Tag: Motley Fool

Ethereum (CRYPTO: ETH) investors who bought on 1 January 2021 and sold on 31 December will have little to complain about.

Ethereum started the year just gone trading for US$730. It hit an all-time high of US$4,892 on 16 November before retracing. By the end of the year, Ether was worth US$3,683, a year-on-year gain of 406%, according to data from CoinMarketCap.

Now with the token’s significant daily price swings in mind, that yearly gain could be a bit more or less, depending on the time of day you bought and sold.

Regardless of timing though, the gain dwarfs the 63% 2021 gain posted by Bitcoin (CRYPTO: BTC). And with the recent run of price gains, Ethereum now represents more than 20% of the total crypto sphere by market valuation.

What differentiates Ether from Bitcoin?

All cryptos are not made the same.

Indeed, as we reported here, the top 3 performing cryptos in 2021 are all involved in blockchain related virtual gaming.

Like Ethereum, the number 4 and 5 crypto performers in 2021 are primarily involved in smart contracts.

Among Ethereum’s appeal is its real-world applications. It makes use of its own crypto, Ether, to serve as a platform for other cryptocurrencies. With decentralised finance (DeFi) growing rapidly, Ether’s ability to execute decentralised contracts has drawn significant investor attention.

Bitcoin, on the other hand, primarily serves as an alternative to fiat currency. That’s the money printed by sovereign states. You can use Bitcoin to buy and sell an increasing range of items. You can hold onto it. Or you can send internationally without having to go through any traditional intermediary banks.

Are competing cryptos a threat to Ethereum?

Ethereum’s blockchain enabled smart contracts could indeed be under threat from upcoming altcoins. Though they’re unlikely to unseat the number 2 crypto anytime soon.

In December, Ray Brown, market analyst at crypto exchange CoinSpot, told The Motley Fool that, “Ethereum’s scalability is one of the biggest hurdles that is currently limiting the success of its network and the countless dApps [decentralised applications] that run on the network.”

While the network is being upgraded in what’s knowns as Ethereum 2.0, the so-called Ethereum killers are circling.

“The competition to take the DeFi crown is heating up by what some are labelling as the Ethereum killers,” Brown said.

“Some of the contenders… are considered to be Cardano (CRYPTO: ADA), Solana (CRYPTO: SOL) and Polkadot (CRYPTO: DOT),” he explained. “Each of these cryptoassets tinker in the smart contracts space, each offering innovative advantages that Ethereum is currently lacking. They are all also building momentum quite quickly.”

While the competition may be looking to take some of the action, Ethereum’s 406% gains in 2021 appear to indicate that investors still have faith in the world’s number 2 crypto.

The post Here’s what happened with the Ethereum price in 2021 appeared first on The Motley Fool Australia.

More reading

• 3 big reasons crypto sceptics are WRONG
• Is Coinbase moving the goalposts on your taked Ethereum?
• Australia’s first physical crypto gift cards are now on sale for Christmas
• Ethereum in 5 figures: Is it a buy?
• Why the Ethereum price was sliding today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Ethereum and Bitcoin.  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.

from The Motley Fool Australia https://ift.tt/3f7y2zz

A large valuation gap may be opening as Australia’s liquefied natural gas (LNG) exports hit a record high but the Santos Ltd (ASX: STO) share price and ASX energy sector are underperforming.

Our country’s natural gas exports jumped to an all-time high of $48 billion in 2021, as reported in The Australian.

Record gas price fails to fire up ASX energy shares

That’s around a 25% surge over the previous year, based on data from EnergyQuest quoted in the article.

LNG volumes increased a more modest 3.7% to 80.9 million tonnes. This shows how strong LNG prices were in 2021 and experts are also painting a positive outlook this year too.

But someone must have forgotten to tell investors as ASX gas producers were lagging the S&P/ASX 200 Index (ASX: XJO) for the whole of last year.

Santos share price leading the laggards

The Santos share price is barely above breakeven in calendar year 2021 when the ASX 200 Index gained around 15%.

What’s more, Santos is one of the better performers in the sector. The Woodside Petroleum Limited (ASX: WPL) share price dipped 4% while the Beach Energy Ltd (ASX: BPT) share price tumbled 30% in the 12 months to end of last month.

The drag from these heavyweights caused the ASX 200 Energy sector to come in second last for the year with a dip of 1%. Only the tech sector performed worse as these ex-market darlings lost their gloss as bond yields rose.

Why the Santos share price and ASX energy sector are struggling

But investors’ disdain for ASX energy shares is driven by other factors – mainly the global decarbonisation drive and environmental concerns.

The cost of debt to fund fossil projects has increased as banks have also started to shun the sector. And investors here may be shunning fossil fuel-related shares for those leveraged to sustainable energy.

This is evident in the contrasting performance of ASX miners producing minerals for batteries. The Allkem Ltd (ASX: AKE) share price and Pilbara Minerals Ltd (ASX: PLS) are but two examples.

Valuation gap an opportunity?

The interesting point is that Aussies may be quicker to embrace the decarbonisation theme than their global counterparts. US energy shares aren’t penalised in quite the same way as their ASX counterparts, according to The Australian.

This has led some experts to encourage value-focused investors to buy into ASX energy shares like Santos.

More M&A could be in the pipeline

While there’s no stopping the world from moving to a net-zero economy, the valuation gap between oil and gas prices and the valuation of our energy shares may be becoming too great to ignore for some.

If this gap doesn’t close in 2022, we could very well see more mergers and acquisitions.

The post LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle? appeared first on The Motley Fool Australia.

More reading

• The 5 best ASX lithium stocks of 2021
• How the Pilbara Minerals (ASX:PLS) share price surged 268% higher in 2021
• 2 ASX 200 mining shares to buy in January
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today

Motley Fool contributor Brendon Lau owns Orocobre Limited and Santos 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 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.

from The Motley Fool Australia https://ift.tt/3pX1HSd

The Critical Resources Ltd (ASX: CRR) share price is exploding higher on Wednesday following a completed acquisition by the company.

At the time of writing, the emerging copper and gold development company’s shares are up 19.51% to 4.9 cents. This means that over the past week, its shares have now risen by more than 30%.

Critical Resources formally acquires Lithium Project

Investors are fighting to get a hold of the Critical Resources share price after the company announced its latest update.

According to this morning’s release, Critical Resources advised it has completed the acquisition of the Mavis Lake lithium project.

Located in Ontario, Canada, the project lies within a well-established lithium province close to highway and railway transportation arteries. Previous drilling results at the site have yielded positive assays which present significant exploration potential.

The region is littered with other projects which are also situated within the vicinity of Marvis Lake.

The key terms of the transaction consist of a $1.5 million cash payment split evenly to Essential Metals Ltd (ASX: ESS) and Canadian-listed International Lithium Corporation. In addition, a further $1.5 million payment will be made in the form of 68 million Critical Resources shares. These will be issued at a price of 2.2 cents apiece, again evenly split between Essential Metals and International Lithium.

Should certain milestone targets be reached, up to $3 million will be paid in cash depending on the definition of the Mineral Resources estimate. In the event that the relevant milestones are not met within 5 years, the obligation to reward the vendors will expire.

Critical Resources managing director, Alex Biggs commented:

We are very excited to complete the acquisition of the Mavis Lake lithium project.

We have no doubt that the Project will add significant value to the business moving forward. Our strategy in 2022 is to begin exploration drilling as soon as possible once permitting is completed. We have multiple targets to explore with a view to achieving, over time, the milestones set out by the vendors of 5.0 million and 10.0 million tonnes.

About the Critical Resources share price

Since this time last year, the Critical Resources share price has accelerated to achieve gains of almost 110%. The company’s shares hit a 52-week high of 5.4 cents in November, before treading lower in the following month.

Critical Resources commands a market capitalisation of roughly $50.29 million and has approximately 1.09 billion shares on issue.

The post Here’s why the Critical Resources (ASX:CRR) share price is rocketing 20% appeared first on The Motley Fool Australia.

More reading

• The 5 best ASX lithium stocks of 2021
• The Noxopharm (ASX:NOX) share price is jumping 6% after announcing a new CEO
• Here’s why 2021 was a stellar year for the Vanguard International Shares ETF (ASX:VGS)
• Afterpay (ASX:APT) share price sinks 5% to new 52-week low
• The 5 best ASX energy shares of 2021 unmasked

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.

from The Motley Fool Australia https://ift.tt/3niR4aH

One of the hottest areas of the market in 2021 was the lithium sector. Huge returns were generated for investors over the 12 months as demand for the white metal soared thanks to its use in electric vehicle batteries and renewable energy.

But which ASX lithium stocks were the best ones to own in 2021? Listed below are five lithium shares included in the All Ordinaries index that provided mouth-watering returns for investors last year.

Novonix Ltd (ASX: NVX)

The Novonix share price was on fire and recorded a 660% gain in 2021. A key catalyst for this rise was news that the lithium-ion battery technology company signed a deal with Phillips 66. The US energy giant acquired a 16% stake in Novonix for US$150 million and believes its investment will support its development of an entirely domestic supply chain for the growing US electric vehicle (EV) market and other energy storage systems.

Liontown Resources Limited (ASX: LTR)

The Liontown Resources share price was some way behind with its impressive gain of 388%. Excitement around the lithium developer’s Kathleen Valley lithium project in Western Australia helped drive its shares higher. The project’s DFS highlighted production of 658ktpa SC6 with potential for conversion into 86ktpa lithium hydroxide.

AVZ Minerals Ltd (ASX: AVZ)

The AVZ Minerals share price was a very strong performer and rose 356% over the 12 months. There were concerns in recent years that this lithium developer’s Manono project in the Democratic Republic of the Congo was not economically viable and doomed to failure. However, a significant rise in lithium prices has suddenly changed all that. This ASX lithium stock is due to make a final investment decision on the project in the near future.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price managed to record a 277% gain in 2021 despite being attacked by a short seller. Investors appear optimistic that Vulcan’s Germany-based Zero Carbon Lithium Project will benefit greatly from demand for lithium from European car manufacturers.

Pilbara Minerals Ltd (ASX: PLS)

Finally, the Pilbara Minerals share price continued its impressive run and charged 268% higher in 2021. Pilbara Minerals is the only one in the group that is already producing lithium and benefiting from sky high prices. Following last year’s gain, the company’s market capitalisation has now ballooned to almost $10.5 billion. This makes it the largest lithium stock on the ASX.

The post The 5 best ASX lithium stocks of 2021 appeared first on The Motley Fool Australia.

More reading

• How the Pilbara Minerals (ASX:PLS) share price surged 268% higher in 2021
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• New year’s resolution: Why are ASX lithium shares having such a stellar day?
• Why Brainchip, Pilbara Minerals, Straker, and Whitehaven Coal shares are pushing higher

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.

from The Motley Fool Australia https://ift.tt/3pVqVQK

The Noxopharm Ltd (ASX: NOX) share price has leapt 6% this morning after announcing a change in executive leadership.

The move coincides with the drug development company’s goal to position itself on the global stage.

At the time of writing, the Noxopharm share price is 6.1% higher, at 43.5 cents apiece.

New blood to take the reins

This morning, Noxopharm announced its new year’s resolution would be to make 2022 the year of “generational change”. It’s appointed its current chief medical officer Dr Gisela Mautner as its new CEO.

Dr Mautner will take over from current CEO Dr Graham Kelly from 1 February.

Comment from current CEO

Dr Kelly said Dr Mautner’s experience in the industry would equip the company with the ability to position itself for “a valuable partnering opportunity”.

Dr Kelly said:

The company is in the process of transiting from an early-stage biotech company into a serious bio-pharma company looking to make its mark on the world stage.

Having worked alongside Gisela for several years now, I have full confidence in her ability to achieve that objective. I believe she will make an outstanding CEO.

Dr Kelly will transition from an executive to a consultant role. In doing so, he will remain involved in the company’s future — remaining its largest shareholder, board member, and inventor of much of the company’s Intellectual Property.

Noxopharm is an Australian based biopharmaceutical company with the primary focus of treating cancer and septic shock.

The company is developing its lead drug candidate Veyonda, currently in the second phase of its clinical trials.

Noxopharm share price snapshot

In 2021, the Noxopharm share price dropped by around 20%. It saw its sharpest drop in mid-December, just a few days after enrolling the first group of patients for the first clinical trial of Veyonda as an experimental cancer treatment.

The drop marked the share price’s 52-week low.

As of today, the company has a market capitalisation of more than $125 billion with around 292 million shares issued.

The post The Noxopharm (ASX:NOX) share price is jumping 6% after announcing a new CEO appeared first on The Motley Fool Australia.

More reading

• Here’s why the Noxopharm (ASX: NOX) share price leapt 7% today

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.

from The Motley Fool Australia https://ift.tt/3pX08DP

So 2021 was a great year for ASX shares. Over the year just passed, the S&P/ASX 200 Index (ASX: XJO) managed a rough 13% rise. That explains why the ASX’s most popular exchange-traded fund (ETF), the Vanguard Australian Shares Index ETF (ASX: VAS), managed a healthy 16.7% or so return over 2021. But what about Vanguard’s second-most popular ASX ETF, the Vanguard MSCI Index International Shares ETF (ASX: VGS)?

This Vanguard ETF is a different kettle of fish to VAS or the ASX 200. That’s because it doesn’t hold or invest in ASX shares at all. Instead, VGS holds an enormous basket of international shares that are domiciled in advanced economies around the world. More than 70% of its weighted holdings are US companies, but this ETF also has exposure to Japan, Canada, the United Kingdom, Europe, Hong Kong and Singapore.

As you might expect, its largest holdings are also US-dominated. We have Apple Inc (NASDAQ: AAPL) taking out the top spot, with Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN) and Tesla Inc (NASDAQ: TSLA) behind it.

But overall, the Vanguard International Shares ETF holds close to 1,500 individual companies from around the world. That’s some hefty diversification!

But time to get out of the weeds and into the numbers. So how did VGS perform over 2021?

How did the VGS ETF stack up over 2021?

Well, units of this ETF began last year at a price of $84.12 each. They finished up last Friday at $106.90 per unit. That’s a capital gain of 27.08%. But we also need to take into account VGS’s dividend distributions.

VGS pays a quarterly dividend distribution, which amounted to approximately $1.87 per unit over 2021. That gives the Vanguard International Shares ETF a yield of 1.75% on its 2021 closing unit price. So, you can bump up that 27.08% return to roughly 28.8%.

That’s objectively a very pleasing return for any investment over one year. But it would be especially pleasing for investors given that the ASX 200 and the Vanguard Australian Shares ETF returned less than half of that figure last year.

So there you have it, VGS’s performance for 2021. It will be interesting to see if this popular ASX ETF can beat out VAS and the ASX 200 again in 2022.

The post Here’s why 2021 was a stellar year for the Vanguard International Shares ETF (ASX:VGS) appeared first on The Motley Fool Australia.

More reading

• 2 of the best ETFs for diversification
• Here are 3 top ETFs for ASX investors in 2022
• Could 2022 be a good year for the Vanguard International Shares ETF (ASX:VGS)?
• 2 highly rated international ETFs for ASX investors

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Microsoft and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Amazon, Apple, and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/34mU8Me

The Afterpay Ltd (ASX: APT) share price has continued its poor run on Wednesday.

In morning trade, the buy now pay later (BNPL) provider’s shares have dropped a further 5% to a new 52-week low of $79.80.

This means the Afterpay share price is now trading 50% lower than its 52-week high of $160.05.

Why is the Afterpay share price falling today?

As readers will be aware, Afterpay shareholders recently voted in favour of the takeover proposal from Block (previously named Square).

However, unlike the recent acquisition of Vifor Pharma for $17 billion in cash by CSL Limited (ASX: CSL), Block’s takeover of Afterpay is an all-scrip affair. This means that the overall value of the transaction is not fixed and will rise and fall with the Block share price.

And unfortunately for Afterpay shareholders, the Block share price has been falling hard in recent months. So much so, the value of the takeover proposal has dwindled from $39 billion originally to $24.7 billion.

What’s happening with the Block share price?

Overnight the Block share price dropped as much as 8% to a 52-week low of US$151.02 before recovering to be down 4.5% to US$156.33.

This means its shares have now lost 37% of their value in the five months that have passed since announcing the takeover deal.

There are a number of reasons for this. One of the most recent catalysts has been concerns about potential regulatory scrutiny in the BNPL sector in the United States.

What’s next for Afterpay’s shares?

In the not so distant future the Afterpay share price will no longer be trading on the Australian share market.

Once the Block transaction completes, shareholders will receive 0.375 shares of Block Class A common stock for each Afterpay share they hold. Shareholders will just have to choose whether to own US listed Block shares or Block CHESS Depositary Interests (CDIs) that will be listed on the ASX.

The post Afterpay (ASX:APT) share price sinks 5% to new 52-week low appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Leading brokers name 3 ASX shares to buy
• Here are the 5 best performing ASX biotech shares of 2021
• These were the worst performing ASX 200 shares in December
• These were the worst performing ASX 200 shares last week

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 Afterpay Limited, Block, Inc., and CSL Ltd. The Motley Fool Australia owns and has recommended Afterpay Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3mZt9fY

ASX energy shares broadly enjoyed a strong year in 2021.

The energy companies were buoyed by rising energy demand fuelled by the global reopening amid limited new supplies coming online, driving up the prices for crude oil, LNG, and coal.

Brent crude oil, for example, kicked off last year trading at US$51.80 per barrel. Brent reached highs of some US$85.53 per barrel on 22 October. It finished the year at US$77.78 per barrel, 50% higher than where it began.

Narrowing our focus on those companies listed on the S&P/ASX 300 Index (ASX: XKO), the top 5 ASX energy shares returned a combined average of 54.6% over the 12 months. That compares to a gain of 13.4% posted by the ASX 300 over that same time.

So, without further ado, here are the top 5 ASX 300 energy shares.

Coming in at number 5 and number 4

The fifth best ASX energy share to hold in 2021 was Viva Energy Group Ltd (ASX: VEA).

Viva Energy’s share price gained 15.8% during the calendar year. The company sells fuel and specialty products through its retail and commercial channels across Australia.

Viva closed the year trading for $2.35 per share. With approximately 1.55 billion shares outstanding, Viva has a current market cap of $3.63 billion. Atop the share price appreciation, Viva Energy pays a 1.80% trailing dividend yield, fully franked.

Moving on to the fourth best performing ASX energy share of the year just past, we have New Hope Corporation Limited (ASX: NHC), gaining an impressive 57% over the 12 months.

Based in South East Queensland, New Hope has a strong focus on coal production along with some oil projects.

New Hope closed on 31 December at $2.23 per share. With some 832.4 million shares outstanding, it has a current market cap of $1.86 billion. New Hope pays a trailing dividend yield of 4.93%, 100% franked.

The third and second best performers of 2021

The third and second best performing ASX energy shares of 2021 are almost evenly matched.

Coming in third place by a nose is Whitehaven Coal Ltd (ASX: WHC), which gained 58.2% over the year.

Whitehaven is the biggest pure play coal miner on the ASX, with numerous large mines operating in the Gunnedah Coal Basin of New South Wales.

Whitehaven finished the year trading for $2.61 per share. With 1.03 billion shares outstanding, it has a current market cap of $2.70 billion. Whitehaven pays a 0.83% dividend yield, unfranked.

Edging out the coal giant as the second best ASX energy share to buy and hold in 2021 is Karoon Energy Ltd (ASX: KAR). Karoon gained 58.5% during the year, closing at $1.68 per share.

The oil and gas explorer and producer has projects in Australia, Brazil, and Peru.

With 556.2 million shares outstanding, Karoon has a current market cap of $978.9 million. Karoon does not pay a dividend.

Which brings us to…

2021’s best performing ASX energy share

By far the best performing ASX 300 energy share of 2021 was Senex Energy Ltd (ASX: SXY), which gained a whopping 83.3% over the course of the year.

The oil and gas explorer and producer, with projects in South Australia and Queensland, will certainly have benefited from rising energy costs over the year.

Senex closed on 31 December trading for $4.62 per share. With 185.3 million shares outstanding, the company has a market cap of $855.9 million. Senex pays a 1.95% trailing dividend yield, unfranked.

The post The 5 best ASX energy shares of 2021 unmasked appeared first on The Motley Fool Australia.

More reading

• Why Brainchip, Pilbara Minerals, Straker, and Whitehaven Coal shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Pilbara Minerals hits record high, energy shares rise
• Why the Whitehaven Coal (ASX:WHC) share price is jumping 9% today
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

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.

from The Motley Fool Australia https://ift.tt/3eTkwiS

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

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

Just as Tesla‘s (NASDAQ: TSLA) blowout fourth-quarter vehicle deliveries are grabbing headlines, Morgan Stanley‘s Adam Jonas is focusing on 2022. The company’s staggering momentum, he says, now makes two million deliveries this year possible.

If Tesla were to achieve this, the company’s growth rate would accelerate compared to its already-impressive growth in 2021 and deliveries would more than double.

Let’s take a look at why Jonas thinks two million deliveries are now within the realm of reason.

The path to 2 million deliveries

At this point we’d still describe [two million deliveries in 2022] a stretch target but one that looks far more realistic following [Tesla’s fourth-quarter] deliveries,” said the Morgan Stanley analyst in a note to investors on Monday. 

Jonas’ belief that this stretch target is possible is based on two main ideas.

First, of course, is Tesla’s incredible momentum in Q4. The company grew deliveries 71% year over year to 308,600, blowing past analysts’ estimates. Even on a sequential basis, the growth was very strong. Deliveries increased 28% between the company’s previous quarterly record of 241,391 just three months earlier. And that figure was up from 201,304 three months before that. Growing like this during a period of some of the worst automobile supply constraints in history speaks volumes about Tesla’s momentum.

The second reason Jonas is so optimistic about Tesla’s potential in 2022 is the company’s new factories. After spending essentially all of 2021 building a new factory in Berlin, Germany, and another in Austin, Texas, these two new factories are just now coming online. Jonas believes that once these factories are ramped up to full production capacity, Tesla will have a global installed production capacity of nearly three million units annually, up from a capacity of just over one million units annually at the end of the company’s third quarter. Of course, it’s going to take a while for these two new factories to get to full capacity.

Don’t expect guidance like this from Tesla

After years of regularly missing its production and delivery targets, electric-car maker Tesla has recently become conservative when it comes to its annual delivery guidance. Last year, for instance, management simply said it expected deliveries to grow more than 50% in 2021. This would imply about 750,000 or more deliveries, up from just under 500,000 in 2020. But actual deliveries soared 87% year over year to more than 936,000 — and this occurred during a challenging supply and logistics environment.

Tesla may provide conservative guidance again for 2022. Indeed, it wouldn’t be surprising to see the company once again guide for deliveries to grow 50% or more. While this would be a far cry from Jonas’ bull case for as many as two million deliveries, it speaks to Tesla’s strengths that we’re calling a forecast for 50% growth conservative — especially when you consider that that growth would be on top of 87% growth in the prior year. 

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

The post Could Tesla deliveries double this year? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Tesla (NASDAQ:TSLA) share price soared 13% overnight
• Can Tesla Lead EV Stocks Higher in 2022?
• 3 obscure lithium ASX shares ready to pop in 2022
• Lucid, Rivian, and Tesla are just the tip of the EV stock iceberg
• The ASX share market coverage that captivated readers in 2021

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

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

from The Motley Fool Australia https://ift.tt/3r7xNKr

It was a year to forget for the Appen Ltd (ASX: APX) share price in 2021.

The artificial intelligence (AI) data services company’s shares were among the worst performers on the ASX 200 during the 12 months.

Over the period, the Appen share price lost a massive 55% of its value. This means its shares are now trading approximately 73% below the record high they reached in 2020.

Why did the Appen share price crash in 2021?

Investors were selling down Appen’s shares in 2021 amid concerns over its performance and outlook.

In respect to the former, Appen’s half year results in August revealed a 2% decline in revenue to US$196.6 million and a 55.1% reduction in net profit after tax to US$6.7 million.

Given the lofty multiples that the company’s shares traded on, this didn’t go down well with investors. They were were quick to hit the sell button despite management promising a stronger second half.

What about the future?

Also weighing heavily on the Appen share price was a broker note out of Macquarie Group Ltd (ASX: MQG). This note sparked concerns over the company’s outlook.

In November, the broker downgraded Appen’s shares to an underperform rating and cut the price target on them to $9.50. This implies potential downside of 14% for its shares from current levels.

Macquarie revealed that it has been speaking to industry participants and notes that there is an emerging trend which has seen some big tech companies look to bypass Appen and directly crowdsource for data annotation services.

It believes this is being driven by tighter privacy and data retention standards, which has resulted in companies revising their strategies and developing their own crowd-sourcing solutions. Macquarie fears this could reduce demand for Appen’s services and downgraded its sales and earnings estimates to reflect this.

All eyes will be on the company’s full year results in February. A big improvement in its performance and proof that its outlook is not bleak could bring the Appen share price back to life.

The post Why the Appen (ASX:APX) share price crashed 55% lower in 2021 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• These were the 5 worst performing ASX 200 shares in 2021
• In the ‘dog basket’: 6 ASX shares that could rebound in 2022
• Leading brokers name 3 ASX shares to buy
• These are the 10 most shorted ASX shares

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 Appen Ltd. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3pUk2iL