Tag: Motley Fool

Arguably no ASX share has been pummelled more by COVID-19 than poor A2 Milk Company Ltd (ASX: A2M).

An unexpected closure of international borders badly exposed just how reliant the New Zealand dairy business was on sales from expatriate Chinese resellers (daigou) flying back and forth.

The stock hit a closing price of $19.83 in early July 2020, but it has since tumbled almost 70% to leave shareholders fuming.

In fact, some are so angry they’re launching multiple class actions against the company they own.

But now that the world is entering the post-pandemic era and the share price is at levels not seen since 2017, are A2 Milk shares a bargain buy?

Two experts offered very different takes on this dilemma:

I just bought more A2 Milk shares last week

Shaw and Partners senior investment adviser Adam Dawes reckons “the worst is over” for A2 Milk.

“We’ve had a couple of downgrades, we’ve had management change, it’s ticked all the boxes on the way down. It starts to look pretty good here,” he told Switzer TV Investing.

“When we do start to accept some international passengers, the daigous could potentially start coming back.”

The low share price and the comeback potential could attract a takeover bid from a bigger player.

“That’s what the market’s waiting for. We are all hoping that this one’s a takeover and that could be the catalyst for A2 Milk to start to re-rate.”

Dawes certainly put his money where his mouth is.

“I’m still a buyer of A2. I bought some last week.”

The Chinese market will never be the same again

Burman Invest chief investment officer Julia Lee disagrees with Dawes, recommending investors stay away from A2 Milk.

“The reason for that is the major growth engine for A2 Milk was really China,” she said.

“And in China I think we have seen a fundamental shift where instead of preferring those overseas brands because of safety… we are seeing a push to domestic brands, and that seems to be working.”

Lee has a soft spot for A2 Milk and wants to see it become a “buy”, as her fund made great money from its growth after buying the shares at around 80 cents some years ago.

But the world has moved on.

“It’s a lot harder for international brands to grow in China, especially A2 Milk, which does look like it’s been losing ground,” she said.

“I probably wouldn’t be buying A2 Milk. I think there are better opportunities.”

The post Are A2 Milk (ASX:A2M) shares a buy? The case for and against appeared first on The Motley Fool Australia.

More reading

• Is the A2 Milk (ASX:A2M) share price dirt cheap?
• 5 things to watch on the ASX 200 on Tuesday
• October was a rollercoaster month for the A2 Milk (ASX:A2M) share price
• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Tony Yoo owns shares of A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

What happened

Bitcoin (CRYPTO: BTC) tokens reached a fresh all-time high late Monday evening and stayed close to the record price on Tuesday. Bitcoin prices peaked at $68,530 per token near 11 p.m. EST on Monday, cooling down to $66,931 per token at 1 p.m. EST today. The latter reading is still 2% above the token’s 24-hour low, just before Wall Street’s closing bell on Monday. At the late-night peak, Bitcoin saw a 4.4% gain from the same daily bottom.

The largest name in the cryptocurrency market did have some news to share, but the price move was primarily a continuation of a general upward trend in recent weeks.

So what

Crypto-trading platform BlockFi just filed a Form S-1 to the Securities and Exchange Commission, starting the process to launch an exchange-traded fund (ETF) focused on holding Bitcoin tokens. The net asset value (NAV) of this proposed fund is unknown, but BlockFi currently manages more than $10 billion of cryptocurrency assets. The company has already posted a similar filing to start up an ETF managing Bitcoin futures instead of the actual tokens, much like the just-approved ProShares Bitcoin Strategy ETF (NYSEMKT: BITO). That proposal is making its way through the SEC’s decision-making process, followed by a decision on BlockFi’s bitcoin-holding ETF.

Bitcoin’s trading volume is also surging as investors, both small and large, are starting or growing their holdings.

Now what

That being said, BlockFi’s ETF won’t be large enough to move the needle on Bitcoin prices. The real price-boosting action here comes from market momentum as the Bitcoin concept keeps making headlines and attracting new investors.

I can’t guarantee that Bitcoin tokens will continue to rise from here, but the cryptocurrency market doesn’t seem headed for another drastic correction like the 83% price reduction in 2018. Regulators and financial system managers are taking cryptocurrencies much more seriously this time around, and nobody expected Bitcoin-based ETFs during the short-lived 2017 boom.

I’m happy to hold on to the fraction of a bitcoin token I hold, watching the volatile pricing drama play out in the open market. Bitcoin and other crypto tokens may indeed have a place in serious investment portfolios nowadays. 

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

The post Why Bitcoin hit all-time highs on Tuesday appeared first on The Motley Fool Australia.

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Anders Bylund owns shares of Bitcoin. 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.

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

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Founder and chair of Fortescue Metals Group Limited (ASX: FMG) Andrew ‘Twiggy’ Forrest has been beating the drum for green hydrogen at the COP26 climate summit. Though, the ambitious goals set out for its green subsidiary are causing some shareholder anxiety.

As Fortescue Future Industries touts its bold vision for an extensive portfolio of green energy projects, analysts and investors are becoming wary of the gobsmacking amount of cash that would be required. In fact, Twiggy has earmarked hundreds of billions that it would take to make the vision a reality.

For Fortescue shareholders, the question is: how much will the iron ore producer need to contribute?

Running the numbers on the green dream

ASX-listed Fortescue Metals, for better or for worse, is now heavily involved in the emerging hydrogen industry. The company’s subsidiary, Fortescue Future Industries (FFI), now effectively represents the linchpin of the iron ore giant’s 2030 carbon neutrality target. As part of this endeavour, FFI hopes to be producing 15 million tonne of hydrogen per year by the end of the decade.

Unsurprisingly, this requires a lot of infrastructure and investment between now and the end goal. According to The Australian, the current estimate is in the ballpark of $195 billion.

Remarkably, this figure only accounts for the projects that have already been outlined. To actually reach the targeted 15 million tonne of hydrogen annually, the number could be north of US$500 billion. For context, ASX-listed Fortescue Metals currently has a market capitalisation of ~$45 billion. So, where is all the cash going to come from to fund these developments?

At this stage, Fortescue CEO Elizabeth Gaines has noted only 10% of the company’s net profits will go towards FFI projects. This contribution will be alongside its current dividend policy, giving income investors some peace of mind.

In addition to these funds, Twiggy admits that the majority of the funds will rely upon large institutional investment.

The implementation capital – which over time will be hundreds of billions of dollars – much of that capital will be… funded by the world’s greatest institutions, who must invest in humanity’s journey to a zero-carbon future.

Andrew Forrest, Fortescue Metals Group chair

Mitigating risk to ASX-listed Fortescue Metals

Perhaps reassuring shareholders, Fortescue Metals Group released a sustainable finance framework yesterday. This document outlines the future use of green and social debt instruments for investing in green and social projects.

Importantly, FFI projects that proceed to construction will raise their own debt and equity, separate from Fortescue Metals. This will likely be done by securing the debt against the assets under construction, leaving the parent company’s balance sheet untouched.

The post How much Fortescue (ASX:FMG) cash is Twiggy sinking into green hydrogen? appeared first on The Motley Fool Australia.

More reading

• Evergrande raises US$145 million, is it saved from default?
• Is the iron ore price set to rebound next month?
• Own Fortescue (ASX:FMG) shares? Here’s how the company is selling its green hydrogen vision to the world
• Top brokers name 3 ASX shares to sell next week
• Evergrande latest, plus another Chinese developer just missed a payment

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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The Suncorp Group Ltd (ASX: SUN) share price is pushing higher on Wednesday.

In morning trade, the insurance and banking giant’s shares are up 2% to $11.46.

Why is the Suncorp share price rising?

The catalyst for the rise in the Suncorp share price on Wednesday appears to have been the release of its banking update this morning.

According to the release, Suncorp Bank’s home lending portfolio continued to build through the September quarter. During the three months, it increased $446 million or 1.0% (3.9% annualised).

Management notes that momentum in home lending lodgements continued, with total lodgements 40% higher than the prior corresponding period and 18% higher than the June quarter.

Suncorp advised that the increase in home lending lodgements was driven by the bank’s consistent competitive offerings, improved turnaround times, and enhanced credit assessment efficiency.

Whereas its home lending growth was supported by a positive net refinance rate, the continued delivery of its targeted program of work to improve customer and broker experiences, and the simplification of its origination process.

Positively, the bank maintains a high-quality and conservatively positioned home lending portfolio, remaining weighted towards owner occupiers, principal, and interest repayments and loans with a loan-to-valuation ratio (LVR) below 80%.

Another positive was that it household deposit growth was broadly in line with the strong system growth experienced during the quarter. This was assisted by a reduction in household spending due to lockdowns in NSW and Victoria.

Things weren’t as positive for business lending, which contracted $60 million or 0.5% (2.1% annualised). This was due to a reduction in the commercial loan portfolio partially offset by growth in agribusiness lending.

Anything else?

Finally, total impairment charges for the quarter were a net release of $1 million, gross impaired assets decreased $11 million over the quarter to $169 million, and total past due loans not impaired decreased by $99 million to $451 million.

Management advised that the improved arrears position is attributable to the cohort of customers exiting hardship arrangements and returning to performing status, following earlier COVID-19 temporary loan deferral assistance. The strong housing market has also resulted in increased voluntary borrower sales.

Following today’s gain, the Suncorp share price is now up 16% in 2021.

The post Suncorp (ASX:SUN) share price higher on banking update 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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CSL Ltd (ASX: CSL) shares have gained 7% since the S&P/ASX 200 Index (ASX: XJO) listed biotech share held its annual research and development (R&D) briefing on 19 October.

Below, we take a look at what’s in that pipeline.

What is the ASX 200 biotech company developing?

As the Motley Fool reported on the day, CSL invested more than US$1 billion (AU$1.35 billion) into R&D in the 2021 financial year. That money supported 6 therapeutic areas, 4 scientific platforms, and 2 businesses.

Breaking those down, the 6 therapeutic areas are:

• Immunology,
• Hematology,
• Respiratory,
• Cardiovascular and metabolic,
• Transplant, and
• Influenza

The 4 scientific platforms are:

• Plasma fractionation,
• Recombinant technology,
• Cell and gene therapy, and
• Vaccines

And the 2 businesses are:

• CSL Behring, and
• Seqirus

Among the highlights, CSL announced that its Seqirus business was awarded a contract by the Biomedical Advanced Research and Development Authority (BARDA). BARDA is part of the Office of the Assistant Secretary for Preparedness and Response within the United States Department of Health and Human Services.

The multi-year contract centres around CSL’s adjuvanted, cell-based seasonal influenza vaccine (aQIVc) and next-generation self-amplifying mRNA for seasonal and pandemic influenza (sa-mRNA). CSL intends to develop 2 influenza A(H2Nx) vaccine candidates for assessment in a Phase 1 clinical study. The end goal is to help communities stay safe in the event of an influenza pandemic.

CSL also announced a new collaboration with the Walter and Eliza Hall Institute for Medical Research in Australia to create a Centre for Biologic Therapies.

Commenting on that collaboration and what it means for CSL’s development pipeline, CSL’s Senior Vice President Andrew Nash said:

CSL’s antibody library will be the engine room of biologics discovery at the Centre and, importantly, the knowledge transfer between the two organizations and the utilization of shared assets, resources, and facilities will be of great value.

This expansion of our relationship with WEHI will help ensure that the long-term investment of public funds into medical research in Australia is translated into both a benefit for patients and the Australian economy.

How have CSL shares been performing?

CSL shares have been on a bit of a rollercoaster over the past 12 months. It’s a ride that has left them 3% in the green. By comparison, the ASX 200 has gained 17% over the same period.

Over the past month, CSL shares are up 8%.

The post Own CSL shares? Here’s what’s in the development pipeline appeared first on The Motley Fool Australia.

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• The CSL (ASX:CSL) share price is now well above $300. Is it on a roll?
• 2 buy-rated blue chip ASX shares to boost your portfolio
• What happened to the CSL (ASX:CSL) share price in October?
• Own biotech shares? These were the best performers during October
• CSL (ASX:CSL) share price lifts 2% amid US border patrol battle

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

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

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

What happened

Shares of Amazon (NASDAQ: AMZN) were gaining today after PayPal Holdings (NASDAQ: PYPL) announced that users of its payments app Venmo will be able to buy products on Amazon with the app starting next year.

Amazon shares were up 2.5% at the close today, while PayPal stock was down by double digits, but the latter was more a reflection of a disappointing earnings report.

So what

While the news is a bigger deal for PayPal than for Amazon, it does show that Amazon is taking steps to make shopping on its site even easier for customers. And it follows a recent announcement that it would partner with Affirm Holdings to allow customers to use its buy now, pay later service, another step to expanding customer access.

Venmo has more than 80 million users and functions as a de facto bank account for many of them, who skew toward millennials and young adults.

In the earnings release, PayPal CEO Dan Schulman said, “We’re thrilled that we are teaming up with Amazon to enable customers in the U.S. to pay with Venmo at checkout.”

Now what

While the Venmo tie-up seems unlikely to move the needle for Amazon, which recently passed Walmart as the world’s largest retailer, it does show the company is thinking strategically. And such decisions could make a difference in marginal purchases for users who prefer the convenience of Venmo or have money in their Venmo accounts that they’d like to spend.

The deal could also trigger more such partnerships for Amazon, including with Square‘s Cash App, as the tech giant looks for more ways to encourage shoppers to spend money on its platform. 

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

The post Why Amazon stock was moving higher on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why is the Vanguard MSCI Index International Shares ETF (ASX:VGS) off to such a great start in November?
• PayPal strikes a deal with Amazon, what could this mean for the share price?
• For most of the last four years, shares went nowhere. But…
• Why valuation multiples can be ‘useless’ in assessing ASX shares: expert
• Top 5 global shares held by Aussie investors in Q3 revealed: eToro

Jeremy Bowman owns shares of Amazon and Square. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Square. The Motley Fool Australia has recommended Amazon and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Pushpay Holdings Ltd (ASX: PPH) share price is under pressure on Wednesday morning following the release of its half year results.

At the time of writing, the donor management focused payments company’s shares are down 20% to $1.43.

This leaves the Pushpay share price trading within a whisker of its 52-week low.

Pushpay share price crashes after half year results

• Total Processing Volume increased 9% to US$3.5 billion
• Operating revenue up 9% to US$93.5 million (7% excluding Resi Media acquisition)
• Annual revenue retention of 110%
• Gross margin widened from 68% to 69%
• Underlying EBITDAFI (operating earnings) increased 12% to US$29.6 million
• Net profit after tax up 43% to US$19.1 million
• Total customers up 29% to 14,095
• Total lifetime value (LTV) of customer base increased 20% to US$4.5 billion

What happened in the first half?

Management notes that after a softer than expected first quarter, processing volumes bounced back strongly during the second quarter. This led to Pushpay delivering a 9% increase in both total processing volume and operating revenue during the first half.

This was underpinned by an increase in customers and a 7% lift in average revenue per customer to US$1,348 per month excluding the Resi Media acquisition.

Positively, the company expects further growth in total processing value. This is expected to be driven by continued growth in the number of donor management system products utilised by customers, further development of its product set resulting in higher adoption and usage, and increased adoption of digital giving in its customer base.

However, as you might have guessed from the Pushpay share price performance today, this growth isn’t expected to be strong enough for the company to achieve its earnings guidance in FY 2022.

During the first half, Pushpay delivered underlying EBITDAFI growth of 12% to US$29.6 million. This meant it would require a big second half to achieve its previous FY 2022 EBITDAFI guidance of US$66 million and US$71 million.

And management doesn’t appear to believe that will be the case. As such it has downgraded its underlying EBITDAFI guidance to between US$62 million and US$67 million. This is up from US$58.9 million in FY 2021.

Management commentary

Pushpay’s CEO, Molly Matthews, was pleased with the company’s performance during the half.

She commented: “We are pleased to deliver our results for the first six months of the 2022 financial year. Pushpay continued to deliver revenue growth, Total Processing Volume growth, net profit growth and EBITDAFI growth over the period, whilst maintaining sustainable margins and underlying operating metrics.”

“Over the period, Pushpay further set the foundation for future growth. We increased the number of Products purchased and welcomed new Customers, while continuing to successfully realise strategic product bundling opportunities within the Customer base. We completed the strategic acquisition of Resi Media and made significant enhancements to our existing product suite.”

“Our performance represents the value that our Customers attribute to Pushpay’s differentiated solutions and the meaningful progress achieved as we continue to execute against our strategic goal of being the preferred provider of mission-critical software to the US faith sector,” she added.

Catholic expansion

Pushpay provided the market with an update on its previously announced expansion into the Catholic church market.

The release explains that Pushpay’s Catholic product brand for the Pushpay suite of solutions, ParishStaq, was introduced to a targeted group of priests, parishes and dioceses at the 2021 International Catholic Stewardship Conference.

As Pushpay increases its presence within the Catholic segment, it notes that it is seeing the majority of Catholic customers adopt the ParishStaq platform. Management feels this further validates the market hypothesis around the efficacy of a full product solution for both Protestant and Catholic churches.

Pushpay is currently focused on engagement and ramping go-to-market resources for the Catholic initiative. It expects the benefits from the Catholic segment to be realised incrementally over the course of the following years.

Outlook

As mentioned above, the reason the Pushpay share price is falling today is its outlook commentary.

Instead of EBITDAFI of US$66 million to US$71 million in FY 2022, management now expects it to be in the range of US$62 million and US$67 million. This represents year on year growth of 5.3% to 13.8%.

Management commented: “During the first quarter of this financial year, we experienced lower Total Processing Volume growth than expected, with the second quarter improving with double digit growth compared to the same period last year. The level of digital penetration within our Customer base has remained consistent. We have also seen ongoing impacts from the COVID-19 environment, with consolidation of some churches, particularly in the small segment, and slower decision making on new subscriptions, particularly over the US summer holiday period. We have plans in place to address this and expect to see this improve.”

Pushpay also revealed that rising wages are impacting its financial performance.

“Like other organisations, Pushpay has felt the impacts of rising wage pressures of the competitive hiring and retention environment in both the US and New Zealand markets, particularly in the IT sector. As we remain committed to attracting and retaining high-quality talent, staff costs have increased higher than originally anticipated, as we respond to the competitive environment.”

The post Pushpay (ASX:PPH) share price crashes 20% on results and guidance downgrade appeared first on The Motley Fool Australia.

More reading

• Are these 2 beaten-up ASX tech shares now bargain buys?
• 2 top ASX growth shares that could be buys
• 3 buy-rated ASX shares
• Why is the Pushpay (ASX:PPH) share price struggling lately?

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 shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. 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 Vulcan Energy Resources Ltd (ASX: VUL) share price is heading in the right direction at last on Wednesday.

In morning trade, the embattled lithium developer’s shares are up 1.5% to $11.15.

Despite this gain, the Vulcan share price is still down 26% over the last two weeks amid a short seller attack.

Why is the Vulcan share price rising?

The Vulcan share price was given a much-needed boost this morning from the release of an announcement.

According to the release, Vulcan has signed an agreement with Rhein Petroleum to purchase 3D seismic and drilling data.

Rhein Petroleum is an exploration and production oil and gas company with many years of experience in Germany. The 3D seismic data consists of two surveys totalling 315 km2.

The release notes that part of the dataset overlaps with Vulcan’s granted Mannheim and Lampertheim licenses, which did not form part of the company’s production plans in its Pre-Feasibility Study, while the other area overlaps with its other license applications.

Management advised that this agreement ties in with the use of funds from the institutional equity raise completed in September, to expand and accelerate project development through increased data procurement.

What’s next?

Vulcan’s in-house geological engineering team will now conduct studies and assessments on the data to define the next steps of project development in these areas.

The new data will assist with understanding the sub-surface in the areas. This allows the team to target high brine flow zones in a precise, tailored and careful manner. Management expects this contribute to public acceptance.

Vulcan’s Managing Director, Dr. Francis Wedin, commented: “A strength of the Upper Rhine Valley region is the extensive exploration historically conducted by oil and gas companies, and Vulcan continues to leverage the work performed by the hydrocarbons industry to advance the Zero Carbon Lithium Project.“

“This data acquisition potentially enables us to progress projects more efficiently and cost effectively than we would otherwise be able, at a time of unprecedented demand for lithium for electric vehicles, and for renewable energy in Europe. The Vulcan team is committed to advancing renewable energy development and decarbonisation for the benefit of all stakeholders, and is on track with the development of our Zero Carbon Lithium Project, targeting phase one production in 2024.”

The post Why the Vulcan (ASX:VUL) share price is rising on Wednesday appeared first on The Motley Fool Australia.

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• Vulcan Energy (ASX:VUL) share price sinks 9% as short battle continues
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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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The AMP Ltd (ASX: AMP) share price is in focus this morning amid reports the company’s struggle to keep hold of AMP Capital Wholesale Office Fund (AWOF) will heat up next week.

According to reporting by The Australian, the $7 billion fund’s management prospects are being evaluated by an independent committee. The committee’s findings are set to be tabled next week.

As of the end of yesterday’s session, the AMP share price is $1.18.

Let’s take a closer look at what could weigh on the market’s assessment of AMP in the near future.

AMP share price on watch amid AWOF concerns

The AMP share price might be one to watch on Wednesday as it supposedly readies itself to fight to keep control of Australia’s best performing office fund of the last 3 years.

As The Motley Fool has previously reported, AMP is said to be at risk of losing control of the fund on the back of AWOF investors’ worries. On the day news of the management challenge broke, the AMP share price hit an all-time low.

The independent committee’s review will be handed to AWOF’s board’s trustee, alongside a review by investment group Jarden Australia.

However, the final word on a change of management will come from AWOF’s investors. And that might be AMP’s undoing.

The Australian reportedly believes enough investors have vowed not to support AMP’s continued management of the fund if they were asked to vote. AMP needs support from 75% of the fund’s investors to stay at its helm.

The publication claims the fund is a cornerstone asset of AMP Capital. Thus, losing control of it could hamper the business’ upcoming demerger.

It also reports AWOF’s investors are concerned the demerger would leave AMP Capital vulnerable to a takeover. If the business was acquired, the fund would be left to be managed by a non-elected body.

AWOF holds several iconic assets in its books, including Sydney’s Quay Quarter and Melbourne’s Collins Place.

The AMP share price is currently 5% higher than it was this time last month. Though, it’s still 24% lower than it was at the start of 2021.

The post Can AMP (ASX:AMP) maintain control of its $7 billion office fund? appeared first on The Motley Fool Australia.

More reading

• How to get more women trading ASX shares for a living
• AMP (ASX:AMP) share price climbs despite ratings downgrade
• So far, so good for the AMP (ASX:AMP) share price in November. Here’s why
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Wednesday

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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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.

What happened

Shares of PayPal Holdings (NASDAQ: PYPL) declined by 10.5% on Tuesday after the sales and profit outlook of the digital payments company fell short of the market’s expectations. 

So what 

PayPal’s revenue rose 13% year over year to $6.2 billion in the third quarter. The gains were fueled by a 26% rise in total payment volume, to $310 billion.

Notably, PayPal continues to add new users at a solid clip. The payments platform gained 13.3 million net new active accounts during the quarter, bringing its total account base to 416 million.

Moreover, PayPal’s cash production remained strong. Operating and free cash flow climbed 15% and 20%, respectively, to $1.5 billion and $1.3 billion. That allowed PayPal to reward shareholders with $350 million in stock repurchases.

Now what 

But investors appeared to focus on PayPal’s muted guidance. Management expects revenue of $6.85 billion to $6.95 billion and adjusted earnings per share of $1.12 in the fourth quarter. That was below Wall Street’s estimates, which had called for revenue of $7.24 billion and adjusted per-share profits of $1.27. 

CEO Dan Schulman said during a conference call with analysts that multiple factors are contributing to PayPal’s cautious outlook for the holiday shopping season: 

We are seeing the impact of global supply chain shortages in our merchant base. Consumer confidence has weakened with the absence of stimulus payments. And with the economy reopening, more people may be likely to do their holiday shopping in-store as confidence in delivery logistics is depressed from last year.

eBay‘s (NASDAQ: EBAY) transition to its new managed payment system is also weighing on PayPal’s results. PayPal’s eBay marketplaces volume declined 45% in the third quarter.

To help offset this lost payment volume, PayPal struck a deal with Amazon (NASDAQ: AMZN). Shoppers on Amazon will be able to use PayPal’s popular Venmo payment service as a checkout option beginning in 2022.  

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

The post Why PayPal stock plunged on Tuesday appeared first on The Motley Fool Australia.

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Joe Tenebruso has the following options: long January 2023 $2,400 calls on Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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