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Investors have continued to drag the Goodman Group (ASX: GMG) share price lower since the beginning of the new year.

The real estate investment trust (REIT) hit an all-time high of $26.96 on 30 December, before sinking 15% in 2022.

At the time of writing, Goodman shares are hovering 0.79% lower to $22.64.

What happened to Goodman shares?

Despite keeping a quiet front for the past couple of months, Goodman shares have backtracked to September 2021 levels.

Listed as the ASX’s largest REIT, the property company specialises in the logistics and business space. This includes warehouses, large scale logistics facilities, business and office parks across 5 continents in 14 countries.

A catalyst for the recent downturn could be attributed to investors selling off high-valuation companies during 2022.

The S&P/ASX 200 Real Estate (ASX: XRE) has shed around 10.72% in 2022, impacted by an uptick in inflation.

Data from the Australian Bureau of Statistics showed that the consumer price index (CPI) rose 1.3% in Q4 2021. When looking at the last 12 months, this figure rose 3.5%, the fastest annual pace since 2014.

The report highlighted the rising cost of living, which is affecting spending habits along with downward pressure on city rents.

The Reserve Bank of Australia advised it will make at least two rate hikes in 2022. The government body noted that inflation was not yet a problem for Australia compared to levels recorded in the United States.

Is now the time to buy?

Late last month, JPMorgan weighed in on Goodman shares.

The broker raised its 12-month price target by 4.2% to $25 for the REIT. Its analysts believe that there is still more upside in Goodman shares regardless of its mixed performance recently.

Based on the current share price, this implies an upside of about 10.4% for investors.

Goodman share price review

Over the last 12 months, Goodman shares travelled higher until the end of 2021 before tumbling in the new year. Nonetheless, the company’s shares are up almost 27% since this time last year.

Based on today’s price, Goodman commands a market capitalisation of roughly $42.3 billion, with approximately 1.87 billion shares outstanding.

The post Is the Goodman Group (ASX:GMG) share price a bargain after tumbling 15% in 2022? 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 Seek Limited (ASX: SEK) share price is surging today amid strong profit and record job ads reported in the company’s FY22 half-year results.

The online job advertising company’s share price is currently trading at $30.05, an 8.17% gain. It hit a high of $30.15 earlier in the session.

Let’s take a look at why the Seek share price is rising today.

Seek share price climbs amid half-yearly results

Highlights of the company’s half-year (H1 FY22) results include:

• Revenue surged 59% on previous corresponding period (PCP) of H1 FY21 to $517.2 million
• 83% increase in EBITDA to $250.6 million
• Net profit after tax (NPAT) on continuing operations surged 147% to $124 million, excluding significant items
• NPAT on discontinuing operations fell 47% from $16.5 million to $8.7 million
• NPAT on total operations surged 32% from $66.8 million to 88.1 million
• Earnings per share (EPS) on total operations soared by 32%
• Interim fully franked dividend of 23 cents a share

What else happened in the half?

Seek experienced record ad volumes in Australia and New Zealand. Unique hirers, on average, also surged 30% on the previous corresponding period.

Corporate job ad volumes rocketed 73% on PCP while small and medium enterprise volumes jumped 60%. Meanwhile, recruiters placed 26% more job ads than in the first half of the 2021 financial year.

The board declared an H122 interim fully-franked dividend of 23 cents per share. This will be paid on 7 April and recorded on 24 March.

Seek’s share of job advertising in Australia leapt around 30% over the PCP to 34.3%, a 15% gain.

In Asia, Seek experienced growth in paid job ads in all major markets including Malaysia, Singapore, Philippines, Indonesia, and Thailand.

The Seek Growth Fund portfolio value jumped by 17% to $1,738 million.

Management comment

Commenting on the results, CEO and managing director Ian Narev said:

Market conditions across our ANZ and Asia businesses were favourable for revenue growth. Businesses continued to rehire following COVID-related cuts, and in many cases restarted investment.

Whilst candidate activity on our sites remained high, application rates were weaker, which in turn drove greater depth adoption. Previous investments, in particular the flexibility of our new ANZ contract and pricing model, positioned us well to capture these opportunities.

Our key markets are experiencing, to varying degrees, a combination of ongoing economic recovery, relatively low unemployment rates and continued restrictions on labour mobility. Job ad volumes and depth adoption remain high. We have assumed these conditions continue for the remainder of this financial year, and have therefore upgraded our guidance.

What’s next

Seek sees “significant growth opportunities” in Australia/New Zealand and Asia with a chance to double revenue in the next five years if markets are stable and the company executes well.

Seek has updated its FY22 guidance, excluding significant items, for its continuing operations. It expects its EBITDA to be between $490 and $515 million based on revenue between $1.05 billion and $1.10 billion. Meanwhile, it predicts a NPAT for FY2022 of between $230 and $250 million.

This is based on a number of assumptions outlined in its results presentation, including low economic volatility from COVID-19.

Seek share price summary

The Seek share price has dropped 5% in the past year but has gained 7.5% in the past week.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the past year.

Seek has a market capitalisation of more than $10.5 billion based on today’s share price.

The post Seek Limited (ASX:SEK) share price leaps 8% as revenue soars appeared first on The Motley Fool Australia.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and has dropped into the red. The benchmark index is currently down 0.4% to 7,217.4 points.

Here’s what is happening on the ASX 200 today:

BHP half year results impress

The BHP Group Ltd (ASX: BHP) share price is pushing higher today after its half year results beat the market’s expectations. The mining giant reported a 27% increase in revenue to US$30,527 million and a 57% jump in underlying profit to US$9,715 million. Goldman Sachs commented: “Better than expected result with underlying EBITDA/NPAT (incl Petroleum) of US$21.4bn/US$10.7bn, +7%/+5% vs our US$20.0bn/US$10.1bn estimates (and vs. Visible Alpha consensus of US$19.9bn/US$9.6bn).”

SEEK delivers better than expected half year result

The SEEK Limited (ASX: SEK) share price is surging higher after its half year results impressed. The job listings company reported a 59% increase in revenue to $517.2 million and a 147% lift in reported net profit after tax (before significant items) to $124.2 million. Goldman notes that its revenue and net profit were 4% and 20% ahead of consensus estimates and even further ahead of its own forecasts. SEEK also upgraded its FY 2022 guidance to levels well-ahead of current estimates.

Ansell posts profit decline

As forewarned in a recent trading update, Ansell Limited (ASX: ANN) has posted a sharp decline in first half earnings. This morning the safety products company reported a 7.6% increase in sales to ~US$1 billion but a 27% decline in profits to US$77.6 million. Ansell’s earnings were impacted by weaker EBIT margins. This includes COVID manufacturing disruptions and higher freight costs.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Sims Ltd (ASX: SGM) share price with a gain of 17%. This follows the release of a very strong half year result this morning. The worst performer has been the Beach Energy Ltd (ASX: BPT) share price with a 9% decline. This morning analysts at Macquarie downgraded the company’s shares to a underperform rating with a $1.50 price target.

The post ASX 200 (ASX:XJO) midday update: BHP and SEEK impress, Beach sinks appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns SEEK Limited. 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 Ansell Ltd. and SEEK 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 Wesfarmers Ltd (ASX: WES) share price has moved into the green today despite a slow start to the day’s trading. At the time of writing, Wesfarmers shares are up 1.3% at $54.57 each, having earlier slipped to $53.48.

Possibly weighing on investors’ minds is Wesfarmers’ upcoming half-year earnings results. Yes, Wesfarmers is due to declare its earnings report this Thursday. As one of the largest and oldest blue-chip shares on the S&P/ASX 200 Index (ASX: XJO), Wesfarmers’ results are always well followed.

So what should investors watch out for from the conglomerate on Thursday?

Well, the first thing Wesfarmers’ shareholders might be anticipating is an update on the company’s plans to acquire the Priceline pharmacy operator Australian Pharmaceutical Industries Ltd (ASX: API).

Last week, Wesfarmers announced that the Australian Competition and Consumer Commission (ACCC) had confirmed it will not oppose the takeover offer of $1.55 a share for API.

Any updates on this process would probably be welcomed by shareholders on Thursday.

Wesfarmers to report half-year earnings this week

The last time Wesfarmers reported, it was for its FY2021 full-year results that were delivered last August. Back then, the company declared revenues of $33.94 billion. That was up 10% year on year. Net profit after tax was also up, by 16.2% to $2.42 billion.

But it was the 17.1% increase to Wesfarmers’ final dividend, as well as the $2.3 billion capital return for shareholders, that probably excited investors the most. Last year, Wesfarmers paid out an interim dividend of 88 cents per share on its FY21 half-year earnings. So no doubt investors have their fingers crossed that FY22 will bring with it an interim dividend pay raise.

But something else that could impact the Wesfarmers share price is how the businesses fared in the wake of the latest COVID wave. As we’d all be aware, the final months of 2021 were defined by the outbreak of the COVID Omicron variant.

While this wave did not see the kind of lockdowns or restrictions we have had in the past, it did result in a ‘shadow lockdown’ of sorts. Not to mention staffing issues. So no doubt shareholders will be anxious to see how Bunnings, Officeworks, and the other businesses Wesfarmers runs fared over this time.

What’s ahead for the Wesfarmers share price?

Earlier this month, broker Morgans seemed to be bullish on Wesfarmers ahead of its earnings. The broker rated Wesfarmers shares as a buy, with a 12-month share price target of $60.80.

Morgans noted that “COVID-related staff shortages are proving to be a challenge”. Even so, it has enormous confidence in Bunnings in particular. It sees the recent share price pullback as “a good entry point for longer-term investors”.

The Wesfarmers share price is down around 2% over the past 12 months and almost 9% year to date.

This ASX 200 blue chip has a market capitalisation of $61.06 billion.

The post Own Wesfarmers (ASX:WES) shares? Here’s what to watch when the company reports this week 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 owns and has recommended Wesfarmers 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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One expert is bullish on the Audinate Group Ltd (ASX: AD8) share price, flagging a bright future for the stock.

The digital audio networking technology provider’s shares have fallen 15.3% year to date to trade at $7.30 at the time of writing.

That’s despite the release of the company’s seemingly strong first-half earnings yesterday. At least the Audinate share price isn’t alone in its tumble.

The S&P/ASX All Technology Index (ASX: XTX) has also slumped 19.9% since the start of 2022, likely dragging the All Ordinaries Index (ASX: XAO) audio tech stock down with it. For context, the All Ords has gained 4.9% in that time.

Fortunately, according to Shaw and Partners portfolio manager and Market Matters author and portfolio manager James Gerrish, the drop has left Audinate with a significant upside.

Here’s why this expert thinks its Audinate shares are a buy

The professional investor reportedly told Livewire he is content with the company’s results for the first half and believes it has room to grow.

Gerrish noted some of his managed portfolios include Audinate shares already, telling the publication, “we own it. If we didn’t own it, we’d be buying it”.

“[The company has] a clear competitive advantage in what they do … It’s got the ability now to leverage its position into other areas like video. It’s growing its top line strongly. And it’s handled a pretty challenging period over the past 12 to 18 months.” 

However, Gerrish believes the stock’s current dip is justified. He said tech sell-off aside, the business is facing supply chain issues that could restrict its future pace of growth.

The expert said the stock “probably deserves” to have fallen from around $11 – near its 52-week high ­– to around $7.60 – where it opened on Monday.

“If I look at the short term, [the stock’s tumble is] probably the right reaction because that whole area of the market has been sold down,” Gerrish told the publication. He continued:

But it’s the clear global leader in audio networking. It’s got 13 times the market adoption of its nearest competitor …

They’re doing all the things that you’d want them to be doing. They’re increasing headcount to go and capture growth.

They’ve got cash on their balance sheet of $60 million. So, they’re well capitalised, that’s more than 10% of their market cap …

However, the company’s projected headcount growth – expected to reach 185 over financial year 2022, representing a 35% increase – might have shocked the market yesterday.

It will likely lead to extra costs. Particularly, Gerrish says, given the current skills shortage.

“[But] if you take a medium-term view, so out over the next two to three years, I think this is a clear buying opportunity,” Gerrish summarised.

The expert also noted the stock is in its “value range”, with Shaw and Partners slapping Audinate shares with a $12 price target. That’s 62% higher than where the stock is currently trading.

Finally, speaking on Audinate’s results, Gerrish was quoted as saying:

Loss this half is $2.1 million. It is up more than 70% and it was bigger than what we expected. We expected them to be making a slight profit of about a million dollars …

However, you’re not holding this company because it’s losing $2 million or $1 million, or it’s making a million bucks. You want them to be scaling for future growth. You want them to be taking advantage of the market opportunity they’ve got, which is having such a dominant position in that audio networking space. And then leveraging that into other areas. 

The post This ASX All Ordinaries share has a 60% upside after the tech sell-off: expert appeared first on The Motley Fool Australia.

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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. owns and has recommended AUDINATEGL FPO. The Motley Fool Australia owns and has recommended AUDINATEGL 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 Zip Co Ltd (ASX: Z1P) share price hit a fresh 52-week low yesterday and almost broke that feat again today.

The company’s shares reached an all-time high of $14.53 a little less than 12 months ago but bottomed out to a 52-week low of $2.68 in Monday’s session.

The buy-now pay-later (BNPL) company’s shares have struggled to gain composure since the start of last year.

During early morning trade today, Zip shares touched $2.685 before rebounding slightly higher. Currently, Zip shares are fetching for $2.72, up 0.74%.

What dragging Zip shares down?

Investors have continued to sell off Zip shares following negative sentiment across the tech industry.

Geopolitical tensions between Ukraine and Russia have spooked world markets, particularly on the Nasdaq. In the past month, the heavily tech-focused index has lost around 7.5% in value, and 14% since the beginning of the year.

This has had an adverse effect on the S&P/ASX All Technology Index (ASX: XTX), down 10% in a month, and 20% for 2022.

In addition, inflationary issues have not helped the cause, with the United States experiencing the largest rise in inflation in 40 years.

Australia has been experiencing its own inflation problems. The cost of living has risen 3.5% in the last quarter of 2021 alone. This was being blamed on high levels of building construction activity combined with shortages of materials and labour, as well as record automotive fuel prices.

The Reserve Bank of Australia signalled two rate hikes for 2022 in an effort to slow down the rising price of goods.

What this means is that consumers are less likely to spend on discretionary items when interest rates are picking up. The cost of debt on items such as credit cards, as well as personal loans, will require extra payments, affecting consumer spending habits.

Unfortunately for Zip, in the BNPL sector, this is the heart of its business model.

Investors will be watching closely when Zip releases its financial results later this month.

Is this a buying opportunity?

After reporting its FY22 second-quarter results last month, a number of brokers rated the company with varying price points.

Analysts at Macquarie slashed its price target for Zip shares by 40% to $3.40 apiece.

Following suit, the team at Citi also reduced its outlook by 38% to $3.65.

Both of these brokers believe there is still a significant value for the company’s shares at current prices. This represents a potential upside of about 25% to 35% from where Zip trades today.

The latest broker note, however, came from Jefferies which also lowered its view by 39% to $2.73 per Zip share. It appears investors are more in line with the analysts’ thoughts for the BNPL company.

Zip share price summary

Over the past 12 months, the Zip share price is down almost 80%. When looking at year to date down, its shares are down more than 37%.

Based on the current Zip share price, the company has a market capitalisation of around $1.6 billion.

The post The Zip (ASX:Z1P) share price hit another 52-week low this week. Is now the time to buy? 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. owns and has recommended ZIPCOLTD FPO. 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 Sims Ltd (ASX: SGM) share price has shot into the green today and is now 16.44% higher at $17.45.

Investors are bidding up Sims shares following the release of the metal and electronics recycling company’s FY22 half-year results.

Sims share price jumps alongside revenue, EBIT

The company outlined several investment highlights for the period, including:

• Sales revenue of $4,265.0 million, up 73.9% from prior corresponding period
• Statutory earnings before interest and tax (EBIT) of $341.4 million, up 334.9% million from the same time last year
• Underlying EBIT of $361.7 million, up 541.3% million from this time in FY21
• Cash flow distribution of $135 million, up 458% from prior corresponding period
• Operating cash flow of $290.8 million, up 94.8% from the prior corresponding period
• Return on “Productive Assets” of 37.5%, up from 6.2% in the year prior

What else happened this half for Sims?

A key takeout is the company announcing an underlying EBIT of $361.7 million. This is more than 540% higher compared to the same time last year and seems to have pleased investors, judging by the soaring Sims share price.

Much of the growth waterfall that trickled down Sims’ profit and loss this half stemmed from an 80% growth in sales revenue to $4.26 billion.

Sims notes the high-octane growth was due to “higher sales volumes and higher material prices, combined with disciplined margin management”.

In fact, the group’s trading margin increased by 45% through this “disciplined management”, specifically, of “the buy/sell spread as selling prices increased”.

As a result, the company recognised a statutory net profit after tax (NPAT) of more than $253 million. That’s a substantial gain of 378% on the previous year, whereas underlying NPAT gained 622%.

Impressively, this half also marked the lowest number of injuries recorded year-on-year since 2019.

Management commentary

Speaking on the announcement fuelling the Sims share price today, Group CEO and managing director Alistair Field said:

We delivered an excellent performance in HY22 with earnings above guidance, driven by growth in trading margin, against a backdrop of volatile freight markets and inflationary pressures. We significantly improved our operating cash flow from 2H FY21, increased cash returns to shareholders, and maintained the strength of our balance sheet. Intake volumes grew strongly and were close to pre-COVID levels, highlighting the continued strength of our metal businesses.

What’s next for Sims?

The release notes that intake volumes are solid into 2H FY22 both in the metal business and its joint venture, SA Recycling.

The momentum is strong as non-ferrous commodity prices race higher than HY22 averages and ferrous prices remain elevated.

Sims also explains that SA Recycling’s acquisition of PSC Metals will commence full contribution in 2H FY22.

Sims share price snapshot

In the last 12 months, the Sims share price has gained around 36% and is up 8% this year to date. In the past month, it has climbed 11% and is soaring more than 13% over the past five days of trading.

The post ‘Excellent performance’: Sims (ASX:SGM) share price rockets 16% on stellar earnings appeared first on The Motley Fool Australia.

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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 BHP Group Ltd (ASX: BHP) share price is pushing higher on Tuesday morning.

At one stage today, the mining giant’s shares were up 3% to $49.88.

The BHP share price has dropped back a touch since then but remains up 2% at $49.33.

Why is the BHP share price pushing higher?

Investors have been bidding the BHP share price higher this morning after it delivered a half year result ahead of expectations.

BHP reported a 27% increase in revenue to US$30,527 million and a 57% jump in underlying profit to US$9,715 million. This was driven by higher sales prices across its major commodities, near record production at WAIO, and favourable exchange rate movements.

This ultimately led to BHP generating free cash flow from continuing operations of US$8.5 billion, which allowed the Big Australian’s Board to declare a record interim dividend. BHP will be paying shareholders a fully franked US$1.50 per share dividend for the period, which represents a 78% payout ratio.

How does this compare?

The team at Goldman Sachs has had a quick look at BHP’s results and notes that it was better than both it and the market were expecting. This goes some way to explaining the rise in the BHP share price today.

Goldman commented: “Better than expected result with underlying EBITDA/NPAT (incl Petroleum) of US$21.4bn/US$10.7bn, +7%/+5% vs our US$20.0bn/US$10.1bn estimates (and vs. Visible Alpha consensus of US$19.9bn/US$9.6bn). Headline NPAT of US$9.4bn included a modest US$300mn increase in Samarco liability provision (balance was US$2.8bn mid-CY21). BHP reported an EBITDA margin of 64% and ROCE of 40% for the half.”

It was a similar story with the BHP dividend, which at US$1.50 per share, came in ahead of Goldman’s estimate of US$1.27 per share and the consensus estimate of US$1.31 per share.

The broker was also pleased with the mining giant’s balance sheet and operating cash flow.

It said: “Net debt of US$6.1bn (incl. leases) was well below our US$9.6bn forecast and consensus of US$9.0bn, despite working cap build. BHP has reset the net debt target to US$5-15bn (GSe) ex Petroleum (vs. current US$12-17bn target). Operating cash flow of US$13.3bn, above GSe at US$10.8bn, on the stronger result and lower than expected cash tax. Cash capex and exploration was US$3.7bn vs our US$4.1bn estimate. FCF totaled US$9.7bn compared to our US$6.6bn estimate.”

Overall, BHP appear to get a big tick for this half.

The post BHP (ASX:BHP) share price storms higher following ‘better than expected result’ appeared first on The Motley Fool Australia.

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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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AMP Ltd (ASX: AMP) shares were in the spotlight on Thursday when the financial services company released its full year financial results for 2021 (FY21).

Despite forgoing a final dividend payout, the AMP share price gained 5% on the day. ASX investors appeared pleased by the company’s reported 53% year-on-year increase in underlying net profits after tax (NPAT) of $356 million.

Atop the financial results, AMP shareholders were also updated on the progress being made in separately listing AMP Capital Private Markets.

And the new name of the standalone business was revealed – Collimate Capital.

Collimate Capital to list mid-year

Why Collimate?

According to the company, “Collimate is a scientific term that means to make rays of light perfectly parallel. It is a metaphor for alignment, clarity, and precision, which speaks to our vision and expertise in long-term value creation for our clients.”

AMP’s CEO, Alexis George confirmed that the demerger should be completed in the first half of 2022. She said the freshly branded Collimate Capital’s leadership team is already in place:

Significant progress has been made on the demerger of Private Markets from AMP, and we’re on track for completion in the first half of this year. Operational separation is now complete, including the transfer of the multi-asset group investment team into Australian Wealth Management, and the appointment of Chairman and Deputy Chairman designates to establish an independent board.

Addressing the benefits of the transformation for AMP shares, AMP Capital CEO Shawn Johnson added:

The new brand matches our determination to work in parallel alignment with our clients, partners, and communities to develop and deliver long-term, sustainable assets and returns.

As a demerged entity, Collimate Capital will provide a greater level of independence, stability, and accountability to further enable the delivery of superior results for all of our investors and act on growth opportunities to raise equity and deploy new capital.

How have AMP shares been tracking?

AMP shares, down 0.3% in intraday trading today are up a slender 0.7% so far in 2022. That handily beats the 4.9% loss posted by the S&P/ASX 200 Index (ASX: XJO) year-to-date, though.

The post Here’s why AMP (ASX:AMP) shares are set for a transformation 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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The Qantas Airways Limited (ASX: QAN) share price is trading 1.3% lower this morning. Today’s slip follows a reveal from the airline’s soon-to-be newest competitor Bonza.

Although the latest Australian airline entrant will be targeting the budget market, investors might be wary of the dent it could put in Qantas’ own budget offering Jetstar.

Taking a different path, literally

Investors have gone cold on the Qantas share price in Tuesday morning trading. Coincidentally, this aligns with Australia’s latest addition to the airline industry revealing its routes and destinations.

According to reports, the ultra-low-cost competitor is planning to take to the skies across 25 different routes. These will service 16 locations across the eastern states of Australia.

Roughly 80% of Bonza’s proposed routes are currently not being served by an airline. This means, unlike its ASX-listed peers, Bonza Airlines will be operating mostly in completely new markets.

Bonza chief executive Tim Jordan highlighted the unique proposition, stating:

That’s delivering something very different to the market. Eighty percent of the routes are not flown by any other airline at this point. It’s new ground for Australia.

It seems the differentiation isn’t enough to ease the minds of Qantas shareholders as the share price slides this morning.

Destinations across Bonza’s planned network include:

• Melbourne
• Mildura
• Albury
• Coffs Harbour
• Toowoomba
• Mackay
• Townsville

Meanwhile, Aussies can expect to take flight at enticing price points. For example, a flight between the Sunshine Coast to Rockhampton would cost about $50 one way. Longer one-way flights, Melbourne to Sunshine Coast, are likely to set travellers back between $75 to $100.

What’s been playing on the Qantas share price?

A new addition to the domestic airline market has yet to push the Qantas share price into the negative so far in 2022.

Perhaps Qantas investors are optimistic about the fast-approaching international border reopening. The loss of international travel has remained a heavy burden for Qantas over the last two years.

In a December update, the airline operator shared its expectation for international capacity to be approximately 30% of pre-COVID levels in the third quarter.

The Qantas share price is up 14% in the last 12 months.

The post Qantas (ASX:QAN) share price slips amid Bonza plans to launch ‘something very different to the market’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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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