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

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

What happened

Shares of Netflix (NASDAQ: NFLX) continued to drop this morning as the leading streamer is still feeling the consequences of a disastrous earnings report last week. The first-quarter update included a surprise loss of 200,000 subscribers, and the company said it expected to lose another 2 million paying members in the second quarter.

Negative reports in a number of popular financial media outlets over the weekend helped the drag the stock lower today.

As of 11:43 a.m. ET, the stock was down 3.1%.

So what

Articles in Barron’s, Bloomberg, and The Wall Street Journal portrayed a company in disarray following the crash in the stock.

A Bloomberg story said that employee morale is at its lowest point in at least several years. The company had long enjoyed something of a bulletproof image on Hollywood and on Wall Street, but that seems to have shattered in the wake of the earnings report. Employees are also dejected after seeing stock options evaporate that were valued in the hundreds of thousands of dollars for some.

Management now seems to scrambling to adjust its strategy, planning to rein in content costs and focus on quality over quantity. That move seems to be a long time coming, as Netflix’s content budget is expected to clock in around $18 billion, far more than any of its competitors. With competition on the rise, the company needs to be more judicious with its spending.

Now what

Netflix stock has now lost about 40% since the earnings report and is off roughly 70% from its peak last November. While the company does need to make some changes, it’s a mistake to think that Netflix is a broken company.

Co-CEO Reed Hastings has proven himself to be a visionary thinker in video entertainment, and the company’s 220 million subscribers give it an advantage over the streaming debutantes. The company still has plenty of levers to pull to improve its performance, including launching an advertising tier, but being more scrupulous about content costs is probably the best first step it can make. 

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

The post Why Netflix stock was falling again today appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Netflix, and 1 reason to sell
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• Is Netflix Stock a buy after its spectacular fall from grace?

Jeremy Bowman owns Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns 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 Bruce Jackson.

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

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Despite the All Ordinaries (ASX: XAO) being down today, the Airtasker Ltd (ASX: ART) share price is exploding higher.

This comes after the company provided a quarterly business update to the ASX prior to market open.

The online marketplace company’s shares are swapping hands at 54 cents apiece, up 12.50%.

In contrast, the broader ASX index is trading at 7,625.6 points, down 1.84%. This follows widespread fears about China’s COVID-19 situation.

Airtasker records strong Q3 growth

Investors are bidding up the Airtasker share price following the company’s robust performance for the third quarter of FY22.

According to its release, Airtasker reported gross marketplace volume (GMV) of $51.5 million, up 24.9% on the prior corresponding period.

In addition, revenue surged to $8.6 million, an increase of 21.2% over Q3 FY21.

The group achieved a positive operating cash flow of $1 million, with $32.8 million cash in the bank.

Management lauded the result, despite macro headwinds including COVID-19 and weather-related events impacting its major marketplaces.

The bumper performance was driven by investment in new-city-level marketplaces in both the United States and the United Kingdom.

In particular, the United States marketplace grew 90% over the previous quarter as it recorded increased job opportunities (posted tasks).

Across the United Kingdom marketplace, GMV accelerated 138% over the prior comparable period due to season demand.

Airtasker co-founder and CEO, Tim Fung touched on the company’s result, saying:

I’m super pleased to share another strong quarter of growth for Airtasker against a backdrop of tough macro impacts including unprecedented rainfall and horrendous flooding.

Posting positive cashflow from operations of $1 million demonstrates the strength of our underlying business model and with a strong balance sheet, I’m excited to continue expanding into new segments of the local services economy in Australia whilst replicating the growth we’ve seen in our Australian marketplaces across the US and UK.

About the Airtasker share price

Over the past 12 months, the Airtasker share price has lost almost 60%, with year to date down 36%.

It’s worth noting that regardless of today’s rise, the company’s shares hit an all-time low of 46 cents last Thursday.

Based on valuation grounds, Airtasker commands a market capitalisation of roughly $224.79 million.

The post ‘Super pleased’: Why the Airtasker share price is rocketing 12% today appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 exciting small cap ASX shares to buy
• Buy these ASX shares with huge upside: experts
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• Airtasker (ASX:ART) has been listed for a year. Has it been up to the task?

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 recommended Airtasker Limited. 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 Bruce Jackson.

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The Bubs Australia Ltd (ASX: BUB) share price is down 7.14% after the infant formula company announced its quarterly update for the three months to 31 March 2022.

The business announced the third consecutive quarter of year-on-year growth, pointing to “positive growth momentum” across each of its business pillars. These are its domestic, China, and international markets. In particular, Bubs reported “exceptional growth” in its domestic retail business.

Bubs FY22 third-quarter update

Here are some of the main highlights from the Bubs update today:

• Third-quarter gross revenue of $17.6 million, up 49%
• Domestic retail infant formula growth of 108%
• Bubs’ Australian market share reached 4.2%, which is a company record
• Number one status in the goat infant formula brand, with a market share of 42.1%
• Deloraine Dairy Solutions revenue jumped 560%, contributing 30% of quarterly sales
• Total Chinese (daigou and cross-border e-commerce) sales increased by 8%
• International gross revenue grew 153%, with Bubs-branded products revenue growth of 63%
• USA retail footprint expands in 254 Smart & Final stores, and 130 Buy Buy Baby stores

Other highlights

Bubs has been busy in the last few months with strategic moves.

The company has launched a new product which it calls Bubs Supreme. This is A2 beta-casein protein infant formula. Bubs calls this product its most ambitious innovation project to date. The company says it enables it to address a much larger share of the infant formula market. It will be on the shelf of 500 Coles Group Ltd (ASX: COL) supermarkets from May 2022.

Bubs’ lead corporate daigou distributor Willis Trading has committed to an opening purchase order valued at $32.9 million. The first containers are already shipped and being sold in China from April.

Willis Trading has been Bubs’ largest single customer in FY21 and FY22. It has also been the lead distributor for both Bubs and CapriLac brands in the corporate daigou channel.

During the quarter, Bubs entered into an equity-linked strategic alliance with Willis Trading. The agreement is conditional on product purchase milestones of at least $50 million in FY22 and $80 million to $120 million in FY23.

Outlook and Chinese lockdowns

Bubs said it’s working with its partners to ensure that Chinese consumers are still able to access its products. Further, it said its “unique restructure” of supply chain and logistics over the last two years has enabled the business to maintain and accelerate growth momentum.

In terms of the outlook, the company expects to deliver modest half-on-half growth in the second half of FY22. Accelerated revenue expected from the rollout of Bubs Supreme is set to be realised in the fourth quarter.

The company acknowledged that continuing macroeconomic uncertainties and ongoing COVID-related supply chain disruption could result in “transitory variability”.

Bubs share price snapshot

The Bubs share price is down 4.21% in 2022 so far but up more than 7% over the past year.

The company has a market capitalisation of $278 million based on its current share price.

The post Bubs share price sinks 7% despite quarter of ‘exceptional growth’ appeared first on The Motley Fool Australia.

More reading

• Are these 2 compelling ASX growth shares buys in April 2022?

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 owns and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mineral Resources Limited (ASX: MIN) share price is taking a beating today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining services company closed at $60.70 on Friday and are currently trading for $54.98. That puts the Mineral Resources share price down 9.4%.

So, what’s going on?

Resource outlook clouded by China’s slowing growth

First, it’s not just the Mineral Resources share price that’s under pressure today.

At time of writing the S&P/ASX 200 Resource Index (ASX: XJR) is down 5.2%.

This comes amid a global selloff in commodities and energy.

Copper, as one example, is down 3.3% overnight. That brings the red metal down 5.2% since this time last week.

Iron ore, Australia’s top export earner and a primary focus for Mineral Resources is taking an even bigger hit, down 9.7% to $US135.75 per tonne.

Meanwhile, energy producers haven’t been spared either, with Brent crude oil down 9% over the past week.

Resource prices are sliding amid fears that China’s economic growth will take a big hit from the nation’s zero-virus policy. As COVID-19 continues to spread, it appears that Shanghai may be in for extended lockdowns, hitting supply chains and crimping demand for commodities.

What else is impacting the Mineral Resources share price today?

Mineral Resources could also be under pressure following an ASX announcement this morning.

According to the release, the mining services company intends to offer US$1 billion of Senior Unsecured Notes. Mineral Resources said the notes will only be available to investors “reasonably believed to be qualified institutional buyers”.

The company plans to use the cash proceeds for “general corporate purposes, including for capital expenditures”.

Mineral Resources share price snapshot

With today’s intraday drop factored in, Mineral Resources shares are down 5.8% so far in 2022. By comparison, the ASX 200 is down 3.3% year-to-date.

Taking a step back, longer-term investors will have little to complain about.

Over the past 5 years, the Mineral Resources share price has gained 416%.

The post Why is the Mineral Resources share price sinking 9% today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Mineral Resources share price sinks despite strong Q3 update
• Here’s why brokers love these ASX 200 mining shares
• Why is it such a mixed day of trade for ASX lithium stocks?
• What are the 10 biggest ASX shares in the lithium space

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 Bruce Jackson.

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

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

What happened

It’s been a rather bumpy ride in the world of large-cap cryptocurrencies of late. Today, this volatility has continued, with Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and XRP (CRYPTO: XRP) each seeing declines as of late-morning trading.

At 11:45 a.m. ET, these top tokens had sunk 1.3%, 2.1%, and 5.1% respectively over the past 24 hours. 

A number of macro factors appear to be weighing on these top tokens, including volatility in Asian markets as well as concerns around rising interest rates and a stronger U.S. dollar. 

For Bitcoin, these concerns have overshadowed some near-term catalysts investors are focused on. The Central African Republic has passed a bill to regulate crypto, adopting Bitcoin and other cryptocurrencies with a focus on inclusive growth. While this news isn’t necessarily as bullish as El Salvador’s move to declare Bitcoin legal tender, investors are taking note. 

Similarly, Ethereum’s move toward an eventual “merge” that would take it from proof-of-work validation to proof-of-stake validation continues to provide both bullish anticipation and anxiety for some investors. That’s because Ethereum’s merge has been delayed, again, signaling any sort of bullish catalyst for investors may be further out. 

XRP has now given up most of its gains from its late-January dip, as investors appear to be cautious with respect to the upcoming verdict on the SEC v. Ripple case that’s nearing a close.

So what

Each of these top tokens has its own idiosyncratic catalysts and headwinds investors ought to consider. That said, the price action in today’s crypto market has really been mostly to the downside, with the exception of certain meme tokens (thanks to Elon Musk).

Like equity investors, those in the crypto market appear to be pricing in continued headwinds from lower liquidity in the market stemming from rising interest rates and quantitative tightening. Expectations that growth assets may underperform, whether true or not, are overshadowing any bullish catalysts for these top tokens once again today.

Now what

It’s unclear whether the highly discussed crypto winter many were talking about at the beginning of the year is truly over. Right now, it’s clear that an unfavorable monetary policy environment is likely to continue to affect the valuations of riskier assets for some time. Being among the riskiest of all asset classes, cryptocurrencies may be ill-positioned for growth in such an environment.

That said, there are many reasons long-term growth investors may remain bullish on cryptocurrencies. The technologies underpinning these tokens do provide tangible catalysts for investors to get excited about. Accordingly, it’s now a question of how the market will price this growth potential. Today, it appears most investors are negative on the near-to-medium-term outlook for this sector.

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

The post Why Bitcoin, Ethereum, and XRP are struggling today appeared first on The Motley Fool Australia.

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Chris MacDonald owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

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

What happened

As of 11:30 a.m. ET Monday, the price of Dogecoin (CRYPTO: DOGE) had risen by roughly 5% over the prior 24 hours as Tesla founder and noted Dogecoin bull Elon Musk pressed ahead in his efforts to purchase social media giant Twitter.

So what

Over the last few weeks, after repeated ideological attacks on the methods by which Twitter deals with free speech issues, Musk launched what it would eventually become clear was a takeover bid. First, he purchased a more than 9% stake in Twitter. At that point, it looked like Musk might join Twitter’s board, but he would eventually decline its invitation to do so.

Dogecoin is expected to benefit if Musk takes over Twitter because it is one of three cryptocurrencies Musk holds in large quantities, and it’s one that he has consistently promoted on social media and elsewhere. Many observers seem to think he would integrate Dogecoin on the platform somehow, which would broaden its exposure and use, and therefore, in all likelihood, its price.

Now what

Considering that Dogecoin started as a joke and doesn’t have any unique real-world use cases or technical advantages over the thousands of other cryptocurrencies in circulation today, I’ve never thought of it as a good long-term investment.

There may be potential for it to become useful if Musk winds up in a position where he can push for Dogecoin network upgrades and integrate the crypto into the Twitter ecosystem, but I would really need to see evidence of that happening first before I’d consider buying Dogecoin tokens.

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

The post Why Dogecoin is rising today appeared first on The Motley Fool Australia.

More reading

• Elon Musk buys Twitter in $60 billion mega deal
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Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla and Twitter. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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It’s been a rather dreadful start to the trading week for ASX shares so far this Tuesday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is down by 1.93% at around 7,330 points after the ASX 200 plunged by as much as 2.4% earlier this morning. But at least one ASX 200 blue-chip share has managed to defy this selloff. That would be the Woolworths Group Ltd (ASX: WOW) share price.

Woolworths shares are more or less defying the savage market selloff we’ve seen so far today. The company’s share price is still down at the time of writing, but by far less, currently trading down 0.4% at $39.16. Earlier, Woolworths was actually in the green too. 

That makes Woolies one of the only blue-chip ASX 200 shares to not see its value substantially sold off today. At the present time, all four of the big four ASX banks are well in the red. As are BHP Group Ltd (ASX: BHP), CSL Limited (ASX: CSL) and Telstra Corporation Ltd (ASX: TLS). In BHP’s case, the iron ore miner has lost around 5.2%.

So what is saving Woolworths from the worst of today’s selling pressure?

Why is the Woolworths share price defying today’s ASX 200 selling?

Well, it doesn’t appear to be anything the company has done specifically. There have been no major news or announcements out today from Woolworths itself. However, we get a clue if we look at Woolworths’ major peers. The Coles Group Ltd (ASX: COL) share price is also outperforming the broader ASX 200 today. Coles shares are currently down by 0.2% at $18.79 each after breaking into positive territory at one point as well. 

IGA operator Metcash Limited (ASX: MTS) is itself in the green. Metcash shares are currently up by 0.4% at $4.79 a share. Endeavour Group Ltd (ASX: EDV), which used to be part of Woolworths, is doing very nicely, up 1.16% at $7.83.

Indeed, Woolworths’ ASX 200 Consumer Staples sector is leading the ASX so far today. All ASX 200 sectors are currently in the red. But the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is currently the best performing one, with its 0.33% loss thus far today. 

So perhaps we are seeing what can often happen in a market selloff; investors looking for safety. For better or worse, consumer staples shares like Woolies are often sought out during fearful markets for their perceived safety. Since consumer staples shares by definition produce and sell life’s ‘needs’ like food, drinks and household essentials, many investors believe they are ‘safer’ investments during a downturn. Thus, shares like Woolworths often outperform the broader market during savage selloffs, like the one we are seeing today. That would explain why the entire consumer staples sector is performing well today too.

At the current Woolworths share price, this ASX 200 blue-chip has a market capitalisation of $47.73 billion, with a dividend yield of 2.4%. 

The post How is the Woolworths share price managing to defy today’s sell-off? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to sell next week
• These were the best performing ASX 200 shares last week
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• Own Westpac shares? Here’s why the bank has just copped a further $100m in fines

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia owns 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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) isn’t off to the best of post-holiday starts.

At all.

ASX 200 stocks are down 2.4% in morning trade, having shed 2.3% within the first minutes of the opening bell. At the time of writing, the benchmark index is clawing back some ground, now 1.88% lower.

That’s the worst performance for ASX 200 stocks since 21 January, when Russian forces crossed into Ukraine and unleashed war on the European continent.

Energy and resource companies are among the worst performers today, as witnessed by the 5.1% loss on the S&P/ASX 200 Energy Index (ASX: XEJ) and the 5.4% loss posted by the S&P/ASX 200 Resource Index (ASX: XJR) at this same time.

So, why are investors hitting the sell button today?

Why ASX 200 stocks are under pressure

ASX 200 stocks have faced a multitude of headwinds in 2022.

First, there was rising global inflation and the spectre of numerous interest rate hikes ahead.

Then there was Russia’s horrendous invasion of neighbouring Ukraine.

Now COVID-19 is back in the playbooks.

While Australia has joined most of the rest of the world in reopening its domestic and international borders and learning to live with the coronavirus, China remains intent on its COVID-zero policies. And this determination is seeing Shanghai, a city with more residents than all of Australia, forced into extended lockdowns.

Now signs are emerging that China, the world’s number two economy, is facing some serious setbacks in its growth ambitions. And that’s having a big impact on commodity and energy prices.

Brent crude, for example, is currently trading for just under US$103 per barrel. That’s down 9% since this time last week when that same barrel was fetching just over US$113 per barrel.

Even more crucially for the Aussie economy and some of the top ASX 200 stocks by market cap, iron ore is taking a hit.

The industrial metal is down some 10% to $US135.75 per tonne.

As the Australian Financial Review reports, China’s lockdowns have seen Nomura cut its Q2 forecast for China’s GDP growth to 1.8% from 3.4%.

According to Nomura’s chief economist Ting Lu:

Without the ending in sight, Chinese households and private sector corporates may reduce their investment in their homes and capital goods. With other countries shifting to full reopening, China’s export growth is set to slow even without lockdowns.

Best and worst performers

There aren’t a whole lot of top performers among ASX 200 stocks to look at today.

In fact, only three of the 200 are posting gains in excess of 1.0%.

Of those, Unibail-Rodamco-Westfield (ASX: URW) leads the pack, up 2.9% at the time of writing.

As for the worst performers, that unwanted honour goes to EML Payments Ltd (ASX: EML), down 35%. Investors are selling shares after the financial services company cut its earnings guidance for FY22 in an ASX update this morning.

And with iron ore tanking, you won’t be surprised to find the likes of BHP Group Ltd (ASX: BHP) among the bottom ten performers of ASX 200 stocks as well. The BHP share price is down 5.3% today.

Deriving an even greater share of its revenue from iron ore, the Fortescue Metals Group Ltd (ASX: FMG) is falling even harder, down 6.46% at the time of writing to $19.85 per share.

As long-term investors in ASX 200 stocks, we know that down days – like what we’re witnessing today – happen. We also know that, historically, they’ll fade away as investors look to capture good value from the markets.

The post ASX 200 stocks dive 2.4% in worst trading day since Ukraine crisis hit appeared first on The Motley Fool Australia.

More reading

• The Fortescue share price is falling 6% on Tuesday. Here’s why
• EML share price crashes 35% amid guidance cuts
• BHP share price sinks 6%: Is this a buying opportunity?
• ASX 200 mining stocks just ended a dire week of trade. What’s next?
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woodside Petroleum Limited (ASX: WPL) share price is tumbling on Tuesday following the release of the company’s latest quarterly report.

Woodside’s revenue and production slipped last quarter while its average realised sales price increased.

At the time of writing, the Woodside share price is $30.43, 5.11% lower than its previous close. In early trade, it fell as low as $30 a share.

Let’s take a look at how the oil and gas company performed over the three months ended 31 March 2022.

Woodside share price plummets on quarterly update

• Total revenue of US$2,395 million for the quarter
• Produced 22.3 million barrels of oil equivalent
• Sales volumes of 25.5 million barrels of oil equivalent
• Average realised oil price of US$93 a barrel

Woodside’s revenue for the period was 17% lower than that of the December quarter. Though, it was more than double that of the prior comparable period.

The company noted the drop in revenue was due to lower trading activity.

Additionally, its production slowed by 1% compared to that of the previous quarter following maintenance and weather events.

Woodside’s average realised oil price increased 3% on that of the previous quarter and 111% on that of the first quarter of 2021.

What else happened in the quarter?

The last quarter was a busy period for the oil and gas producer.

It saw the global market for oil and gas further tighten in the face of Russia’s invasion of Ukraine, according to Woodside CEO Meg O’Neill.

The company spent time last quarter working towards its merger with the BHP Group Ltd (ASX: BHP) petroleum business. Information on the merger was released to the market in early April.

Woodside also completed the sale of a 49% interest in the Pluto Train 2 joint venture and commenced processing Pluto gas at the Karratha Gas Plant.

The company’s Scarborough Field Development plan has now received approvals and work is continuing at the Sangomar Field Development.

Finally, Woodside agreed on the long-term charter hire of three new LNG carriers.

The Woodside share price gained 46% last quarter.

What did management say?

Commenting on the company’s quarterly performance and outlook, O’Neill said:

The implications of Russia’s invasion of Ukraine have reverberated globally, exacerbating already tight energy markets, particularly for LNG. This has resulted in unprecedented volatility and price spikes to levels not seen since the early part of last decade …

We expect in the second quarter to see the continued benefit of stronger pricing, reflecting the oil price lag in many of our LNG contracts.

Woodside share price snapshot

Today’s dip hasn’t been enough to send the Woodside share price into the long-term red.

The company’s stock is currently trading around 34% higher than it was this time last year.

The post Woodside share price plunges 6% following up-and-down quarter appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• What’s the outlook for the Woodside share price this quarter?
• 5 things to watch on the ASX 200 on Thursday
• Own BHP shares? Here’s why this week’s operations update could disappoint
• Woodside share price lifts amid US listing plans

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

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The Fortescue Metals Group Limited (ASX: FMG) share price is coming under selling pressure today. This is despite the iron ore mining outfit not releasing any price sensitive announcements to the ASX.

At the time of writing, Fortescue shares are fetching for $19.81, down 6.64%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is sitting at 7,298.3 points, down 2.34%.

Below, we take a look at what’s dragging the miner’s shares along with the benchmark index.

Spot price of iron ore plummets

After spending the last couple of months hovering around the US$150 barrier, the iron ore spot price has dramatically fallen.

Courtesy of Trading Economics, the steel making ingredient is trading at US$136.50 per metric tonne as of last night. This represents a fall of almost 9% compared to Friday’s closing price.

The sharp decrease will have an impact on Fortescue’s bottom line, however, profits are still expected to be churned out. The company reported industry leading C1 costs of US$15.28 per wet metric tonne for H1 FY22. C1 costs refer to the ‘direct’ production costs incurred in mining and processing the iron ore.

China lockdown fears

Weighing down the market price for iron ore, and effectively Fortescue’s shares, has been China’s worsening COVID-19 situation.

The highly-transmissible Omicron variant has recently taken hold of Beijing, which is expected to lead to government restrictions.

This comes as China’s most populous city, Shanghai has been under severe lockdowns since the start of the month. Residents have been confined to their homes, and often protesting their frustration with the government’s strict zero-COVID policy.

The city has experienced major food shortages and delivery delays due to road closures and fewer delivery drivers.

Yesterday, China reported 3,266 symptomatic cases and 20,454 asymptomatic cases of COVID-19. The majority of these were recorded in Shanghai with 19,455 cases, and Beijing registered 19 cases, including 14 symptomatic.

It’s worth noting that with the economic conditions rife, the construction sector could potentially fall further. This would evitability have a profound impact on the demand for iron ore leading to a strong price drop.

Fortescue share price snapshot

Regardless of Fortescue shares being lower today, its shares have gained 10% since the start of 2022.

However, when looking further back, the company’s share price is down by 6% over the last 12 months.

Based on valuation metrics, Fortescue presides a market capitalisation of approximately $65.34 billion.

The post The Fortescue share price is falling 6% on Tuesday. Here’s why appeared first on The Motley Fool Australia.

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

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