Tag: Motley Fool

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

Shiba Inu (CRYPTO: SHIB), the top-performing cryptocurrency in 2021, skyrocketed more than 40,000,000% during the year. Meme-stock mania carried over to digital assets, pushing the prices of some tokens to new heights for no fundamental reason. Profit-seeking investors want a repeat performance this year. 

With Shiba Inu down 30% so far in 2022 (as of 9 March), some speculators might be hoping for a quick bull run that turns things around. Wild price swings are normal when it comes to cryptocurrencies, and, as a result, people are tempted to try and time the market. But this could be a losing game, especially with a cryptocurrency like Shiba Inu, whose future is questionable. 

Here’s why. 

Where’s the competitive edge? 

Shiba Inu is a token that is compatible with the Ethereum (CRYPTO: ETH) network, meaning that it has exposure to the Ethereum ecosystem, which includes availability on popular wallets and decentralized applications (dApps). However, Shiba Inu is constrained by the same issues facing the world’s second most valuable cryptocurrency. These center around slow transaction processing times and high fees. 

The developers at Shiba Inu have a layer-2 solution in the works, called Shibarium, to help speed up transactions and lower costs. If implemented without any major hiccups, Shiba Inu’s network could introduce gaming and metaverse applications, building much-needed utility into the system. 

Solving the scalability issue is probably the most important topic in the crypto world today, with the smartest minds working on the problem. Some are skeptical that Shiba Inu, with its lack of differentiation and resources, could make a huge breakthrough here. Even if it does, there are already popular gaming and metaverse options bringing in capital. 

Nonetheless, the possible introduction of Shibarium, as well as a potential listing on the Robinhood Markets app, could be catalysts that push SHIB’s price higher in the near term.  

Arguably, the viability and staying power of a cryptocurrency depend on its potential to create real-world utility. Shiba Inu seriously lags behind other projects, particularly Ethereum, in that space. Developers and users will continue to be attracted to larger and more proven blockchains, potentially leaving Shiba Inu in the dust. 

Ignore the FOMO 

The fear of missing out, or FOMO, is something that investors constantly struggle with, especially in today’s digitally connected age. We hear others talk about making money from investing in certain stocks or cryptocurrencies. We then feel the need to jump right in as well. News flash: Copying what everyone else is doing is not a viable investment strategy. 

The feeling of FOMO is exacerbated in the world of cryptocurrencies, where massive price swings in excess of 20% can happen on any given day. There is no shortage of stories out there about people who became millionaires overnight because of a lucky bet on some digital asset. Like Shiba Inu in 2021, meme tokens definitely encourage this type of behavior.

But as I touched on above, a project like Ethereum could be a much better place to park your capital for the long term. It is already making great strides in introducing various decentralized applications (dApps), like decentralized finance services, which bring in more users. This money inflow leads to more developers working on Ethereum in a virtuous cycle. Can Shiba Inu really compete with this momentum? 

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

The post Is Shiba Inu ready for a bull run? appeared first on The Motley Fool Australia.

More reading

• What’s driving Ethereum, Dogecoin, and THORChain higher today?
• 2 top cryptocurrencies to buy and hold forever
• Shiba Inu vs. Dogecoin: Which pupcoin’s more bite than bark? 
• Why Bitcoin, Ethereum, and Dogecoin dropped today
• Fancy getting your paycheque in crypto? You’re not alone

Neil Patel owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Ethereum. The Motley Fool Australia owns and has recommended 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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The Altium Limited (ASX: ALU) share price has fallen by almost 30% since the start of 2022. It begs the question: Has the ASX tech share dropped so much that it’s too cheap to ignore?

Altium is one of many technology businesses that have declined substantially this year. For example, the Xero Limited (ASX: XRO) share price has dropped 35% in 2022 while the Appen Ltd (ASX: APX) share price has sunk 38%.

There are plenty of issues making headlines right now such as the impacts of the Russian invasion of Ukraine, global inflation, potential interest hikes, and supply chain problems.

But, after the Altium share price decline, is it excellent value?

Analyst thoughts on the Altium share price

After seeing Altium’s recent FY22 half-year result, Macquarie analysts rated the ccompany as ‘underperform’.

The result and management commentary were stronger than Macquarie had forecast, though the broker expects the second half of FY22 to show slower growth. It also noted that Altium’s outlook for acquisitions is better given the decline in valuation of many technology businesses.

The Altium price target from Macquarie is just $25.90. That’s almost 20% lower than it is today.

However, Citi is a bit more optimistic. Citi is ‘neutral’ on the ASX tech share. The broker’s Altium share price target is $34.10, suggesting a possible upside of 8% over the next year. Citi is expecting ongoing investment into research and development by Altium, which may impact profit margins.

FY22 half-year report wrap

For investors who didn’t see the result, Altium achieved growth in most areas of its business in the first six months of the 2022 financial year.

Altium’s revenue grew by 28% to US$102 million. Octopart, the electrical parts search engine division, saw revenue surge by 105% to US$22 million. Octopart is being helped by tailwinds from the global electronic parts shortage.

There was double-digit revenue growth from all regions, except China, which only grew by 6% as the nation felt the temporary impact of regional COVID-19 lockdowns.

Annual recurring revenue (ARR) rose 43% year on year and recurring revenue now accounts for 74% of total revenue, up from 65% in the same period last year.

Earnings per share (EPS) rose by 37% to 17.4 cents and operating cash flow jumped 78% to US$33 million. The board decided to increase the interim dividend by 11% to AU$0.21 per share.

Growth outlook

For Altium, a key part of its growth plan is scaling its cloud offering. Altium 365 allows engineers to collaborate and access their designs from anywhere. It is proving to be popular. In the first six months of FY22, its number of monthly active users reached 19,700 – this was a 54% increase since August 2021.

The ASX tech share upgraded its revenue guidance for FY22 to the high end of the forecast range. Revenue is expected to grow between 18% to 20% to a range of US$213 million to US$217 million for the financial year.

Altium share price valuation

Based on Citi’s FY22 profit estimates, Altium shares are valued at 62x forecast earnings.

However, Macquarie’s lower profit estimate puts the Altium share price at 63x FY22’s forecast earnings.

The post Is the Altium (ASX:ALU) share price too cheap to ignore? appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares brokers rate as buys
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• Altium (ASX:ALU) share price hinges on this key detail, top brokers say
• Glitch! Why are ASX tech shares getting hammered on Monday?
• 3 buy-rated ASX growth shares analysts are recommending

Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Appen Ltd, and Xero. The Motley Fool Australia owns and has recommended Appen Ltd and Xero. 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

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

Bank of Queensland Limited (ASX: BOQ)

According to a note out of Morgans, its analysts have retained their add rating and $11.00 price target on this regional bank’s shares. Morgans highlights that Bank of Queensland is trumping its peers when it comes to growth momentum. In light of this and the faster-than-expected realisation of synergies from the ME Bank acquisition, the broker sees significant value in its shares at the current level. The Bank of Queensland share price is trading at $8.27 this afternoon.

Breville Group Ltd (ASX: BRG)

Another note out of Morgans reveals that its analysts have retained their add rating and $32.00 price target on this appliance manufacturer’s shares. This follows news that Breville has agreed to acquire Italian prosumer coffee machine company Lelit. Morgans believes the acquisition is consistent with the company’s strategic objective of adding a premium Italian espresso brand to its stable. Outside this, the broker likes Breville due to its belief that it is positioned to deliver double-digit sales growth consistently over the next few years as it grows its market share. The Breville share price is fetching $27.48 on Wednesday.

Rio Tinto Limited (ASX: RIO)

Analysts at Goldman Sachs have retained their buy rating and $131.50 price target on this mining giant’s shares. The broker was pleased with news that Rio Tinto is aiming to acquire the remaining stake of Turquoise Hill that it doesn’t own for US$2.7 billion. Doing so will increase its stake in the Oyu Tolgoi copper project to 66%. Goldman believes the miner would be getting a very good deal, estimating that the offer represents a 43% discount to its valuation. The Rio Tinto share price is trading at $107.02 today.

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

More reading

• Is the Rio Tinto (ASX:RIO) share price a buy following the miner’s latest acquisition news?
• Brokers name 3 ASX mining shares to buy today
• Leading brokers name 3 ASX shares to sell today
• Why are ASX 200 mining shares having such a dire day?
• ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble

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 A2 Milk Company Ltd (ASX: A2M) share price has had a few weeks to forget.

In the past 3 weeks, the embattled company’s shares have lost more than 12%, making it one of the worst performers across the sector. By comparison, the rival Bubs Australia Ltd (ASX: BUB) share price lost 4.4% across the same timeframe.

At the time of writing, A2 Milk shares are edging into the green at $5.17, up 0.19%.

Why did the A2 Milk share price fall?

It’s no secret that cross-border trade issues have led to the fall of the A2 Milk share price.

COVID-19 has severely disrupted the company, causing logistical challenges between Australia and China.

This has weighed on investor sentiment, fuelling the sell-off in A2 Milk shares.

As such, demand/supply volatility has caused excess inventory levels, along with the Chinese infant nutrition market experiencing reduced growth. This follows the release of China’s 2020 birth numbers, showing a reduction in the nation’s birth rate.

In its interim results, A2 Milk noted the challenging market conditions but insisted it is making good progress in stabilising sales.

Previously, the company had to write off stock and deliberately slow sales in the fourth quarter of FY21. This was due to the significant decline in its English-label infant milk formula (IMF) sales through both daigou/reseller and e-commerce channels.

Management noted that the market landscape has experienced unprecedented change over the past 12 months, requiring the company to adapt.

Nonetheless, A2 Milk expects to deliver revenue growth this year after reporting a 2.5% decline to $661 million in H1 FY22.

It is worth noting though that while the revenue outlook has been improved, this will not translate into higher earnings.

The company is focused on increasing its brand investment to drive consumer demand along with other growth strategic priorities.

Does the current share price represent good value?

A number of brokers believe the A2 Milk share price is currently trading at a bargain.

Following the company’s half-year financial scorecard, Macquarie analysts raised their 12-month price target for A2M Milk shares by 7.7% to $5.60. Based on the current share price, this implies an upside of 8.1% for investors.

On the other hand, the team at Citi lowered its outlook on the company’s shares by 1.8% to $7.02.

While the broker reduced its assessment on A2 Milk, it still sees value in the fresh milk and infant formula company. The price target represents a potential upside of 35.5% from where it trades today.

The post The A2 Milk (ASX:A2M) share price has spilled another 12% in 3 weeks. Is now the time to pounce? appeared first on The Motley Fool Australia.

More reading

• Why this broker sees 40% upside for the A2 Milk (ASX:A2M) share price
• Hot or cold? Here’s how the A2 Milk (ASX:A2M) share price performed in February
• A2 Milk (ASX:A2M) share price slips amid ‘long-term implications’ of flooding
• Why this top broker rates these ASX shares as buys in March
• What’s next for the A2 Milk (ASX:A2M) share price?

Motley Fool contributor Aaron Teboneras owns A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and 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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ASX mining shares are off to a flying start in 2022. That’s amid a two-year-long rally that commodities have staged up until today.

The furnace began burning hotter in January as macro-economic undertones found their way into the mainstream and took markets by force.

As such, the S&P/ASX 300 Metals & Mining Index (XMM) is outstripping other sectors of the market. The XMM has climbed more than 2% this year to date, despite a correction in early March.

These three ASX mining shares are even further ahead of the pack, cruising past their 52-week highs today. Let’s take a look.

Image Resources NL (ASX: IMA)

Shares in Image Resources have surged more than 30% in the past month. They have nudged past 52-week highs in early trading today at 30 cents apiece.

Investors are rallying behind the stock after Image Resources released a significant announcement on Monday.

First, it announced that it has executed and completed a definitive and binding agreement with Sheffield Resources Ltd (ASX: SFX) for the sale of its 100% owned McCalls Project.

Sheffield has received in full the cash consideration of $12 million for the sale of the project.

Image says the site consists of four exploration licences across two project areas. The company says it contains 5.8 billion tonnes of mineral resources at 1.4% total heavy minerals (THM) for 84 million tonnes of contained THM.

It also provides a “base for potential future multi-decade production opportunities at high economy of scale and consideration for value-add production of synthetic rutile with decades of consistent feedstock sourcing.”

In the past 12 months the Image Resources share price has shot up nearly 64%. It is up 44% this year to date after the recent surge.

Nufarm Ltd (ASX: NUF)

ASX share Nufarm shot higher in early trade to bypass their previous single-year high. The Nufarm share price peaked at $5.98 in the first hour of trade before settling back to current levels.

At the time of writing, shares in the crop protection and specialist seeds business are rangebound, fetching $5.86 apiece.

This gain is despite there being no market-sensitive information from the company since February. However, agricultural commodities are spiking hard in 2022 amid the conflict in Europe, sending supply-shock jitters around the world.

Exchange traded funds (ETFs) tracking agricultural commodities have surged this year as well. Individual baskets are also setting multi-year highs, show below.

As such, Nufarm might benefit from the surge in agricultural commodities due to its position in the adjacent markets, meaning brokers are now starting to pay attention.

More than 46% of brokers have Nufram as a buy right now according to Bloomberg Intelligence. That’s up from 38% around a year ago.

Bell Potter is bullish, valuing the Nufarm share price at $6.40 per share. Meanwhile, Macquarie rates it a buy too with a $6.29 price target, both in notes to clients during March.

5E Advanced Materials Inc (ASX: 5EA)

Shares in 5E Advanced Materials have themselves advanced to new highs today, currently trading at $3.47 apiece.

Whilst there’s been nothing price sensitive out of the company’s corner today, it did announce that its equity started trading on the NASDAQ from 15 March. It will trade under the ticker symbol FEAM.

The company’s CHESS Depositary Interests (CDIs) will continue trading on the ASX under the current ticker 5EA.

Under the NASDAQ uplisting, each 5E Advanced Materials share represents 10 CDIs, per the company.

The company says it has “begun extensive investor outreach and non-deal marketing efforts in the US with assistance from its capital markets advisor.”

Speaking on the NASDAQ listing, 5E CEO Henri Tausch was positive and said this was an important milestone in the company’s growth narrative.

“Our NASDAQ listing delivers another important milestone for the Company, and I am incredibly proud of the team who have worked diligently to deliver a successful US listing,” he said.

“We also look forward to working with US and other NASDAQ investors in our pursuit to become a vertically integrated global leader in boron advanced materials.”

Trading volume of 5EA’s shares today is at 163% of its four-week average volume, at the time of writing.

The post 3 ASX mining shares rocking 52-week highs today appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could get a slice of a record $81bn farm output this year
• These were the best performing ASX 200 shares in February

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

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The S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. In afternoon trade, the benchmark index is up 0.85% to 7,157.7 points.

Four ASX shares that have failed to follow the market’s lead today are listed below. Here’s why they are dropping:

Austal Limited (ASX: ASB)

The Austal share price is down 1.5% to $2.03. Today’s decline is entirely attributable to the shipbuilder’s shares trading ex-dividend this morning for its unfranked 4 cents per share interim dividend. Eligible shareholders can look forward to receiving this dividend in their bank accounts next month on 21 April.

Contact Energy Limited (ASX: CEN)

The Contact Energy share price has dropped 5.5% to $7.32. This morning the New Zealand based energy company released its operating report for the month of February. While that report revealed a decent increase in customer connections year on year, it also showed a meaningful jump in energy costs.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 3.5% to $3.74. This is despite there being no news out of the infection prevention company. However, with its shares among the most shorted on the Australian share market, sentiment certainly is low right now. Short sellers have been building up positions in response to its shock sales model update in the US.

Uniti Group Ltd (ASX: UWL)

The Uniti share price is down 2% to $3.94. Investors may be taking a bit of profit off the table today following a very strong rise in the Uniti share price on Tuesday. The telco’s shares rocketed over 30% higher after confirming reports that it was in takeover talks. According to the release, Morrison & Co. has tabled a non-binding $4.50 cash per share offer to acquire the company.

The post Why Austal, Contact Energy, Nanosonics, and Uniti shares are dropping appeared first on The Motley Fool Australia.

More reading

• Why are ASX renewable shares struggling in 2022?
• ‘Cannot rule out new interest’: What you need to know about the Uniti (ASX:UWL) takeover bid
• Uniti (ASX:UWL) share price rockets 31% after confirming takeover approach
• Why Clinuvel, Dicker Data, Healius, and Uniti shares are rising today
• ASX 200 (ASX:XJO) midday update: Uniti jumps on takeover speculation, Rio Tinto and Yancoal tumble

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. owns and has recommended Austal Limited and Nanosonics Limited. The Motley Fool Australia owns and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Uniti Group 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is ascending today, currently trading up 1.6% at $19.06.

In earlier trade, Flight Centre shares surged to $19.75, up 5% on yesterday’s close. For perspective, the S&P/ASX 200 Index (ASX: XJO) is ahead 0.89% today.

So what could be impacting the Flight Centre share price today?

New Zealand reopening

The Flight Centre share price could have been buoyed by news from across the ditch.

Australian tourists will be welcome to New Zealand earlier than expected, the New Zealand Government announced today. Australians will be able to travel to New Zealand without isolating from 12 April.

New Zealand Prime Minister Jacinda Ardern said:

Reopening in time for the upcoming Australian school holidays will help spur our economic recovery in the short term and is good news for the winter ski season.

New Zealand also launched a new tourism marketing campaign in Australia ahead of the border reopening.

Flight Centre operates in 23 countries, including Australia, New Zealand, America, Europe, the United Kingdom, Canada, South Africa, the United Arab Emirates, and Asia.

Yesterday, the Federal Government revealed it will lift the ban on international cruise ships. Cruise ships will be able to arrive and depart Australian ports from 17 April. Cruise ship trips departing from Australia are among Flight Centre’s travel offerings.

On Monday, Flight Centre announced a new travel technology investment. The company has increased its interest in travel technology business TPConnects from 22.5% to 70%.

Flight Centre is not the only ASX travel share rising today. The Qantas Airways Limited (ASX: QAN) is also up 2.94%, Webjet Limited (ASX: WEB) is climbing 2.55%, while Corporate Travel Management Ltd (ASX: CTD) is surging nearly 5%.

Flight Centre share price recap

The Flight share price has ascended 8% in the year to date, but has gained just 0.47% in the past year.

In the past month, the travel company’s shares have dropped nearly 4%, while they have risen nearly 11% in a week.

Flight Centre has a market capitalisation of $3.8 billion based on the current share price.

The post Why is the Flight Centre share price lifting off today? appeared first on The Motley Fool Australia.

More reading

• Why are ASX travel shares taking off today?
• ASX 200 (ASX:XJO) midday update: Magellan jumps on buyback news, travel shares take off
• Flight Centre (ASX:FLT) share price climbs amid technology investment
• These are the 10 most shorted ASX shares
• Here’s why ASX 200 travel shares are having another stellar day

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 Flight Centre Travel Group 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. The benchmark index is currently up 1% to 7,164.7 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Arafura Resources Limited (ASX: ARU)

The Arafura Resources share price is up over 20% to 23.5 cents. This follows news that the rare earths developer has been awarded a $30 million grant by the government. These funds will be used to support the construction of the rare earth separation plant at its Nolans Project. The grant is part of the Federal Government’s Modern Manufacturing Initiative.

Block Inc (ASX: SQ2)

The Block share price is up over 7% to $143.52. This follows a similarly strong gain by the payments giant’s US listed shares on the NYSE last night. It isn’t just Block that is rising in the tech sector today. The S&P ASX All Technology index is up by a sizeable 2.5% at the time of writing.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up 4% to $14.42. This struggling fund manager’s shares have taken off today after it announced plans to buy back up to 10 million shares on-market. This represents approximately 5.4% of its shares on issue. Management advised that the buyback is “consistent with our aim to deliver capital efficiency, solid dividends and attractive returns for shareholders with a focus on our core funds management business.”

Qantas Airways Limited (ASX: QAN)

The Qantas share price is up 3% to $5.09. Investors have been buying Qantas and other travel shares on Wednesday following another pullback in oil prices. The recent weakness in oil prices is good news for the airline operator given how much it spends on fuel. In addition, any relief this causes for petrol prices could give consumer sentiment and spending a boost.

The post Why Arafura, Block, Magellan, and Qantas shares are storming higher appeared first on The Motley Fool Australia.

More reading

• 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
• Cash to splash: Why the Arafura Resources (ASX:ARU) share price is leaping 23% today
• Magellan (ASX:MFG) share price on watch after announcing share buyback

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. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. 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 travel shares are handily outpacing the benchmark index today.

And that’s on a day that’s seen the S&P/ASX 200 Index (ASX: XJO) charge 1% higher by lunchtime.

The Qantas Airways Limited (ASX: QAN) share price, however, has gained 3 times more, currently up just over 3%.

Fellow ASX travel share Webjet Limited (ASX: WEB) is also outperforming, up 2.2%, while the Flight Centre Travel Group Ltd (ASX: FLT) share price has gained 1.3% at this same time.

Among the smaller ASX travel shares, Helloworld Travel Ltd (ASX: HLO) has gained 3.5% so far in intraday trading.

Why are ASX travel shares taking off today?

There look to be a number of factors helping buoy ASX travel shares today.

First, momentum is building across the world to remove travel restrictions put in place 2 long years ago to mitigate the impacts of COVID-19.

New Zealand, a very popular destination for Aussies (and vice versa), announced that commencing 13 April, vaccinated arrivals from Australia will be able to enter without having to isolate. New Zealand intends to open its doors to a long list of other nations in early May.

On the far side of the world, the United Kingdom – another popular 2-way travel route from down under – is also helping boost travel sentiment. The UK is set to scrap its last COVID travel restrictions this week. Arrivals will no longer need to be tested.

What’s happening down under? 

Australia is taking its own big steps in ending pandemic border restrictions, helping lift investor sentiment for ASX travel shares. Among the most recent moves, the Aussie government is ending its ban on international cruise ship arrivals as of 17 April.

Commenting on the end of the cruise ship embargo, Helloworld CEO, Andrew Burnes said:

This has been a long time coming and agents and their clients across Australia are both relieved and thrilled that this ban is finally coming to an end. The lifting of this ban will make a material difference to the sales of our agents and of Helloworld’s leisure travel divisions, both retail and wholesale.

The Federal Government has indicated the final decision on opening ports rests with each State Government and we look forward to that occurring as soon as possible.

Lower energy prices good news for ASX travel shares

Atop the lifting of COVID travel restrictions, another big factor that’s helping boost ASX travel shares is a retreat in crude oil prices.

With jet fuel counting amongst the biggest single costs for airlines, today’s US$101 per barrel Brent crude is a lot more palatable than the US$129 per barrel that Brent crude was trading for on 8 March.

The post Why are ASX travel shares taking off today? appeared first on The Motley Fool Australia.

More reading

• Why is the Flight Centre share price lifting off today?
• Why Arafura, Block, Magellan, and Qantas shares are storming higher
• 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
• Qantas (ASX:QAN) share price lifting amid sustainable fuel deal

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet 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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What happened

The crypto market has rallied significantly today, with positive sentiment once again delivering positive price action for various top cryptocurrencies. As of 4 p.m. ET, Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and THORChain (CRYPTO: RUNE) surged 4.7%, 1%, and 5.2%, respectively, over the past 24 hours. These aggregate moves essentially approximated the overall market, which was up about 2.5% over the same time period.

Ethereum, which still runs with a proof-of-work consensus mechanism, has benefited from the recent ruling from the European Union that tokens relying on proof-of-work mining would not be hindered. Previously, a proposal under the Markets in Crypto-Assets (MiCA) legislative framework had a provision that would have limited the use of proof-of-work cryptocurrencies in the region.

THORChain, a newly-listed project built on the Cosmos blockchain, continues its surge higher. This token is approaching a double-up since being listed last week, with tremendous momentum behind this new listing.

Meme token favorite Dogecoin continues to track market sentiment in the crypto world, and it has generally traded in relatively high correlation with its peers of late. Today’s move appears to be a continuation of this trend.

So what

Overall, investors across most asset classes have found a reason to be bullish today. Risk-on sentiment is pervasive, as investors appear to feel that the expected interest rate hike is already priced in. 

Of course, these token-specific catalysts have helped these top-tier tokens continue their higher-volatility moves higher. Investors appear to remain intrigued by new listings, as evidenced by THORChain’s move. Additionally, with Ethereum’s interim status as a proof-of-work token not yet hindering it, investors have a lot to feel bullish about today.

Now what

Whether today’s price action is a reprieve from a longer-term bear market that may continue in the crypto world remains to be seen. The overall crypto market has been in bear market territory for much longer than have various stock indexes, which broke into an official bear market in recent days. Accordingly, these tokens have much further to climb to get to new all-time highs, something bulls expect will be the case over the long term.

That said, anything can happen in the short term. With the crypto sector seeing continued volatility, investors in this space should prepare themselves for a rocky ride. Looking at the CBOE Volatility Index today, uncertainty is building, which is likely to be reflected in some impressive moves in the crypto sector, if this correlation holds true moving forward.

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

The post What’s driving Ethereum, Dogecoin, and THORChain higher today? appeared first on The Motley Fool Australia.

More reading

• 2 top cryptocurrencies to buy and hold forever
• Shiba Inu vs. Dogecoin: Which pupcoin’s more bite than bark? 
• Why Bitcoin, Ethereum, and Dogecoin dropped today
• Fancy getting your paycheque in crypto? You’re not alone
• 52% of Aussies will never put money in this investment

Chris MacDonald owns Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Ethereum. The Motley Fool Australia owns and has recommended 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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