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Not for the first time, Facebook Inc (NASDAQ: FB) has been facing down more than one scandal in recent weeks. Earlier this month, former Facebook employee Frances Haugen accused the company of putting profits over safety and stating that she believes Facebook’s products “harm children, stoke division and weaken our democracy”.

Just hours earlier, the company had to deal with an hours-long outage across its platforms. Needless to say, October hasn’t been a great month for this US tech giant so far. Since 1 October, Facebook shares have fallen around 4.5%.

But investors in this social media giant might find some solace in the company’s latest financial report. Facebook has just reported its earnings for the quarter ending 30 September (Q3).

For the 3 months ending 30 September, Facebook announced revenues of US$29.01 billion. That was up 35% year over year on the prior corresponding quarter’s US$21.47 billion. Of that US$29.01 billion, US$28.28 billion came from advertising revenue (up 33% year over year) and US$734 million from ‘Other’ (up 195%).

However, total costs and expenses also rose to US$18.59 billion. That was up 38% from the US$13.43 billion in the prior corresponding quarter.

Facebook reports 17% growth in net income

Even so, Facebook managed to report US$10.42 billion in income from operations, up 30% year on year. Net income also rose 17% from US$7.85 billion to US$9.19 billion.

That led the company to report diluted earnings per share (EPS) of US$3.22 for the quarter, up 19% from US$2.71 year on year.

Meanwhile, active users were up for the company across the board. For the Facebook app over the month of September, daily active users rose by 6% year on year to 1.93 billion. Monthly active users were 2.91 billion, also a 6% rise.

For family daily active users (family includes Facebook as well as the company’s other apps like Instagram and Whatsapp), the company reported 1.93 billion, up 11% year on year. Family monthly active users were 3.58 billion, an increase of 12%.

Facebook also announced a fresh US$50 billion injection for its share buyback program. We looked at this in more depth earlier today.

Turning to guidance, Facebook told investors that it is expecting to report “total revenue to be in a range of $31.5 billion to $34 billion” for the upcoming quarter ending 31 December 2021. The company noted that “our outlook reflects the significant uncertainty we face in the fourth quarter in light of continued headwinds from Apple‘s iOS 14 changes, and macroeconomic and COVID-related factors”.

Facebook last closed at a share price of US$328.69, up 1.26% for the day. That gives this tech giant a market capitalisation of US$926.72 billion. However, the stock climbed by another 1.79% in after-hours trading to US$334.57 a share, perhaps reflecting the impact of this earnings report.

The post What scandal? Facebook (NASDAQ:FB) just reported 35% revenue growth appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 tech shares are leading the charge higher today
• Facebook (NASDAQ:FB) just announced a monster US$50 billion share buyback program
• Why Facebook shares bounced back on Tuesday
• Why Facebook fell nearly 11% in September

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook. The Motley Fool Australia has recommended Facebook. 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 Nanosonics Ltd (ASX: NAN) share price is roaring upwards today despite no announcements from the company.

In afternoon trade, shares in the infection prevention company are up 8.63% to $6.04 apiece. Consequently, the Nanosonics share price is 26.8% away from its 52-week high of $8.25.

Could Nanosonics be a buy?

Although there is a lack of news regarding Nanosonics on Tuesday, a broker note was recently published on the healthcare company.

According to the analysts at Morgans, the Nanosonics share price could have more upside awaiting shareholders. Ostensibly, the team of analysts has placed an add rating on the Trophon manufacturer, while simultaneously cutting its price target to $6.97.

However, even with the reduced price target, this would suggest a further 15.4% upside to the Nanosonics share price. Perhaps investors are still absorbing this proposition on Tuesday, as the shares are bid higher.

Another viewpoint, the market might be paying more attention to shares primed for the nation’s reopening after months of COVID-19 restrictions. Healthcare shares with exposure to elective surgery have struggled throughout the pandemic. On Wednesday last week, New South Wales Health announced the return of non-urgent elective surgery across Greater Sydney.

At the time, NSW health deputy secretary Wayne Jones stated: “Thanks to the extraordinarily high vaccination rates across the state and declining community transmission of COVID-19, patients can now have their non-urgent surgery.”

Investors might be speculating over the potential for an increase in Nanosonics Trophon consumables following the return of elective surgeries.

Nanosonics share price snapshot

Nanosonics shares have been range-bound since late 2019. During this time, the company’s shares have traded between $4.65 and approximately $8.00. As a result, Nanosonics’ volatility is above the broader market average.

In addition, Nanosonics has returned 11.4% over the past year. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has outperformed the company, delivering a return of 21%.

In terms of valuation, the company currently trades on a price-to-earnings (P/E) ratio of 208 times based on the current Nanosonics share price.

The post The Nanosonics (ASX:NAN) share price is soaring 9% on Tuesday appeared first on The Motley Fool Australia.

More reading

• Broker upgrades Nanosonics (ASX:NAB) share price to a buy rating
• These were the worst performing ASX 200 shares last week

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. owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.15% to 7,451.7 points.

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

Crown Resorts Ltd (ASX: CWN)

The Crown Resorts share price is up 7% to $10.34. Investors have been buying the casino operator’s shares after it was revealed that it would not be stripped of its casino licence in Melbourne. While the final report of the Royal Commission into Crown’s suitability to run Crown Melbourne found the company unfit, it did not recommend removing its casino licence. Instead, the report recommends Crown keep its casino licence under the close watch of a special manager.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price has jumped almost 13% to $14.87. This follows the release of the computer hardware and software distributor’s third quarter update. Dicker Data revealed a 16.1% increase in revenue year to date to $1,720.4 million and a 26% increase in profit before tax year to date to $76.6 million.

Neometals Ltd (ASX: NMT)

The Neometals share price is up 13% to $1.03. Investors have been buying the battery materials company’s shares after it revealed that its joint venture company, Primobius, has completed the commissioning of its lithium-ion battery recycling demonstration plant.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up 6% to $2.22. This follows news that the lithium producer has formed an incorporated joint venture with Korean giant POSCO. The joint venture will develop and operate a 43ktpa lithium hydroxide monohydrate (LHM) conversion facility in South Korea. Pilbara Minerals will initially hold an 18% stake in the joint venture. However, it has opportunities to increase this to 30% in the future.

The post Why Crown, Dicker Data, Neometals, and Pilbara Minerals are surging higher appeared first on The Motley Fool Australia.

More reading

• Dicker Data (ASX:DDR) share price up 13% on Q3 earnings
• ASX 200 (ASX:XJO) midday update: Crown and Pilbara Minerals surge higher
• Pilbara Minerals (ASX:PLS) share price jumps 8% on POSCO joint venture news
• Why ASX lithium shares are surging higher on Tuesday
• Up 418% in 1-year, why the Neometals (ASX:NMT) share price is surging 14% today

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 Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data 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 Dicker Data Ltd (ASX: DDR) share price is soaring today, up 13.71% at $15.01.

Dicker Data shares popped as the wholesale hardware and software distributor released its Q3 trading update for the period ending 30 September 2021.

Here, we cover all of the salient points from the company’s third-quarter performance.

Dicker Data share price jumps on strong revenue and profit growth

• Total year to date revenue to September 2021 of $1.7 billion, a 16.1% year on year (YoY) increase
• Profit before income tax (PBIT) from January to September 2021 was $76.6 million, an increase of 26.0% YoY
• Excluding the contribution from Exeed Group, total revenue of $1.66 billion was still up 11.7% YoY while PBIT came in at $74.7 million, a 22.9% YoY gain.

What happened in Q3 for Dicker Data?

Despite Dicker reporting “supply constraints being experienced throughout the year”, it still managed to deliver a fairly robust quarter of growth.

Total revenue from all sources came in 16% higher than the year prior at $1.7 billion for the year to date to September.

This carried through the income statement where PBIT grew 26% YoY to just over $76.5 million.

The company is adamant that although supply constraints will continue for the foreseeable future, its ability to “forecast and manage allocation of stock continues to strengthen” with each quarter.

Many of the supply issues Dicker alludes to is from a global chip shortage. Currently, the demand for integrated circuits – also known as semiconductor chips – is exceeding supply and production capacity.

According to analysis from investment banking giant Goldman Sachs, the global shortage has impacted more than 169 industries and led to major supply issues with a suite of products that require semiconductors. These include video games, computers, and automobiles.

Yet, despite the challenges, Dicker is “experiencing stock allocations across a large number of categories” in its end markets.

This, it claims, appears to be improving (or, at least, assisting) the overall health of the semiconductor supply chain.

The update also notes Dicker has a significant backlog of orders that it expects to fulfil in the last quarter of 2021.

The company also touched on its Exeed Group acquisition, completed in July 2021. It stated a significant amount of work had been undertaken to successfully integrate Exeed’s Australian and New Zealand operations with its own.

As such, Dicker’s year to date earnings figures reflect 2 months of Exeed Group contributions.

Taking this out of the equation, Dicker still recognised total revenue of $1.66 billion and PBIT of almost $75 million, up 11.7% and 23% respectively.

That means Exeed recorded sales of $65.2 million and almost $2 million net profit in the 2 months since the acquisition was completed from 30 July to 30 September.

What’s next for Dicker Data?

Despite the global shortages, Dicker anticipates meeting the strong demand to fill its backlog of orders in the final quarter of 2021.

The company is also “identifying significant future opportunities within the technology sector” while also aiming to penetrate the cybersecurity market.

As such, Dicker is expecting high growth in the adoption of “automation, machine learning and data capture and analysis tools as business and governments prioritise efficiency and productivity”.

The Dicker Data share price has been an outsized winner the last 12 months. It’s posted a return of 53% after rallying 42% since January 1 this year.

The post Dicker Data (ASX:DDR) share price up 13% on Q3 earnings appeared first on The Motley Fool Australia.

More reading

• Why Crown, Dicker Data, Neometals, and Pilbara Minerals are surging higher
• Here’s why ASX 200 tech shares are surging today
• Dicker Data (ASX:DDR) to benefit from synergies: fund manager

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 Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data 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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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.

Netflix (NASDAQ: NFLX) plans to spend $17 billion in cash on content production and licensing this year, but it could be just getting started. Management sees a long runway for growth across various television and film programming verticals and geographies, and it’s just beginning its gaming experiment. When asked if Netflix could double or triple its content spending during the company’s third-quarter earnings call, CEO Reed Hastings replied, “You’re definitely thinking too small.”

And he has a point. As the world’s biggest premium subscription video on demand service, it has a lot of room to grow that content budget well over $50 billion.

Entertaining the world

There’s still a tremendous opportunity to shift more entertainment time from linear television to streaming. Netflix expects to play a bigger and bigger role in people’s entertainment choices for years to come. 

Management points out in its letter to shareholders that streaming currently accounts for just 28% of TV time in the United States, while cable and broadcast television accounts for 64%. Netflix represents just 6% of the total viewing time.

And the U.S. is its most mature market. Netflix is increasingly a global company producing content all over the world. The Korean drama Squid Game is its biggest series ever. It plans to expand its local productions from 45 countries to more than 50 countries next year.

The total addressable market, according to management, is the 1 billion broadband households around the world. With 213 million total subscribers, it still has a long way to go. “Now, it will take a couple of decades to get there. It’s not overnight,” Hastings explained. But Netflix has always thought extremely long term.

Growing verticals and geographies

Netflix sees opportunities to grow its content spending across several different content categories and geographies.

The company only went fully global in 2016, and its efforts with local language content are really only a few years old. What’s more, it’s found incredible success creating series and films in a country for the local audience, and taking those successes worldwide. As more of Netflix’s growth comes from abroad, its local language content budget should expand along with it. But it can still monetize that content globally, including the valuable United States.

Furthermore, Netflix is exploring increased investments in animation. Kids animation, specifically. And it bought the Roald Dahl Story Company to produce films, series, and games based on the British author’s characters.

Management says it can continue growing the budget in every category it works in for the foreseeable future.

Tripling the content budget

Netflix is now self-funding its growing content budget, eschewing the debt market. It expects break-even free cash flow for the full year 2021, and to produce positive cash flow in 2022 and beyond.

” … we got to be able to have the revenue growth and margins,” Hastings said, moderating his tone about the potential size of the content budget. But Netflix has been consistently growing both revenue and margin for years. Management still expects to grow its top line 18.8% this year, despite the strong growth in 2020, and its full-year operating margin will expand 2 percentage points to 20%.

Growth going forward will need to come from a combination of subscriber growth and price increases. With a growing number of streaming services entering the global market, price increases may prove more difficult than in the past. That said, recent price increases haven’t resulted in any increase in subscriber churn, while the rest of the industry fights to keep customers. Netflix appears to have more pricing power than its peers.

If Netflix can maintain its double-digit revenue growth and continue its margin expansion over the next decade, it could easily triple the content budget in the long run, all while growing free cash flow and profits for investors. 

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

The post Netflix could spend over USD $50 billion on content appeared first on The Motley Fool Australia.

More reading

• What’s the latest from the current US earnings season?
• Netflix (NASDAQ:NFLX) reports 16% revenue growth after Squid Game success
• Why Netflix stock was soaring on Tuesday

Adam Levy owns shares of Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netflix. The Motley Fool Australia has recommended Netflix. 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 Mineral Resources Limited (ASX: MIN) share price is plummeting on the back of the company’s quarterly report.

Over the first quarter of financial year 2022, Mineral Resources’ realised iron ore price represented a realisation of 48% to the Platts average for the quarter.

The company was also negatively affected by COVID-19 travel restrictions over the 3 months ended 30 September.

At the time of writing, the Mineral Resources share price is $39.90, 7% lower than its previous close.

Let’s take a closer look at the last quarter for the mining company.

The quarter just been for Mineral Resources

The Mineral Resources share price is sliding despite the company reporting an increase in production.

Mineral Resources’ production volumes for the quarter were 7% higher than they were in the previous quarter. They were also 22% higher than those of the first quarter of financial year 2021.

The company produced and shipped 4.6 million dry metric tonnes of iron ore over the period, 40% more than in the prior corresponding quarter. It’s currently in line to meet its financial year 2022 guidance of between 21 and 22 metric tonnes.

Mineral Resources’ average realised iron ore price for the quarter was US$78.32 per dry metric tonne. It was dragged down by shipments priced on the September Platts price. It also suffered from US$33.8 million of negative adjustments for the finalisation of financial year 2021 shipments.

Additionally, Mineral Resources’ 50%-owned Mt Marion lithium project was negatively impacted by rainfall over the quarter.

It produced 99,536 dry metric tonnes of spodumene, 13% less than in the previous period. However, the project is on target to meet its financial year 2022 production guidance of between 450 kilotons and 475 kilotons.

The average realised spodumene price was US$740.6 per dry metric tonne. Shipments of spodumene were also down 54% on those of the prior quarter due to delays.

Finally, the company’s operations were negatively affected by COVID-19 restrictions. Unplanned border closures and lockdowns saw the company’s staff’s movements limited and resulted in a shortage of road haulage drivers.

Exploration and development

Mineral Resources worked on several exploration and development projects over the quarter just been.

Excitingly, it made a significant gas discovery at its 80%-owned Lockyer Deep-1 exploration well over the quarter.

Mineral Resources has also started installing a 1.5-megawatt solar array and battery at the Wonmunna mine site. Right now, the mine’s powered by diesel. However, the solar installation will be able to provide around 30% of its energy needs.

The company continued its engineering and detailed design for the Ashburton Project. Mineral Resources is ready to start the project when approvals are obtained.

The company also noted consultations between the Western Australian government, the Pilbara Port Authority, and Port Hedland users of the Port Development Plan continued through the quarter. The company is confident approvals for the development of South West Creek will be granted soon.

Finally, it acquired Red Hill Iron Limited’s 40% interest in the Red Hill iron ore joint venture.

Mineral Resources share price snapshot

The quarter just been wasn’t a good period for the Mineral Resources share price. It fell 16.6% over the 3 months ended 30 September.

However, the company’s stock is currently trading for around 6% more than it was at the start of 2021.

The post Mineral Resources (ASX:MIN)share price slumps 7% on quarterly update appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Crown and Pilbara Minerals surge higher
• Why ASX lithium shares are surging higher on Tuesday
• Here are the top 10 ASX shares today
• Why Beach, Mineral Resources, Origin, and Telstra are storming higher
• ASX 200 (ASX:XJO) midday update: Telstra’s acquisition, Mineral Resources jumps

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

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The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) or ‘Soul Pattinson’ share price is seesawing on Tuesday.

In early afternoon trade, the diversified investment company’s shares are being exchanged for $34.18 apiece — representing a fall of 0.03%. Earlier in the day, its shares were as high as $34.99. More than $16.6 million worth of Soul Patts shares has been traded so far today.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is 0.16% in the green, now fetching 7,452.8 points.

Although not price-sensitive, there is an announcement that investors might be reading into today from Soul Patts. Prior to the market opening, the iconic investment powerhouse released its 2021 annual report.

Let’s peer into some of the highlights.

What’s moving the Soul Pattinson share price?

Standing the test of time

The last 12 to 18 months have been eventful for Soul Pattinson and its share price. A multitude of developments in the company’s investment holdings has played out during this time.

These include the merger of TPG and Vodafone, forming TPG Telecom Ltd (ASX: TPG); Soul Patts’ own merger with Milton; a booming property market — helping its Brickworks Limited (ASX: BKW) investment; and rising thermal coal prices — boosting its value in New Hope Corporation Limited (ASX: NHC).

As a result, the Soul Pattinson share price has fared exceptionally well over the past year, despite the impacts imposed by COVID-19. Perhaps this demonstrates quite clearly the benefit of diversification during turbulent times.

In its annual report for 2021, the company was quick to point out its history of delivering impressive returns for shareholders over the years. In fact, the chair Robert Millner highlighted that the company’s objective is to provide superior returns to its shareholders by creating capital growth along with steadily increasing dividends over the long term.

Well, it appears the company has come good on that objective over the past 40 years. According to the report, $1,000 invested in 1981 with dividends reinvested would now be worth $239,132 — a compound annual return of 14.7%.

Additionally, over the past 20 years, the Soul Pattinson share price has delivered a total shareholder return of 1,140%. Meanwhile, the All Ordinaries Total Accumulation Index (ASX: XAOA) has increased by 429% during the same period. The extensive positive track record is hard to argue with.

Looking to the future

In its report, Soul Patts shared the outlook for various companies that it holds a stake in. Across the board, the investment company is quite positive on most of its holdings in the short term.

For instance, it believes TPG is now in a strong position to be a fierce competitor in the Australian telecommunications sector. Likewise, thermal coal pricing forecasts indicate further strength, boding well for its New Hope holding.

However, the Soul Pattinson share price might be weighed on in the short term from uncertainty in the building products business of Brickworks. Although, the company remains optimistic that pressures will alleviate with the continued rollout of vaccinations.

The post Soul Pattinson (ASX:SOL) share price wobbles as company touts track record appeared first on The Motley Fool Australia.

More reading

• Can the Brickworks (ASX:BKW) share price hit $30 by Christmas?
• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in
• Why has the Brickworks (ASX:BKW) share price slumped 5% in 9 days?
• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• Soul Patts (ASX:SOL) share price slips amid completed Milton merger

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. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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 Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is up 1.85% at time of writing to $1.93 per share. That’s a lift of more than 5% from its low of $1.83 in early morning trade.

Below, we take a look at what’s helping drive today’s rebound for the ASX healthcare share.

What did Paradigm report to the market?

The Paradigm share price is gaining after the company released a positive update on its Phase 2 Synovial Fluid Biomarker study.

The study involves participants with knee osteoarthritis (OA) and is “investigating changes in synovial fluid biomarkers associated with pain, inflammation and disease progression of OA”.

Paradigm said it has received approval from the ethics committee for its amendment to the Phase 2 study to evaluate the effectiveness of pentosan polysulfate sodium (PPS) (Zilosul) compared with a placebo.

The now approved amendments will see a once aweek dosing regimen along with a follow-up period of 12 months, up from the previous 6-month follow-up. A new site will also operate in New South Wales to increase patient recruitment which the company said has been hampered by COVID lockdowns in Victoria.

In addition, Paradigm also received approval from the ethics committee to conduct a parallel clinical trial in dogs. The company said the pathophysiology of OA is similar in humans and dogs. It expects to gain “relevant translational data” from the canine study.

Commenting on the trial progression, Paradigm’s chief medical officer Donna Skerrett said:

Paradigm is embarking on a number of approaches to further value PPS in the knee OA indication by exploring synovial biomarkers and evaluating duration of effect in clinical studies. Simultaneously, we are enhancing our understanding of mechanism of action and disease modifying potential by evaluating PPS in a canine OA study.

The combined information of these two studies will allow us to assess the potential disease modification capability of our OA program while we initiate the phase 2/3 pivotal study activity to assess PPS safety and efficacy for the pain and function indication.

Paradigm share price snapshot

The Paradigm share price has struggled this calendar year, down 24%. By comparison the All Ordinaries Index (ASX: XAO) has gained 12% year-to-date.

Over the past month, Paradigm shares are down 4%.

The post Why the Paradigm (ASX:PAR) share price is pushing higher today appeared first on The Motley Fool Australia.

More reading

• The Paradigm (ASX:PAR) share price is up 11% on Tuesday
• Why Limeade, Paradigm, Sandfire, & Vita shares are falling
• Paradigm (ASX:PAR) share price sinks 8% on FDA update

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 Liontown Resources Limited (ASX: LTR) share price is a gift that keeps on giving, surging 340% year-to-date with only momentary breathers along the way.

Earlier, the Liontown share price has added another 7.85% on Tuesday, lifting to a fresh all-time high of $1.855. At the time of writing, it has given up some of its gains and is now trading for $1.80, up 4.8%.

What’s driving the Liontown share price?

The broader ASX lithium sector is surging on Tuesday following some bullish overnight news.

Last night, the Tesla Inc (NASDAQ: TSLA) share price experienced a frenzy of buying after rental car company Hertz, revealed plans to buy 100,000 Teslas.

Tesla shares surged 12.66%, breaking above both the US$1,000 a share level and US$1 trillion market capitalisation for the first time on record.

The jump in valuation was on the back of significant volumes, with 62.85 million shares trading hands, the highest since early March.

The cheapest Tesla models cost around US$40,000, which implies that Hertz would splurge US$4 billion on its new electric vehicle fleet.

ASX lithium shares surged sharply following the news, with heavyweights Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) surging 7.4% and 4% respectively.

While a number of explorers are lifting double digit percentages including Piedmont Lithium Inc (ASX: PLL) and Lake Resources N.L. (ASX: LKE).

What does this mean for Liontown?

The Liontown share price is joining in on the buying frenzy, marking a new all-time high on Tuesday.

The surging demand for electric vehicles and lithium-ion batteries spells good news for the company, which is targeting lithium production by 2024.

Liontown owns the “globally significant” Kathleen Valley Project, a world-class lithium deposit with an initial ~40 year life of mine and competitive costs.

According to its recent company presentation, the company is “well progressed” with offtake agreements, with interest indicated for volumes far in excess of its production capacity.

The company’s planned production has made firm ESG commitments, targeting 50% renewable power for its first production in 2024. And scaling towards 100% renewable power and clean mining/fleet by 2034.

The post Why is the Liontown (ASX:LTR) share price roaring 5% higher today? appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 tech shares are leading the charge higher today
• Why ASX lithium shares are surging higher on Tuesday
• Core Lithium (ASX:CXO) share price jumps as project construction begins
• Tesla stock price rally places it in the trillion-dollar club
• Why Tesla stock jumped on Thursday

Motley Fool contributor Kerry Sun 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 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.

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The Bluechiip Ltd (ASX: BCT) share price is rocketing to a 3-month high today. This comes after the company announced a lucrative contract with California-based Fujifilm Irvine Scientific, Inc. (FISI).

At the time of writing, Bluechiip shares are surging 63.33% higher to 4.9 cents apiece.

Bluechiip signals strong growth opportunity ahead

Bluechiip develops temperature and tracking solutions for biosamples in the health and life sciences industries. Today, investors are driving up the Bluechiip share price following the company’s latest news to the ASX.

In its statement, Bluechiip advised it has signed a two-year licence and development agreement with FISI.

Founded in 1970, FISI is the world’s leading manufacturer of cell culture media, reagents, and medical devices. These products are used across cell therapy, regenerative medicine, assisted reproductive technology (ART), and industrial cell culture markets.

Under the agreement, FISI will pay Bluechiip to customise and develop a range of technologies for the ART (also known as in-vitro fertilisation, or IVF) market segment. The goal is to improve the traceability of samples and simplify workflows for FISI.

During this initial licence and development period, the companies will work together to agree on a supply agreement for the sale and distribution of the customised Bluechiip products including minimum volumes, pricing, and detailed commercial terms.

Commenting on the news fuelling the Bluechiip share price today, managing director Andrew McLellan said:

Our agreement with FISI will make some contribution to our revenues by way of licence and development fees over the next 18-24 months, but most importantly this agreement provides Bluechiip a solid foothold in a lucrative worldwide market, with a strong international partner.

With more than 2.5 million IVF cycles performed globally each year, the total potential market for a new FISI system incorporating Bluechiip enabled technology is attractive and is expected to result in significant business growth.

About the Bluechiip share price

Over the past 12 months, Bluechiip shares have moved sideways, resulting in a 2% loss for the period. However, its shares have gained around 13% this year to date.

Based on today’s price, Bluechiip has a market capitalisation of roughly $29.3 million, with approximately 597.9 million shares on issue.

The post Bluechiip (ASX:BCT) share price explodes 63% on Fujifilm deal appeared first on The Motley Fool Australia.

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

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