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Are you interested in adding some ASX growth shares to your portfolio this month? If you are, you may want to look at the two listed below that have recently been named as buys.

Here’s what you need to know about these ASX growth shares:

Adore Beauty Group Limited (ASX: ABY)

The first ASX growth share to look at is Adore Beauty. It is an integrated content, marketing and e-commerce retail platform that partners with a broad and diverse portfolio of approximately 260 brands and 10,800 products.

Adore Beauty has been growing at a rapid rate over the last few years and continued doing so during the first quarter of FY 2022. Adore Beauty reported a 25% increase in revenue to $63.8 million and a 24% lift in active customers to 874,000. While it remains unclear whether this strong form continued during the second quarter, one thing that is for sure is that Adore Beauty has a significant long term market opportunity to grow into. This is thanks to its strong position in an Australian beauty and personal care (BPC) market which is currently estimated to be worth $11.2 billion and growing.

The team at UBS is positive on Adore Beauty. The broker currently has a buy rating and $6.00 price target on its shares.

Altium Limited (ASX: ALU)

Another ASX growth share to look at is Altium. It is an award-winning printed circuit board (PCB) design software provider. PCBs are the foundation of most modern electronic devices and come in all different shapes and sizes.

Altium could a top long term option for investors due to its strong growth potential thanks to its exposure to the rapidly growing Internet of Things and artificial intelligence markets. These are underpinning an explosion in electronic devices globally, which bodes well for its industry-leading Altium Designer and Altium 365 software and also its other complementary businesses such as NEXUS and Octopart.

Jefferies is a fan of Altium and has a buy rating and $48.83 price target on its shares.

The post 2 fantastic ASX growth shares to buy now appeared first on The Motley Fool Australia.

More reading

• With Afterpay shares no longer listed, is WAAAX officially dead?
• Here’s why the Altium (ASX:ALU) share price is ‘significantly undervalued’
• Why did these tech shares lead the ASX 200 today?
• Top ASX shares to buy in February 2022
• 3 ASX shares brokers have named as buys

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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty 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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Key points

• Traditional ASX media shares could be among the winners this reporting season, according to UBS
• The broker identified four tailwinds that could bolster earnings in the sector
• All traditional ASX media shares under UBS’ coverage are rated as “buy”

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The reporting season is about to kick off and a leading broker reckons that traditional ASX media shares could fare well this month.

This is because the sector is enjoying four tailwinds, according to UBS. These factors could boost their earnings when they hand in their results in a few weeks.

ASX media shares that are rated “buy”

The broker’s bullish view is reflected in its “buy” recommendation for all the traditional ASX media shares under its coverage.

These include the HT&E Ltd (ASX: HT1) share price, Nine Entertainment Co Holdings Ltd (ASX: NEC) share price, News Corporation Class B Voting CDI (ASX: NWS) share price, Seven West Media Ltd (ASX: SWM) share price and Southern Cross Media Group Ltd (ASX: SXL) share price.

“In traditional media, our focus will be on the 2H outlook, which may provide evidence on the sustainability of the post-COVID rebound in FTA ad spend,” said UBS.

“[Although] in radio we believe any potential trajectory towards pre-COVID levels may continue to be delayed given its advertisers appear to be more impacted by COVID-19 (e.g. local direct advertising, retail).”

Earnings tailwinds

The strength in the combined TV ad market, particularly in the first half, is one of the tailwinds that UBS has identified.

Another is the deal that traditional Australian media companies have struck with Facebook, now Meta Platforms Inc (NASDAQ: FB), as well as Google, which is owned by Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG).

The deal will see these online giants pay content creators for their news stories. Nine Entertainment stands to get around $30 million to $40 million added to its earnings before interest, tax, depreciation and amortisation (EBITDA).

Other growth drivers for ASX media shares

Revenue growth in the digital assets of these ASX shares is the third driver highlighted by UBS.

The broker also points to the balance sheet repair that was undertaken by the sector through asset sales and capital raises. This will allow the sector to resume paying dividends, undertake capital returns and make acquisitions.

The only negative trend that could weigh on the sector is rising costs due to cyclical factors and the loss of the government’s COVID-19 support payments.

The other good news is that rising interest rates and inflation are less likely to negatively impact the group compared to their online peers, such as Carsales.Com Ltd (ASX: CAR) and SEEK Limited (ASX: SEK).

The post 4 reasons to buy these ASX media shares this month: UBS appeared first on The Motley Fool Australia.

More reading

• Meta (NASDAQ:FB) share price plunges 22%. How might this impact ASX shares?
• 2 cheap ASX 200 shares rated as top buys
• 2 cheapie ASX shares looking pretty for 2022
• 2 ASX dividend shares to buy this month: experts

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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. Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares) and Meta Platforms, Inc. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Meta Platforms, Inc., SEEK Limited, and carsales.com 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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Key points

• ASX tech shares were hammered across the board today
• The All Technology index fell 4.32%
• The Block share price dived nearly 10%.

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ASX tech shares plummeted today amid a disastrous day for buy now, pay later (BNPL) shares.

The S&P ASX All Technology Index (ASX: XTX) was by far the worst-performing sector on the ASX, ending the day down 4.32%.

Let’s take a look at what might have impacted the technology sector today.

How did ASX tech shares perform today?

The All Technology index was pulled down by a huge number of ASX tech shares today.

The BrainChip Holdings Ltd (ASX: BRN) share price took the biggest hit, down 9.66%. This follows big gains for the company over the past three days.

WiseTech Global Ltd (ASX: WTC) shares tumbled 7.97%, the Altium Limited (ASX: ALU) share price sunk 6.94%, while shares in Appen Ltd (ASX: APX) plummeted 6.75%, as reported by my Foolish colleague James earlier today.

The TechnologyOne Ltd (ASX: TNE) share price slipped 6.63%, with Megaport Ltd (ASX: MP1) shares not far behind, losing 6.48%.

It was also a bad day for Xero Limited (ASX: XRO), NextDC Ltd (ASX: NXT), and Computershare Limited (ASX: CPU) shares, which fell 4.97%, 3.38%, and 1.79% respectively

BNPL shares including the Block Inc CDI (ASX: SQ2) share price played a part in dragging down the technology index.

Between market close yesterday and 10.30am this morning, the company’s ASX listing dropped 8% alone. By the close of trading today, it had sunk 9.75%. Investors were likely reacting to the performance of its US listing.

The Block Inc (NYSE: SQ) share price fell 10.63% in the United States in yesterday’s trade. In after-hours trade, the share has fallen a further 8%.

As my Foolish colleague Brooke reported recently, ASX tech shares tend to follow the movement of Nasdaq counterparts.

And it’s not just the performance of Block that is spooking investors. Meta Platforms Inc (NASDAQ: FB), the owner of Facebook, crashed 22.89% in after-hours trade on the Nasdaq. The company’s earnings report fell short of expectations.

Financial technology giant PayPal (NASDAQ: PYPL) also shed 25% in the US yesterday after a disastrous earnings report.

On the ASX, BNPL shares Zip Co Ltd (ASX: Z1P) also slumped 9.63% today while Openpay Group Ltd (ASX: OPY) sunk 8.82%.

The post Why did ASX 200 tech shares get annihilated today? appeared first on The Motley Fool Australia.

More reading

• These 2 ASX 200 shares have tumbled into the buy zone: Expert
• Why Cettire, Novonix, Serko, and Zip shares are sinking today
• Is Zip (ASX:Z1P) the Titanic of ASX tech shares? It just keeps sinking
• With Afterpay shares no longer listed, is WAAAX officially dead?
• Is Zip’s (ASX:Z1P) potential acquisition of Sezzle the right strategy?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., MEGAPORT FPO, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd and Xero. The Motley Fool Australia has recommended MEGAPORT 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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Today, the S&P/ASX 200 Index (ASX: XJO) slipped lower in a diabolical day for tech shares. At the end of the session, the benchmark index finished 0.14% lower at 7,078 points.

Another red day for the Aussie benchmark index primarily at the hand of tech shares. In its worst showing since the painful crunch in January, the tech sector lost 5.88% today. The day could have been far worse if not for a solid performance by miners and utilities.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Mercury NZ Ltd (ASX: MCY) was the biggest gainer today. Shares in the New Zealand electricity producer jumped 5.24% amid a broad improvement in sentiment for utilities. Find out more about Mercury NZ here.

The next biggest gaining ASX share today was Genesis Energy Ltd (ASX: GNE). Yet another New Zealand electricity producer enjoying strong gains today on the ASX. Once again benefitting from an improved sentiment, Genesis pushed 4.63% higher today. Uncover the latest Genesis Energy details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Mercury NZ Ltd (ASX: MCY)	$5.42	5.24%
Genesis Energy Ltd (ASX: GNE)	$2.71	4.63%
Insignia Financial Ltd (ASX: IFL)	$3.83	4.36%
Fortescue Metals Group Ltd (ASX: FMG)	$21.13	3.28%
BHP Group Ltd (ASX: BHP)	$47.05	3.09%
Amcor PLC (ASX: AMC)	$16.85	3.00%
APA Group (ASX: APA)	$10.20	2.72%
QBE Insurance Group Ltd (ASX: QBE)	$12.03	2.56%
GQG Partners Inc (ASX: QGQ)	$1.61	2.55%
Origin Energy Ltd (ASX: ORG)	$5.83	2.46%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Should you buy or sell in a market crash? Here’s what Warren Buffett says
• These 3 ASX 200 shares are topping the volume charts this Thursday
• The Vanguard Australian Shares ETF (ASX:VAS) is about to get a major 2022 makeover. Here’s what is changing…
• ASX 200 (ASX:XJO) midday update: Westpac higher on Q1 update, tech shares sink
• 5 things to watch on the ASX 200 on Thursday

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 owns and has recommended APA Group and Amcor 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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Key points

• Facebook adds Andrew Forrest to the list of things to worry about
• Fortescue Metals chair is taking the US company to court over its alleged involvement in cryptocurrency scams using Forrest’s name
• The first hearing is slated for March in Australia

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Facebook is in hot water again, this time for allegedly funnelling users to cryptocurrency scams.

Australian businessman and Fortescue Metals Group Limited (ASX: FMG) chair Andrew Forrest is bringing criminal charges against Facebook, alleging the social media giant used his name to defraud unsuspecting victims.

This is just the latest in a series of troubles for Facebook, now known as Meta Platforms Inc (NASDAQ: FB).

Adding insult to injury, the Meta share price took a 22% dive this morning after its fourth-quarter results failed to live up to expectations.

Ironically, the charges being filed by Dr Forrest come mere days after Meta’s digital currency project, Diem, begins to wind down.

Another cryptocurrency pain for social media giant

Twiggy’s Facebook lawsuit is the latest in a string of cryptocurrency scandals to hit Facebook. Earlier this year, Facebook shut down its digital currency project Diem (previously known as Libra) after it failed to gain regulatory approval.

However, the charges being fronted by Forrest concern the company’s alleged lack of oversight. The Fortescue founder goes as far as to accuse the tech giant of aiding and abetting in the misuse of his reputation.

While Andrew Forrest is the one pursuing charges, he is not the only prominent figure used in the cryptocurrency ruse. Other publicly popular people whose images were used in these scams included Chris Hemsworth, Waleed Aly, and David Koch.

According to court documents filed in California, one individual incurred a $952,000 loss after falling victim to the scam. Furthermore, it is explained the total amount of money siphoned off is unclear. Although, it is believed to be in the millions.

Forrest shared the reasoning behind the legal action, stating:

I’m doing this on behalf of innocent Australians who don’t have the resources to take on companies like Facebook… The same people who are being scammed and many of whom have seen me falsely featured on Facebook advertisements

I want social media companies to use more of their vast resources and billions of dollars in annual revenue to protect vulnerable people who are targeted and fall victim to these scams.

What’s next?

According to reports, Andrew Forrest has filed two separate proceedings against Facebook/Meta over the cryptocurrency scams. One of these went to the West Australian Magistrates Court, comprising of alleged Australian money-laundering breaches. This case is expected to be heard in March.

Meanwhile, the other lawsuit — involving alleged aiding and abetting of fraud — has been filed with a California court. At this stage, a date has not been set for this civil case.

In response to the allegations, a Facebook spokesperson said:

We don’t want ads seeking to scam people out of money or mislead people on Facebook – they violate our policies and are not good for our community.

In December, the Australia Competition and Consumer Commission (ACCC) revealed more than $109 million in reported losses through cryptocurrency scams. However, the true figure is believed to be far higher.

The post Why is Twiggy suing Facebook? Hint: It involves cryptocurrency appeared first on The Motley Fool Australia.

More reading

• Meta (NASDAQ:FB) share price plunges 22%. How might this impact ASX shares?
• 1 green flag and 1 red flag for Meta’s Metaverse dreams
• FAANG Stocks: 2022 Winners and Losers
• Is the metaverse the next big thing? Here’s why ASX investors think so

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. Motley Fool contributor Mitchell Lawler owns Meta Platforms, Inc. 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.

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Key points

• The Creso Pharma share price shot out the blocks this morning before ending the day 6% higher
• It has acquired a US-based company manufacturing both CBD and non-CBD products
• The Creso Pharma share price has fallen 57% in 12 months

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The Creso Pharma Ltd (ASX: CPH) share price soared today after the company announced it was to enter the US market.

The cannabis-focused healthcare company revealed it is to acquire Colorado-based consumer packaged goods company Sierra Sage Herbs, LLC.

The Creso Pharma share price jumped 16% to 9.9 cents in early trade before settling back to 9 cents, a 5.88% gain on yesterday’s close.

So what does this acquisition mean for investors?

Let’s read on…

What fuelled the Creso Pharma share price?

The Creso Pharma share price spiked on today’s announcement. The company is now positioned to enter the US market through the acquisition of the already-established US-based business, Sierra Sage Herbs — and more so, the Green Goo brand.

Its product portfolio includes beauty and personal care, first aid, sexual wellness products (non-CBD) and CBD products. The range already has 90,000 points of sale, and a large direct-to-consumer base both in and out of the US.

Creso Pharma believes the US CBD market to be “large and quickly growing”, and estimates it will hit US$12 billion by 2026.

The company will acquire SSH for an up-front purchase price of US$21 million (with additional future payments based on estimated revenue targets of US$10 million in CY 2022 and up to US$20 million in CY 2023).

Creso Pharma aims to leverage and grow the existing Green Goo customer base and to introduce them to its own range of products — including therapeutics, nutraceuticals, topicals, and animal feed.

Comment from management

Speaking on the news driving the Creso Pharma share price today, group CEO and managing director William Lay said:

The acquisition of Sierra Sage Herbs and the company’s product range is a major milestone for Creso Pharma. It marks entry into the US CBD market and provides a strong foundation to rapidly scale up operations, product development and sales, as well as further M&A transactions.

Creso Pharma is expected to benefit from SSH’s existing revenue streams. We expect SSH’s product sales to continue growing significantly in coming years, and the transaction implies material accretion on several metrics for Creso Pharma. Coupled with our existing sales channels, we have the potential to significantly grow our earnings profile in the near term.

Sierra Sage Herbs CEO and co-founder Jodi Scott said:

We started this company because we knew that plant-based alternatives could do more. We combined our passions for science, wellness, herbology and wound care into a line of safe, effective all natural products and so began our journey to change first aid as we know it.

That seed has become one of the most disruptive CPG brands in personal care — and this is just the beginning.

Creso Pharma share price snapshot

Over the last 12 months, the Creso Pharma share price has dropped by 57%. However, it is up nearly 10% this year to date.

The company has a market capitalisation of $104.40 million and 1.23 billion shares issued.

The post The Creso Pharma (ASX:CPH) share price jumped 6% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• ASX cannabis shares in spotlight amid COVID prevention research

Motley Fool contributor Alice de Bruin 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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Key points

• Inflation is up in 2022 and interest rates could be about to rise in turn
• While that’s normally dire for ASX tech shares, one fund manager is betting on Computershare
• They believe the company is well positioned to benefit from rising interest rates

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The whispers that haunted the market last year have become official in 2022. Inflation is up, and that means rising interest rates might not be too far away.

As The Motley Fool Australia’s Zach Bristow recently reported, ASX tech shares generally struggle through periods of inflation.

But one fundie is backing an ASX technology giant in 2022. In fact, they’ve boosted it to the number 2 spot in their portfolio. And its share price is making it even more attractive.

Is this ASX 200 tech share a buy in times of interest rate rises?

Head of Australian equities at T. Rowe Price Randal Janneke has flagged Computershare Limited (ASX: CPU) as the ASX 200 tech share to buy in times of high interest rates.

The financial administration company provides share registry services to market participants, as well as various financial services to entities all around the globe.

But that’s not exactly what’s said to make Computershare a great ASX 200 inflation buy. Instead, Jenneke is bullish on the company because of what it does with its revenue.

“Essentially … Computershare owns a lot of businesses by which it collects cash before it pays it out to investors,” said Jenneke.

“That means it’s able to invest that cash in money markets. But the problem becomes, when interest rates are cut to zero, the income that they generate on those money market investments are basically zero.

“[W]hen rates start to rise it means they can actually start to generate some interest income on that pool of assets. And we think the business is very well positioned to benefit from rising rates, particularly in the US, where roughly half their business is based.”

Not to mention, the company’s acquisition of Wells Fargo Corporate Trust Services has also got Jenneke bullish.

Finally, the Computershare share price – $20.29 at Thursday’s close – has excited the professional investor. He believes it’s very attractive at valuation levels.

The post This is the ASX 200 tech share to buy in times of inflation: Expert appeared first on The Motley Fool Australia.

More reading

• The Computershare (ASX:CPU) share price is leaping 5%. Top broker says buy now
• What happened to ASX tech shares today?
• Why did the Computershare (ASX:CPU) share price set another record high today?

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

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The Australian Ethical Investment Limited (ASX: AEF) share price went down 13% today, continuing a very volatile start to the year for the business.

This ethically-focused fund manager has seen a lot of ups and downs over the past year. Despite dropping 36% since the start of 2022, it is still slightly up over the past six months.

What’s going on with the Australian Ethical share price?

Many ASX shares that are seen as growth stocks have dropped heavily since the start of 2022 such as Xero Limited (ASX: XRO) which has fallen 25%. There is increasing commentary and concern that inflation is too high and interest rates are going to increase sooner and faster than previously expected.

Higher interest rates can have a negative impact on asset valuations.

Fund managers can suffer from a double (or triple) negative effect. Not only can investors value the earnings lower, but the funds under management (FUM) can drop if a fund manager’s investments fall in value and people become fearful and withdraw funds.

FUM rose to December 2021

Investors haven’t yet had an update about how FUM is going in the 2022 calendar year.

However, investors have been told that at 31 December 2021, Australian Ethical’s FUM had grown to $6.94 billion. That was an increase of 6% from 30 September 2021. It was also a rise of 14.3% from June 2021.

Whilst investment returns are helping grow the FUM, it’s the net flows that helped drive the FUM higher. In the latest quarter, net inflows were $310 million and in the half-year it saw net inflows of $600 million.

Profit growth expected

Australian Ethical told investors in December that it’s expecting to generate underlying profit after tax (UPAT) before performance fees for the half-year ending 31 December 2021 to be between $5 million to $5.5 million. The mid-point would represent an increase of 8% on the FY21 half-year result.

The ASX share is planning to keep investing in its high-growth strategy because of the positive momentum it’s experiencing and the scale of the opportunity ahead.

Australian Ethical is expecting second half costs to be higher than the first half as it implements its strategic roadmap.

Launch of a new exchange-traded fund (ETF)

The ethical fund manager has launched an ETF for investors to access its offering in a different way.

AEAE, the first ETF launched by the business, is focused on a basket of stocks from the S&P/ASX 300 (INDEXASX: XKO). It’s actively managed, with the ethical overlay that the fund manager is famous for, whilst also aiming to find ASX shares capable of market outperformance.

At the moment, some of its biggest holdings include: Bank of Queensland Limited (ASX: BOQ), Coles Group Ltd (ASX: COL), Suncorp Group Ltd (ASX: SUN), Westpac Banking Corp (ASX: WBC), Telstra Corporation Ltd (ASX: TLS) and Fletcher Building Limited (ASX: FBU).

The post Green light, red light! Why did the Australian Ethical (ASX:AEF) share price plunge 13% today? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares riding the wave of green energy and ethical investing
• Could Australian Ethical (ASX:AEF) be about to launch a new ETF?
• Are these 2 high-growth ASX shares now beaten-up opportunities?
• Why Adbri, Australian Ethical, JB Hi-Fi, and Wesfarmers shares are racing higher
• The Australian Ethical Investment (ASX:AEF) share price has plunged 8% today. What’s happening?

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 Australian Ethical Investment Ltd. and Xero. The Motley Fool Australia owns and has recommended Telstra Corporation Limited and Xero. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and Westpac Banking Corporation. 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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Key points

• Westpac shares traded higher today following the release of the bank’s first quarter results
• The bank is making additional changes to its organisational structure
• More than 1,100 employees were cut in the last quarter

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The Westpac Banking Corp (ASX: WBC) share price stood its ground today after the company revealed its first-quarter results this morning.

At the closing bell, shares in the third-largest of the big four banks were swapping hands at $21.07 apiece, up 2.28%. It appears the market is not too worried about Westpac missing estimates. While Bell Potter had expected more, the bank delivered $1.58 billion in cash earnings.

Meanwhile, investors might have been preoccupied with another announcement from the major bank today. In a separate release, Westpac announced further steps in its simplification journey.

But, will these changes be enough to get Westpac back on track?

Competition comes with corporate cuts

ASX investors watched Westpac shake up its c-suite today, with a series of announcements that could have implications for the bank’s future.

According to the release, Westpac will see the departure of two executives — group chief risk officer David Stephen and group executive, financial crime, compliance, and conduct Les Vance.

In addition, the bank has combined both roles under the single ‘group chief risk officer’ banner. This position will be filled by former Fannie Mae executive vice president and chief risk officer, Ryan Zanin.

Commenting on this appointment, Westpac CEO Peter King said:

Ryan Zanin will build on the work underway, as we continue to drive our risk transformation. I’m pleased we will have someone of Ryan’s calibre joining Westpac. Ryan is a proven risk leader with extensive risk management experience, having held senior risk roles at some of the world’s largest financial services companies, including Fannie Mae, GE Capital, and Wells Fargo.

The changes are consistent with the bank’s 3-year cost reduction plan laid out in 2021. Ambitiously, the roadmap defined a path to an $8 billion cost base by 2024.

Today’s announced changes are in line with ASX-listed Westpac’s goal of “creating a smaller, more focused head office”, removing around 20% of corporate functions in the process.

As part of the goal, more than 1,100 contractors and staff were cut during the last quarter.

Will it bring Westpac in line with other ASX banks?

A leaner Westpac on the ASX could be exactly what shareholders are hoping for. On the bottom line, Westpac exhibited a slimmer profit margin than the other major banks in the last round of earnings. For reference, the margins for each of the big four were:

• Commonwealth Bank of Australia (ASX: CBA): 36.9%
• National Australia Bank Ltd (ASX: NAB): 38.1%
• Westpac Banking Corp: 25%
• Australia and New Zealand Banking Group Ltd (ASX: ANZ): 34.4%

Westpac’s current operating expenses for the trailing 12-months is $10.52 billion. If Westpac can reduce its expenses down to $8 billion, this would be similar to ANZ. However, Westpac has pulled in around $3.8 billion more revenue than ANZ in the last year.

This would suggest, potentially, ASX-listed Westpac could achieve profit margin parity with its peers if it can reach the $8 billion cost base.

The post Does the Westpac (ASX:WBC) corporate shake-up go far enough? appeared first on The Motley Fool Australia.

More reading

• Why Amcor, Boral, Nufarm, and Westpac shares are rising today
• Why these brokers think that the CBA (ASX:CBA) share price is a sell
• Here’s what this broker thinks of the Westpac (ASX:WBC) Q1 result
• ASX 200 (ASX:XJO) midday update: Westpac higher on Q1 update, tech shares sink
• Westpac (ASX:WBC) share price on watch after reporting $1.58bn Q1 profit

Motley Fool contributor Mitchell Lawler owns Commonwealth Bank of Australia. 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 Westpac Banking Corporation. 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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Key points

• Bitcoin price down 4% overnight
• Cryptos have sold off amid higher interest rate expectations
• Longer-term investors are awaiting the next halving

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The Bitcoin (CRYPTO: BTC) price slipped again over the past 24 hours, down just over 4%.

At time of writing, the token is trading for US$36,955 (AU$51,795).

While that’s still up 3% since this time last week, the Bitcoin price remains down 19% for the year and down 46% since its 10 November all-time highs.

What could impact the Bitcoin price next?

The Bitcoin price has been taking a wallop as investors around the world are increasingly pricing in interest rate hikes in their decisions.

Most every crypto, outside of stablecoins, is deep in the red for the New Year.

Although the Reserve Bank of Australia (RBA) held fire on raising rates during Tuesday’s meeting, governor Philip Lowe didn’t rule out lifting the cash rate at some stage in 2022.

And over in the United States, the Federal Reserve Bank has flagged the potential of multiple rate rises this year.

That’s seen risk assets, like high valuation technology shares and most cryptos, sold off. And it’s seeing investors keep a keen eye on global rate movements to help gauge where the Bitcoin price could be heading next.

According to Edward Moya, senior market analyst at Oanda (quoted by Bloomberg), “Bitcoin will continue to trade like a risky asset and most likely benefit if central banks continue to show some hesitancy in turning very aggressive with tightening monetary policy.”

Moya said the Bank of England and European Central Bank interest rate decisions, due this month, “might have a larger impact on cryptos than normal as Wall Street is looking for a cue on which direction risk appetite is headed”.

Should the ECB and BoE hold fire, it could offer up some short-term tailwinds for the Bitcoin price.

Longer-term crypto investors eyeing the next halving

Investors with long-term horizons hoping to see a big lift in the Bitcoin price are looking ahead to 2024.

Why 2024?

That’s when the next Bitcoin halving takes place. This happens every 4 years and will diminish the pace that any new tokens can be created, which some crypto investors argue will see the Bitcoin price gain.

Among those is Jirayut Srupsrisopa, CEO of Bitkub Capital Group Holdings.

As Bloomberg reports, Srupsrisopa is keeping a close eye on the 6 months following the next halving. He points to past trends, indicating that could be a “golden period” for the Bitcoin price.

He cautioned crypto investors to be prepared for “corrections” and “high volatility” in the shorter-term, saying “tightening liquidity is squeezing fund inflows, especially from retail investors”.

The post Bitcoin price slides again. Here’s what crypto investors are watching appeared first on The Motley Fool Australia.

More reading

• Why these five cryptos could leave Bitcoin in the dust in 2022
• What are Stablecoins and how do they differ from other cryptocurrencies?
• Here’s why the leading cryptocurrencies are ticking higher
• Bitcoin has crashed 45%: but its fundamentals remain the same
• Why investing in Bitcoin today is a much trickier environment: expert

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin. The Motley Fool Australia owns and recommends Bitcoin. 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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