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The market may be a sea of red again on Monday but that hasn’t stopped the BrainChip Holdings Ltd (ASX: BRN) share price from racing higher.

In afternoon trade, the artificial intelligence technology company’s shares are up 8% to $1.15.

Why is the BrainChip share price racing higher?

The BrainChip share price is rising today despite there being no announcements or media releases out of the company.

However, something that appears to have caught the eye of investors is the inclusion of Arm among its list of partners.

BrainChip comments on the unannounced partnership, saying:

BrainChip is partnering with Arm, the leading technology provider of processor IP [intellectual property], to provide the most advanced solutions to make sensor products faster, smarter, and safer.

What is Arm?

In case you’re not familiar with Arm, it is a UK-based semiconductor company that designs the components of processors for others to ultimately build.

The company then owns these designs, along with the architecture of their instruction sets, and licenses the IP to other companies, allowing them to build systems that incorporate their own designs as well as Arm’s.

Earlier this year, tech giant Nvidia attempted to acquire Arm for US$40 billion before the deal ultimately collapsed due to regulatory issues.

At the time, Nvidia’s founder and chief executive Jensen Huang commented: “Arm is at the centre of the important dynamics in computing. I expect Arm to be the most important [computer processing unit] architecture of the next decade.”

In light of this, Arm certainly is a company that you would want to partner with if you were operating in BrainChip’s industry. So it isn’t overly surprising to see some investors getting excited and bidding the BrainChip share price higher.

What now?

The company could potentially be hit with a price query by the ASX following the rise in the BrainChip share price today. At which point, it may provide further details on the partnership.

Conversely, the deal may be so immaterial to the company’s revenues that management doesn’t feel it worthy of mentioning. You just never know with BrainChip.

The post Why is the BrainChip share price racing 8% higher today? appeared first on The Motley Fool Australia.

More reading

• On a dire day for the ASX, the BrainChip share price just leapt 11%. What’s going on?
• Why BrainChip, Coles, Fisher & Paykel Healthcare, and PolyNovo shares are rising
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brainchip share price sinks amid weak quarterly update
• Why has the Brainchip share price tumbled 13% in a month?

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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There aren’t too many things in this world that pay you to own them. When you buy a new car, chances are that it’s costing you money to own it. It would be a similar story with a pair of fresh kicks or a new 80-inch television. Good luck getting the money you have to pay for those goods back. But with ASX dividend shares, it’s a whole different story.

If an ASX share pays a consistent dividend, it effectively pays its owner for the privilege of holding it. It is passive income, cash from capital, not labour.

The ASX is home to many, many shares that pay dividends. In fact, most ASX shares, especially those with mature business models, have paid a dividend at least once in their history, if not most years.

Perhaps the most famous dividend payers on the share market are ASX bank shares. The big four banks have long dominated the ASX boards – both in terms of sheer size as well as dividends. Right now, Westpac Banking Corp (ASX: WBC) has a trailing yield of 4.81% on the table. That stems from the last two dividends it has paid shareholders. Those were a 58 cents per share interim dividend last June, and a 60 cents per share final payment that was doled out in November. Next month, Westpac will pay an increased interim dividend of 61 cents per share.

It pays to own ASX dividend shares…

But few ASX shares can match the dividend prowess of Washington H. Soul Pattinson and Co Ltd (ASX: SOL). Soul Patts has been around for more than a century. But today, it holds the distinction of being the only ASX share that has paid a growing dividend for more than 20 years in a row. Yes, Soul Patts has given its investors an annual dividend pay rise every year since 2000. So not only have Soul Patts shareholders had to do nothing to receive a cash payment every six months, each year since 2000 has seen them receive more cash than the year before.

Soul Patts doesn’t have the largest dividend yield on offer today at 2.41%. But there are dividend shares on the ASX right now that offer trailing yields far higher.

Super Retail Group Ltd (ASX: SUL) is the company behind famous retail names like Super Cheap Auto, Rebel and BCF. It may not have the dividend royalty status of Soul Patts. But on current pricing, this dividend payer offers a trailing yield of 8.2%. That means investors have gotten more than 8 cents in the dollar back from their investment over the past 12 months. If you include the value of the full franking credits Super Retail typically includes with its dividends, this rises to 11.7 cents in every dollar.

The post These ASX shares pay you to own them appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Westpac result impresses, AVZ halted
• Westpac share price charges higher on earnings beat and improving costs outlook
• Everything you need to know about the latest Westpac dividend
• Westpac share price on watch amid half-year profit slide
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Super Retail Group Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 Telstra Corporation Ltd (ASX: TLS) share price may have fallen year to date, but could it be a buy in turbulent times?

Telstra shares have dropped 5.69% since market open on 4 January and are currently trading at $3.98. In today’s trade, the telco’s share price is up 0.25%.

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

Is the Telstra share price a buy?

Analysts at Wilsons have named Telstra as a “defensive growth” share to buy in turbulent times. In a memo to clients, the company said defensive shares are starting to outperform the market. Commenting on the outlook, Wilsons said:

With the market concern on global economic growth due to China’s COVID lockdowns, the Russia/Ukraine conflict and a period of aggressive hiking from the US Fed, we think it is sensible to have an above-average allocation to defensives.

Our picks are healthcare, insurance and telco.

The company named Telstra specifically, along with CSL Limited (ASX: CSL), Insurance Australia Group Ltd (ASX: IAG) and Healthco Healthcare and Wellness REIT (ASX: HCW).

Meanwhile, a Morgan Stanley analyst has also recently named Telstra as one of two shares in Australia it recommends in risky times. Head of wealth management research Alexandre Ventelon highlighted the company’s completion of the NBN rollout, cost cutting, and return to positive mobile average revenue per user (ARPU) and EBITDA (earnings before interest, tax, depreciation, and amortisation), saying:

Morgan Stanley’s base case assumption is for an ARPU increase of 2% per annum for the next three years to A$52/pm in FY24E, although it may not reach its previous high watermark until the end of FY31.

Telstra share price snapshot

The Telstra share price has surged nearly 15% in the past 52 weeks, while it is down 0.75% in the past month.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has climbed nearly 1% the past year.

Telstra commands a market capitalisation of around $46.4 billion based on the current share price.

The post Is the Telstra share price a defensive buy during times of market uncertainty? appeared first on The Motley Fool Australia.

More reading

• 4 ‘defensive growth’ ASX shares to buy in turbulent times: Wilsons
• Could these 3 ASX dividend shares still beat the piggybank if rates hit 2.5%?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• What’s the outlook for the Telstra share price in May?
• Analysts name 2 blue chip ASX 200 dividend shares to buy

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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For much of the last decade, Webjet Ltd (ASX: WEB) shares were a decent option for income investors.

The online travel agent regularly shared in the region of 50% to 60% of its profits with shareholders.

That was of course until COVID-19 reared its ugly head. Since then, Webjet has been bleeding cash and unsurprisingly suspended its dividend payments.

But with trading conditions in the travel sector improving greatly in 2022, investors may now be wondering when dividends will return.

When will Webjet start paying a dividend?

According to a recent note out of Goldman Sachs, its analysts believe that Webjet could soon be in a position to start paying dividends again.

However, don’t get your hopes up for a dividend from Webjet in FY 2022. Goldman expects the company to report another sizeable loss this year before returning to profit in FY 2023.

At which point the broker expects Webjet to pay shareholders a 9 cents per share fully franked dividend. Based on the current Webjet share price of $5.59, this will mean a modest yield of 1.6%.

But it gets better. With the broker forecasting another jump in profits in FY 2024, it expects the company’s dividend to increase to a fully franked 14 cents per share. This equates to a more attractive 2.5% yield.

What is driving its return to profit growth?

Webjet’s return to growth is expected to be underpinned by the travel market recovery, a stronger and more profitable business model, and its growth engine – the WebBeds (bedbanks) business.

Goldman commented: “We expect WEB to benefit from the tailwind of travel recovery, offering structurally improved profitability and a strong outlook on the Bedbanks business, which we expect to resume the strong growth journey that it embarked on prior to COVID.”

The post Will Webjet pay a dividend in 2022? appeared first on The Motley Fool Australia.

More reading

• Are ASX 200 travel shares already fully valued in May?
• These are the 10 most shorted ASX shares
• 2 top ASX growth shares Goldman Sachs rates as buys
• Is the Webjet share price now a buy amid ‘strong’ travel demand?
• Why did the Webjet share price have such a good run in April?

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 Webjet 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 Fortescue Metals (ASX: FMG) share price is tumbling today amid a tough trading day for ASX iron ore shares.

Fortescue shares are currently swapping hands at $19.57, a 6.05% fall. For perspective, the S&P/ASX 200 Index is 1.37% in the red today.

With no price-sensitive news released by the miner today, let’s take a look at what else might be impacting the Fortescue share price.

Iron ore futures plunge

Fortescue shares may be down, but it is not the only mining share on the ASX to plunge. The S&P/ASX 200 RESOURCES Index (ASX: XJR) is down 1.86% today.

Meanwhile, BHP Group Ltd (ASX: BHP) shares are falling 1.13% and Rio Tinto Limited (ASX: RIO) shares are 2.62% in the red. Hawsons Iron Ltd (ASX: HIO) shares are plummeting more than 18%.

Overseas, Singapore iron ore futures dropped 6.7% to US$128.75, The Australian reported.

China’s benchmark iron ore future on the Dalian Commodity Exchange also plunged 5.1% in late trade on Friday to 825 yuan per tonne, according to a Reuters report. China’s ‘zero-COVID-19‘ policy is reportedly causing traders to be more cautious.

This follows a positive month in April which saw the Fortescue share price climb 4.7%. Investors reacted positively to the company’s third-quarter update on 28 April.

The company reported a 10% jump in shipments to 46.5 million tonnes in the first three months of the year.

Fortescue share price snapshot

Despite a slide of nearly 15% over the past 12 months, the Fortescue share price has lifted almost 2% year to date.

In comparison, the benchmark S&P/ASX 200 Index has returned 0.37% over the past year.

Fortescue has a market capitalisation of more than $60 billion based on its share price today.

The post Why is the Fortescue share price sinking 6% on Monday? appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 mining shares were the worst-performing on Friday?
• The Fortescue share price is down 8% in May. Is now the time to buy?
• ASX 200 mining shares slump, dragging index into the red
• Leading brokers name 3 ASX shares to sell today
• Why is the Fortescue share price down 5% on Tuesday?

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 Bitcoin (CRYPTO: BTC) price has slipped again, down 2.4% over the past 24 hours to US$33,948 (AU$48,177).

That puts the world’s biggest crypto by market cap down 29% since 1 January. And investors who bought on 10 November last year, when the Bitcoin price hit all-time highs, will be nursing losses of 51%, according to data from CoinMarketCap.

With the world’s first digital token trading at its lowest level since 24 January, what’s going on?

Cryptos are broadly trading in line with risk assets

Crypto enthusiasts had been hoping that digital assets might offer a hedge against inflation and other macro forces that can roil share markets.

But Bitcoin’s ‘digital gold’ billing has failed to live up to those hopes this year.

While gold prices have come back sharply from their March peak, the yellow metal remains up 2.6% in 2022, compared to the 29% loss in the Bitcoin price.

Indeed, cryptos have been behaving much more like risk assets than haven assets. The tech-heavy Nasdaq, for example, is also down 23.3% year-to-date.

What next for the Bitcoin price?

Commenting on the outlook for the Bitcoin price, Rick Bensignor of Bensignor Investment Strategies said (quoted by Bloomberg), “Bitcoin did not hold key support and now has upped chances for a large drop.”

According to Bensignor, referring to the token’s trading levels:

Last week the weekly cloud’s lagging line did not hold above the bottom of its cloud at $36,870. I warned that that cloud breach could easily and quickly lead to a $10,000 drop. The bulk of crypto holders are ‘hopers’, and they will sit on their longs regardless of what price action suggests.

Katie Stockton, managing partner at Fairlead Strategies, points to cryptos’ tendency to track alongside share markets as offering some hope for a bounce in the Bitcoin price.

“Bitcoin has no counter-trend signals at this time, but the equity market does look poised to rebound next week, which we hope will carry over to cryptocurrencies,” she said.

The post Bitcoin price slumps to 4-month lows. Now what? appeared first on The Motley Fool Australia.

More reading

• Bitcoin price plunges 11%. What’s going on?
• Here’s why the Bitcoin price surged 6% overnight
• Another country adopts Bitcoin as legal tender. What does this mean for investors?
• ‘Stupid and evil’. Warren Buffett and Charlie Munger unload on Bitcoin
• Why Bitcoin, Ethereum, and Coinbase Jumped Today

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

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It has been another red day for the Lake Resources N.L. (ASX: LKE) share price on Monday.

In afternoon trade, the lithium developer’s shares are down 9% to $1.50.

This means the Lake Resources share price is now down a disappointing 25% since this time last month.

Why is the Lake Resources share price sinking?

Investors have been selling down the Lake Resources share price today amid a broad market selloff.

Unfortunately, shares that are higher up the risk curve, such as lithium miners, have been the most heavily impacted during today’s market weakness.

For example, fellow lithium developers Liontown Resources Limited (ASX: LTR) and Sayona Mining Ltd (ASX: SYA) are also down by a similar margin during afternoon trade.

Is this a buying opportunity?

The team at Bell Potter may see the weakness in the Lake Resources share price as a buying opportunity.

The broker currently has a speculative buy rating and $2.83 price target. This implies almost 90% upside for investors over the next 12 months.

Last month the broker commented:

LKE has now announced two non-binding Memorandum of Understandings covering all of the proposed 50ktpa initial lithium product offtake from its Kachi Project (LKE 75%). The Hanwa Co., Ltd non-binding MoU (announced 29 March 2022) for 25ktpa will potentially align LKE with Japanese battery and auto manufacturers.

Today’s announced non-binding MoU with Ford Motor Corporation covering 25ktpa adds a further highly credible potential counterparty with a focus on North American markets. The agreements and the counterparties add support to ongoing financing and predevelopment activities for Kachi. They also highlight auto manufacturers’ increased interest in participating further up the battery minerals supply chain and with an eye to the ESG credentials of raw materials providers.

The post Lake Resources share price drops 9%: Is this a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Low charge: is the party over for ASX lithium stocks?
• Which ASX 200 mining shares were the worst-performing on Friday?
• Why is the Lake Resources sliding 7% into the red on Friday?
• Why is the Novonix share price down 6% on Friday?
• Investing in ASX lithium shares? Here’s what you need to know

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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ASX lithium stocks have had a wild ride in the past few years. The sector has seen enormous gains as investors piled in, expecting a shortage in supply to drive up prices.

However, we have seen many of these companies experience significant share price weakness over the past month.

So, is this the beginning of the end for ASX lithium stocks? Or is there still room for them to run higher?

Foot slips off the gas of ASX lithium shares

If there is one thematic that has dominated markets in recent history, it is the growing demand for lithium. The proliferation of electric vehicles (EVs) jump-started the lithium price in 2021, continuing into this year.

From the beginning of 2020 to the peak of this year, the price of lithium carbonate has exploded — increasing from ~US$6,600 per tonne to ~US$74,200 per tonne. Although, investors speculating on further price rises coinciding with demand have faced sobering insight recently.

As my colleague James covered last week, Goldman Sachs analysts have suggested that the highest prices for the electrifying commodity might be behind us. In a note, the investment bank disclosed its expectation for a long-run average price of US$11,500 per tonne.

The forecast comes at a time when lithium prices have been retracing over the last 30 days — pulling back by roughly 7%. In response, ASX lithium stocks have also seen their value depleted during this time, including:

• Lake Resources N.L. (ASX: LKE) down 23.6% to $1.48
• Liontown Resources Limited (ASX: LTR) down 23% to $1.26
• Allkem Ltd (ASX: AKE) down 10.6% to $11.34
• Pilbara Minerals Ltd (ASX: PLS) down 15.3% to $2.55

One lithium company is flipping the script

Beyond the bounds of the Australian share market, there is a lithium share that has been able to push higher despite the souring sentiment.

The share price of US-based Albemarle Corporation (NYSE: ALB) is up 17.7% over the last month. Most of this strength followed the company’s first-quarter earnings result for FY22. Pleasingly, Albemarle surpassed analyst expectations with a 44% earnings per share (EPS) beat.

In comparison, Pilbara Minerals is one ASX lithium stock that failed to rally upon its latest quarterly report. The company revealed slightly lower spodumene concentrate production and a significant fall in shipment volume.

The post Low charge: is the party over for ASX lithium stocks? appeared first on The Motley Fool Australia.

More reading

• Lake Resources share price drops 9%: Is this a buying opportunity?
• Which ASX 200 mining shares were the worst-performing on Friday?
• Why is the Lake Resources sliding 7% into the red on Friday?
• Why is the Novonix share price down 6% on Friday?
• Why is the Pilbara Minerals share price sinking 9% today?

Motley Fool contributor Mitchell Lawler owns shares in Albemarle Corporation. 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 BetMakers Technology Group Ltd (ASX: BET) share price is heading south on Monday.

At the time of writing, the betting technology company’s shares are fetching 47.2 cents apiece, down 3.67%.

This comes after the S&P/ASX 200 Index (ASX: XJO) taking a beating on the back of heavy losses on Wall Street last week.

As such, the benchmark index is trading at 7,107.7 points, down 1.36%.

BetMakers launches fixed odds betting

Despite the company’s positive update, investors are continuing to sell off the BetMakers share price.

According to its release, BetMakers advised that it has launched fixed odds betting on thoroughbred horse racing in New Jersey.

In August 2021, the Governor of New Jersey signed into law a bill authorising fixed-odds wagering on horse races. Notably, this was the first state to approve fixed odds betting in the United States.

BetMakers noted that the first fixed odds bet was taken on Friday 6 May. This was followed by the first fixed odds betting conducted at the Monmouth Park season launch meeting on 8 May.

The company now plans to roll out fixed odds wagering to further horse racing meetings in the coming weeks. This includes up to 10 meetings each day from North American tracks before expanding to international meetings for fixed odds wagering.

BetMakers also stated that it has been contracted to provide online fixed odds solutions for Monmouth Park.

Management is expecting this to be operational within the next quarter.

BetMakers North American CEO, Christian Stuart commented:

This was a momentous occasion for BetMakers and US horse racing in general.

We believe horse racing is the untapped vertical for sports bookmakers as they look to deliver more content more often to their acquired databases with products that can deliver solid margins.

BetMakers continues to lead the charge to deliver what we believe is the renaissance of horse racing in the United States.

BetMakers share price snapshot

The BetMakers share price has failed to take off in the past 12 months, losing more than 65% in value.

The company’s shares hit a 52-week low of 47 cents today and are struggling to keep afloat. This brings its year-to-date losses to around 40% in the space of five months.

Based on today’s price, BetMakers commands a market capitalisation of around $424.63 million.

The post BetMakers share price slides despite ‘momentous occasion’ appeared first on The Motley Fool Australia.

More reading

• Macquarie share price tumbles 4% to 9-week low. Is it time to pounce?
• The Lynas share price has plunged 6% today! What’s going on?
• ASX 200 midday update: Westpac result impresses, AVZ halted
• Why is the ANZ share price sliding on Monday?
• These are the 10 most shorted ASX shares

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 positions in and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology 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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The Macquarie Group Ltd (ASX: MQG) share price has dropped approximately 4%, meaning the bank just fell to a nine-week low.

The business is seeing a decline, as is the wider ASX share market. The S&P/ASX 200 Index (ASX: XJO) is currently down around 1%. ASX shares are following on from the decline that the international share market saw on Friday.

What’s impacting the Macquarie share price?

Aside from the ongoing market volatility amid the focus on inflation and interest rates, Macquarie announced its FY22 result on Friday.

The investment bank is becoming increasingly global. In FY22, international income was 75% of total income.

It reported that FY22 net profit after tax (NPAT) was $4.7 billion. That represented an increase of 56% year on year.

The FY22 second-half profit of $2.66 billion was 30% higher than the first half of FY22 and up 31% compared to the second half of FY21.

It also said that its assets under management (AUM) increased by 37% to $774.8 billion over the year.

Macquarie’s financial position “comfortably exceeds regulatory minimum requirements” with $10.7 billion of surplus capital. The bank’s common equity tier 1 (CET) ratio was 11.5%.

The investment bank said that it continues to maintain a cautious stance, with a conservative approach to capital, funding and liquidity which will help it respond to the current environment.

Outlook

Macquarie CEO Shemara Wikramanayake said:

Macquarie remains well-positioned to deliver superior performance in the medium term. This is due to our deep 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 and culture.

Is the Macquarie share price an opportunity?

The market is very mixed on the business.

Morgan Stanley says it’s a buy, with a price target of $245. That implies a possible upside of more than 30%. It thinks that Macquarie is placed well to do well from the flow of capital into green opportunities. The broker thinks that Macquarie can continue to do well in the current environment.

Another broker that’s positive on the business is Morgans, with a buy rating and a price target of $215. That’s a possible upside of around 20% over the next year.

Citi is one of the brokers that is neutral on the Macquarie share price, with a price target of $187, implying a slight upside. It thinks that earnings generated by Macquarie’s commodity division will settle down, likely impacting profits in the next few years.

But there’s one broker that is fairly negative. Credit Suisse rates Macquarie as ‘underperform’. It thinks the FY22 result is the best that profit is going to be. The rising interest rate environment could be a negative for the global investment bank, potentially hurting asset values.

On Credit Suisse’s numbers, the Macquarie share price has a valuation of 18x FY23’s estimated earnings.

However, Morgan Stanley’s more optimistic outlook puts Macquarie shares at 17x FY23’s estimated earnings.

The post Macquarie share price tumbles 4% to 9-week low. Is it time to pounce? appeared first on The Motley Fool Australia.

More reading

• The Lynas share price has plunged 6% today! What’s going on?
• ASX 200 midday update: Westpac result impresses, AVZ halted
• Why is the ANZ share price sliding on Monday?
• Is the NAB share price a buy amid this volatility?
• Is it too late to buy big bank ASX shares?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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