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The Avita Medical Inc (ASX: AVH) share price is sliding well into the red in afternoon trading and is now down 10.98% at $4.54.

It comes following the release of the company’s earnings report for the three months ended 30 September 2021.

Despite a period of robust growth from top to bottom for the regenerative medicine group, investors are sinking the Avita Medical share price at a rapid pace.

Read on for the key takeouts from Avita’s first quarter in FY22.

Avita share price slides despite 39% sales growth

Investment highlights from the quarter include:

• Total revenue increased by 39% to $7.0 million compared to $5.1 million the same time last year;
• Gross profit margin improved by 300 basis points to 85% compared to Q1 FY21;
• Total operating expenses decreased by 18% to $12.3 million compared to $14.9 million in the first fiscal quarter of 2021;
• Net loss of $5.9 million compared to a net loss of $10.2 million the year prior, a 42% improvement; and
• $60.4 million in cash and cash equivalents and $49.5 million in marketable securities, and no debt.

What happened in Q1 for Avita Medical?

Revenue for the quarter came in line with previously outlined guidance, reaching $7 million. This is an approximate 40% year-on-year gain in sales compared to the same time last year.

Avita attributes the sales growth to a broader utilisation among its customer base, alongside greater penetration of individual accounts.

Lower shipping costs and increased production at its Ventura facility also helped gross margins lift to 85%, up from 83% this quarter.

Additional cost savings helped operating expenses decrease by almost $3 million or 18% compared to the same period in 2020.

This was underscored by lower executive compensation and coming off a higher cost base last year – including severance costs associated with a former executive.

From these results, Avita recognised a net loss just shy of $6 million, a 42% improvement over the year. The reduced loss can be attributed to lower operating expenses, the company said.

However, these seemingly positive results weren’t enough to stop the Avita Medical share price from sinking today.

What did management say?

Speaking on the announcement, Avita’s CEO Dr Mike Perry said:

I am pleased with the progress we made in the overall business this quarter, despite the hospital staffing shortages that impeded RECELL usage in burn procedures.

We saw continued acceleration of enrollment into our soft tissue reconstruction trial, which is now close to completion with 58 of 65 subjects. We look forward to expanding into this $450 million serviceable addressable market upon approval, beginning with our existing burn centre accounts and leveraging our new TPT code in the outpatient setting.

What about guidance?

Total revenue for the second quarter is expected to be approximately $7 million according to the company. That’s flat with the current quarter’s result.

It notes the guidance figure is reflective of the “anticipated impact of hospital staffing challenges as well as uncertainty with the pandemic”.

Avita Medical share price snapshot

The last 12 months haven’t been the most impressive for the Avita Medical share price.

It has fallen around 27% over the past 12 months and is also down 8% this year to date.

The post Avita Medical (ASX:AVH) share price sinks 11% on Q1 earnings appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• The Avita Medical (ASX:AVH) share price just leapt 16% because of this
• Why this medical tech ASX share could rocket today

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

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The Poseidon Nickel Ltd (ASX: POS) share price is edging higher on Tuesday following the mining company’s latest drilling results.

At the time of writing, Poseidon shares are swapping hands for 9 cents a pop, up 3.45%.

What did Poseidon announce?

In a statement to the ASX, Poseidon advised it has intersected significant mineralisation at the Silver Swan project in Western Australia.

The company’s infill drilling program completed 15 holes, logging massive nickel and copper sulphide deposits within the Tundra Mute Resource. As such, the recent holes drilled came back with the following visual estimates:

• 4.9 metres of massive and stringer sulphides (PTMD005)
• 4.2 metres of massive and stringer Ni (nickel) and Cu (copper) sulphides (PTMD007)
• 10.1 metres of massive and stringer Ni sulphides (PTMD014)
• 6.2 metres of massive and stringer Ni-Cu sulphides (PTMD015)

Poseidon noted that, while promising, it will need to wait for a laboratory analysis from the geological samples. This will determine the grade and widths for each of the drilling holes.

The aim of the drilling works is to convert Poseidon’s existing Inferred Resources to Measured and Indicated (M&I) Resources.

The term Inferred Resources refers to quantity, grade (quality), and mineral content that is estimated with a low-level of confidence. On the other hand, M&I Resources is a reasonable to high-level of confidence based on enough samples being collected.

Poseidon managing director and CEO Peter Harold commented:

We are pleased to see some good hits within the Tundra Mute Resource. The aim of this program is to increase the confidence in the resource, by converting existing resources from Inferred to Indicated and to potentially find high-grade mineralisation outside the current resources. These latest holes should assist in increasing the amount of material in the Indicated Resource category.

We are also about to drill a couple of deeper EM holes and look forward to seeing whether the EM surveys detect any EM plates beyond the current extent of the know mineralisation.

Poseidon share price snapshot

It has been a rollercoaster ride for Poseidon shareholders lately. The company’s shares reached a multi-year high of 16 cents in late July, before plummeting lower.

When looking at year-to-date, its shares are up 37% despite falling 10% in the past month.

On valuation grounds, Poseidon presides a market capitalisation of roughly $272 million, with over 3 billion shares outstanding.

The post Poseidon (ASX:POS) share price lifts on ‘some good hits’ appeared first on The Motley Fool Australia.

More reading

• Here’s why the Poseidon (ASX:POS) share price is sliding today
• Here’s why the Poseidon (ASX:POS) share price is up 5% on Wednesday

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has fought back from an earlier decline and is edging higher. At the time of writing, the benchmark index is up 0.1% to 7,460.1 points.

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

Brainchip Holdings Ltd (ASX: BRN)

The BrainChip share price is up 5% to 49.5 cents. This morning the artificial intelligence technology company confirmed that functionality and performance testing of the AKD1000 production chips has been completed. Positively, that testing showed better performance than the original engineering samples.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price has rocketed 28% higher to $8.65. Investors have been buying this mineral explorer’s shares after it released the maiden mineral resource estimate for the Gonneville deposit at the Julimar Project in Western Australia. Those results revealed the largest nickel sulphide discovery in over 20 years and the largest platinum-group elements (PGE) discovery in Australian history.

Life360 Inc (ASX: 360)

The Life360 share price is up almost 7% to $12.40. The catalyst for this gain has been the release of a broker note out of Morgan Stanley this morning. According to the note, the broker has retained its overweight rating and lifted its price target on the family safety app maker’s shares from $10.50 to $14.20. Morgan Stanley sees several potential positive catalysts for the company in the near future.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price has jumped 8% to $8.95. Investors have been buying this sports betting company’s shares following the release of an update on its New York aspirations. According to the release, the New York State Gaming Commission (NYSGC) has recommended PointsBet for a licence to operate mobile sports wagering in New York. PointsBet was one of nine companies to be awarded a Platform Provider licence.

The post Why Brainchip, Chalice, Life360, and PointsBet shares are surging higher appeared first on The Motley Fool Australia.

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• PointsBet (ASX:PBH) share price on watch after New York update
• Zip (ASX:Z1P) and these ASX tech shares are rated as buys
• 10 top ASX shares to buy in November

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 Life360, Inc. and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It is a momentous day on the cryptocurrency timeline today as crypto assets pass US$3 trillion (A$4.05 trillion) in total value. The milestone moment in history comes as the price of Bitcoin (CRYPTO: BTC), Ether (CRYPTO: ETH), and other digital currencies hit new record highs.

At the time of writing, the largest cryptocurrency by market capitalisation, Bitcoin, is fetching A$91,201. Meanwhile, Ether is being swapped at a price of A$6,465.

For context, the entire crypto ecosystem is now worth more than the world’s most valuable listed company, Microsoft Inc (NASDAQ: MSFT). In terms of assets, the contentious digital investment is now only second to gold in size, at US$11.6 trillion.

What’s the next move for crypto?

While there are still plenty of cryptocurrency sceptics in the world, the last month or so has seen numerous developments fuelling positive investor sentiment. These have mainly involved Bitcoin — though, in the crypto space often a rising tide lifts all boats.

In Australia alone, this month has already seen the announcement of the Commonwealth Bank of Australia (ASX: CBA) making crypto services available via its CommBank app. Secondly, the very first Australian cryptocurrency exchange-traded fund (ETF) landed on the ASX last week. These announcements marked further institutional acceptance.

The continuation in the crypto bull market has been relentless over the past 12 months. In fact, Bitcoin has returned 294% in the past year. Even more impressively, Ether has delivered more than a 10X return over the same timeframe.

Understandably, investors and market participants are wondering where to from here. Unfortunately, none of us can see into the future. Though, some analysts’ forecasts have painted a rosy picture for the near term.

According to Adrian Zduńczyk, known as Crypto Birb on Twitter, Bitcoin could be set for a rally towards US$80,000 (~A$108,000) in the near future. At the same time, Zduńczyk has pencilled out a price target of US$20,000 for early 2022.

Likewise, executive director at crypto fund ARK36, Mikkel Mørch, explains why there is potential for further upside in Bitcoin:

As Bitcoin exchange balance is at a 3 year low while long-term holder supply is at an all-time high, there are simply too few bitcoins available to keep up with the demand.

The post The total value of crypto just surpassed US$3 trillion, what’s next? appeared first on The Motley Fool Australia.

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• Could ANZ be the next ASX bank to jump on the crypto bandwagon?

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler owns shares of Bitcoin, Commonwealth Bank of Australia, and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Microsoft. 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 Seven West Media Ltd (ASX: SWM) share price is in the green today after the company’s bosses outlined its strong performance through financial year 2021 (FY 2021).

The company’s managing director and CEO James Warburton also provided the market with a positive trading update and outlook for financial year 2022 (FY 2022).

Meanwhile, Seven West chair Kerry Stokes called on the Federal Government to commit to additional regulation.

At the time of writing, the Seven West share price is 56.2 cents, 4.17% higher than its previous close.

Let’s take a look at Seven West’s annual general meeting today.

Seven West’s strong FY 2021

The Seven West share price is surging higher after its chair, Kerry Stokes, announced the company’s free-to-air television network has been boosted back into the most dominant position.

Over FY 2021, the Seven network was the most-watched free-to-air television channel in Australia. On top of that, its 7Plus streaming service reached 10 million viewers. Stokes stated:

Seven Network achieved this extraordinary success on the back of marquee sports events, including the Tokyo Olympics, the AFL and, in particular, its finals season, and the summer of cricket.

The combination of our premium sports programming with our continuing dominance of news and current affairs, as well as a refreshed programming schedule, were keys to our success.

The company’s The West newspaper also outperformed over FY 2021.

Stokes expects such enthusiasm for its content will continue into FY 2022, and so far it has. Since the start of FY 2022, the company’s television audience share has gained another 4.3% – or 1.4% excluding its coverage of the Olympics.

Finally, Stokes commended the Federal Government for “finally act[ing] to partly arrest the damage caused by foreign multi-nationals in the Australian media sector”.

However, he called for greater commitment to regulating the prominence of free-to-air services on all televisions. He also pushed for the government to extend the anti-siphoning list to include online streaming services.

According to Stokes, doing so will ensure audiences free access to Australian news, sport, and entertainment.

What’s next for Seven West?

The Seven West share price might also be being boosted by a positive outlook from Warburton. He noted Seven is expected to win 40% of the metro TV advertising market in the current 6-month period.

Since the start of this financial year, 7plus’ revenue has increased 145%. The company’s also on track to deliver between $15 million and $20 million of saving this financial year.

It expects to exceed analysts’ forecast for FY 2022’s earnings before interest, tax, depreciation, and amortisation (EBITDA) of around $260 million by between 7% and 10%. That prediction excludes benefits from the newly acquired Prime Media Group Limited (ASX: PRT).

Finally, Seven West expects Seven’s digital earns to more than double this financial year to $120 million. One of the reasons for the outlook is the company’s agreements with Alphabet Inc (NASDAQ: GOOG) and Facebook Inc (NASDAQ: FB) over payment for news content.

FY 2022 will see Seven broadcasting the Commonwealth Games and the Winter Olympics. It will also be airing the Ashes Test series, BBL and WBBL, and the Bathurst 1000.

However, Warburton warned shareholders not to be too excited just yet:

While we have revitalised the schedule in record time, it’s worth remembering that revenue share growth lags ratings improvement…

While you cannot ‘flick a switch’ when it comes to building audience numbers, the investment in our content is clearly paying dividends – and in record time.

Seven West share price snapshot

Over FY 2021, the Seven West share price gained a whopping 410%, increasing from 9.1 cents to 46.5 cents.

It has increased by another 21% since the start of FY 2022.

The post Seven West (ASX: SWM) share price jumps 4% amid return to free-to-air dominance appeared first on The Motley Fool Australia.

More reading

• Seven West (ASX:SWM) share price lifts 10% amid Prime Media acquisition
• What’s sending the Seven West Media (ASX:SWM) share price up 6% on Friday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares) and Meta Platforms, Inc. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and 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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The Afterpay Ltd (ASX: APT) share price is having a great day on the ASX. Unfortunately, not everyone is as happy about the buy now, pay later service provider as the market seems to be.

According to reports in Guardian Australia, Afterpay’s recent foray into hospitality could have the potential to cause financial harm to some Australians.

At the time of writing, the Afterpay share price is $120.47, 3.19% higher than its previous close.

Let’s take a closer look at today’s news regarding Afterpay.

Afterpay share price gains despite regulatory worries

The Afterpay share price is in the green today, but some commentators have expressed concern the law is failing to protect vulnerable consumers against BNPL services.

This follows hospitality group Australian Venue Co announcing its partnership with Afterpay last week.

Together, the two companies will launch ‘Dine Now, Pay Later’ in 160 of Australian Venue Co’s establishments. The payment service will be available to pub-goers by the middle of this month.

Australian Venue Co’s CEO Paul Waterson commented on the addition of the BNPL giant’s service, saying:

Our customers have been clear. We know what they want, and we’re happy to offer them more flexibility, especially as they shift away from credit cards.

However, Financial Counselling Australia’s campaign director James Hunt told the Guardian Australia the BNPL sector is “like the wild west without a sheriff”:

We totally understand why people would be using these products when you can’t afford food… But you don’t have consumer protection like you do with credit cards or personal loans… We’re seeing more people becoming overcommitted.

According to the publication, both Hunt and the Consumer Action Law Centre’s director of policy and campaigns, Katherine Temple, have called on the federal government to place greater regulations on BNPL services.

Australian Venue Co maintains that Afterpay doesn’t trap vulnerable customers and is, instead, a budgeting tool.

Additionally, the company states Afterpay will only be a payment option for food and drink purchases at its establishments. It says any potential concerns surrounding the use of Afterpay for in-venue gaming or wagering are unfounded.

Finally, a trial conducted at Australian Venue Co’s Mr Yum found 90% of purchases using Afterpay were for food while 10% were payments for alcohol.

The concerns have emerged just days after the latest news of Square Inc‘s (NASDAQ: SQ) takeover of Afterpay was released.

Last week, Square’s shareholders voted in favour of providing scrip for the $39 billion takeover, now set to go ahead early next year.

The Afterpay share price gained 2% on the back of the news.

The post Afterpay (ASX:APT) share price lifts despite hospitality push creating concerns appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The SiteMinder Ord Shs (ASX: SDR) share price is charging higher again on Tuesday.

At one stage today, the leading open hotel commerce platform provider’s shares were up a further 9% to a record high of $7.65.

When the SiteMinder share price reached that level, it was up a whopping 51% from Monday’s IPO listing price.

Why is the SiteMinder share price rocketing higher?

Investors have been scrambling to buy SiteMinder shares since they landed on the ASX boards yesterday after the company raised $627 million via an oversubscribed IPO.

This gave the company a market capitalisation of $1.36 billion at listing. Though, with the SiteMinder share price rocketing higher since then, its market capitalisation is now approximately $2 billion.

This means its shares are changing hands for approximately 19x June’s annualised recurring revenue (ARR) of $104.9 million.

What is SiteMinder?

SiteMinder was founded in Australia in 2006, and is the world’s leading open hotel commerce platform. It is trusted by more than 32,000 hotels, across 150 countries, to sell, market, manage and grow their business.

SiteMinder generated more than 100 million reservations worth over US$35 billion in revenue for hotels in the 12 months prior to the start of the pandemic.

Its customers are hotels and other accommodation providers, including vacation rentals, lodges, motels, and enterprise properties. Approximately 75% of SiteMinder’s subscription base is small and medium-sized businesses, generating approximately 71% of FY 2021 subscription revenue.

The future

While SiteMinder has been growing at a strong rate in recent years, management believes its journey is only really getting started.

Commenting on the IPO, SiteMinder’s CEO and Managing Director, Sankar Narayan, said: “In many ways, we’re just getting started. We are very excited to have taken this step, which represents the next stage of the SiteMinder business and our ongoing evolution.”

“The global hotel industry has experienced evolution like never before in recent times. The need for technology like SiteMinder’s hotel commerce platform is of substantial relevance as hotels have had to digitally transform with haste, while adjusting to their customers’ changing needs and behaviours.”

This could make the SiteMinder share price one to watch in 2022. Particularly given the increasingly positive outlook for travel markets.

The post SiteMinder (ASX:SDR) share price is up 51% in two days following IPO appeared first on The Motley Fool Australia.

More reading

• Siteminder (ASX:SDR) share price rockets 35% on ASX debut

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 Vanguard MSCI Index International Shares ETF (ASX: VGS) has had a blazing start to the month of November on the ASX boards. VGS units are up a healthy 4.1% since the start of the month, rising from $100.35 at the end of October to the $104.50 per unit the shares are asking today (at the time of writing). That’s a pretty impressive performance for this ASX exchange-traded fund (ETF), especially considering the S&P/ASX 200 Index (ASX: XJO) has ‘only’ managed a gain of roughly 1.8% over the same period.

VGS is one of the ASX’s most popular ETFs. It covers a truly massive underlying portfolio of more than 1,500 shares. These hail from advanced economies around the world, dominated by the United States with 69% of the portfolio’s exposure in US shares. Other significant contributors are the markets of Japan, Canada, the United Kingdom, and Europe.

But even though this ETF has more than 1,500 individual holdings, the top 5 companies in its basket still command 14.55% of the ETF’s total weighting. Those top 5 companies are Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), Facebook-owner Meta Platforms Inc (NASDAQ: FB) and Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL).

So let’s see how these companies have performed since the start of the month.

VGS ETF rises on strong performance of its largest shares

Apple is up 0.43% since 31 October at last night’s closing price of US$150.444 a share.

Microsoft is up 1.62% at last night’s US$336.99 a share.

Amazon has put on 3.46% at US$3,448.98 a share.

Meta Platforms has added 4.65% to its value since the start of the month, and was asking US$338.62 a share at last close.

And Alphabet (Class C) is up 0.73% to last night’s close of US$2,987.03 a share. Incidentally, last night also saw Alphabet hit a market capitalisation of US$2 trillion for the first time.

It’s also prudent to point out that VGS’s sixth-largest holding by market cap is none other than Tesla Inc (NASDAQ: TSLA), which has gained 4.31% since the start of the month as well.

So, we have all 6 of VGS’s largest holdings reporting some solid share price growth over November so far. This would likely have played a big role in VGS’s appreciation over the month to date.

Another factor that is probably helping is the Australian dollar. The Aussie has fallen from more than 75 US cents at the start of the month to today’s level of 74.01 US cents. That’s a drop of around 1.35%.

This is significant because most of VGS’s assets are priced in US dollars. That means that when our dollar falls in value against the US dollar, the value of those assets in Australian dollars rises, helping to give the VGS unit price something of a tailwind.

It’s likely a combination of these factors that have resulted in VGS having such a flying start to November.

VGS has returned an average of 16.14% over the past 3 years and 15.96% over the past 5. The Vanguard MSCI Index International Shares ETF charges a management fee of 0.18% per annum.

The post Why is the Vanguard MSCI Index International Shares ETF (ASX:VGS) off to such a great start in November? appeared first on The Motley Fool Australia.

More reading

• Why Dogecoin, Shiba Inu and Bitcoin investors should ‘follow’ Elon Musk
• Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today
• ASX 200 (ASX:XJO) midday update: NAB result disappoints, PointsBet surges
• PayPal strikes a deal with Amazon, what could this mean for the share price?
• Here’s how the Medibank (ASX:MPL) share price has performed against the ASX200 in the last 3 months

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares), Meta Platforms, Inc., and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Meta Platforms, Inc., and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., 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.

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Elon Musk is at it again.

The founder of global electric vehicle and battery maker Tesla Inc (NASDAQ: TSLA) is well known for his seemingly off-the-cuff media proclamations and tweets regarding leading cryptos and his own company.

And when Elon Musk has something to share, investors tend to take note.

Aside from impacting Tesla’s share price, the multi-billionaire’s tweets and comments have been known to affect the prices of Bitcoin (CRYPTO: BTC), Dogecoin (CRYTPO: DOGE), and Shiba Inu (CRYPTO: SHIB).

We’ll get back to his crypto moving powers shortly, and why it’s worth following along with his latest thoughts.

But first…

Tesla share price sinks

Musk’s latest foray onto Twitter over the weekend helped send the Tesla share price down more than 7% in intraday trading yesterday (overnight Aussie time). Tesla finished the day down 5%. It’s down another 0.3% in after-market trading.

In an email to the Motley Fool on Friday (before Musk’s latest tweet), global investment platform eToro’s market analyst Josh Gilbert said:

Elon Musk is the richest man in the world right now, so when he speaks, people listen. Musk has famously been in hot water previously over his comments regarding Tesla on his Twitter feed. Now, he’s better known for his tweets surrounding cryptoassets.

Indeed, according to the Bloomberg Billionaires Index, Musk is worth US$338 billion (AU$456 billion). To put that number in proper perspective, that’s $456,000,000,000.

Put another way, Elon Musk could give $1 million Aussie dollars to 456,000 people. That’s 4.5 times the full capacity of the Melbourne Cricket Ground (MCG), with every person walking away holding a million bucks.

That’s serious wealth.

How did Elon Musk send the Tesla share price lower?

Over the weekend Musk took to Twitter to poll his roughly 63 million followers.

The reportedly cash-poor billionaire asked whether he should sell 10%, or some US$21 billion, of his Tesla shares. It seems he may need that money if the proposed new billionaires’ tax passes into law in the United States.

That law would mandate taxes be paid even on unrealised capital gains. Of which Musk has quite a lot.

Musk tweeted, “I will abide by the results of this poll, whichever way it goes”. And the majority, 58%, of the roughly 3.5 million people who participated voted that he should sell his Tesla shares.

After tweeting that he “was prepared to accept either outcome” following the results of the poll, investors sent the Tesla share price down sharply once markets opened.

Elon Musk’s virtual token moving powers

When it comes to Musk’s market-moving powers, the virtual realm stands out.

Back in June this year, Musk helped propel the Bitcoin price higher when he announced that Tesla would accept the token as payment for its vehicles. Fast forward a few months, and Musk’s announcement that this would be suspended until Bitcoin mining was done using more sustainable energy sources saw the token promptly sink.

Then there are the so-called dog coins — Dogecoin and the newcomer, Shiba Inu.

Musk offered a tailwind to both tokens when he tweeted a picture of his Shiba Inu puppy in October.

Both digital coins have soared since then. Though when Musk clarified that he owns Dogecoin – along with Ethereum and Bitcoin – but not Shiba Inu, the Shiba Inu token sank in value.

Also in October, eToro’s Gilbert told us, “The Twitter page @uberfacts tweeted, ‘Elon Musk is predicted to become the world’s first trillionaire, thanks to SpaceX’.”

Musk, who currently has more than 63 million followers on the social media platform replied with, “In dogecoin”.

Gilbert added:

Musk has previously told his loyal followers that he owns Dogecoin and that SpaceX will accept the cryptoasset as payment. Along with others, Musk has had a sizable role in the adoption of cryptoassets, so although we may view Dogecoin as a ‘meme’ coin, if he says it has value, then it’s hard to discount his opinion.

Don’t lose track of the risks

While it’s worth keeping an eye on Elon Musk’s latest musings, there are risks involved, especially in the highly volatile world of cryptos.

According to Gilbert:

Musk has a huge responsibility on his shoulders, and at times, it feels like he forgets this before posting tweets. Of course, there can be benefits to following every tweet that the richest man in the world makes, as he has a vast knowledge of the cryptoasset market. However, this doesn’t come without risks.

An example of this is his appearance on Saturday Night Live, when he ‘joked’ about Dogecoin. The cryptoasset consequently plunged around 30% around the time of the show.

How are Dogecoin, Shiba Inu and Bitcoin performing?

Dogecoin is up 3.4% over the past 24 hours, currently worth 28.03 US cents. That’s down 62% from its all-time high of 73.76 US cents, hit on 8 May this year, according to data from CoinMarketCap.

Shiba Inu is up 6.7% in 24 hours, at 0.0057 cents. Shiba Inu is down 35% from its own record highs, set on 28 October.

As for Bitcoin, the world’s largest crypto by market valuation, it just hit a new record high. Bitcoin is up 3.7% over the last 24 hours, currently at US$67,478. That’s down just a fraction from the new all-time high set just an hour earlier, of US$67,772.

I wonder what Elon Musk will have to tweet about that?

The post Why Dogecoin, Shiba Inu and Bitcoin investors should ‘follow’ Elon Musk appeared first on The Motley Fool Australia.

More reading

• Here’s why the Betashares Crypto Innovators ETF (ASX:CRYP) share price is surging 7% today
• Big pay rises on the cards? And what about Bitcoin? Scott Phillips on Weekend Sunrise
• The Bitcoin (CRYPTO:BTC) price is still leaping higher, and so is its energy use
• Could ANZ be the next ASX bank to jump on the crypto bandwagon?
• Own NAB shares? Here’s the bank’s proposal to stop crypto mania getting ‘really ugly’

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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 Pure Hydrogen Corporation Ltd (ASX: PH2) share price is leaping to a multi-year high on Tuesday. This comes after the company announced it will establish a presence on the east coast of Australia.

During the first hour of trade, the energy company’s shares touched a high of 70 cents, before some profit-taking occurred. At the time of writing, its shares are now swapping hands for 69 cents, up 25.46%.

Pure Hydrogen moves ahead on exciting strategy

Investors are driving up Pure Hydrogen shares today following the company’s latest development.

In its release, Pure Hydrogen advised that it has signed a term sheet with CAC-H2 to build waste hydrogen plants. The facilities will be constructed in the country’s three most populous states, New South Wales, Victoria and Queensland.

The first plant is scheduled to be built in Queensland and is expected to be online in late 2022. It will produce high purity green hydrogen that can be used for fuel cell vehicles and the mobility sector.

Under the arrangement, CAC-H2 will fund, build, and operate the plants whilst Pure Hydrogen will fund storage and loadout. The planned sites will not only bring new jobs to each of the states but also support Australia’s path to decarbonisation. The country has a net-zero goal by 2050.

Pure Hydrogen managing director, Scott Brown commented:

We are very excited to be partnering with CAC-H2 and establishing facilities to service the East Coast of Australia supplying hydrogen fuel. We are pulling all facets of the supply chain together to deliver a complete solution for commercial and industrial users. We will continue to develop our existing projects and the partnership with CAC-H2 which will allow us to bring forward hydrogen supply coverage to the east coast more rapidly.

Currently, the company is working with commercial users to supply hydrogen fuelling through off-take agreements and vehicle supply contracts. It is also pursuing other channels to develop and strengthen its hydrogen fuel supply chain.

Pure Hydrogen share price summary

Over the past 12 months, Pure Hydrogen shares have accelerated to post a gain of almost 741% for investors. When looking at year-to-date, its share price performance is just as impressive, up 684% for the period.

Pure Hydrogen commands a market capitalisation of roughly $216.57 million, with approximately 313.88 million shares outstanding.

The post Pure Hydrogen (ASX:PH2) share price rockets 25% amid major plant production news appeared first on The Motley Fool Australia.

More reading

• Why the Pure Hydrogen (ASX:PH2) share price is leaping to a multi-year high today
• Pure Hydrogen (ASX:PH2) share price jumps 5% on hydrogen vehicle plans
• Why are ASX hydrogen shares in the spotlight on Monday?

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

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