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If you don’t have sufficient funds to build a diverse portfolio, then exchange traded funds (ETFs) could be a quick fix.

The reason for this is that ETFs give investors access to a large number of different shares through a solitary investment. This allows you to spread your funds far wider than you would if you were buying individual shares.

With that in mind, I have picked out three ETFs that trade on the ASX that could be good options. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If you’re interested in the US tech sector, then the BetaShares NASDAQ 100 ETF could be one to consider. This ETF provides exposure to the 100 largest non-financial shares on the NASDAQ index. Among the 100 shares included in the fund are household names such as Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another ETF for investors to look at is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to companies involved in the growing video gaming market. Among the shares included in the fund are hardware giant Nvidia and game developers Take-Two and Electronic Arts. VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to a massive 1,505 of the world’s largest listed companies from major developed countries. This arguably makes it as diverse as it gets for investors. Among the companies you’ll be buying a slice of are Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa. Vanguard notes that this allows investors to participate in the long-term growth potential of international economies outside Australia. It also offers a modest dividend yield of ~1.6%.

The post 3 top quality ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

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• 2 ETFs for strong diversification in September 2021

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF 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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The Dicker Data Ltd (ASX: DDR) share price is again in negative territory today following two weeks of significant losses. 

The dramatic fall in the company’s shares follows the IT distributor’s announcement of director transactions.

At the time of writing, Dicker Data shares adding to its woes, are down a further 2.09% to $13.10. This means that since 26 August, the company’s share price has fallen 21%.

Why is Dicker Data shares coming under pressure?

Investors are continuing to head for the hills, selling Dicker Data shares after a worrying market update on 27 August.

According to its release, the company revealed that its chair and CEO, David Dicker sold a portion of his shares.

The news didn’t go down well with investors, sending the Dicker Data share price down 9% on the day.

Mr Dicker offloaded a total of 2.74 million shares in an on-market trade at a price of $15.40 per share. The company advised that the sale was in relation to meet “personal projects” by the chair and CEO.

The transaction represented roughly 1.6% of Dicker Data’s share registry and reduced Mr Dicker’s entire holding to about 33.6%.

To appease shareholders, the company said that Mr Dicker entered into a lock-up arrangement on his remaining shares until the end of 2021.

However, taking advantage of the share price weakness, a number of directors took the opportunity to top up their holdings. While it was nowhere near the amount transacted by Mr Dicker, the company’s share rose 5% on the update.

Unfortunately, since the 2 September buying, Dicker Data shares have given back those gains.

Dicker Data share price summary

Over the past 12 months, Dicker Data shares have accelerated by almost 80%, with year-to-date above 25%. The company’s share price reached an all-time high of $16.60 following the release of its interim results for FY21.

Based on today’s price, Dicker Data commands a market capitalisation of around $2.27 billion, with 172.8 million shares on issue.

The post Dicker Data (ASX:DDR) share price continues to slide, down 21% since late August appeared first on The Motley Fool Australia.

More reading

• Which ASX shares are set to finish the week as the top movers on the ASX 300?
• Here are the top 10 ASX 200 shares on Thursday
• Why Altium, Catapult, Dicker Data, & PolyNovo shares are charging higher
• Dicker Data (ASX:DDR) share price surges 5% as directors buy the dip
• Which ASX 300 shares are the biggest winners and losers on Thursday?

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. 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 IOUpay Ltd (ASX: IOU) share price is climbing higher after the ASX fintech company emerged from yesterday’s trading halt.

After initially rocketing 22%, the IOUpay share price has given back some of those gains and is currently up 3.23% to 32 cents per share.

Below we look at the company’s acquisition announcement that looks to be driving investor interest.

What acquisition announcement did the company make?

The IOUpay share price is gaining today after the company reported it is acquiring a 42% stake in I.Destinasi Sdn Bhd (IDSB).

IDSB provides long-term installment-based consumer credit services in Malaysia.

IOUpay said IDSB is a complementary business “with prospective collaboration opportunities for cross-selling” between its short-term buy now, pay later offerings (which run up to 6 months) and IDSB’s longer-term consumer loan products, which run up to 10 years.

According to the release, IDSB “holds a unique and highly valuable AG Code2 licence”. This provides it with a significant competitive advantage in Malaysia consumer credit market. There are only 2 companies holding an AG Code2 licence in the country.

IOUpay will pay RM126 million (AU$41.3 million) for its 42% stake in 2 tranches over a 6-month period. It said that price won’t be increased “if IDSB outperforms an audited profit before tax” for the 2021 financial year.

On the other hand, the purchase price could be decreased if the profit before tax is less than RM30 million (AU$9.8 million) for FY21.

IOUpay will fund the acquisition with a 50% upfront cash consideration from its current cash holdings. The remaining 50% is scheduled to be paid in 6 months. The company said it will assess the appropriate payment method closer to that time.

IOUpay share price snapshot

Over the past 12 months, the IOUpay share price has rocketed 550%. This far outpaces the 27% gains posted by the All Ordinaries Index (ASX: XAO) over that same time.

IOUpay’s shares are up 30% over the last month.

The post Why the IOUpay (ASX:IOU) share price is leaping higher appeared first on The Motley Fool Australia.

More reading

• IOUPay (ASX:IOU) share price soars 10% on news of BNPL offering

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 Epsilon Healthcare Ltd (ASX:EPN) share price is rocketing today, up more than 16% to 18 cents per share.

The company entered a trading halt on Monday before the market open pending today’s announcement. Epsilon’s share price closed at 15 cents on Friday.

We take a look at the announcement from the microcap ASX cannabis share.

What did Epsilon announce?

The Epsilon share price is soaring after the company reported it has entered into a partnership with The Valens Company Inc (TSX: VLNS) for access to Epsilon’s Southport Manufacturing Facility.

Valens is involved in the production of cannabis products. Its shares currently trade on the Toronto Stock Exchange, and it has applied to list on the NASDAQ.

The partnership with Epsilon will aid Valens’ growth strategy into international GMP markets via access to Epsilon’s GMP manufacturing capability at the Southport Facility. Southport is the largest cannabis extraction facility in the Southern Hemisphere.

Epsilon has been granted a licence to use Valens IP to streamline operations at its Southport Facility. Valens will also provide personnel and support.

As part of the partnership, Valens won’t sell any medicinal cannabis in Australia or New Zealand that doesn’t come from the Southport Facility. Valens will also “fund all future operational and capital expenditure” at the facility in return for access to up to 85% of the output.

What else is moving the Epsilon share price?

Epsilon’s share price may also be getting a lift today from the company’s accompanying announcement that it has entered into a Share Sale Agreement with Cannvalate Pty Ltd to acquire AlternaMed Pty Ltd. This includes Cannvalate’s portfolio of IP covering 3 “novel cannabinoid therapeutic agents with a view to Schedule 3 medicines production”.

Epsilon will issue some 28 million shares, worth $4.3 million at 15 cents per share, to acquire AlternaMed. The acquisition remains subject to customary approvals.

Commenting on the announcements, Valens’ CEO, Tyler Robson said:

We are excited to work with the largest and most advanced cannabis manufacturing facility in the Southern Hemisphere to distribute GMP products, and look forward to advancing our product distribution capabilities through our continued partnership with Cannvalate.

Epsilon’s CEO, Jarrod White, added:

Having worked with the teams at Valens and Cannvalate over the preceding months to achieve what is a transformational partnership for Epsilon and its Southport Facility, I am excited to see the maturing of Epsilon’s core assets and business into commercial production with experienced partners from established markets.

With this long term strategic partnership now agreed, Epsilon is well placed to be a leading contract GMP manufacturer of medicinal cannabis medicines in the region.

Epsilon share price snapshot

The Epsilon share price is down 30% year-to-date. This compares to a gain of 10.5% posted by the All Ordinaries Index (ASX: XAO) in 2021.

Over the past month, Epsilon’s share price is up 16%.

The post Why the Epsilon (ASX:EPN) share price is soaring 16% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Tech shares fall, Fortescue upgraded
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 falls, Macquarie jumps, Aussie Broadband climbs
• Here are the 3 heaviest trading ASX 200 shares today
• Here are the top 10 ASX 200 shares on Wednesday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Valens GroWorks Corp. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Valens GroWorks. 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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Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Lendlease Group (ASX: LLC)

According to a note out of Morgan Stanley, its analysts have downgraded this engineering company’s shares to an underweight rating and reduced the price target on them to $11.40. The broker has concerns over whether Lendlease’s longer term production targets are sustainable and sees limited upside in the near term. The Lendlease share price is trading at $11.26 today.

Macquarie Group Ltd (ASX: MQG)

A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this investment bank’s shares to $153.00. This follows the release of a decent trading update this week which revealed that a better than expected performance is being forecast by management. However, the broker holds firm with its sell rating on valuation grounds. It feels the company’s shares are expensive at the current level. The Macquarie share price is fetching $177.34 on Thursday.

Pro Medicus Limited (ASX: PME)

Analysts at Goldman Sachs have downgraded this health imaging technology company’s shares to a sell rating with a slightly reduced price target of $54.00. According to the note, the broker was pleased with Pro Medicus’ performance in FY 2021. And although it believes the company is well-placed to continue its strong growth, it feels its valuation is getting stretched. Goldman notes there is insufficient visibility to justify a 63x forward sales multiple. The Pro Medicus share price is trading at $58.50.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

More reading

• The Macquarie (ASX:MQG) share price has gained 3 times that of CBA over 5 years
• ASX 200 (ASX:XJO) midday update: Tech shares fall, Fortescue upgraded
• Top broker gives its verdict on the Macquarie (ASX:MQG) share price
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 falls, Macquarie jumps, Aussie Broadband climbs

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 Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Pro Medicus 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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The S&P/ASX 300 Index (ASX: XKO) is heavily down today following yesterday’s losses.

At the time of writing, the ASX 300 has fallen 1.07% to 7,433 points. This means that the index has erased all of this month’s gains so far.

Let’s take a look at which ASX companies are leading the charge today.

Novonix Ltd (ASX: NVX)

The Novonix share price is again topping the charts, surging another 7.37% to $5.83 during early afternoon trade.

Despite no news coming out of the lithium company, investors appear to be bullish on its future prospects. 

It’s worth noting that Novonix shares hit an all-time high of $6.10 before some profit-taking took hold. The company’s share price has gained almost 80% in the past month.

PPK Group Limited (ASX: PPK)

Another big mover on the ASX 300 is the PPK share price, up 5.06% to $20.96.

The technology and mining equipment company also hasn’t reported anything new since its preliminary full-year results on 31 August.

However, just last week, S&P Dow Jones announced changes in the S&P/ASX Indices. As such, PPK will be officially included in the ASX 300 Index prior to the market open on September 20.

The company’s shares hit a record high of $21 today.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is pushing 4.39% higher to $14.98 following continued interest in the battery materials sector.

The company’s shares are being added to the ASX 300 Index. This enables fund managers to include Vulcan shares when investing in the S&P/ASX Indices.

And the biggest fallers?

Virgin Money UK PLC (ASX: VUK)

The worst performer on the ASX 300 today is the Virgin Money UK share price, down 6.52% to $3.655.

While no market sensitive news has been officially released by the company on the ASX, a news report from Business Wire has shed some light.

According to the publication, United States-based Global Payments has formed a strategic alliance with Virgin Money UK. The partnership agreement aims to redefine the future of digital commerce with the launch of a new connected payment offering.

Despite the positive announcement, Virgin Money UK shares are continuing to be under pressure from investors, falling four consecutive days.

Australian Strategic Materials Ltd (ASX: ASM)

Lastly, Australian Strategic Materials shares have crashed 5.05% to $11.85 on Thursday.

The rare earth elements company’s shares have soared close to 50% over the past month. It seems investors are selling for a profit following the sharp rise of Australian Strategic Materials shares during August.

The post Which ASX 300 shares are making headlines on Thursday? appeared first on The Motley Fool Australia.

More reading

• Anson (ASX:ASN) share price leaps 19% on Novonix test results
• Why Novonix, ResMed, Senex, & Weebit Nano shares are charging higher
• Which ASX shares are making a move on the ASX 300?
• Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher
• Which ASX 300 shares are making the biggest moves on Tuesday?

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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The Anson Resources Ltd (ASX: ASN) share price is soaring after the company released its latest battery test work results.

The test work, completed by Novonix Ltd (ASX: NVX), found lithium products from Anson’s Paradox Brine Project performed well in lithium-ion battery test cells.

Right now, the Anson share price is up 17.3%, trading at 11.5 cents after shooting 19.39% higher in opening trade.

Let’s take a closer look at today’s news from the company providing resources for the new energy and technology markets.

Positive battery test results

The Anson Resources share price is surging on the back of positive battery test results.

Anson has announced its lithium carbonate product performed better than a commercial product blend during testing.

Additionally, its lithium hydroxide monohydrate product showed a similar performance to that of other available products.

Anson also reported that, during ultra-high precision chargers testing, its products showed lower capacity losses. This means its products could create batteries with longer life spans.

It’s the second set of positive results Anson has received from Novonix this year. In March, Novonix found Anson’s lithium hydroxide and its lithium carbonate materials performed better than existing commercial products.

The company will share the new test work results with potential offtake partners and customers.

Anson’s chair and CEO, Bruce Richardson, noted that the positive results from Novonix left Anson with potential for extra exposure as Novonix provides testing equipment, research, and development to Tier 1 battery makers.

Commentary from management

Richardson commented on today’s news, saying:

The results from Novonix’s test work clearly demonstrates that the lithium carbonate and lithium hydroxide produced from the Paradox brines have the necessary specifications that Tier 1 battery makers may require…

The results confirm and enhance the results for the earlier test work conducted by Novonix on behalf of Anson. The purity of the Anson product provides it with a performance advantage over existing commercial products which is expected to attract lithium-ion producers that are aiming to provide a high-performance product.

As well, demand for such a sustainably-produced and responsibly-sourced product is growing in North America and Europe as electric vehicle makers look to bolster their ESG credentials.

Anson share price snapshot

Today’s gains included, the Anson share price is currently 290% higher than it was at the start of 2021. It has also gained 485% since this time last year.

The post Anson (ASX:ASN) share price leaps 19% on Novonix test results appeared first on The Motley Fool Australia.

More reading

• Which ASX 300 shares are making headlines on Thursday?
• Why Novonix, ResMed, Senex, & Weebit Nano shares are charging higher
• Which ASX shares are making a move on the ASX 300?
• Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher
• The Novonix (ASX:NVX) share price surges another 5% on Thursday

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 Nova Minerals Ltd (ASX: NVA) share price has soared into the green on Thursday after the company made a key announcement.

At the time of writing, Nova shares are up 7.69% to 14 cents.

Let’s investigate further.

What did Nova Minerals announce?

In what was deemed a positive for the Nova Minerals share price, the company announced that a “large scale gold discovery” has been confirmed at its flagship Estelle Gold Project in Alaska.

Nova advised the maiden drill program at its RPM prospect at the project had “returned impressive results”. As such, drilling at this site is complete and the goal is now set on “delineating a maiden resource by late 2021”.

An additional diamond drill rig is expected on site “in the coming weeks to ramp up Korbell infill drilling”. This will “expand and prove-up resource to indicated status”, according to the release. Investors can expect an update on this in the fourth quarter.

The “significant intercepts” at the prospecting site “validates Nova’s strategy to unlock” the greater Estelle gold district, the company said.

What did management say?

Speaking on the announcement that is driving the Nova Minerals share price, CEO Christopher Gerteisen said:

This marks a major milestone for Nova Minerals. RPM is now confirmed as the next discovery within the Estelle Gold Project. Unlocking the district is no longer merely a plan — we HAVE unlocked it.

The gravity of this is huge for the company as well as the greater resource sector as it positively demonstrates we have another gold deposit that will add significant ounces to the global resource inventory at the Estelle Gold Project.

What’s next for the Nova Minerals share price?

According to the announcement, Nova’s “geological reconnaissance team” has completed field programs and has “unlocked further targets within the Estelle gold district”.

As a result, investors can expect more news on this as results and findings become available.

In addition, assay results are now pending for “over 10,000 metres of drilling” from Nova’s Korbel and RPM sites.

Finally, the company advised that a Snow Lake Resources update is due shortly. For reference, Snow Lake is Nova’s majority-owned lithium company.

Nova Minerals share price snapshot

The Nova Minerals share price has had a choppy year to date, posting a loss of 12.5% since January 1.

Despite this, Nova shares have still climbed 57% into the green over the last 12 months. In the last month alone, Nova shares have gained a further 27%.

This has outpaced the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the past year.

The post Nova Minerals (ASX:NVA) share price jumps on gold discovery appeared first on The Motley Fool Australia.

More reading

• Here’s why the Nova Minerals (ASX:NVA) share price is up 13% on Friday

The author Zach Bristow has no positions 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 Telstra Corporation Ltd (ASX: TLS) share price has been one of the better performing S&P/ASX 200 Index (ASX: XJO) shares over the past few months. Telstra shares are currently sitting at $3.90 a share at the time of writing. That’s down 1.02% for the day so far. Even so, that still puts the Telstra share price up around 29.6% year to date in 2021. As well as up an even better 36.4% over the past 12 months.

Not bad for an old ASX 200 blue chip telco like Telstra.

So Telstra shares have been on an impressive run. But is there still gas in the tank for the Telstra share price? After all, longer-term investors might still remember the days of $5, $6 or even $7 Telstra shares.

Is the Telstra share price still undervalued?

Well, according to an article in The Australian this week, there is one investor who thinks the Telstra share price might still be undervalued today. That investor is US bank JPMorgan. JP Morgan analysts reckon the telecommunications infrastructure that Telstra owns could collectively be worth as much as $30 billion.  These analysts predict that this could “generate substantial value, which could lead to higher capital returns” if some of these were to be sold off.

We have already seen this in action. Earlier this year, Telstra excited the markets when it announced the sale of 49% of its mobile towers infrastructure business InfraCo Towers. This stake was sold to a consortium of institutional investors, including the Future Fund. Telstra was able to pull off this sale with a price that was equivalent to 28 times InfraCo Towers’ earnings.

Telstra as a whole is currently being priced with a price-to-earnings (P/E) ratio of 24.97. That gives it a total market capitalisation of $46.85 billion.

So you can see where JPMorgan’s optimism comes from here.

Although the company has now sold half of its Towers business, it still retails a majority stake in the other half. As well as the entirety of its InfraCo Fixed division. InfraCo Fixed also contains a treasure trove of infrastructure assets. These include telephony exchanges, subsea cables and fibre optic ducts.

The Australian also speculates that a further sell down of Telstra’s infrastructure could fund a potential future purchase of the government-owned NBN network. We could see some further details of Telstra’s future plans at the company’s investor day on 16 September.

At the current Telstra share price, the company has a dividend yield of 4.11%. 

The post Is the Telstra (ASX:TLS) share price undervalued right now? appeared first on The Motley Fool Australia.

More reading

• This has been a good week so far for the Telstra (ASX:TLS) share price
• Leading broker says Telstra (ASX:TLS) share price is a buy
• Here are the 3 heaviest trading ASX 200 shares today
• ASX 200 midday update: BHP & Fortescue fall, Flight Centre storms higher
• Telstra (ASX:TLS) share price struggles amid possible union action

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen owns shares of JPMorgan Chase and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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 Zip Co Ltd (ASX: Z1P) share price continues to test the resolve of its shareholders, down 1.31% to $6.77 on Thursday.

Meantime, competition in the buy now, pay later (BNPL) market is ramping up. Here’s what’s new.

PayPal taps into Japan’s BNPL market

According to CNBC, Paypal Holdings Inc (NASDAQ: PYPL) is stepping up its global presence with the acquisition of Japanese BNPL company, Paidy.

PayPal will be forking out US$2.7 billion for the acquisition, which will be paid mostly in cash. The acquisition is expected to close in the fourth quarter of 2021.

According to a statement from PayPal on Tuesday:

The acquisition will expand PayPal’s capabilities, distribution and relevance in the domestic payments market in Japan, the third largest ecommerce market in the world, complementing the company’s existing cross-border ecommerce business in the country.

PayPal has already made its mark on the Australian BNPL market after announcing it will not charge late payment fees.

By comparison, Zip charges a late fee of $5 for Zip Pay and $15 for Zip Money, billed 21 days after the due date.

PayPal’s late payment fees announcement coincided with a 10.9% decline in the Zip share price on 15 July.

What else is dragging the Zip share price down?

The tech-heavy Nasdaq Composite experienced strong selling pressure yesterday and fell 0.57%. This compared to the S&P 500 and Dow Jones Industrial Average which fell 0.13% and 0.2% respectively.

Zip’s US peers Affirm Holdings Inc (NASDAQ: AFRM) and Square Inc (NYSE: SQ) fell sharply, down 4.34% and 4.18% respectively.

Market Watch reported that traders sold shares in the tech and resources sectors as “uncertainty grows about the outlook for stocks after a strong second-quarter earnings period”.

The article also stated: “Doubts also have emerged about the persistence of supportive monetary policies, credited with fueling record gains for stocks, now considered richly valued.”

Zip share price snapshot

The Zip share price has typically found buying support about the mid-$6 level, as evidenced by bounces in May and late July.

The Zip share price is up 21% year-to-date, mostly fueled by the strong gains at the beginning of the year.

The post Zip (ASX:Z1P) share price struggles as BNPL competition heats up appeared first on The Motley Fool Australia.

More reading

• Afterpay (ASX:APT) share price slumps after PayPal’s latest acquisition
• How have ASX BNPL shares performed during the August 2021 earnings season?
• The Zip (ASX:Z1P) share price has plunged 30% in 5 months. Is it a buy?
• Leading broker reveals why these 10 big-name shares have been firing up its clients
• Afterpay’s done, so here’s the BNPL player we’re backing: expert

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 Affirm Holdings, Inc., PayPal Holdings, Square, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. 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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