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.

Earnings season has been brutal for many investors, especially for those who own technology and internet stocks. Even though we are less than three months into 2022, many high-growth stocks are down 30% or more already this year, which can be tough to stomach. Meta Platforms (NASDAQ: FB), the parent company of Facebook, Instagram, WhatsApp, and Oculus, is one of these stocks. Shares are down 40% year to date after the company put out poor guidance for the first quarter and has been hit by the broad market sell-off to start 2022. 

If you’re thinking of buying the dip on Meta Platforms stock, it might be smart to model out and estimate how big this business could be in a few years. Where will Meta Platforms be three years from now? Let’s take a look. 

Solid earnings, but poor guidance

On Feb. 2, Meta Platforms put out its earnings for the last three months of 2021. Revenue grew 20% year over year to $33.7 billion in the quarter, and earnings per share (EPS) was $3.67, slightly down from the year-ago period. Both of these numbers were right around analyst expectations.

User numbers came in a bit weak compared with expectations. Total daily active users (DAUs) were 1.93 billion versus 1.95 billion expected, and monthly active users (MAUs) were 2.91 billion versus 2.95 billion expected. However, the company made up for this user shortfall with average revenue per user (ARPU) of $11.57, which was better than the $11.38 analyst predictions. 

All these fourth-quarter numbers were fine, but the big surprise was Meta’s guidance for the first quarter of 2022. Revenue for Q1 is expected to be between $27 billion and $29 billion, which was much less than the $30.1 billion analysts were expecting. Given this disappointment, Meta’s stock plunged 20% in the days following the report, accounting for a lot of the stock price decline.

Family of apps and reality labs

When it changed its name from Facebook to Meta Platforms, management decided to switch up how the company reported its financials. It now has two segments: “family of apps” (Facebook, WhatsApp, Instagram) and “reality labs” (the metaverse and virtual reality division). The family of apps division, though marred by controversy, has continued to grow both revenue and profits over the past few years. From 2019 to 2021, revenue for the segment grew from $70 billion to $115.7 billion, and operating income grew from $28.5 billion to $56.9 billion.

With a market cap of $556 billion, that gives Meta’s stock a dirt cheap price-to-operating-income (P/OI) of 9.8 based on its family of apps division. So why are investors discounting family of apps so much when the social media apps have continued to grow and increase their profitability?

The uncertainty comes from Meta’s other segment, reality labs, which houses Oculus and its virtual/augmented reality research divisions. The division burned $10.2 billion in 2021, which is right around the annual burn rate Mark Zuckerberg said the division will run at for the foreseeable future. With only $2.2 billion in 2021 revenue (a small amount for a company of this size), there is still a long way for this division to grow and a lot of uncertainty over whether these investments will ever turn into a viable business. Given this uncertainty and how much money the division is expected to lose, it is understandable that investors are nervous about these moves from Meta Platforms.

Returning capital to shareholders

The good thing about this business, as compared to practically any other that is burning $10 billion a year on a venture-style bet, is that it is still able to generate tons of cash for shareholders. In 2021, Meta Platforms generated $39 billion in free cash flow,  up from $23.6 billion in 2020, which is highly impressive given how much money the reality labs division is losing. 

With so much cash coming in, Meta Platforms has started returning some to shareholders in the form of share repurchases. Meta’s share count has come down by 5.9% in the last five years, with the majority of that drop coming in the last year or so. For reference, management spent $19 billion on buybacks just in Q4 of 2021. At its current market cap of $556 billion, Meta should be able to reduce its share count by around 7% in 2022 if it spends all of its 2021 free cash flow on share repurchases.

FB Shares Outstanding data by YCharts

So where will Meta Platforms be in three years?

Given the differences between Meta’s two operating segments, it is hard to evaluate where this business will be at the start of 2025. It is likely the reality labs division will still be burning $10 billion a year, as that is Zuckerberg’s stated plan right now. Family of apps is harder to predict because of the nature of the social media industry. However, if we assume revenue will grow at 10% a year (which would be a big slowdown from its historical growth rate) over the next three years with stable operating margins, Meta’s family of apps division will be generating around $76 billion in annual operating income three years from now.

Subtract $10 billion in reality labs losses and Meta Platforms’ consolidated operating income could be $66 billion in 2024. At its current market cap of $556 billion (which doesn’t include any benefits from buybacks), that would give the stock a P/OI of 8.4. Unless something drastic happens with the overall stock market from now until then, I think there is a chance Meta Platforms stock could be significantly higher three years from now. 

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

The post Where will Meta Platforms be in 3 years? appeared first on The Motley Fool Australia.

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Brett Schafer has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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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The Boral Ltd (ASX: BLD) share price is slipping today following the company’s latest announcement on its earnings.

During late morning trade, Boral shares are fetching for $3.31, down 4.06%. The company’s share price hit a new 52-week low of $3.21 early in the session.

It’s worth noting that in the past month, the building materials company’s shares have lost more than 10% in value.

Boral experiences tough trading conditions for FY22

Investors are sending the Boral share price lower following the company’s announcement of a disappointing earnings guidance.

In its statement, Boral advised that sales volumes have been impacted for FY22 as a result of macroenvironmental factors. This relates to the strong rainfall that recently occurred in New South Wales and Queensland, as well as sharp increases in fuel and coal prices.

The latter has been a knock-on effect from the war between Russia and Ukraine which has sent commodities prices soaring.

Consequently, underlying earnings before interest and tax (EBIT) for Boral’s continuing operations (excluding Property) in FY22 is anticipated to be between $145 million and $155 million.

However, management noted that this is under the assumption that there are no further several weather-related events.

The company stated that its exposure to coal prices is unhedged for the second half of FY22, while expected diesel usage is only hedged until April 2022.

In addition, higher fuel prices were also “exacerbating supply chain constraints”, as previously disclosed.

Boral CEO and managing director Zlatko Todorcevski commented:

The impact on sales volumes of the extreme rainfall across New South Wales and Queensland in late February and early March have adversely impacted Boral’s earnings by ~$23 million. The exceptional weather conditions have prevented us from delivering products to our customers in many regions and caused significant production disruptions to our operations.

In addition, unusually extreme and rapid increases in the price of coal and diesel have recently occurred. This cost escalation is not expected to be recovered by our January and February product price increases, with the future cost impact based on current forward prices.

Boral share price summary

Over the past 12 months, the Boral share price has plummeted by almost 40% in value.

Based on today’s price, Boral commands a market capitalisation of roughly $3.69 billion, with approximately 1.1 billion shares outstanding.

The post Boral (ASX:BLD) share price hits 52-week low following guidance update 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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The Kuniko Ltd (ASX: KNI) share price has been an incredible performer in recent days.

With the battery metals company’s shares up 18% to $1.64 today, the Kuniko share price is now up over 100% since this time last week.

Why has the Kuniko share price doubled in a week?

The catalyst for the incredible rise by the Kuniko share price over the last few trading sessions appears to have been an announcement relating to the Skuterud Cobalt Project from last week.

According to the release, the Norwegian directorate of mining has approved Kuniko’s application to undertake its planned 7-hole, 2,800-meter drilling campaign at the project.

Kuniko has identified three highly prospective targets, including two confident Co-Cu mineralisation targets. Though, it will still be a couple of months until drilling activities commence. The release notes that its drilling contractor, Norse Diamond Drilling, will be mobilising in the first week of May, whilst a preparatory site inspection by Norse is scheduled during March.

In addition, it advised that preparations for sampling across four project sites – Skuterud, Ringerike, UndalNyberget and Nord-Helgeland – are proceeding smoothly.

What else?

The above bodes well for Kuniko given the current outlook for cobalt. As we covered here last week, the cobalt price was charging towards a new record high amid strong demand and tight supply.

Cobalt is used in the batteries of electric vehicles. So with McKinsey suggesting that one in four vehicles on the road will be electric by 2030, a lot of cobalt is going to be required to satisfy demand.

If Kuniko’s drilling results are good, then it will put it in a strong position to negotiate offtake agreements with car makers and battery manufacturers.

Stay tuned for those drilling results later this year.

The post Guess which ASX battery metals share has rocketed 100% in a week appeared first on The Motley Fool Australia.

More reading

• Here’s why the ResApp (ASX:RAP) share price is skyrocketing 60% today
• Why is the Piedmont Lithium (ASX:PLL) share price on ice today?
• How does Australia’s ban on alumina exports to Russia impact Rio Tinto (ASX:RIO)?
• 2 Warren Buffett stocks to buy and hold if the market crashes
• Why is the Blackmores (ASX:BKL) share price sliding today?

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

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The ResApp Health Ltd (ASX: RAP) share price is shooting the lights out today.

ResApp shares closed yesterday at 6.2 cents and are currently trading for 9.9 cents. That’s a whopping 59.7% gain for the ResApp share price in early morning trade.

The ASX healthcare share is focused on developing smartphone applications to diagnose and manage respiratory diseases.

Shares went into a trading halt on Thursday and emerged from that pause today after the release of results from its smartphone-based COVID-19 screening test.

What COVID-19 screening results were announced?

Investors are bidding up the ResApp share price after the company reported positive results from its cough audio-based COVID-19 screening test.

The test uses only a regular smartphone and makes use of machine learning to analyse the sound of a patient’s cough.

ResApp said the clinical trial – which recruited 741 patients of who 446 were COVID-19 positive – correctly detected the virus in 92% of infected participants. That success rate, according to the release, exceeds the real-world measured sensitivity of rapid antigen tests.

The company said it sees the best early market opportunities in settings where frequent testing is required. In these settings its smartphone test could cut back on the number of RAT or PCR tests being administered, which would reduce costs and offer a more readily available test.

The ResApp share price could be getting an additional lift today from management’s plans to now seek approvals from regulators and accelerate commercialisation of the smartphone test by partnering with a global health or technology company.

Commenting on the positive results, ResApp CEO, Tony Keating said:

The WHO have recently warned that the pandemic is not over, that health systems globally continue to strain under the current caseload and that we should be prepared for the potential of more dangerous variants to emerge.

We intend to accelerate commercialisation by immediately engaging with regulators globally and we have already commenced discussions with global health and technology companies with the goal of rapidly bringing this product to market.

Catherine Bennett, chair of epidemiology at Deakin University added, “The simplicity, ease of use and unlimited scalability of ResApp’s test will be welcomed by public health officials around the world.”

ResApp share price snapshot

With today’s momentous intraday charge higher factored in, the ResApp share price is up 38.5% in 2022.

That compares to a year-to-date loss of 3.6% posted by the All Ordinaries Index (ASX: XAO).

The post Here’s why the ResApp (ASX:RAP) share price is skyrocketing 60% today appeared first on The Motley Fool Australia.

More reading

• Why is the Piedmont Lithium (ASX:PLL) share price on ice today?
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• Why is the Blackmores (ASX:BKL) share price sliding today?
• Growth investors should put these 2 top ASX shares on the watchlist

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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In some good news for investors today, the All Ordinaries Index (ASX: XAO) is enjoying yet another strong day of gains so far this Tuesday. The All Ords is currently up a pleasing 1.08% at 7,640 points. But one ASX share isn’t joining the party. That would be the Piedmont Lithium Inc (ASX: PLL) share price.

Piedmont Lithium shares were last priced at 94 cents each, as of yesterday’s close. And that’s where they will be staying, at least for now. That’s because Piedmont Lithium requested a trading halt this morning, meaning its shares are unavailable for buying or selling.

So why is Piedmont Lithium not trading today? It’s due to a capital raising that the company announced this morning. In its request for a trading halt to the ASX, Piedmont stated that “the trading halt is requested on connection with a proposed capital raising to be undertaken by way of a U.S. public offering of the Company’s shares”.

The shares are scheduled to return to trading on Thursday (24 March).

Piedmont Lithium share price halted amid capital raising

So Piedmont is indeed issuing more shares as part of its capital raising effort. The company will be conducting a public offering for 1.5 million new shares.

Piedmont Lithium said this about what it is intending to use the proceeds of this capital raising for:

Piedmont intends to use the net proceeds from the offering to fund the Company’s share of the capital required to restart the operations at North America Lithium in Quebec, to fund exploration and definitive feasibility studies at Eyowaa in Ghana, to advance the Company’s merchant lithium hydroxide plant in the southeastern United States, and to continue development of the Carolina Lithium Project, including ongoing permitting activities, engineering design, and property acquisition.

The company also said the funds could be used for “possible strategic initiatives” and for “general corporate purposes”.

So that’s why Piedmont Lithium shares are in a trading halt this Tuesday. We might have to wait until Thursday to find out how investors react to this news through the Piedmont Lithium share price. But until then, this company’s shares look to remain on ice.

Piedmont shares are up just over 22% in 2022 but remain down by 11.3% over the past 12 months. This ASX lithium share has a market capitalisation of $1.49 billion.

The post Why is the Piedmont Lithium (ASX:PLL) share price on ice today? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

Australia is banning all Australian exports of alumina and aluminum ores to Russia. But how could this impact Rio Tinto Limited (ASX: RIO)?

The Rio Tinto share price is up more than 3% in early trading today, currently swapping hands at $113.80. For comparison, the S&P/ASX 200 Index (ASX: XJO) is up around 1% at the time of writing.

Let’s take a look at the aluminum export ban to Russia and the impact it may have on Rio?

Aluminum ban

The federal government has banned Australian exports of alumina and aluminum ores, including bauxite, to Russia. Australia had previously been supplying close to 20% of Russia’s alumina needs.

A ship was due to dock in Australia this week to load alumina bound for Russia. The Australian reported the alumina would have come from Queensland Alumina, based in Gladstone. Rio Tinto has a 80% stake in Queensland Alumina, while Russian company Rusal has a 20% stake.

Commenting on the shipment, Prime Minister Scott Morrison said:

Late last week it came to our attention that there was a ship that was due to dock in Australia this week to collect a load of alumina bound for Russia. That boat is not going to Russia with our alumina.

Our decision here should say very clearly that to all countries, all companies operating in Australia, we are watching these things very, very carefully.

A Rio Tinto spokesperson said the company “notes the government’s announcement” on export sanctions and is still in the process of “terminating all commercial relationships it has with any Russian business”, The Economic Times reported.

Cutting commercial ties

Rio Tinto has recently undertaken to cut all commercial ties with Russia, as Motley Fool Australia reported. Speculation has also emerged Rio might need to buy out Rusal’s 20% stake in Queensland Alumina.

Rio Tinto is currently under some pressure from advocacy groups to take this action. In a statement released yesterday, Australasian Centre for Corporate Responsibility​ director Dan Gocher said:

In the absence of sanctions on Rusal, Rio Tinto must take immediate action to protect its reputation, by taking complete control of the Queensland Alumina joint venture and quarantining any profits from Rusal shareholders.

Rio share price snapshot

The Rio Tinto share price has soared nearly 14% this year to date, gaining nearly 6% in the past 12 months.

In the past month, Rio Tinto shares have slipped by more than 5%, but are up 2% over the past week.

Rio has a market capitalisation of about $42 billion based on its current share price.

The post How does Australia’s ban on alumina exports to Russia impact Rio Tinto (ASX:RIO)? appeared first on The Motley Fool Australia.

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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.

The stock market hasn’t performed well this year. As of this writing, all three major U.S. market indexes are comfortably in negative territory for the year with the worst-performing of the bunch, the Nasdaq Composite Index (NASDAQ: IXIC), down by 11%.

Given current geopolitical tensions and their effect on worldwide economies, many investors might fear that we will experience a market crash at some point this year. 

Of course, no one knows whether that will happen, but it can’t hurt to prepare in advance. And in doing so, it’s worth taking a page out of Warren Buffett’s playbook. The Oracle of Omaha is known for not fearing downturns since they can present great opportunities to buy shares of excellent companies on the dip.

Let’s look at two of Buffett’s favourite stocks that might be worth loading up on in the next market crash: Apple Inc (NASDAQ: AAPL) and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B). 

1. Apple

At first glance, Apple might not seem like the kind of company investors might want to bet on during a downturn. After all, the tech giant is best known for its sleek technology products, most notably its iPhone.

While the quality of Apple’s hardware is top of the line, the company’s products aren’t known for being cheap. When economic troubles hit and lead to a market crash, consumers might choose to cut back on products like the iPhone first.

But let’s look at the bigger picture. Historically, bear markets have lasted 9.6 months on average. By contrast, bull markets have lasted 2.7 years.

Economic recessions also tend to be shorter than expansions. Even if Apple suffers during the next downturn (whenever it happens), investors can rest assured it will perform exceptionally well once things settle. After all, the company has soundly beaten the market in the past three years, a period that includes the recession and bear market caused by the COVID-19 pandemic.

Further, Apple is looking to decrease its reliance on its hardware. To be clear, the company’s products segment still makes up the bulk of its revenue. During its 2021 fiscal year — which ended on 25 September 2021 — Apple racked up $365.8 billion in total net sales, 33.3% higher than the previous fiscal year.

The company’s products unit accounted for about 81% of its net sales. The good news is Apple’s services segment — where it offers such things as iCloud, Apple TV+, Apple One, Apple Music, etc. — is becoming increasingly important for the company and offers much higher margins. Last fiscal year, Apple’s products segment reported gross margins of 35.3%, compared to nearly double that for the services segment of 69.7%.

Given the powerful brand name it has built as a leading tech company, Apple will continue generating solid sales from its hardware products, at least for the foreseeable future. But the company’s services unit will likely grow in importance thanks to the ecosystem it has built. That should allow Apple to find even more ways to monetize its users and work wonders for its bottom line. That’s why even after crushing the market historically, Apple remains an excellent buy-and-hold stock. 

2. Berkshire Hathaway

Warren Buffett clearly loves purchasing shares of the corporation he leads. In the past couple of years, Berkshire Hathaway bought back 9% of its shares that were outstanding as of the end of 2019 — for a total of $51.7 billion. Investors who want to survive downturns and beat the market should consider following Buffett’s lead and load up on shares of Berkshire Hathaway.

This conglomerate wholly owns many notable subsidiaries, including Geico, Fruit of the Loom, Duracell, and more. Berkshire Hathaway boasts an insurance division and a manufacturing unit, and it also owns several energy and utility companies. That is more diversity than investors can typically get by investing in just one stock. And don’t think it’ll stop there.

Buffett and his team have often deployed their huge cash pile to acquire even more excellent businesses. That last point underscores what is perhaps the best reason to purchase shares of Berkshire Hathaway: Doing so allows investors to have both Buffett and the company’s vice chairman Charlie Munger in their corner.

Both are widely considered among the best investing minds ever. And with these two at the helm, Berkshire Hathaway has historically crushed the market while surviving many economic recessions and market downturns.

Having proven they know how to lead a highly successful business, Buffett and Munger — both in their 90s — have reportedly already chosen who will lead the company next. The chosen one’s name is Gregory Abel, vice chairman of Berkshire Hathaway’s non-insurance operations. Munger himself has emphasized that Abel will keep the culture of the company.

That’s all the insurance that investors need to know — that Berkshire Hathaway should continue performing well for many years to come. If the company’s shares plunge in a market crash this year, initiating a position looks like it would be a great move. 

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

The post 2 Warren Buffett stocks to buy and hold if the market crashes appeared first on The Motley Fool Australia.

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Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). 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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Blackmores Limited (ASX: BKL) shareholders might be wondering why the share price has fallen 0.52% to $75 today.

The health supplements company released its half-year results on 24 February, reporting strong growth across key financial metrics.

In turn, the board opted to ramp up its upcoming interim dividend to eligible investors.

Let’s take a look below at why Blackmores shares are edging lower during morning trade.

Shareholders set eyes on Blackmores’ interim dividend

The Blackmores share price is in reverse following the company’s shares trading ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased the company’s shares. If the investor does not buy Blackmores shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can shareholders expect to be paid?

For those eligible for Blackmores’ interim dividend, shareholders will receive a payment of 63 cents per share on 12 April. The dividend is fully franked.

Franking credits, otherwise known as imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company. Essentially, the company is paying the tax on the dividends received by the shareholders.

Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price from 24 March to 30 March.

The DRP discount rate is set at 2.5%, and the last election date for shareholders to opt-in is 24 March.

Blackmores share price summary

Since the beginning of 2022, Blackmores shares have lost 17% on the back of weakened investor sentiment. The S&P/ASX 200 Index (ASX: XJO) is also down around 1% over the same timeframe.

The Blackmores share price reached an all-time high of $103.97 in November, before backtracking amid inflationary movements and geopolitical tensions.

Based on today’s price, Blackmores commands a market capitalisation of roughly $1.46 billion and has a trailing dividend yield of 0.94%.

The post Why is the Blackmores (ASX:BKL) share price sliding today? appeared first on The Motley Fool Australia.

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• Own Blackmores (ASX:BKL) shares? Here’s how the company is aiming for 1 billion consumers
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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 recommended Blackmores 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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ASX shares that are producing significant growth could be attractive to some investors.

Albert Einstein reportedly once said about the power of compounding:

Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it.

But not every ASX share is destined to deliver long-term compound growth, however, these two ASX shares are hoping to keep growing for a long time.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a global retailer of affordable jewellery.

It has a sizeable presence in a number of countries such as Australia, the USA, UK, South Africa, Singapore, Malaysia, New Zealand, France, Germany, Belgium, and the Middle East region. There are a few more European countries where it has a limited presence.

The company continues to grow its global store network, adding to its operating leverage and expanding its market presence.

Its growth and scalability were shown in the company’s FY22 half-year result. Revenue went up by 48.3%, earnings before interest and tax (EBIT) increased 59% and net profit after tax (NPAT) jumped 70.3% to $36.7 million.

The ASX share has high hopes for its global online offering. It is aiming to invest to achieve growth, while also generating satisfactory profit as well.

Since the start of 2022, the Lovisa share price has fallen by around 5%. That’s despite the company announcing that in the first eight weeks of the second half, sales were up another 61.7%.

ELMO Software Ltd (ASX: ELO)

ELMO Software is a growing HR and payroll software provider for small and medium-sized organisations in Australia and the UK.

Since the start of the 2022 calendar year, the ELMO share price has fallen around 13%.

However, the business continues to report a high level of growth. In its FY22 half-year result, revenue grew by 41% to $43.1 million and annualised recurring revenue (ARR) rose 35% to $98.3 million. ARR is now expected to reach between $107 million to $113 million in FY22, which was an upgrade from prior expectations.

The ASX share managed to achieve a positive earnings before interest, tax, depreciation and amortisation (EBITDA) of $0.3 million, up by $0.9 million from last year.

ELMO explained that operating leverage continues to improve with a reduction in key spending ratios across the business which has driven the positive EBITDA, as well as reducing the operating monthly cash burn by 36% year on year.

The company is now expecting to grow revenue by between 32% to 39% to between $91 million to $96 million. FY22 EBITDA is expected to come between $1.5 million to $6.5 million.

ELMO commented that its UK acquisitions are performing “exceptionally well” and provide a solid foundation to increase market share in the region.

The post Growth investors should put these 2 top ASX shares on the watchlist appeared first on The Motley Fool Australia.

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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. owns and has recommended Elmo Software. The Motley Fool Australia owns and has recommended Elmo Software. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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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Qantas Airways Limited (ASX: QAN) shares could receive some tailwinds in the form of extra revenue from the sale of non-fungible tokens (NFTs).

That’s right.

The flying kangaroo is stepping into the digital art space. One based on blockchain technology, meaning each artwork is unique and cannot be copied. Though they may look identical to the human eye.

If you own Qantas shares, here’s what your airline is up to.

What’s this about NFTs?

As reported by The Australian, Qantas is planning to offer 4 different NFTs in its initial digital art rollout. That’s expected to occur around the middle of this year.

The 4 NFTs range from First, Business, Premium Economy and Economy. First, as you’d expect, is the most expensive and rare.

The 4 different digital artworks will portray various aspects of Qantas’ history in the air.

And if you buy an NFT, you’ll also get frequent flyer points. Which could spur more people to book a flight, adding another tailwind for Qantas shares.

Commenting on the rollout, Qantas group chief customer officer Stephanie Tully said (quoted by The Australian):

From model aircraft to posters and boarding passes, people have been collecting pieces of Qantas history for more than 100-years and we know how much our customers love having their own unique piece of the national carrier.

A Qantas NFT collection allows us to engage the next generation of aviation and digital art enthusiasts, leveraging blockchain technology to celebrate our heritage and future.

How have Qantas share been tracking?

Qantas shares have seen some big ups and downs in 2022, battered by soaring fuel costs and then lifted by the reopening of international travel routes.

The Qantas share price is down 1.6% year-to-date, compared to a 3.2% loss posted by the S&P/ASX 200 Index (ASX: XJO).

At the current price of $5.07 per share, Qantas has a market cap of $9.6 billion.

The post Own Qantas shares? Here’s how the airline is planning to profit from NFTs appeared first on The Motley Fool Australia.

More reading

• Is the Qantas (ASX:QAN) share price about to soar 40% higher?
• Why Arafura, Block, Magellan, and Qantas shares are storming higher
• Why are ASX travel shares taking off today?
• Qantas share price lifts as CEO takes to the skies
• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off

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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