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Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out two ASX dividend shares brokers think investors should buy:

Macquarie Group Ltd (ASX: MQG)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $175.00 price target on this investment bank’s shares. The broker is expecting a reasonably flat quarterly update at its upcoming annual general meeting. This is due to its belief that some strong performing areas of the business, such as commodities, will be offset by foreign exchange headwinds. Nevertheless, the broker believes that Macquarie’s shares are attractively priced at the current level. Particularly in comparison to its global peers.

Morgan Stanley is forecasting a partially franked dividend of $5.50 per share in FY 2022 and then a $6.05 per share dividend in FY 2023. Based on the current Macquarie share price of $157.47, this will mean yields of 3.5% and 3.8%, respectively, over the next two years.

Ramsay Health Care Limited (ASX: RHC)

A note out of Ord Minnett reveals that its analysts have upgraded this private hospital operator’s shares to a buy rating with a slightly trimmed price target of $72.50. While the broker has reduced its earnings forecasts to reflect the lockdowns in Australia, it remains positive on the future thanks to strong vaccination rates in other markets it operates in. In addition to this, Ord Minnett suspects that the company may not have given up on acquiring Spire Healthcare in the UK.

For now, the broker is forecasting fully franked dividends per share of $1.99 in FY 2021 and then $2.62 in FY 2022. Based on the current Ramsay share price of $64.39, this implies yields of 3.1% and 4.1%, respectively, over the next two years.

The post Top brokers name 2 ASX dividend shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why the BHP (ASX:BHP) share price is down 4% this week
• Ramsay (ASX:RHC) share price rises despite UK acquisition collapse
• Nuix (ASX:NXL) share price plunges 7% in 7 days
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
• Why the Mineral Resources (ASX:MIN) share price is up 39% in 3 months

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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Ramsay Health Care 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 Top Shelf International Holdings Ltd (ASX: TSI) share price has walked through today’s session firmly in the green. At the closing bell, Top Shelf shares were swapping hands for $2.09, a gain of 14.8%.

Today’s gains come after the company gave an overview of its maturing spirit inventory and net sales value.

Let’s take a closer look at what Top Shelf released today and what other tailwinds are behind the beverage manufacturer’s share price lately.

Inventory and net sales value

Top Shelf announced that, as of 30 June, it had maturing spirits with a net sales value of $272 million.

This signifies a 521% year-on-year increase, and a 124% increase above its prospectus.

Top Shelf’s total spirit inventory increased to 3.5 million litres, representing a 410% increase from one year ago.

The company also realised an average net sales value per litre for NED whisky of $71.40, a 23% increased from 1H FY21.

To arrive at these calculations, Top Shelf “engaged PwC to perform certain procedures on the calculations and methodology”.

Investors have relished the announcement, driving the Top Shelf share price higher.

What other tailwinds are behind Top Shelf’s share price?

The company also reported its unaudited FY 2021 earnings results on 14 July. Here, the company recorded unaudited revenue of $20 million.

These results signified a 160% year-on-year growth from 30 June 2020, matching the forecasts in the company’s prospectus.

Top Shelf also reported “branded product revenue” of $12.7 million, a 211% increase from the $4 million in FY 2020.

Investors are buying into the company’s growth narrative following the results, pushing the Top Shelf share price 25% into the green over the previous 5 trading sessions.

Top Shelf share price snapshot

The Top Shelf share price has posted a return of 2.5% this year to date, after a gradual run-down from highs of $2.20 in March.

The company’s share price hit a low of $1.61 at the close on 13 July, however has since climbed 30% since these two announcements.

Top Shelf has a market capitalisation of $90 million at the time of writing.

The post Why the Top Shelf International (ASX:TSI) share price soared 15% today appeared first on The Motley Fool Australia.

More reading

• Openn Negotiation (ASX:OPN) share price up 13% in second day of trade
• Why the IGO (ASX:IGO) share price is hitting an all time high
• Wesfarmers (ASX:WES) share price up as Catch involved in ACCC inquiry
• Why Kogan, Service Stream, Whispir, & Zip shares are sinking
• Here’s why the Fenix Resources (ASX:FEX) share price is surging 5%

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 Openn Negotiation Limited (ASX: OPN) share price has been soaring today after first listing on the ASX yesterday.

Its successful initial public offering (IPO) yesterday saw the share price jump from its offer price of 20 cents to a closing price of 31 cents.

Today, more than 11.7 million shares changed hands, with the Openn share price finishing the day at 35.5 cents, up 12.9%. It hit an intraday high of 43.5 cents at lunch time.

Let’s take a closer look at how the first two trading days unfolded for Openn.

What is Openn Negotiation?

Openn is a cloud-based property platform that hosts online real estate auctions.

To date, Openn has facilitated more than $2 billion in Australian property sales. The platform is used by more than 3,000 agents across Australia and New Zealand.

The company’s revenue model sees it derive income from property listing fees on its platform. This comes in at $500 per property.

It also receives revenue through an agent training segment that instructs agents how to use the platform. Only trained agents can list properties on Openn.

As part of its prospectus, Openn outlines $851,402 in revenue for FY2020 under this model, which translates to a pre-tax loss of about $1.2 million.

Openn’s IPO success

The initial offering for Openn Negotiation shares was 20 cents a piece, according to the prospectus.

The company listed with an initial valuation of $38 million, and hoped to realise $9 million from the equity raise.

Based on today’s closing price, Openn’s market capitalisation has grown to $41.3 million.

Given its IPO success, Openn intends to use the raised funds for domestic market expansion.

The company might also establish a footprint in the US in the future.

Foolish takeaway

The Openn Negotiation share price is skyrocketing in the secondary market since its IPO yesterday.

Investors are enthusiastically buying into the Openn Negotiation growth narrative.

Online auctions have become much more accepted over the past year due to extensive use by agents during COVID lockdowns.

The Openn Negotiation share price has outperformed the S&P/ASX 200 Index (ASX: XJO) today, with the broad index up 0.9%.

The post Openn Negotiation (ASX:OPN) share price up 13% in second day of trade appeared first on The Motley Fool Australia.

More reading

• Why the 4DS (ASX:4DS) share price is rallying today
• Which ASX 200 shares are winning from latest retail trade figures?
• ASX 200 midday update: Zip update disappoints, BHP signs Tesla deal
• Qantas (ASX:QAN) share price on watch as CEO warns lockdowns could cost jobs
• Santos (ASX:STO) share price jumps on record quarterly sales

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 IGO Ltd (ASX: IGO) share price is a top performing S&P/ASX 200 Index (ASX: XJO) share on Thursday, rallying 4.59% to a record high of $8.77.

IGO owns a number of high quality assets focused on the production of critical metals including copper, nickel, cobalt and lithium.

Higher commodity prices drive the IGO share price to record territory

IGO is in the right place at the right time, given its portfolio on metals critical to enabling clean energy.

From a pricing perspective, copper prices rallied to 10-year highs of US$10,500/tonne in May this year.

While copper prices have cooled down in recent months, they remain at an elevated US$9,270/tonne.

Similarly, cobalt and lithium prices have rebounded strongly in recent months following a 2-year bear market between 2018 to 2020.

According to Trading Economics, cobalt is fetching roughly US$52,500/tonne, well above the US$30,000/tonne it was trading at the beginning of 2020.

ASX-lithium shares surge to record highs on Thursday

ASX-lithium majors Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) have surged between 9% to 11% on Thursday after all three companies announced upbeat quarterly results.

In the case of Orocobre, its quarterly results said that “[Lithium] prices have now increased by nearly 170% over the last nine months”.

More specifically, the company achieved lithium carbonate prices of US$8,476/tonne, a 45% increase against the previous quarter.

Other producers of critical metals for the renewables industry such as Lynas Rare Earths Ltd (ASX: LYC) also joined in on the rally, jumping 8.76% today to $6.40.

IGO completes “transformation transaction”

On 30 June, IGO completed a transaction to form a new lithium joint venture (JV) with Tianqi Lithium Corporation.

The JV focuses on IGO’s Australian lithium assets, initially focusing on existing upstream and downstream lithium assets in Western Australia.

IGO CEO Peter Bradford hailed the game changing deal, commenting:

Our new partnership with Tianqi promises to be truly transformational for IGO and delivers on our strategy focused on the clean energy revolution. We are incredibly excited to commence this journey with Tianqi as we build a globally relevant lithium business delivering high quality, responsibly produced lithium products to global customers while generating strong financial outcomes for shareholders.

The IGO share price has since rallied 14.67% since the completion of the JV.

The post Why the IGO (ASX:IGO) share price is hitting an all time high appeared first on The Motley Fool Australia.

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• Galan Lithium (ASX:GLN) share price surges to record on positive results
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• ASX lithium shares could get boost from Macquarie (ASX:MQG) upgrade
• Why Cettire, Damstra, IGO, & Rhipe shares are storming higher

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. 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 Wesfarmers Ltd (ASX: WES) share price is gaining today, despite the Australian Competition and Consumer Commission (ACCC) naming its subsidiary Catch.com.au as a focus in its latest inquiry.

Catch.com.au was part of Catch Group, which was acquired by Wesfarmers in 2019 and is now a part of Wesfarmers’ Kmart Group.

The ACCC’s inquiry is looking into digital services platforms in Australia. It’s seeking submissions from consumers, platforms, and third-party sellers.

Right now, the Wesfarmers share price is $61.35 – 0.11% higher than its previous closing price.

While that’s a good day’s performance, it’s not as good as that of the broader market. The All Ordinaries Index (ASX: XAO) has gained 0.92% today, while the S&P/ASX 200 Index (ASX: XJO) is 0.95% higher.

Let’s take a closer look at today’s news regarding Catch.com.au.

ACCC turns focus to online marketplaces

The Wesfarmers share price hasn’t noticeably been affected by the ACCC’s announcement of its latest inquiry.  

As part of the inquiry, the ACCC will be looking at online marketplaces’ relationships with third-party sellers and consumers, as well as how they affect market competition in Australia.

According to Catch.com.au, it’s one of Australia’s largest online shopping platforms, attracting 30,000 new customers each week and sending 20,000 orders each day.

The inquiry is the fourth the ACCC’s Digital Platforms Branch is undergoing as part of a 5-year inquiry into the supply of digital platform services in Australia. It will result in a report that will be given to the Australian Treasurer in March 2022.

Wesfarmers’ isn’t the only ASX-listed entity to have been named as part of the ACCC’s inquiry.

Kogan.com Ltd (ASX: KGN) was also a noted platform in the inquiry. Unlike Wesfarmers, which got off relatively unscathed, the Kogan share price has fallen 2.94% today.

Wesfarmers share price snapshot

The Wesfarmers share price has been performing well on the ASX lately.

It has gained 19% since the start of 2021. It has also increased by 33% since this time last year.

The post Wesfarmers (ASX:WES) share price up as Catch involved in ACCC inquiry appeared first on The Motley Fool Australia.

More reading

• What a Wednesday! Wesfarmers (ASX:WES) share price hits new all-time high
• Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News
• Why the Wesfarmers (ASX:WES) share price just hit a new all-time high
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
• Top brokers name 3 ASX shares to sell next week

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and Wesfarmers 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 charging higher again. At the time of writing, the benchmark index is up a sizeable 1% to 7,380.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 3% to $11.22. There may be a couple of catalysts for the weakness in this ecommerce company’s shares today. One is the ACCC revealing that it plans to look into online marketplace practices. The other is a broker note out of Credit Suisse. Although the broker has retained its outperform rating, it has slashed its price target by 15% to $15.21. This was in response to Kogan’s business update yesterday.

Service Stream Limited (ASX: SSM)

The Service Stream share price has fallen 1.5% to 94.5 cents. This morning the essential network services company revealed that it successfully completed its placement and institutional entitlement offer to raise $130 million at 90 cents per new share. It will now seek to raise a further $55 million from retail shareholders. These funds will be used to acquire the Lendlease Group (ASX: LLC) Services business.

Whispir Ltd (ASX: WSP)

The Whispir share price is down 1.5% to $2.78. This is despite the company being the subject of a positive broker note this morning. According to a note out of Ord Minnett, its analysts have responded to Whispir’s quarterly update by retaining their buy rating and lifting their price target to $4.30. Though, with its shares rising strongly yesterday, some investors may be taking profit today.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 7.5% to $7.00. Investors have been selling the buy now pay later provider’s shares following the release of its fourth quarter update. Although Zip reported a 116% year on year increase in quarterly total transaction volume (TTV) to $1.8 billion and a 104% increase in quarterly revenue to $129.9 million, this was still short of the market’s lofty expectations.

The post Why Kogan, Service Stream, Whispir, & Zip shares are sinking appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX 200 shares flying around the markets today
• Zip (ASX:Z1P) share price down 7% despite crypto plans and positive outlook
• Top brokers name 3 ASX shares to sell today
• Why the Service Stream (ASX:SSM) share price is heading south today
• ASX 200 midday update: Zip update disappoints, BHP signs Tesla deal

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 Kogan.com ltd, Whispir Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Whispir 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 Fenix Resources Ltd (ASX: FEX) share price is rebounding today after a disappointing run of the week. This comes after the resource exploration company announced a positive update to the ASX this morning.

At the time of writing, Fenix shares are up 5.37% to 43.2 cents. In comparison, the All Ordinaries Index (ASX: XAO) is also travelling 0.9% higher to 7,652 points.

Let’s take a closer look at what the company updated the market on today.

What did Fenix announce?

Investors are buying Fenix shares following a statement from the company that it has secured a fixed price for its iron ore.

According to the release, Fenix entered into iron ore swap arrangements for its flagship, Iron Ridge Project. The contracts are for a 12-month period commencing from October to September 2022.

Under the deal, 50,000 tonnes of iron ore will be locked at a monthly average price based on the 62% iron ore fines benchmark index (Platts IODEX). Converted to Australian dollars over the agreed term, the fixed price is equivalent to $230.30 per dry metric tonne (dmt).

The swap arrangements follow the company’s implementation of a price protection policy designed to secure the medium-term future of the Iron Ridge project.

The unsecured contracts will be settled in cash at the end of each month. This means that there are no margin calls or requirements to lodge cash at call, or on deposit.

Fenix managing director, Rob Brierley commented on the company’s decision, saying:

The iron ore swap arrangements were foreshadowed in our recently released quarterly activities report for the June 2021 period. We are effectively locking in ~45% of our planned production during a 12-month period commencing October 2021, at a fixed price that is sufficient to cover the majority, if not the entirety, of our budgeted cost base.

Furthermore, Mr Brierley touched on Fenix’s plans, adding:

We look forward to finalising our Capital Allocation Policy leading up to the release of our FY21 financial results, confident that we have secured profitability until at least Q4CY22, by which time the mine plan predicts the production of even higher specification iron ore that should result in higher market premiums.

About the Fenix share price

It’s been a positive 12 months for Fenix shares, accelerating by more than 500%, and up almost 90% year-to-date. The company’s share price reached an all-time high of 45.5 cents last week and could break that feat again.

Fenix presides a market capitalisation of roughly $204.2 million, with approximately 472 million shares on issue.

The post Here’s why the Fenix Resources (ASX:FEX) share price is surging 5% appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX 200 shares flying around the markets today
• James Hardie (ASX:JHX) share price hits new all-time high on Thursday
• Zip (ASX:Z1P) share price down 7% despite crypto plans and positive outlook
• Bitcoin gains after Musk, Wood, and Dorsey spruik the crypto
• Incannex (ASX:IHL) share price up on patent application announcement

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 S&P/ASX 200 Index (ASX: XJO) is having a pretty decent day today. At the time of writing, the ASX 200 is up 1.04% to 7,384 points.

But let’s now take a deep dive into the ASX 200 shares that are flying around the share market today in terms of trading volume:

Telstra Corporation Ltd (ASX: TLS)

ASX 200 telco Telstra is our first share to check out today. So far this Thursday, a substantial 10.52 million Telstra shares have traded hands.

This is despite an absence of major official news or announcements out of the telco. Saying that, the Telstra share price is up a robust 1.21% today to $3.77 a share after opening at $3.73 this morning and going as high as $3.78 this afternoon.

Telstra is a very large ASX company with a relatively low share price. This means that even a slight move up (or down) can propel Telstra to the top of the trading volume pile very easily. This might be what we are seeing today.

Zip Co Ltd (ASX: Z1P)

Buy now, pay later (BNPL) company Zip Co is our next ASX 200 share to check out today. And boy, have Zip shares had a day to remember. The company is currently down a nasty 7.12% to $7.04 a share after posting a quarterly update this morning.

Even though Zip reported revenue growth of 104% and transaction volume growth of 116% for the fourth quarter of FY21, investors were evidently unimpressed. It’s this slide in Zip Co shares that is probably behind the 26.10 million Zip shares which have found new homes today.

Pilbara Minerals Ltd (ASX: PLS)

As yours truly covered earlier today, lithium producer Pilbara is the most traded ASX 200 share this Thursday, with a whopping 26.31 million shares trading on the markets so far.

It seems that a positive update from Pilbara’s fellow lithium producer Galaxy Resources Limited (ASX: GXY) is sparking a huge inflow into the lithium space today. Pilbara shares are currently up a hefty 9.28% today to a new all-time high of $1.69 a share.

It’s this rise that is likely to be behind the huge surge in trading volume we are seeing. Pilbara Minerals is now up almost 93% year to date.

The post Here are 3 ASX 200 shares flying around the markets today appeared first on The Motley Fool Australia.

More reading

• Zip (ASX:Z1P) share price down 7% despite crypto plans and positive outlook
• Top brokers name 3 ASX shares to sell today
• Why the Pilbara Minerals (ASX:PLS) share price is up 9% this Thursday
• ASX 200 midday update: Zip update disappoints, BHP signs Tesla deal
• Zip (ASX:Z1P) share price sinks 6% following Q4 update

Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. 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 James Hardie Industries PLC (ASX: JHX) share price just broke its all-time high today.

At the time of writing, shares in the buildings’ material company are trading for $46.70 – up 0.76%. Earlier, shares reached an intraday and all-time high of $46.98 each. The S&P/ASX 200 Index (ASX: XJO) is 0.94% higher.

Let’s take a closer look at some recent stories that have sent the James Hardie share price higher.

James Hardie is kicking goals

The company, which derives most of its revenue from its North American business, had strong results for the 3 months leading to 31 March.

Sales increased 20% to US $807 million and net income jumped 44% to US $124.9 million. Full year sales totalled US $2.91 billion – up 12% year-on-year. Operating cash flow rose 74% to $787 million for the 52 weeks. US $557 million of quarterly sales was derived from its North American fibre cement business.

Taking a broader view, a number of external factors helped drive the James Hardie share price to a new all-time high.

One, for example, is the twin housing booms in the US and Australia. Motley Fool Australia previously reported how in the US, James Hardie was in a prime position to capitalise on increasing construction post-COVID.

Australia too, as any first home buyer can tell, is in the midst of a housing boom. The latest data from the Australian Bureau of Statistics (ABS) showed housing approvals rose 17.4%. That’s the second-highest growth rate on record.

New South Wales and Victoria drove the boom. Construction of housing in the 2 largest states increased 26.9% and 24.7%, respectively.

Shane Oliver, the chief economist of AMP Capital, previously told this reporter that the growing economy and the construction industry worked in tandem with each other.

“…(The) relationship between construction and the economy is a positive one in that to the extent that strong construction can help drive a strong economy, the confidence and extra jobs that come with a strong economy can help further drive strong construction.”

Also, help driving James Hardie shares is the weakening Aussie dollar against the greenback. As stated, James Hardie derives a majority of its revenue from North America.

James Hardie share price snapshot

Over the past 12 months, the James Hardie share price has grown 63.5%. One fundie told Motley Fool how James Hardie has been a big contributor to his company’s portfolio.

James Hardie Industries has a market capitalisation of $20.7 billion.

The post Here’s why James Hardie (ASX:JHX) share price hit new all-time high on Thursday appeared first on The Motley Fool Australia.

More reading

• Forecast crash in Aussie dollar to under US70 cents to boost these ASX 200 shares
• ASX construction shares like Brickworks (ASX:BKW) are falling today

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 Zip Co Ltd (ASX: Z1P) share price is tumbling notably lower on Thursday.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down a sizeable 7.5% to $7.02.

Why is the Zip share price sinking?

Investors have been selling down the Zip share price after its fourth quarter update fell short of the market’s lofty expectations.

Although Zip delivered growth that most companies would be proud of, it fell short of the market’s lofty expectations.

Crypto launch coming?

Also failing to give the Zip share price a boost today have been comments by the company’s Co-Founder, Peter Gray, in respect to future plans.

Mr Gray told Dow Jones Newswires that Zip’s customers remain interested in Bitcoin and other cryptocurrencies despite recent pullbacks in their prices. The company also has its eyes on other less-traditional finance products.

He said: “We’re interested in delivering more relevant features, crypto being one of them that is becoming part of a younger generation’s financial diet. The ability to save and receive high-interest coupons that aren’t similar to a savings account offered by a bank.”

The company is aiming to a launch crypto trading service within the next 12 months.

PayPal BNPL offering

One thing that has been weighing on the Zip share price recently has been increasing competition. This follows the launch of a PayPal BNPL service and speculation that Apple could be entering the arena.

However, the co-founder doesn’t appear concerned by PayPal. In fact, he revealed that he was confident that its entry would increase the size of the market rather than be a threat.

In addition to this, Gray advised that the increased competition isn’t impacting its margins at this point. He also revealed that the outlook remains positive for its margin.

He told the news outlet: “It’s very strong and there’s no short-term pressure coming on that margin. So a very good outlook for margin.”

Is Klarna interested in a Zip takeover?

One thing that has been getting investors excited recently is speculation that Zip could be a takeover target of larger rival Klarna. This follows unconfirmed reports that the Sweden-based BNPL provider has been building a strategic stake in the company.

However, Mr Gray revealed that the company continues to comply with its market disclosure obligations. Which essentially means that the company is not aware of any interest, otherwise it would have to say so.

Though, he acknowledges that if there were interest, it would be a testament to the good job the company is doing in the BNPL market.

“We’re always interested in delivering the best outcomes for Zip shareholders. Any sort of speculation of interest would clearly be validation of the success that we’ve had the way we have tackled the opportunity,” Mr Gray said.

The Zip share price is up 25% so far this year despite today’s weakness.

The post Zip (ASX:Z1P) share price down 7% despite crypto plans and positive outlook appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• ASX 200 midday update: Zip update disappoints, BHP signs Tesla deal
• Zip (ASX:Z1P) share price sinks 6% following Q4 update
• Here are 3 top trading ASX 200 shares this Wednesday
• The Zip (ASX:Z1P) share price is the best performing BNPL of 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 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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