Tag: Motley Fool

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

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

Dividend stocks offer one of the most convenient ways to earn extra income while you sleep. All you have to do is select the dividend-paying stocks you want in your portfolio and watch those dividend deposits flow into your account. The best part is that you may qualify for an automatic dividend income increase without doing anything extra on your end. 

Below, we’ll dive into a tried-and-true strategy to help you ramp up your dividend income for years to come. 

Start earning dividend income 

If you’re ready to jump-start your dividend journey, you’ll need to invest in companies that reward shareholders with dividends. Not every company does this, so you’ll have to do some quick research to make sure some of the companies on your watch list are dividend payers.  

Here’s how it works. When a company earns money, it can do two things: 

• Reinvest the money back into the company 
• Reward shareholders with extra income 

Some companies will do a bit of both. Take Microsoft (NASDAQ: MSFT), for instance. This trillion-dollar tech powerhouse continues to invest in its cloud business, while paying an annual dividend of $2.48 per share (as of June 2022) to shareholders. But if you want to earn your first $1,000 in dividends from Microsoft, you’ll need roughly 404 shares of stock. At Microsoft’s current share price, you’ll need to dole out six figures to make that happen.

That’s why you want to identify your goals and risk tolerance, and then research companies that align with that. If your goal is to invest in companies that raise their annual dividends every year, and you want to diversify your portfolio with companies beyond tech, you’ll want to direct your attention to a special breed of stocks. We’ll discuss that next.   

Unlocking dividend growth opportunities 

Some companies stick to the same annual dividend payment every year. Other companies have a track record of consistently increasing their dividends. These companies may be part of the Dividend Aristocrats or Dividend Kings club if they’ve been in the game for some time. 

Dividend Aristocrats have proved their commitment to shareholders by delivering dividend increases every year for at least 25 consecutive years. Here are some examples of companies that have made it on the list: 

• Chevron
• Cardinal Health
• Caterpillar 

Then there’s an elite group of dividend payers on the list that have paid and increased their base dividend for at least 50 consecutive years. Here’s a preview of the Dividend Kings: 

• Procter & Gamble
• Colgate-Palmolive
• Johnson & Johnson

Growing your income while you sleep 

Let’s say you invested in a company that has been crowned a Dividend Aristocrat. The company paid an annual dividend of $3.48 per share last year and plans to boost the amount to $3.65 per share this year. That may not seem like a big deal, but it all adds up.

If you have 1,000 shares of the company stock, you would have earned $3,480 last year. The dividend boost this year will bring you to $3,650. That means you earned an extra $170 without moving a muscle.

Imagine getting a dividend bump every year over the next 20 or 30 years. If the company continues to increase the annual dividend, your income will automatically increase, as long as you hang on to the stock.

Investing in dividend growth stocks can set you up for automatic pay raises for the rest of your life. Although past performance does not always guarantee future success, these companies have a proven track record that can help you get started on your journey.

Diversify your portfolio with dividend growth stocks 

Setting up a dividend income growth strategy doesn’t mean you should abandon other types of stocks and investments. Dividends can fit into a well-diversified portfolio of assets that align with your goals and risk tolerance.

Start creating your watch list, do your research, and look out for companies that are growing their dividends. Those small dividend increases every year can lead to thousands of extra dollars over the long term. The best part is that you won’t have to lift a finger to earn your rewards.   

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

The post How to increase your dividend income without lifting a finger appeared first on The Motley Fool Australia.

More reading

• 2 top metaverse stocks I think are ready for a bull run
• Will Microsoft and Apple shares finally give way in the stock market’s downturn?

Charlene Rhinehart, CPA has positions in Caterpillar and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson. 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.

from The Motley Fool Australia https://ift.tt/4wYz3Lr

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating and $8.03 price target on this auto parts retailer’s shares. The broker believes that strong demand for used cars should be a boost to Bapcor. Especially given that its offering is less discretionary than many of its peers. In light of this, the broker sees potential for Bapcor to outperform expectation in FY 2023. The Bapcor share price is trading at $6.17 today.

Healius Ltd (ASX: HLS)

Another note out of Citi reveals that its analysts have upgraded this healthcare company’s shares to a buy rating but trimmed their price target on them to $4.30. While the broker acknowledges that COVID testing volumes are softening and its FY 2023 earnings are likely to fall materially year on year, it still believes recent share price weakness has created a buying opportunity for investors. Citi estimates that Healius’ shares are trading at 17x FY 2024 earnings. The broker expects this to be the first year of normal post-COVID earnings. The Healius share price is fetching $3.77 today.

REA Group Limited (ASX: REA)

Analysts at Goldman Sachs have retained their buy rating and lifted their price target on this property listing company’s shares to $167.00. This follows REA’s investor update which revealed that management is aiming to deliver double digit revenue and EBITDA growth through the cycle. This is expected to be underpinned by 10%+ yield growth. Goldman was pleased with the update and has upgraded its earnings to reflect its stronger yield outlook. The REA share price is trading at $110.88 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares to buy now (and one bonus): fund manager
• These were the worst performing ASX 200 shares last week
• Brokers name 3 ASX shares to buy today
• Why Ansell, Domino’s, Firefinch, and Healius shares are dropping
• Why Altium, Fortescue, PeopleIn, and REA shares are storming higher

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Bapcor and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/KhS51bB

Shares of Beach Energy Ltd (ASX: BPT) traced higher in May, clipping a 7% gain while the benchmark S&P/ASX 200 Index (ASX: XJO) fell 2.7%.

Beach Energy shares have been trading higher since December 2021, extending the upside after a recent breakout in May, as seen on the chart below.

After trading below the established support level, the Beach Energy share price stretched from a low of $1.58 in May to now trade at $1.85 apiece at the time of writing.

Can the Beach Energy share price extend gains in June?

Analysts at JP Morgan vote yes to that effect and in April valued Beach Energy at $1.90 per share. The broker was constructive on Beach, and now “sit[s] well above consensus” regarding the company’s forward earnings estimates.

“We think Beach provides good exposure to a diversified suite of assets in Australia,” the broker said.

“Net debt is close to zero and therefore Beach has the strongest balance sheet of the large caps under our coverage.”

JP Morgan said the boost from its most recent earnings was one tailwind Beach was set to realise this year.

Buoyant oil prices have propped up the company’s revenue, driving a revenue result 16% higher than its estimates.

Brent Crude oil has surged north since May and is now lifting back towards previous highs at US$120 per barrel. Its correlation with the Beach Energy share price is seen above.

Beach management said production guidance of 21–23 million barrels of oil equivalent (Mmboe) was on track for FY22.

The broker reckons this run rate coupled with rising oil prices is sure to result in earnings growth:

Incorporating the quarterly result into our modelling, results in an 11% upgrade to our full year NPAT [net profit after tax] estimate to A$527 million. We are now 9% above consensus for FY2022.

Wider analyst sentiment is largely bullish for Beach, with 76.5% of analysts covering the stock rating it a buy, according to Bloomberg data.

However, 18% of broker coverage rates it a sell or to underperform. In contrast, the consensus price target reaches $1.91 per share from this list.

In the last 12 months, the Beach Energy share price has surged 37%, having secured a 48% gain this year to date.

The post What’s on the cards for the Beach Energy share price in June? appeared first on The Motley Fool Australia.

More reading

• Why is the Santos share price off to a cracking start to the week?
• These were the best performing ASX 200 shares last week
• 3 ASX 200 energy shares smashing multi-year highs on Friday
• 5 things to watch on the ASX 200 on Friday
• 3 ASX energy shares rocking new 52-week highs on Thursday

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.

from The Motley Fool Australia https://ift.tt/q6Tv4ly

It’s been a pretty dreary start to the trading week for the S&P/ASX 200 Index (ASX: XJO) so far this Monday. At the time of writing, the ASX 200 is down by 0.42% at close to 7,200 points. But it’s been an even worse start for the Novonix Ltd (ASX: NVX) share price.

Novonix shares are presently down a nasty 3.84%, going for $3.51 apiece so far today. That’s certainly a lot closer to this battery and graphite company’s 52-week low of $2.07 than its 52-week high of $12.47.

Novonix investors have been on a wild ride over the past year or two. Between July and December 2021, Novonix shares rose more than 400%, driven by investor excitement over the company’s future-facing plans. But the company has comprehensively fallen back to earth over 2022 thus far. It’s now down by more than 66% year to date, as well as by more than 70% from its December highs.

So have investors at least been comforted by some dividend payments from Novonix? After all, dividends can be very welcome for investors watching the value of a company fall. It can cushion some of the pain, or else enable an investor to buy even more shares for a discount.

Is Novonix an ASX dividend share?

So, is Novonix a dividend-paying ASX share? Well, the answer is a definitive no.

Novonix does not currently pay a dividend. In fact, it never has.

Novonix is arguably not in a position to pay dividends, even if it wanted to. Back in February, Novonix delivered its half-year earnings report. This informed investors that for the six months ending 31 December 2021, the company reported a statutory after-tax loss of $28.8 million. That was a lot more than the loss of $10.77 million in H1 FY20.

For a company to be able to responsibly and sustainably fund dividend payments, it must first be comfortably profitable. Judging by those numbers, that is not a label we can put on Novonix just yet. So investors probably shouldn’t expect big things when it comes to dividends from the company for the foreseeable future.

The post Do Novonix shares pay dividends? appeared first on The Motley Fool Australia.

More reading

• What to expect from the RBA interest rate decision this week
• ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
• Could the Core Lithium share price be set to take off again in June?
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
• Brainchip shares could get a massive boost this month: here’s how

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

from The Motley Fool Australia https://ift.tt/YjukEGn

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.

Netflix (NASDAQ: NFLX) shocked investors when it not only reported its first subscriber loss in over a decade in the first quarter but also said losses would worsen in the second quarter. Management expects to lose two million subscribers between April and June this year.

But it just had one of its biggest releases of all time: the fourth season of Stranger Things. The latest season became the biggest English-language series debut ever for Netflix, besting last quarter’s Bridgerton season two. And fans will have to keep their subscription through July to see the finale of the two-part release.

Getting a handle on subscriber churn

Netflix is facing a slowdown in subscriber additions alongside an increase in subscriber churn.

The slowdown in additions is understandable. Netflix has relatively high penetration rates in the United States and Canada, already meeting the mid-range of its long-term outlook for the region. Indeed, management said subscriber acquisition was in line with its expectations in the first quarter. But there are still pockets of subscriber growth opportunities for Netflix around the world, despite its 220 million global subscribers.

Churn is a greater concern. Management admitted to an uptick of 0.2 to 0.3 percentage points in monthly subscriber cancellations in the first quarter. That’s an increase of around half a million subscriber losses every month.

Churn is not just a concern for Netflix. The entire streaming industry is facing the challenge of holding onto subscribers as more competitors enter the market, and consumers shift their entertainment spending to going out and travelling. Still, Netflix’s churn rate remains one of the best in the industry.

Is Stranger Things enough to hold onto more subscribers?

The latest season of Stranger Things generated 286.79 million hours of viewing on its opening weekend. That’s better than Bridgerton‘s 251.74 million hours for the premiere of its second season. But when adjusting for the runtime of both series — Stranger Things is about 8% longer than Bridgerton — the gap in episodes watched is minimal.

Even with the record viewership, it might not indicate an improvement in churn rates. The series has historically produced strong interest. Global search interest for previous seasons was much higher for Stranger Things than Bridgerton. The series was expected to produce more viewership.

One area the series might improve, however, is subscriber acquisition. Specifically, it might reengage people who previously cancelled. After all, it’s been nearly three years since we saw new episodes of Stranger Things, and many fans may have left in the meantime.

It’s worth noting, however, that Netflix had a massive hit that spanned the end of the third quarter to the start of the fourth quarter: Squid Game. For reference, global viewership for the series at its peak popularity was nearly twice as high as the debut of Stranger Things season four. Fourth-quarter results were solid but still came in below management’s expectations. Furthermore, the fourth-quarter strength didn’t carry over into the first quarter.

The popularity of Stranger Things is a good sign for Netflix, but it’s by no means a guarantee it can produce better-than-expected subscriber results this quarter. Similar results from Bridgerton weren’t enough to save its first quarter from declining subscribers, and the expectations are much worse for the second quarter. While I expect the return of the tentpole series will help boost subscriber acquisition, it might not mitigate the higher subscriber churn Netflix saw in the first quarter, as it’s a symptom impacting the entire streaming industry.

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

The post Can Stranger Things stop Netflix’s subscriber bleed? appeared first on The Motley Fool Australia.

More reading

• Could Netflix eventually become an excellent dividend stock?
• Will Microsoft and Apple shares finally give way in the stock market’s downturn?
• Here’s why Netflix stock climbed higher today

Adam Levy has positions in Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

from The Motley Fool Australia https://ift.tt/tRb7uWI

The Wesfarmers Ltd (ASX: WES) share price is edging ever so slightly higher on Monday.

That’s despite the ASX 200 index taking a tumble this afternoon.

Why is the Wesfarmers share price edging higher?

Today’s gain may have be a delayed reaction to the release of a bullish broker note out of Morgans on Friday.

According to the note, the broker has retained its add rating with a price target of $58.40.

Based on the current Wesfarmers share price of $47.20, this implies potential upside of 24% for investors over the next 12 months.

And with Morgans forecasting fully franked dividends of $1.65 per share in FY 2022 and $1.81 per share in FY 2023, the total 12-month return stretches to over 27%.

What did the broker say?

Morgans appears to have come away from Wesfarmers’ strategy update last week feeling confident in its outlook and ability to navigate the tough retail environment. It commented:

Wesfarmers’ strategy day provided insights into the growth opportunities available for each business division and the strategy going forward.

With cost-of-living pressures increasing, management was confident in WES’s ability to navigate through a more cautious consumer environment given the retail businesses offer a strong value proposition underpinned by scale benefits, product innovation and supply chain efficiencies.

In addition, the broker sees positives from the new OneDigital platform. It said:

There was a big focus on data and digital with information provided on the newly established OneDigital platform that will provide the retail businesses with broader insights than could be achieved on a standalone basis.

We think OneDigital could become a powerful tool for WES given the company’s broad sector exposures and will tie in well with insights from flybuys.

All in all, Morgans remains very positive on Wesfarmers and sees it as a top buy and hold option for investors. It concludes:

We continue to see WES as a long-term, core portfolio holding with a strong mix of businesses, highly regarded management team and a healthy balance sheet.

The post Why this top broker is tipping the Wesfarmers share price to rise 24% appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• What’s in store for the Wesfarmers share price in June?
• 2 more of this broker’s best ASX share ideas for June
• 5 things to watch on the ASX 200 on Friday
• ASX 200 midday update: Pilbara Minerals names new CEO, Wesfarmers’ strategy update

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 Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/rTxoKp3

The Macquarie Group Ltd (ASX: MQG) share price has fallen by almost 10% since 5 May 2022.

Not only is the share price down, but a lower valuation also means that the potential future dividend yield has increased.

We check how things are looking for the global investment bank’s potential income for shareholders.

Volatility for the Macquarie share price

There has been significant volatility for the ASX share market as a whole. Macquarie Group has also seen ups and downs in 2022. However, the company’s latest decline came after the business reported its FY22 result last month.

At the time, Macquarie reported a number of positives.

Its FY22 net profit after tax (NPAT) was $4.7 billion, up 56% year on year. It generated $2.66 billion of net profit in the second half of FY22, which was up 31% year on year.

Macquarie is increasingly becoming a global business. In FY22, 75% of its total income came from international sources.

Its assets under management (AUM) rose 37% year on year to $774.8 billion.

The global investment bank also noted that its financial position comfortably exceeded regulatory minimum requirements, with $10.7 billion of surplus capital.

Macquarie managing director and CEO Shemara Wikramanayake said:

Macquarie remains well-positioned to deliver superior performance in the medium-term. This is due to our expertise in major markets, strength in business and geographic diversity and ability to adapt the portfolio mix to changing market conditions, an ongoing program to identify cost saving initiatives and efficiency, a strong and conservative balance sheet, and a proven risk management framework culture.

The broker Credit Suisse is one of the experts that has gone negative on Macquarie, with an underperform rating. It’s speculated there could be headwinds with rising interest rates and the profit may have hit a ceiling in this economic period.

However, other brokers, such as Ord Minnett, have rated the Macquarie share price as a buy. Ord Minnett has set a price target of $218, implying a possible rise of around 20%.

Dividend expectations

Looking at dividend projections, brokers are now expecting a sizeable dividend yield from the business in the next two financial years.

Excluding the possible franking credits, Credit Suisse is expecting Macquarie to pay a dividend of 3.25% in FY23 and 3.2% in FY24 at the current Macquarie share price.

However, on Ord Minnett’s projections, it’s expecting the global investment bank to pay a bigger dividend. This broker’s estimate for the Macquarie dividend yield is 3.3% in FY23 and 3.5% in FY24.

The post The Macquarie share price has lost 10% in a month. So what’s the dividend yield now? appeared first on The Motley Fool Australia.

More reading

• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• What’s the outlook for the Macquarie share price in June?
• 3 quality ASX 300 shares with dividend reinvestment plans
• Why has the Macquarie share price lost ground in May?
• Brokers name 3 ASX shares to buy today

JPMorgan Chase 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 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.

from The Motley Fool Australia https://ift.tt/rnAwzdu

ASX enthusiasts in gold investing got some good news last week. It was news that will make it easier to invest in the precious metal using the ASX.

Gold has always been a tricky asset to invest in. Investors have the option to buy physical gold bullion, of course. Always have. This involves buying bold coins or bars and storing them in one’s home. Or else paying someone else for the storage and security. But this is unattractive to many investors for obvious reasons.

So in recent years, another option has emerged for potential gold investors – buying gold through the ASX. Like many other commodities, there are now exchange-traded funds (ETFs) that one can use to get exposure to the yellow metal without the burden of actually owning the physical gold itself.

One popular such ETF is the ETFS Physical Gold ETF (ASX: GOLD). This fund, run by ETF Securities, allows investors to buy units that represent the physical ownership of gold. According to the provider, each unit is “backed by physically allocated gold bullion held by JPMorgan Chase Bank” in London.

In addition: “Each physical bar is segregated, individually identified and allocated which means there is no credit risk. Investors can choose to redeem units for the physical holdings.”

Buying gold on the ASX

So it’s perhaps no surprise that many investors now prefer this simpler method of investing in gold. This GOLD ETF now has close to $2.6 billion in assets under management.

But it might soon be even easier to invest in this ETF. At the present time, one unit of GOLD will set an investor back $239.59 at the time of writing.

Now that might not be as expensive as a CSL Limited (ASX: CSL) share. But it’s still a fair chunk of change, and could potentially price some investors out of this ETF. Well, that’s about to change.

What’s new?

ETFS released an ASX notice last week that informed investors that this ETF is about to undergo a stock split. Here’s what the provider said in its ASX notice explaining why this move is occurring:

The share split is being conducted to reduce the per share price of GOLD, from its current range of approximately $230–$260 in 2022 year–to–date, by a factor of 10, to a level that is more in–line with to other ASX–quoted exchange traded products (“ETPs”). The company understands that retail and smaller investors are increasing using ETPs to construct portfolios. A lower per share price is anticipated to have wider appeal to smaller investors.

Further, GOLD is being increasingly used by investors in portfolio construction, either self–directed, advised or model–based. A lower per share price allows these users to more precisely manage their portfolio allocations.

GOLD ETF divides to conquer

So this move is clearly being designed to widen the appeal of the GOLD ETF for investors. If you’re an existing GOLD investor, don’t worry. A stock split like this doesn’t actually reduce the value of your investment. It just divides it into an increased number of smaller shares (or units in this case).

This change will be effective on 8 June. It means that any existing investor will receive nine additional units for every one owned. This is the date we will also see the unit price of GOLD decrease by a factor of 10 (today’s current pricing would change to approximately $23.60 per unit).

So if you’ve been looking for an ASX-listed path to investing in gold, this one just got wider.

The post It’ll be much easier to buy gold on the ASX on Wednesday. Here’s why appeared first on The Motley Fool Australia.

More reading

• Audinate share price stumbles on trading update
• Can you buy Canva shares on the ASX?
• Why is the Adore Beauty share price sliding 6% on Monday?
• Guess which ASX mining share just rocketed 100% on a record find
• Goldman Sachs says beaten-up Megaport share price has 100% upside

Motley Fool contributor Sebastian Bowen 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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/eWwMP5C

The Audinate Group Ltd (ASX: AD8) share price is see-sawing today, as the company releases its latest trading update forecasting a jump in revenue.

The audio visual networking company is expecting FY22 revenue to exceed US$30 million versus the US$25 million from the previous year.

Investors appear torn by the news with the Audinate share price flip-flopping between gains and losses. It’s currently up 0.43% at $7.03, after bouncing from red to green and back every 30 minutes throughout trade on Monday. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has shed 0.4%.

Muted response from the Audinate share price

Management noted that trading conditions in March and April have continued through May. The company had been hit by chip shortages in the first two months of calendar 2022, which crimped sales.

But Audinate managed to build up its inventory of chips used in its Brooklyn and Broadway products in March.

This resulted in strong ongoing grading conditions in April. Although, gross margins could be negatively impacted by the additional purchase of the chips.

The company said in its ASX announcement:

We continue to actively manage a challenging supply chain environment. Audinate will use the upcoming InfoComm tradeshow 1 in Las Vegas from 8th-10th June 2022 to brief our manufacturing customers and end-users on the actions we have been taking to manage and mitigate chip shortages.

High growth hurdle

The Audinate share price could be facing pressure as some investors may have been hoping for more than a 20% plus increase in revenue. After all, the ASX tech company is in a high-growth sector.

But management hasn’t quite stated how much above US$30 million sales could hit. Also, the weaker Australian dollar could help as well, with the exchange rate around 4% better than at last year’s results.

Can the Audinate share price overcome supply chain headwinds?

Audinate has also implemented strategies to overcome the global chip shortage challenge. It’s lobbying its strategic chip making partners to increase allocation of chips for its products. These partners include Xilinx, NXP and SkyWorks (formally Silicon Labs).

The company has also announced the new generation of products to replace its existing offering. This includes Brooklyn 3, which replaces Brooklyn 2; and Fremont 3, the replacement for the Dante AV Fremont module.

Lastly, Audinate is focusing on ramping sales of its software solutions, such as Dante Embedded Platform and Dante IP Core.

The Audinate share price has not been spared from the recent tech sell-off despite its dominant position in its industry. Audinate shares have lost close to 10% over the past year, while the ASX 200 has shed less than 1%.

The post Audinate share price stumbles on trading update appeared first on The Motley Fool Australia.

More reading

• It’ll be much easier to buy gold on the ASX on Wednesday. Here’s why
• Can you buy Canva shares on the ASX?
• Why is the Adore Beauty share price sliding 6% on Monday?
• Guess which ASX mining share just rocketed 100% on a record find
• Goldman Sachs says beaten-up Megaport share price has 100% upside

Motley Fool contributor Brendon Lau has positions in AUDINATEGL FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended AUDINATEGL FPO. The Motley Fool Australia has positions in and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/iEnVdeQ

Can you buy Canva shares on the ASX? Good question.

Canva is an Australian ‘unicorn’ that has drawn quite a lot of attention over the past few years. It even managed to achieve a whopping US$40 billion ($55 billion) valuation last year, which, as we covered at the time, made it more valuable than Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), and even Telstra Corporation Ltd (ASX: TLS).

That’s pretty impressive for a company that was only founded in 2013. Such breakneck growth might elicit some envy and fear of missing out for many ASX investors, especially those with a penchant for fast-growing ASX tech shares.

Is Canva an ASX share?

So can you buy Canva share on the ASX then? Well, unfortunately, the answer is no.

Canva is not listed on the ASX, meaning ordinary investors like you or me are locked out of Canva. Unlike that other posterchild of hard-to-get ASX tech – Atlassian plc (NASDAQ: TEAM) – we can’t even hop over the Pacific and buy Canva shares on the US markets. Canva remains a completely private company, unavailable for investment by anyone who isn’t a large, institutional venture capital investor.

That might not be such a bad thing at the present time though. According to reporting in the Australian Financial Review (AFR) last week, Canva has not escaped the savage selloff we have seen across many tech shares of late. Its US$40 billion valuation has certainly been re-appraised.

According to the report, many of Canva’s institutional investors have slashed their valuations of the company. Some are now seeing Canva as worth between US$32 and US$36 billion. One investor has reportedly slashed its valuation for Canva down to US$16.6 billion. That latter valuation translates into a fall of almost 60% from September last year.

So perhaps ASX investors should be grateful they haven’t been able to buy Canva shares yet.

But whatever your feelings, it’s certainly not likely that Canva shares will be on the ASX any time soon, given the state of the current markets. But who knows what the future might bring?

The post Can you buy Canva shares on the ASX? appeared first on The Motley Fool Australia.

More reading

• Why is the Adore Beauty share price sliding 6% on Monday?
• Guess which ASX mining share just rocketed 100% on a record find
• Goldman Sachs says beaten-up Megaport share price has 100% upside
• Why is the Tabcorp share price racing higher today?
• 3 ASX 200 shares trading ex-dividend today

Motley Fool contributor Sebastian Bowen has positions in Atlassian and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Atlassian. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/vaiJA1m