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The Facebook Inc (NASDAQ: FB) stock price had a pretty decent day of trading over on Monday’s trading session on the US markets. This morning (our time) Facebook shares closed at US$328.69, up 1.26% for the day. In after-hours trading, it was even better, with the social media giant rising a further 1.05% to US$332.15.

That last rise follows the release of Facebook’s earnings report for the quarter ending 30 September (Q3) after US market close this morning.

Facebook announced some healthy increases in revenue, and net income (up 35% and 17% year-on-year respectively). But the company also discussed its monster share buyback program.

Facebook stated that over the quarter just passed, the company “repurchased [US]$14.37 billion of our Class A common stock in the third quarter and had [US]$7.97 billion remaining on our prior share repurchase authorization as of September 30, 2021”.

Not only that, Facebook also stated that “we also announced today a [US]$50 billion increase in our share repurchase authorization”.

Facebook announces another US$50 billion in share buybacks

That’s not an insignificant number. Facebook has a total market capitalisation of US$926.72 billion at its last closing share price. With the US$22.34 billion in allocated and executed buybacks, along with the new US$50 billion just authorised, Facebook will be buying back roughly US$72.34 billion of its own stock. That’s the equivalent of 7.8% of its total market capitalisation – a major boon to investors.

Why is this buyback so good for shareholders?

A share buyback program usually sees the company in question purchase its own shares on the market. The shares are then ‘retired’. While this costs money, it also removes these shares from circulation.

Fewer shares outstanding means that existing shareholders are entitled to a larger cut of the company’s profits. That’s because there are fewer shares to divide the spoils between. It also means that all investors will own a greater percentage of Facebook when the buyback program is complete, than they do today.

Facebook doesn’t pay a dividend. But a share buyback program is an alternative method of returning capital to shareholders. It’s particularly popular with US companies, whose shareholders don’t enjoy the same franking benefits from dividends as we ASX investors do.

So it’s perhaps no surprise that the Facebook stock price has lifted in after-hours trading following the release of this earnings report. After all, its shareholders can look forward to owning roughly 7.8% more of this company when the buyback is completed.

 

The post Facebook (NASDAQ:FB) just announced a monster US$50 billion share buyback program appeared first on The Motley Fool Australia.

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• Why Facebook shares bounced back on Tuesday
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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 Crown Resorts Ltd (ASX: CWN) share price is surging this morning after the final report of the royal commission into Crown’s suitability to run Crown Melbourne found the company “unfit” but didn’t recommend stripping the embattled operator’s casino licence.

The 8-month royal commission uncovered what Commissioner Ray Finkelstein described as “disgraceful” conduct. However, the company’s recent reforms have inspired hope it could be suitable to run Crown Melbourne in the future.

Commissioner Finkelstein’s final report was tabled in the Victorian Parliament this morning. It states:

It was inevitable that Crown Melbourne would be found unsuitable to hold its casino licence. No other finding was open. The only difficult question was what should be done in that circumstance.

At the time of writing, the Crown share price is $10.59, 9.63% higher than its previous close.

Let’s take a closer look at Commissioner Finkelstein’s recommendations.

Crown to keep Victorian licence

The Crown share price is soaring after Commissioner Finkelstein recommended the company keep its casino licence under the close watch of a “special manager”.

The special manager, which Commissioner Finkelstein suggested will likely be a firm, will keep a close eye on Crown’s reforms for the next 2 years.

If, after that period, the manager finds Crown hasn’t returned to suitability, the company’s Victorian casino licence will be binned.  

The Victorian royal commission was investigating if money laundering was still occurring at Crown Melbourne, if the casino had breached other laws, restrictions, or obligations to the state, and how it treats those with gambling addictions.  

During the commission, Crown was found to have underpaid around $37 million of casino tax between 2012 and 2021.

Crown was also found to have allowed Chinese patrons to breach Chinese currency laws. It billed $160 million of gambling spending as hotel expenses. The report found doing so contravened both Australian and Chinese laws and likely led to money laundering.

The royal commission also heard from many people who might have been protected from problem gambling if Crown staff had carried out their obligations under Crown Melbourne’s Gambling Code.

The report states:

Crown Melbourne’s board failed to carry out one of its prime responsibilities; namely, to ensure that the organisation satisfied its legal and regulatory obligations…

Although Crown Melbourne rightly deserves criticism for its past misconduct, and no one connected with the organisation is entitled to much sympathy, what tipped the balance against the cancellation of its licence was that Crown Melbourne has, at great financial cost, embarked on a significant reform program led by people of good will and skill. The program is likely to succeed. If it does, that will be to the benefit of Victoria.

Crown share price snapshot

If today’s gains hold, the Crown share price will have taken back the losses it’s made since the Bergin Report first questioned the company’s suitability to run Australian casinos.

Right now, it’s 4.4% higher than it was when the Commissioner Patricia Bergin’s report dropped in February.

The post Crown (ASX:CWN) share price surges 9% as Victorian casino licence pronounced safe 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. 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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Once a week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Redbubble Ltd (ASX: RBL) has become the most shorted ASX share after seeing its short interest shoot higher to 10%. A recent disappointing quarterly update from this ecommerce company appears to have given short sellers greater conviction.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest fall week on week to 9.9%. Short sellers appear to believe the market is overvaluing the travel agent’s shares.
• Webjet Limited (ASX: WEB) has short interest of 9.2%, which is down slightly week on week. As with Flight Centre, short sellers don’t appear to believe Webjet’s shares deserve to trade on the multiples they are currently commanding.
• Mesoblast limited (ASX: MSB) has seen its short interest ease week on week to 8.9%. Concerns over this biotech company’s balance sheet continue to weigh on its shares.
• Kogan.com Ltd (ASX: KGN) has short interest of 8.9%, which is down week on week. Although the ecommerce company reported an improved performance last week, its shares have continued to slide.
• Inghams Group Ltd (ASX: ING) has 8.2% of its shares held short, which is flat week on week. There are fears that high grain costs could be squeezing this poultry producer’s margins.
• Zip Co Ltd (ASX: Z1P) has seen its short interest fall notably to 7.8%. Last week Zip released its first quarter update and revealed another record quarterly performance. This may have led to some short sellers closing positions.
• Electro Optic Systems Hldg Ltd (ASX: EOS) has 7.8% of its shares held short, which is down week on week. This defence and space company’s shares are currently halted while it prepares to announce an earnings guidance downgrade and an update on an expected significant contract payment.
• Cooper Energy Ltd (ASX: COE) has 7.1% of its shares held short, which is down week on week. This energy producer’s shares have come under pressure this year due to the poor performance of the Sole Gas operation.
• BHP Group Ltd (ASX: BHP) is a new entry in the top ten with 6.6% of its shares held short. Other than concerns about falling iron ore prices, it remains unclear why this mining behemoth has seen a sudden uptick in short interest.

The post These are the 10 most shorted ASX shares 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. owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited, Kogan.com ltd, and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Zip Co Ltd (ASX: Z1P) share price is currently higher amid news that the buy now, pay later operator is linking up with a business in the childcare sector.

According to reporting by The Australian, from next month families will have the ability to pay for childcare at more than 10,000 centres in Australia and New Zealand by using buy now, pay later.

Zip is working with Xplor Education which provides administration and parental support to childcare centres. The buy now, pay later option will be added to payment options with centres linked with Xplor Education.

There are two benefits that will supposedly come from a shift to buy now, pay later. The first is that Xplor Education aims to make childcare more affordable and flexible for families. The other area is saving on time because of how often staff are chasing fees and collecting invoices.

The Australian quoted Xplore Education CEO Mark Woodland, who said:

We know there is demand for tailored payment options in the Australian market, and believe this innovative initiative will improve access to childcare for more families. What we’ve added through the Zip partnership is the ability for parents to spread the cost of childcare, which can be incredibly expensive. Parents usually have to choose between picking up an extra shift and having to choose if their child can go into care or not, and they just don’t have the means to fund it.

One of the areas that investors may look at when deciding what to value the share price is its transaction volume, which Zip is probably hoping will rise from this partnership.

How will it work?

The Australian reported that new customers would be subject to credit checks. However, childcare customers wouldn’t be paying in four equal instalments. Zip’s commercial director, Colin Baines, explained that families can change the monthly repayments to repay multiple invoices.

Mr Bains said:

They’re paying it off on a monthly cycle, so it actually helps from a budgetary and management perspective with customers.

Consumers can opt to pay the minimum amount that’s required with us, or they can choose to make additional payments. We work with our consumers in relation to the payback and how they are paying those moneys back, and we find that only 1 per cent of all our consumers across the platform fall into a position where they can’t make repayments with us.

Zip share price snapshot

The buy now, pay later business is currently up by 1.2% at the time of writing. That compares to the S&P/ASX 200 Index (ASX: XJO) which is up 0.2%.

The broker UBS still rates Zip shares as sell, with a price target of $5.40. One of the things it notes is the recent proposed rules relating to payment surcharges.

The post Zip (ASX:Z1P) share price up amid childcare partnership news appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. 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 Camplify Holdings Ltd (ASX: CHL) share price is racing off to all-time highs on Tuesday after the company announced the acquisition of two Australia and New Zealand based acquisitions.

At the time of writing, the Camplify share price is up 12.7% to $4.79.

Camplify now positioned as the largest player in New Zealand

Camplify has entered into an agreement to acquire the Mighway and SHAREaCAMPER business and its assets in Australia and New Zealand.

According to Camplify, the acquisition will position the company as the largest peer-to-peer market place in the New Zealand market, adding an additional ~900 RVs to its Camplify platform.

Mighway and SHAREaCAMPER have been operating in the New Zealand market for more than four years and are positioned as the first and second largest players by fleet and transactions figures.

The strategic expansion will cost up to $7.37 million paid in shares and is subject to any final adjustments based on future bookings and fleet acquisition calculations.

The shares will be paid in two equal tranches of $3.685 million, the first taking place upon completion and the second in 12 months time.

The purchase price represents a 5.46 multiple of Mighway and SHAREaCAMPER’s FY21 revenues.

The transaction is expected to be complete on 30 November, based on the achievement of condition precedents.

Management commentary

Camplify CEO and founder Justin Hales commented on the transaction, saying:

This acquisition delivers Camplify a strategic and targeted growth opportunity in two of our key markets. It solidifies our owner and consumer base for future growth, and establishes a relationship between RV-industry leaders that will leverage cross promotional marketing benefits, and deliver value-added services to van-owners in New Zealand and Australia.

The timing is ideal. Our New Zealand growth performance has already been strong, and with the expected return of unrestricted Australia and New Zealand travel, our New Zealand-based RV owners are excited about welcoming back Aussies in 2022.

Camplify share price snapshot

It was just a few months ago that Camplify made its ASX debut at an initial public offering price of $1.42 a share.

The Camplify share price was off to a wobbly start, closing at $1.40 and trading sideways for the next two months.

The company’s operational performance has been weighed down by widespread lockdowns across Australia and New Zealand, but management remains optimistic about the expected rebound in unrestricted travel.

Today’s sharp move up brings its year-to-date return to a cool 240%.

The post Camplify (ASX:CHL) share price jumps 10% to fresh all-time highs on two acquisitions appeared first on The Motley Fool Australia.

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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 Camplify Holdings Limited. 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 Core Lithium Ltd (ASX: CXO) share price is lifting today. This comes after the company announced the commencement of construction at its flagship Finniss lithium project in the Northern Territory.

At the time of writing, the Core Lithium share price is up 4.39% to 59.5 cents.

What did Core Lithium announce?

Core Lithium has entered the construction phase of its new lithium mine following its final investment decision on 30 September.

The company said road access works, site establishment, and construction of communications, fuel, and water supply infrastructure are now under way.

In addition, early works at Finniss’ Grants open-pit mine have begun in preparation for the start of mining activity later this year. The construction of a dense media separation (DMS) processing plant will follow in March 2022.

Commissioning of the DMS plant and the first production of lithium concentrate is scheduled for Q4 2022.

Core Lithium said the construction of a 1 million tonnes per annum DMS processing plant will enable it to produce high-quality concentrate over its mine life.

The project has gained all Northern Territory government and environmental approvals and is fully funded. This follows the successful raising of $150 million from institutional investors and shareholders.

Additionally, Core Lithium has secured approximately 80% of Finniss’ initial output under 4-year offtake agreements with China’s Ganfeng and Yahua.

Management commentary

Commenting on the news driving the Core Lithium share price today, managing director Stephen Biggins said:

At a time when Australia is firmly focused on both the generation of renewable resources and future job prospects for the regions, Core is incredibly proud of this milestone we’ve reached in the Northern Territory today.

This next phase of the company will be transformational, and we are excited to see construction milestones met at Finniss over the coming 12 months, ahead of first production before the end of 2022.

Core Lithium share price snapshot

The Core Lithium share price has ballooned around 300% year-to-date. This comes off the back of surging lithium prices and a heightened investor focus on renewables. It is also up more than 1,000% over the past 12 months.

The post Core Lithium (ASX:CXO) share price jumps as project construction begins appeared first on The Motley Fool Australia.

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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 Reliance Worldwide Corporation Ltd (ASX: RWC) share price is falling on Tuesday.

In morning trade, the plumbing parts company’s shares are down 0.5% to $5.15.

Why is the Reliance Worldwide share price falling?

The Reliance Worldwide share price is falling on Tuesday following the release of two announcements.

The first reveals that the company has entered into an unconditional agreement to acquire EZ-FLO International for US$325 million.

The release notes that this reflects a 12x multiple of EZ-FLO’s pro forma adjusted operating earnings before synergies, and 7x pro-forma adjusted EBITDA including expected revenue and cost synergies.

EZ-FLO is a leading manufacturer and distributor of plumbing supplies. This includes plumbing specialty products, appliance supply lines, flexible water connectors, gas connectors, and other accessories.

It was established in 1980 and has grown rapidly by continuously expanding its product range. This includes through the acquisition of the EASTMAN brand in 2000, which is the leading brand in large appliance connectors in the US.

Management notes that taking control of the EASTMAN brand will immediately position Reliance Worldwide as a leader in supporting all those who service major appliance installations. This includes plumbed appliances, gas, hot water, and dryer venting.

The acquisition will be funded through debt, utilising headroom within the company’s existing syndicated facility agreement. This is expected to result in the company’s pro-forma Net Debt to Pro Forma EBITDA ratio increasing to 1.78x from 0.62x.

Reliance Worldwide’s Chief Executive Officer, Heath Sharp, commented: “The acquisition of EZ-FLO is strongly aligned with RWC’s strategy of adding complementary products that broaden the depth of solutions offered to end users and expand our market presence in aligned sectors. Together, we manufacture some of the most trusted brands in the industry, including SharkBite, HoldRite, John Guest, Speedfit, Cash Acme. With EZ-FLO and EASTMAN, the number one brand in the U.S. appliance connector market, we will be positioned as a leader in supporting all those who service Major Appliance installations.”

Trading update

Possibly holding back the Reliance Worldwide share price today was the release of a trading update which revealed modest first quarter growth. This reflects the company’s battle with supply chain headwinds and the cycling of strong sales and profit growth in the prior corresponding period.

According to the release, net sales increased 8.3% over the prior corresponding period to US$246 million, whereas adjusted earnings before interest and tax (EBIT) grew just 3.9% to US$55.4 million amid margin pressures.

Mr Sharp commented: “The demand drivers associated with increased repair and remodelling activity have continued to underpin volumes, and the significant step up in demand we saw in FY21 has consolidated at these higher levels. Looked at on a 2-year comparative basis, our first quarter sales were 29% higher than for the same period in FY20.”

“Supply chain constraints including shipping delays, freight and logistics disruptions, and raw materials shortages, have all been headwinds in the first quarter that have suppressed volume growth. While these have not always impacted RWC directly, they are having a knock-on effect throughout the construction sector,” he added.

And while the company has warned that these supply chain constraints are likely to remain headwinds for much of FY 2022, it “believes it is well placed, however, with its local manufacturing operations and strong track record of class-leading customer execution to navigate these challenges and respond to customer needs.”

The post Reliance Worldwide (ASX:RWC) share price falls despite acquisition news and trading update appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday

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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Reliance Worldwide Corporation 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 Oil Search Ltd (ASX: OSH) share price is lifting from the market open, currently trading 0.67% higher at $4.51.

Oil Search’s shares are on the move this morning amid the release of its quarterly update for the period ended 30 September 2021.

Here are the details out of the oil and gas producer’s camp today.

Oil Search share price lifts amid quarterly results

The company outlined its progress for the quarter, including several investment takeouts. Here are the highlights:

• Full year production guidance narrowing from 25.5-28.5Mmboe to 26-28Mmboe
• Forecast full year investment expenditure of US$185-$275 million, down from estimates of US$250-$350 million
• Q3 production came in at 6.89Mmboe, a 4.6% quarter on quarter growth
• Sales volume up 2.1% from the previous quarter with 6.84Mmboe in Q3
• Operating revenue growth of 12% from the quarter prior at US$408.8 million
• Maintains full year production cost per barrel-of-oil equivalent of US$10.50 to US$11.50.

What happened in the third quarter for Oil Search?

Oil Search realised a healthy quarter of sales and operating revenue growth, supported by a strong commodity base.

Operating revenue for Q3 came in 12% higher than the previous quarter at US$409 million. This was propped up by an approximate 5% jump in total production to 6.89MMboe.

The company also saw a higher LNG and gas price on its sales this quarter, with pricing coming in 16% higher to US$10.02/mmBtu.

Oil Search also reported “good progress across all major growth projects”, particularly the ramp-up of its Papua LNG project’s activities “as operator targets FEED entry in 2022”.

The company’s update also notes Oil Search’s Pikka Phase 1 FEED technical work and assurance is nearing completion.

Perhaps the most important takeout in Oil Search’s growth engine is the progress being made with the Santos Ltd (ASX: STO) merger to form an oil and gas superpower.

Both parties signed a Merger Implementation Deed in early September after a period of extensive due diligence and what seemed like a game of deal-based ping pong throughout the year.

What’s the outlook for Oil Search?

The company also narrowed its guidance range for full-year production, now seeing a range of 26-28Mmboe, down from 25.5-28.5Mmboe.

In addition, Oil Search lowered its full-year investment expenditure guidance this quarter.

This is due to limited contractor mobility into PNG as a result of COVID-19 and reduced capital budgeting on the company’s Pikka project.

It now sees full-year investment expenditure of US$185 million to US$275 million, a roughly 24% decrease from its previous guidance range of US$250 million to US$350 million.

With respect to the Santos merger, the next step will be a first court hearing in PNG after which the documents related to the scheme will be distributed to shareholders.

What did management say?

Speaking on the announcement, Oil Search acting CEO Peter Fredricson said:

Oil Search delivered another strong quarter of production, which was up 5% on the previous quarter, demonstrating the resilience of our operations and sustained commitment to the safety of our people and maintaining safe and reliable production.

Regarding the company’s outlook into the full year and beyond, Fredricson added:

Our outlook for the 2021 full year remains positive as we tighten our production guidance and maintain our operating cost guidance despite the additional costs associated with the management of the impact of COVID-19. Both LNG and oil markets remain strong, with spot LNG markets continuing to exhibit high volatility and record highs which is a supportive environment for market soundings in respect of new medium-and-longer term LNG sales contracts.

The Oil Search share price has posted a return of 53% in the past 12 months, after rallying another 21% this year to date.

The post Oil Search (ASX:OSH) share price up amid tighter production forecast appeared first on The Motley Fool Australia.

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The author Zach Bristow 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 Ampol Ltd (ASX: ALD) share price is on the move on Tuesday.

At the time of writing, the fuel retailer’s shares are up 1% to $31.53.

What’s driving the Ampol share price higher?

Investors have been bidding the Ampol share price higher today following the release of its third quarter update.

According to the release, the company delivered strong profit growth during the quarter despite battling lockdowns in New South Wales and Victoria.

Ampol reported unaudited Fuels & Infrastructure (F&I) earnings before interest and tax (EBIT) of $83 million. This was up from a loss before interest and tax of $19 million a year earlier and was driven by an improved performance by the Lytton refinery business.

Lytton Refinery RCOP EBIT came in at $22 million. This reflects the continued improvement in the Singapore Weighted Average Margin. The Lytton Refiner Margin (LRM) for the quarter was US$6.76/bbl, up from US$5.90/bbl during the first half. Total production for the quarter was 1,565 ML compared with nil in the third quarter last year.

Things weren’t quite as positive for the Convenience Retail (CR) business, which reported a 62% decline in EBIT to $33 million. This reflects the New South Wales and Victorian lockdowns, with fuel volumes down 16% compared with the same time last year.

Nevertheless, Ampol ultimately reported a 76% increase in unaudited third quarter EBIT to $102 million.

Management commentary

Ampol’s Managing Director and CEO, Matt Halliday, said: “The third quarter was a challenging period for many businesses and Ampol was no exception. In the face of extended lockdowns on the East Coast our business and our people responded, focusing on the safety of our team members and customers and cost control.”

Mr Halliday appears optimistic that the end of lockdowns will boost its performance.

He commented: “The recent announcements from the New South Wales and Victorian State governments to lift COVID restrictions linked to higher vaccination rates is encouraging. While we do expect volumes to begin to recover as consumer mobility increases, crude and refined product prices have continued to trend higher in recent weeks. This will benefit Lytton’s profitability but will temper retail margins in the short term.”

“Additionally, the reopening of domestic and international borders will be positive for jet demand. While it will take a little time to assess the strength of the recovery, we are optimistic about entering 2022 with improved momentum as restrictions are progressively eased,” the CEO concluded.

The Ampol share price is up 11% in 2021.

The post Ampol (ASX:ALD) share price higher following Q3 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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It was a historic moment overnight in the United States, as the Tesla Inc (NASDAQ: TSLA) stock price sailed across the US$1,000 mark. In the process, the electric vehicle (EV) maker has eclipsed the illustrious trillion-dollar club market capitalisation.

Following a deluge of broker updates and positive catalysts, Tesla is now a part of a distinguished group that is limited to a select few. The EV company joins the likes of other trillion-dollar companies including Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), and Amazon.com Inc (NASDAQ: AMZN).

Let’s take a look at what might have helped get Tesla fly past the trillion-dollar checkered flag.

Hertz so good

A contributing factor to the Tesla euphoria expressed overnight is Hertz move to make an initial order of 100,000 Teslas by the end of 2022. The car rental company shared the news in a press release last night — revealing its ambitions to offer the largest EV rental fleet in the United States, and one of the largest in the world. The choice to go with a Tesla fleet over other EV alternatives likely assisted the Tesla stock price overnight.

Commenting on this decision, Hertz interim CEO Mark Fields stated:

Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest. The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.

According to the release, by early November customers will be able to rent a Tesla Model 3 from Hertz. These will be made available across Hertz airport and neighbourhood locations in major markets across the US and some European cities.

The Hertz fleet will be comprised of more than 20% of EVs based on the initial 100,000 vehicle order. Additionally, Hertz 100,000 order will go a long way towards helping Tesla surpass 1 million vehicle deliveries in 2022.

Analysts lifting Tesla stock price targets

The Tesla share price ascension accelerated following the release of its third-quarter results. These results beat both revenue and earnings expectations.

In Q3, the company achieved US$13.76 billion in revenue and US$1.86 of earnings per share (EPS). This represented an increase of 57% and 145% respectively year-over-year. Hence, a handful of analysts had to go back to the drawing board and revise their Tesla stock price targets.

For instance, analysts at Morgan Stanley have now revised their price target to US$1,200. That is an upgrade of US$300 from the analysts’ prior target of US$900.

Likewise, analysts at Wedbush refined their target to US$1,100 from US$1,000. The team of Dan Ives and John Katsingris anticipate a “green tidal wave” for 2022.

Finally, the Tesla share price is up more than 143% over the past 12 months. Whereas, the S&P 500 Index is up 34.3% during the same timeframe.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Apple and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon and Apple. 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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