five years and 80% of revenue in FY21 was recurring. We expect ALL to continue to take market share in all its product segments. Demand for its gaming machines and digital games is resilient to economic cycles.

Morgans also highlights that the Aristocrat share price has derated to a very attractive level. This is despite its positive outlook and very strong balance sheet, which provides it with M&A opportunities even after its recently announced share buyback.

The recent underperformance of the shares may have been a function of concern about ALL’s exposure to Ukraine, although it has recently stated that 75% of its staff there have relocated to safer locations and there is no material impact on earnings.

The underperformance means, however, that ALL’s 1-year forward P/E has derated to less than 20x from a high of 30x last September. With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. It has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.

The post Broker says Aristocrat share price is great value with 27% upside appeared first on The Motley Fool Australia.

More reading

• 2 stellar ASX growth shares analysts are tipping as buys this month
• Buy these 2 ASX shares going for a 25% discount: Morgans
• Experts pick 2 ASX shares to buy that move wealth around
• Analysts name 2 ASX growth shares to buy with major upside potential
• Looking to secure the Aristocrat biggest-ever dividend? Here’s what you need to do

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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If you’re looking for exposure to the financial sector, then it could be worth looking closer at the shares listed below.

The ASX 200 financials shares have been rated as buys by analysts at Morgans and tipped to provide strong returns for investors. They are as follows:

Macquarie Group Ltd (ASX: MQG)

Morgans is a fan of this investment bank and has an add rating and $215.00 price target on its shares. Based on the current Macquarie share price of $182.90, this implies potential upside of 18% for investors over the next 12 months.

The broker likes Macquarie due to its exposure to structural growth markets such as decarbonisation. It commented:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while the company continues to gain market share in Australian mortgages.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX 200 financials share that Morgans is bullish is on this insurance giant. Its analysts currently have an add rating and $14.45 price target on its shares. Based on the current QBE share price of $12.14, this suggests potential upside of 19% for investors.

Morgans believes QBE is well-placed to grow its earnings thanks to rate increases and cost reductions. It also feels the company’s shares are relatively cheap at the current level. The broker explained:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~14x FY22F PE.

The post 2 ASX 200 financials shares named as buys appeared first on The Motley Fool Australia.

More reading

• The Macquarie share price has lost 10% in a month. So what’s the dividend yield now?
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• What’s the outlook for the Macquarie share price in June?
• Why is the Suncorp share price cratering today?
• 3 quality ASX 300 shares with dividend reinvestment plans

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 recommended 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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The A2 Milk Company Ltd (ASX: A2M) share price has been struggling again in 2022.

Since the start of the year, the infant formula company’s shares have fallen 17% to $4.62.

This means the A2 Milk share price is now down 38% from its 52-week high.

Where next for the A2 Milk share price?

According to a note out of Bell Potter, its analysts feel the A2 Milk share price is about fair value at the current level.

This morning the broker retained its neutral rating and $4.75 price target on the company’s shares, which is just a touch higher than where it currently trades.

What did the broker say?

Bell Potter has been looking at industry data and notes that it paints a mixed picture.

For example, it highlights that exports from Australia to China were up 25% year on year in April. This data is seen as a proxy for daigou trade, which bodes well for demand from that channel.

However, conversely, its analysts note that Christchurch exports (sea + air) to China were down 23% year on year in April. This is disappointing given how there has been a high correlation between the value NZ exports to China and A2 Milk’s reported Chinese revenues.

Another potential headwind that the broker highlights is the cost of ingredients. Bell Potter estimates that its index of ingredients was up 46% year on year in May, averaging out to be a 31% increase year to date. And as there is a lag between when ingredient costs lift and then materialise in its financials, the broker is expecting the majority of its cost of goods inflation to emerge in FY 2023.

As a result, Bell Potter continues to forecast relatively modest profit growth through to FY 2024. At which point, its net profit estimate of NZ$136.2 million will still be less than half of its pre-COVID FY 2019 profit of NZ$287.7 million.

In light of this, the broker believes the A2 Milk share price is trading at a fair level and sticks with its hold rating.

The post Where next for the A2 Milk share price? appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• Is it time to buy A2 Milk and Treasury Wines for better China relations?
• These were the best performing ASX 200 shares last week
• What to do with these 3 pummelled ASX shares: advisor
• Can A2 Milk shares cash in on a US deal like Bubs?

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 recommended A2 Milk. 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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Australia and New Zealand Banking Group Ltd (ASX: ANZ) isn’t about to let the ructions surrounding last month’s collapse of Terra’s US dollar pegged stablecoin, TerraUSD (CRYPTO: UST), and its supporting token, Terra (CRYPTO: LUNA), derail its own stablecoin project.

Word of ANZ’s stablecoin, called A$DC, first broke back in March, as the Motley Fool reported here.

A$DC is pegged to the Aussie dollar. And unlike Terra’s algorithmic stablecoin offering, which relied heavily on users’ confidence to maintain its peg, ANZ’s token is fully backed by Australian dollars.

Now you and I won’t be able to transact with A$DC just yet. It’s still undergoing a number of reviews by various financial regulators. But the bank intends to expand the stablecoin to more of its corporate customers in the months ahead.

ANZ stablecoin will ‘absolutely’ be extended

Addressing the outlook for A$DC at The Australian Financial Review Banking Summit last week, ANZ banking services lead Nigel Dobson said:

When you think about stablecoins that are, issued by a commercial bank in Australia, it really is just a different form factor of money. Are we going to extend it? Yes, absolutely we will. And this will be based on our institutional customers demand, as they reveal, increasingly, their own tokenisation strategies.

The idea is to enable people to buy a range of digital assets with Aussie dollars using A$DC, without having to convert back and forth from US dollars.

Following an expanded offering to its corporate clients, ANZ hopes to offer its stablecoin to retail customers to buy things like non-fungible tokens (NFTs).

“We think that the growth area is not going to be so much in crypto, but in NFTs,” Dobson said. “NFTs are already in the market around sports memorabilia and [can extend to] anything digitally created.”

The bank is also eyeing the potential use of A$DC to streamline the settlement process in the growing carbon trading market.

According to Dobson:

We think that’s going to have exponential growth over the next ten years, and the elements of tokenisation that can be applied to that marketplace to make it much more efficient, more global, and frankly, more available to a wider range of consumers but certainly to institutional investors.

We believe stablecoins form a very important element of the settlement value and the settlement process when it comes to tokenised carbon credit.

Overall, Dobson added, “We believe that tokenised assets can be inexorably developed, to deliver greater efficiency, speed, transparency and value for customers over time.”

First, though, there’s a fair bit of red tape to be sorted through yet.

Bridging the regulatory hurdles

Speaking at the AFR summit, Australian Prudential Regulation Authority (APRA) chairman Wayne Byres said stablecoin regulation was being addressed via amendments to “stored value facilities” or SVFs.

“Subject to the development of the broader legislative and regulatory framework – which will depend on the priorities of the new government – we would hope to consult on prudential requirements for large SVFs in 2023,” he said.

Dobson welcomed the engagement with APRA and other regulators working on incorporating ANZ’s stablecoin into mainstream use:

It is nice to see APRA, ASIC and AUSTRAC all on the same virtual call together. We’ve got this kind of coalition of the curious going on at the moment, which I think is wonderful. And you know, the integrated interactions have been incredibly constructive.

The post Forget Terra. ANZ moves ahead with Aussie dollar pegged stablecoin appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the ANZ share price in June?
• Experts name the ASX 200 dividend shares to buy with big fully franked yields
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• May wasn’t kind to the ANZ share price. Here’s what happened
• ANZ share price largely unfazed by ASIC law suit

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Terra. 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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Is the Temple & Webster Group Ltd (ASX: TPW) share price a big opportunity after the company’s hefty price decline this year?

For readers that haven’t seen it, the Temple & Webster share price has dropped by 60% in 2022 to date.

A quick fall in the share price doesn’t necessarily mean that it’s going to rapidly recover.

However, some brokers think the Temple & Webster share price is now a very attractive opportunity, with price targets that imply significant potential upside over the next year.

Let’s have a look at some of those ratings.

Broker thoughts on the Temple & Webster share price

Credit Suisse currently rates the business as a buy, with a price target of $9.59. That suggests a possible rise of around 120% over the next year on the current price of $4.32. The broker thinks the business can keep growing at a good pace over time.

UBS is another broker that thinks the business is a significant opportunity. It has a buy rating and a price target of $8.20 on the company. That implies a potential rise of around 90%.

Morgan Stanley also has an enticing share price target. This broker rates the business as a buy, with a price target of $9. That suggests a possible rise of around 110%.

The brokers noted a recent trading update by the business.

Is the ASX share still growing?

When the ASX share announced its new website called The Build – where people can buy home improvement products – it also announced a trading update.

It said that in the period of 1 January 2022 to 30 April 2022, its sales had grown by 23% year on year.

With the growing revenue, Temple & Webster is putting that money straight back into the business for more growth, to improve the customer offering, and to increase the company’s operational capabilities.

For example, it said that it’s investing in data, personalisation, augmented reality, artificial intelligence, and logistics.

Temple & Webster says it is leveraging its leadership position to realise scale advantages. What is so good about scale? The company says increased scale provides cost advantages in product sourcing, logistics, and marketing.

By focusing on “exceptional customer service and a great delivery experience” it can drive repeat buying behaviour from customers. The company noted that in the first half of FY22, revenue per active customer grew by 10%, which was the sixth consecutive quarter of growth.

As noted by brokers, Temple & Webster is heavily focused on growth. When it released its HY22 result, the company said:

We will continue to reinvest operating leverage where it makes sense to do so, building strategic moats around the core business while investing into our new growth horizons.

Temple & Webster share price snapshot

Despite dropping heavily over 2022 so far, the Temple & Webster share price has gone up by 2.6% over the last month.

However, it is down 60% over the past 12 months. For comparison, the S&P/ASX 200 Index (ASX: XJO) is down around 5% this year to date and 1% over the past 12 months.

The post Do experts think the Temple & Webster share price is a massive opportunity? appeared first on The Motley Fool Australia.

More reading

• Expert reveals what to do with 4 ASX shares in trouble
• Here’s why I think these 2 ASX growth shares are top buys in May
• Could now be a great time to start investing in ASX shares?
• Why I think the Temple & Webster share price is in the buy zone right now
• 3 quality ASX All Ordinaries shares that defied today’s sell-off

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Tribeca Investment Partners portfolio manager Jun Bei Liu gives her thoughts on what to do with Appen, Redbubble, Cettire and Temple & Webster shares.

Cut or keep?

The Motley Fool: The Appen Ltd (ASX: APX) share price has halved over the past six months. What would you do with it?

Jun Bei Liu: Appen for me is very difficult to hold. We don’t hold Appen.

MF: Have you held it in the past?

JBL: A long time ago — years ago. In the early stage of the [COVID-19] pandemic, we took the profit because it was just too expensive. 

Every other tech, remember, was underperforming because the pandemic was hurting their supply chain and things, whereas this company was doing super well. So we just felt it was too expensive, the earnings multiple. So we sold it. 

I think this company is very difficult to hold because the earnings keep disappointing. Whether it’s really caused by the COVID disruption or whether it’s just large. Those large tech companies are really cutting back on some of the spends. 

Quite a few articles overseas have talked about all the tech companies now cutting staff. Even those larger venture capital companies in the Silicon Valley have told all their portfolio companies to watch their spending. So I think anyone [who] operates in that whole tech supply chain, is going to experience pretty tough environments. So I think for me, that’s difficult to hold, you’ll be selling it.

We did have a takeover offer [recently]. It didn’t last long — put on the table and then withdrawn. So, yes, there is opportunity for M&A. It is the largest player in that whole space. 

But it’s just hard to invest something for M&A to come through. It just didn’t work, what my kids would call “‘sus”. It just looked… not great. So I think investors would need more fundamental evidence to hold this one.

The Motley Fool: Luxury goods retailer Cettire Ltd (ASX: CTT) has lost almost 90% of its valuation this year. What do you think?

JBL: Unfortunately, this company was listed during the hey times of e-commerce and things. I do think it’s a great little business. It’s got great brands. 

And I do think demand for luxury goods is very defensive. We always see during tough times with a recession or really tough times, luxury good sales always goes up.

MF: Is that right? I would have instinctively thought luxury goods would be the definition of discretionary, but it’s interesting that you say it stays stable in tough times.

JBL: Very strong, very defensive. They’re very stable. 

But look, if you look across Europe, back then there was a lot of Russian spend. So clearly the war’s going to make it tough. So, there might be some differences. And back then, there’s a lot of Chinese consumers always buying things when they go on discount. [But] luxury spend is always really stable and defensive. 

But for this company, the challenge is the COVID. There’s been huge amount of spend by consumers online. Now we’re cycling some of those numbers, all the e-commerce companies are going through such a struggle, just because we’re cycling some really big numbers.

On a longer term view, I think these businesses will do very well. It’s just over the next couple of years, the earnings will have to re-base and all the companies used to make very skinny return on equity. 

All of these numbers have increased significantly during COVID, but these margins have to contract because competition will pick up in the next 12 months when things get tougher. So my view is that space is really hard. I would hold it, but I’m not sure about buying more at this point. The competition for online retail is going to be tough. This is also not to mention, I think, the outlook for Australian consumers. It does look a little bit tougher as well with rising interest rates, rising energy prices, rising cost of living, it’s going to be tough.

MF: The third one is Redbubble Ltd (ASX: RBL), which might be in a similar situation?

JBL: Yeah. I think Redbubble is an identical situation. 

Redbubble even more so because quite a large part of its business was selling [face] masks. I think during the peak of the pandemic, it was something like 20% of its earnings was masks. And clearly that’s going to come off. 

Now the management’s done a good job, trying to diversify into other things. It’s just that, you’re cycling some really strong comparable periods and management just can’t commit to what it looks like. They don’t know what it looks like and the competition will pick up. So that one is a lot harder to really have a high conviction of, because [we] don’t know what the future categories might be.

MF: It’s unfortunate with these marketplace-type companies, the barrier to entry isn’t that high, is it?

JBL: That’s right. So I think what’s important though, for these companies, it’s very important for them to keep reinvesting in brands, because, if you don’t have a brand, you don’t have anything — because anyone can set up an internet website. 

I actually think during this whole pandemic period, I really think that Temple & Webster Group Ltd (ASX: TPW) will come through really strongly. They managed to get to number one in their online furniture, homeware category.

Yes, the margin’s going to come back, but that’s the one I’ll be looking really to buy more of when the share price does become weaker.

The post Expert reveals what to do with 4 ASX shares in trouble appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Tony Yoo has positions in Appen Ltd, Cettire Limited, REDBUBBLE FPO, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd, Cettire Limited, REDBUBBLE FPO, and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Cettire Limited and Temple & Webster Group 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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If you’re looking to boost your income portfolio in June, then you may want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Bank of Queensland Limited (ASX: BOQ)

The first ASX dividend share that could be a top option for income investors is big four challenger Bank of Queensland.

This regional bank has been tipped as a buy by analysts at Morgans with an $11.00 price target. This is due to the early success of its transformation program, its above-system growth, and cost synergies from the recent ME Bank acquisition.

As well as decent upside, Morgans is expecting the bank’s shares to provide investors with big dividends in the coming years.

The broker is forecasting fully franked dividends per share of 49 cents in FY 2022 and then 54 cents per share in FY 2023. Based on the current Bank of Queensland share price of $7.51, this will mean yields of 6.5% and 7.2%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share that has been rated as a buy is Telstra.

This is due to optimism over the telco giant’s outlook thanks to the successful execution of its transformative T22 strategy and the upcoming growth focused T25 strategy.

Telstra is expecting the latter to support mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY21 to FY25.

Ord Minnett is positive on the company and recently put a buy rating and $4.85 price target on the company’s shares. The broker believes that the company is well-placed to achieve the aforementioned growth targets thanks partly to the recently announced mobile plan increases.

The broker continues to expect the telco to pay fully franked dividends per share of 16 cents for FY 2022 and FY 2023. Based on the current Telstra share price of $3.89, this implies yields of 4.1%.

The post Analysts name 2 top ASX 200 dividend shares to buy right now appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Telstra share price in June?
• Is the Telstra share price in the buy zone after the telco giant’s mobile plan increases?
• Why did the Bank of Queensland share price fall 7% in May?
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• Here are the top 10 ASX shares 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 positions in and has recommended Telstra Corporation 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.45% to 7,206.3 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Tuesday ahead of the key Reserve Bank meeting. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% lower. On Wall Street the Dow Jones edged higher, the S&P 500 rose 0.3%, and the Nasdaq climbed 0.4%.

Reserve Bank meeting

It is the first Tuesday of the month, which means the Reserve Bank of Australia will be meeting this afternoon to decide on the cash rate. According to the latest Westpac Banking Corp (ASX: WBC) weekly economic report, its team are expecting the central bank to increase the cash rate by 40 basis points from 0.35% to 0.75%. It notes that this “would be fully unwinding the emergency rate cuts we saw in 2020 during the Covid crisis.”

Oil prices edge higher

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up slightly to US$88 a barrel and the Brent crude oil price has risen 0.1% to US$119.88 a barrel. Oil prices after Saudi Arabia lifted its crude prices for the month of July.

Gold price drops

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.3% to US$1,844.8 an ounce. A stronger US dollar weighed on the precious metal.

Domino’s rated neutral

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price could be a hold according to analysts at Goldman Sachs. This morning the broker has responded to the pizza chain operator’s Asian update by retaining its neutral rating and $89.90 price target. Goldman notes that no outlook changes were announced. It continues to target 2,000 stores in Japan, 400 in Taiwan, and 6,650 globally.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Transurban share price hit by broker downgrade
• Here are the 3 most traded ASX 200 shares on Monday
• 3 ASX 200 energy shares cracking new 52-week highs on Monday
• What’s on the cards for the Beach Energy share price in June?
• Do Novonix shares pay dividends?

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 recommended Dominos Pizza Enterprises 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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ASX 200 tech shares are starting the week in the red, following a similar trend to the United States.

The S&P/ASX All Technology Index (ASX: XTX) dropped 1.75% today to finish at 2043.2 points. In comparison, the S&P/ASX 200 Index (ASX: XJO) fell 0.45% today.

Zooming in on the ASX tech sector, we see that Wisetech Global Ltd (ASX: WTC) was 2.33% lower at the close of trade today. The same story played out for Block Inc (ASX: SQ2), Altium Ltd (ASX: ALU) and NEXTDC Ltd (ASX: NXT), down a respective 3.18%, 2.01% and 1.99%.

So why did ASX 200 tech shares have such a bad day?

US tech shares slide

Tech shares in Australia have followed in the footsteps of their US counterparts. The Nasdaq-100 Technology Sector Index (NASDAQ: NDXT) dropped 2.81% in the US on Friday, its most recent day of trading.  

Microsoft Corporation (NASDAQ: MSFT) shares fell 1.66%, while Meta Platforms Inc (NASDAQ: FB) dropped 4.06%. Tesla Inc (NASDAQ: TSLA) shares plummeted a whopping 9.22%, and the Apple Inc (NASDAQ: AAPL) share price shed 3.86%.

Investors in US tech stocks appear to have reacted after high-profile Tesla CEO Elon Musk claimed he had a “super bad” feeling about the economy.

Further to this, the US job market tightened, fuelling speculation of further rate hikes, the Canberra Times reported. Chief ADP economist Nela Richardson was quoted as saying:

The market is trying to funnel its response through what the Fed may or may not do.

Meanwhile, back home, former technology darling Appen Ltd (ASX: APX) was booted out of the ASX 200 index today. The company’s share price dropped 3.28%.

Share price snapshot

The All Technology Index has dropped 24% over the 12 months, while it is trading 32% higher year to date.

The index has shed nearly 10% in the past month, and it has dropped 1.59% in the past week.

The post Why did ASX 200 tech shares fall today? appeared first on The Motley Fool Australia.

More reading

• Why is the Block share price tanking 5% on Monday?
• These are the 10 most shorted ASX shares
• Why Altium, Fortescue, PeopleIn, and REA shares are storming higher
• 3 ASX 200 shares swimming in billions, besides banks and miners
• Why are ASX 200 tech shares having such a cracking Friday?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Apple, Block, Inc., and WiseTech Global. 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 Block, Inc. and WiseTech Global. 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.

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Investors keep winding up the commodity trade in 2022 with several ASX mining shares surging more than 20% during Australian market hours on Monday.

Despite the S&P/ASX 300 Metals & Mining Index (ASX: XMM) sliding more than 109 basis points today, these three ASX miners outpaced the rest of the pack.

Culpeo Minerals Ltd (ASX: CPO)

Shares in Culpeo Minerals exploded into the green on Monday, clipping a gain of more than 193% to finish the day. Investors bid up the miner’s share price after a company announcement on its Lana Corina Copper Project.

Culpeo advised it has intersected a record 173 metres at 1.05% copper and 50 parts per million of molybdenum. Results also confirmed the mineralisation continues at depth.

“The intersection of 173 metres of copper mineralisation at a grade of 1.05% is the highest-grade intercept to date from the ongoing drilling program,” CEO Max Tuesley said.

Copper has spiked back north in recent weeks and is now more than 5% higher on the month at US$4.41/lbs.

Firetail Resources Ltd (ASX: FTL)

The Firetail share price spiked more than 21% higher on Monday and closed the session at 36.5 cents. Despite no market-sensitive news for the company, investors bid up its share price at pace today.

The price of copper has raced higher in recent weeks as well, helping to drive shareholder returns for the company. Meanwhile, the gold price has stabilised at US$1,855 per troy ounce, after incurring heavy losses in recent weeks.

After making its debut in April, Firetail has traded off its IPO price and slipped 6% into the red this past month of trade.

However, investors appears to be buyers at these price levels, with today’s gain occurring on a trading volume more than three times the four-week average.

Encounter Resources Ltd (ASX: ENR)

Shares in Encounter Resources were also net winners today, securing a 29% lift at the closing bell.

Despite trading down in recent weeks, investors rallied the Encounter Resources share price after an update at its Sandover project in the Northern Territory.

The company said on Friday:

Additional surface sampling and field reconnaissance completed at Sandover in April 2022 confirmed further areas of surface copper oxide mineralisation.

The potential for lithium and other critical metals will be investigated in conjunction with copper exploration activities [at the site].

News of the update have sent Encounter shares well into the green with investors still looking to capture gains as part of the wider commodity and energy trade.

In the last 12 months, the company has secured a 14% gain after spiking more than 16% this year to date.

The post These 3 ASX mining shares surged more than 20% on Monday 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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