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The Medical Developments International Ltd (ASX: MVP) share price has come under pressure on Friday.

At the time of writing, the medical device company’s shares are down 8% to a 52-week low of $4.03.

This means the Medical Developments International share price is now down a very disappointing 40% in 2021.

Why is the Medical Developments International share price under pressure?

Investors have been selling down the Medical Developments International share price this morning following the release of an update on a balance sheet review.

According to the release, following its annual asset impairment review, the company expects to recognise a non-cash charge of $7.5 million to $8.5 million after tax in FY 2021.

Management advised that this charge relates to its respiratory business, which has been adversely impacted in FY 2021 by the COVID-19 pandemic. This has moderated its growth outlook, resulting in an impairment of the associated intangible assets.

While this is disappointing, management advised that it remains convinced that its Flow technology will deliver long-term value beyond the manufacture of Penthrox. Though, it acknowledges that it has failed to unlock this value at this point. Nevertheless, it will continue to pursue licensing and other opportunities for the technology.

One positive, though, is that the review strongly supported the carrying value of its key Penthrox related assets.

What impact will this have?

The release explains that based on its preliminary unaudited accounts, the company was expecting to post a loss after tax of $4.2 million to $5.2 million pre-impairment.

As a result, this will increase its loss after tax to a range of $11.7 million to $13.7 million for the 12 months.

Medical Developments International’s CEO, Brent MacGregor, remains positive on the future. He commented: “Since taking the role of CEO in November 2020, we have undertaken an extensive review of all aspects of the business to lay the foundation for future growth. Our European Penthrox market access strategy is now in place alongside a range of structural changes to support our growth aspirations. I am enthused about the opportunity ahead, and our ability to deliver on this opportunity.”

This sentiment was echoed by the company’s Chair, Gordon Naylor. He said: “I continue to be pleased with our progress. We are only a few months into the turnaround of the Company and our evaluation of the business is largely complete.”

The post Why the Medical Developments International (ASX:MVP) share price is sinking 8% today appeared first on The Motley Fool Australia.

More reading

• Why the Archer Materials (ASX:AXE) share price is up 30% in a week
• Now’s the time to buy up mega-cap tech shares
• 2 outstanding ASX 50 shares named as buys
• Why the Santos (ASX:STO) share price is outperforming Woodside in 2021
• Here’s why the AMP (ASX:AMP) share price is down 10% in the last month

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 Medical Developments International Limited. The Motley Fool Australia owns shares of and has recommended Medical Developments International 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 Archer Materials Ltd (ASX: AXE) share price has landed firmly in the green since last Friday’s close.

Archer shares finished yesterday’s close at $1.27, a 30% gain for the Australian semiconductor company. In early trading today, the shares are swapping hands for $1.26 — a fall of 0.78%.

Let’s take a look at two key events that might help explain Archer’s share price movements lately.

But first — what is Archer Materials?

Archer classifies itself as a materials technology company that has unique expertise in building semiconductors.

The company is currently in the process of developing its “12CQ quantum computing chip”, and is the only ASX-listed company doing so.

To illustrate, the 12CQ chip is a “world-first qubit processor”, aiming to increase the accessibility of quantum computing.

At the time of writing, Archer has a market capitalisation of $290 million.

Presenting at the Proactive Technology Webinar

On 13 July, Archer chief executive Mohammad Choucair presented the 12CQ chip to an audience of global tech investors, Proactive Investors reported.

During Tuesday’s webinar, Choucair described to investors the “global-scale opportunity its technology represents”.

This opportunity stems from growth in the “multibillion-dollar quantum computing economy”, Choucair said on Tuesday.

Speaking on the product’s potential end-uses, Archer’s top executive stated:

The 12CQ chip would allow for quantum computing onboard mobile devices for speedups and increased power in AI, big data and fintech applications … We expect Archer’s quantum chip technology to create entirely new quantum computing-powered mobile devices that enable industry-wide innovation.

The Archer Materials share price has climbed a further 10% into the green following the webinar.

Significant progress in 12CQ development

The company announced on July 12 “significant” progress had been made on its 12CQ chip development.

According to the company, its discovery of on-chip qubit control in “microscopic-scale qubit material” is a key milestone in 12CQ’s growth narrative.

In the release, Archer stated it recorded “continuous wave electron spin resonance” using a device that integrates this material.

Consequently, Archer is progressing forwards with its focus on achieving qubit control, claiming Monday’s announcement is a “major technological feat” for 12CQ.

Investors seem to feel the same way, having rewarded Archer shares over the previous few days following the announcement.

The Archer Materials share price has gained 15% since Monday’s closing price following the announcement.

Archer Materials share price snapshot

Archer shares have spent this year to date in the green, posting a return of 71% before today’s open. This extends the previous 12 month’s return of 145%.

Both returns have beaten the S&P / ASX 200 Index (ASX: XJO)’s return of 22% over the same period.

The post Why the Archer Materials (ASX:AXE) share price is up 30% in a week appeared first on The Motley Fool Australia.

More reading

• Why the Archer Materials (ASX:AXE) share price is surging 12% higher

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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So what’s happening with the growth versus value debate? Is long-lasting inflation still a worry?

The market has been grappling with those questions all year, and we’re no closer to any answers as July quickly runs out.

But what if there were stocks that were both growth and value? Wouldn’t that save investors immense headaches from trying to predict inflation and interest rates?

According to Montaka chief investment officer Andrew Macken, the answer was right in front of us the whole time.

“There is no doubt that the world’s annual $120 trillion economy increasingly depends on just 6 mega-tech businesses to function properly,” he wrote on a company blog.

“You would think they would continue to all be obvious inclusions in portfolios.”

The businesses he refers to are Alphabet Inc (NASDAQ: GOOGL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB), Tencent Holdings Ltd (HKG: 0700) and Alibaba Group Holding Ltd (NYSE: BABA).

“Investors shouldn’t rotate out of mega-tech to value because mega-tech are value,” said Macken.

“For the patient investor who can look through the short-term noise, the rewards will be substantial.”

Haven’t tech shares had a pretty good run already?

Macken acknowledged many investors would think the massive technology companies have already had their big run.

“After a strong 2020, many investors are worried all the ‘easy money has been made’ – a commonly used phrase we hear in our industry (which also suffers from acute hindsight bias).”

Investors are also worried about higher interest rates, he admitted, and the compression on earnings multiples that would have on growth stocks.

Then there are the qualitative worries.

“Mega-tech investments also seem boring now – a surprisingly strong criterion some investors seek to avoid,” Macken said.

“And, of course, there are the never-ending headlines pointing to regulatory pressures across the sector.”

But contrary to perception, technology shares have underperformed this year so far, according to Macken.

“Our analysis shows that mega-tech stocks not only offer some of the best growth opportunities, but also offer some of the best ‘value’ opportunities in the market today,” he said.

“We see material upside in all 6 of these mega technology businesses. Given the combination of strong and growing advantages, enormous growth opportunities, and material undervaluation today, we believe these names should form – or continue to form – the core of any global equities portfolio.”

Macken cited 3 reasons why he thinks these massive companies should be counted as value.

Mega-techs are the best businesses in human history

The fund manager is glowing about the quality of the ‘big 6’ tech shares.

“The business quality of today’s mega-techs is among the highest that humans have ever created,” he said.

“They dominate global data, benefit from enormous ecosystems, and have superior economics and scale.”

The massive cash flows the mega-caps make can be ploughed back into the business to search for new opportunities.

“These mega-techs all have a vast array of high-probability growth options in enormous new TAMs (total addressable markets).”

He took cloud computing as an example.

“For the leading cloud providers, their advantages in scale, data and customer captivity will only continue to strengthen over time,” said Macken.

“Said another way, this is a space for which enormous growth is largely assured and for which the winners have already been defined today. This means that the future revenues and earnings power of these businesses will also be multiple of their current levels.”

Inflation worries are overblown

Macken simply doesn’t share in the fears of other investors when it comes to the prospect of higher inflation.

“While we note the same strong headline inflation numbers as everyone else, we struggle to see an extended acceleration in core inflation,” he said.

“We… expect structural disinflationary forces – such as aging populations, labour-disrupting automation technologies and global corporate and government indebtedness – to persist for decades.”

Besides, even if prices went up, these 6 giants could have enough market power to simply charge more.

“We believe the latent pricing power in these businesses is likely very strong – and in some cases, extraordinarily so,” he said.

“Take Microsoft 365, for example… This costs just US$32/month, vastly below any reasonable estimate for the value it adds, strongly supporting our latent pricing power hypothesis.”

Current valuations for these tech shares are underdone

Macken’s team has calculated that future expectations priced into the current tech shares are too conservative.

He took the example of the 3 US players that provide cloud infrastructure. Consensus estimates for their collective cloud revenues by 2030 are “in the order of just US$650 billion” more than current levels.

“This is a tiny fraction of the US$8 trillion increment that Microsoft CEO Nadella expects to accrue to the tech space over the next decade,” said Macken. 

“If Nadella’s forecast above is even remotely accurate, then these cloud providers will see much higher revenues (and earnings) in 2030 than what is currently being implied by consensus estimates.”

And the valuation of Facebook alone, with a forward price-to-earnings ratio of just 14, has Macken absolutely puzzled.

“Some of the businesses trading at a higher multiple than this today include Australia’s Wesfarmers Ltd (ASX: WES), Scentre Group (ASX: SCG), and plumbing parts supplier, Reece Ltd (ASX: REH),” he said.

“At the current stock price, the market is effectively giving investors all of the upside from eCommerce, the monetisation of the creator economy, WhatsApp, Messenger and Reels, as well as Facebook’s growth in VR/AR for free!”

The post Now’s the time to buy up mega-cap tech shares appeared first on The Motley Fool Australia.

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• Why the Wesfarmers (ASX:WES) share price is wobbling today
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• Leading brokers name 3 ASX shares to sell today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns shares of Alphabet (A shares) and Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alibaba Group Holding Ltd., Alphabet (A shares), Alphabet (C shares), Amazon, Facebook, and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, and 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 S&P/ASX 50 index is home to 50 of the largest listed companies on the Australian share market. This means the index hosts many of the highest quality and most well-known companies that the ANZ region has to offer.

While not all the shares on the index are necessarily in the buy zone, two that could be are listed below. Here’s what you need to know about them:

Goodman Group (ASX: GMG)

Goodman Group could be an ASX 50 share to look closely at. It is one of the world’s leading integrated commercial and industrial property companies.

Goodman owns, develops, and manages industrial real estate globally. This includes warehouses, large scale logistics facilities, and business and office parks. At the last count, Goodman had $52.9 billion of total assets under management globally, 366 properties under management, and 1,600+ customers.

It has been growing at a solid rate over the last decade thanks to the overwhelming success of its strategy. Goodman focuses on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally.

This is where demand is strong and transformational changes are driving significant opportunities. Key locations include gateway cities such as LA, Paris, Sydney, Shanghai, and Tokyo.

One leading broker that appears confident its positive form will continue is Morgan Stanley. The broker currently has an overweight rating and $23.00 price target on its shares.

Ramsay Health Care Limited (ASX: RHC)

Another ASX 50 share to look at is Ramsay Health Care. It provides quality healthcare services through a global network of facilities that extend across 10 countries. Each year there are over eight million admissions/patient visits across its 500 locations.

But it isn’t stopping there. Ramsay is currently in the process of trying to bolster its network in the United Kingdom market with the proposed acquisition of Spire Healthcare for ~$1.9 billion. This is expected to create a leading private health care services provider in the UK.

Outside this, the company looks well-positioned for growth in the short term from a post-pandemic backlog in surgeries and in the long term from the global ageing populations tailwind.

Citi is positive on the company. The broker recently upgraded the company’s shares to a buy rating from neutral and increased its price target to $76.00.

The post 2 outstanding ASX 50 shares named as buys appeared first on The Motley Fool Australia.

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• 3 blue chip ASX 200 shares named as buys

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 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 Santos Ltd (ASX: STO) share price has been on something of a run in the last year. Shares in the Aussie energy giant have climbed 34.2% higher in the last 12 months after closing at $7.06 per share on Thursday.

That means Santos now boasts a market capitalisation of $14.7 billion and is starting to approach its $7.84 52-week high. However, Santos isn’t the only Aussie oil and gas share doing well right now.

Shares in Woodside Petroleum Limited (ASX: WPL) are up 11.2% in the last year. Keen-eyed investors, however, will note that the Santos share price has been outperforming Woodside in 2021. Here’s why.

Why the Santos share price is outpacing Woodside right now

Woodside shares have actually edged 0.4% lower in 2021 to $22.97 per share. A pullback in oil prices combined with a softer second quarter update saw the company’s value fall 1.0% in Thursday’s trade.

Woodside reported a 4% decline in quarterly production to 22.7 million barrels of oil equivalent (MMboe) yesterday. The company cited scheduled maintenance and adverse weather impacts as key mitigating factors during the quarter. It wasn’t all bad news, however, with Woodside reporting a 15% quarter-on-quarter increase in sales revenue to $1,285 million.

At the same time, the Santos share price climbed 0.1% higher yesterday. The group is yet to release its own second quarter report which investors will be watching closely.

However, Santos was recently assigned a BBB credit rating with a “stable” outlook from Fitch Ratings. Fitch cited the company’s long-term, fixed-price domestic gas contracts as providing portfolio diversification against its oil-linked revenues. Fitch also said the company has “some flexibility over timing and expenditure” with the ability to manage leverage.

The company generated US$302 million in first-quarter free cash flow with higher commodity prices boosting revenues. These numbers and a focus on a diverse range of growth projects has had investors driving up the Santos share price 2021.

Santos has been focused on capital investment in recent years and this focus on new and expanded assets has increased its potential production output in the short to medium term.

Foolish takeaway

Of course, 6 months is a very short-term perspective in investing. The Santos share price has performed well to start the year but rising crude oil prices is good news for both major Aussie operators.

It’s worth keeping an eye on both Woodside and Santos as the commodities landscape continues to take shape in the post-COVID recovery phase.

The post Why the Santos (ASX:STO) share price is outperforming Woodside in 2021 appeared first on The Motley Fool Australia.

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• ASX 200 drops, Woodside down, Sezzle rises
• Woodside (ASX:WPL) share price lower on Q2 update
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Ken Hall 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 AMP Ltd (ASX: AMP) share price has been under the pump of late. Shares in the embattled financial services company have slumped 10.5% in the last month to $1.11 per share at Thursday’s close.

What’s with the AMP share price?

The sharpest decline in value over the past month came on Monday 21 June. The AMP share price slumped 6.4% to start that trading week despite no market announcements or other major news. However, it did coincide with investors selling off across the financial services sector.

In terms of company news, arguably the most dominant has been the recent restructuring of the company. AMP announced on 8 July that Macquarie Group Ltd (ASX: MQG) would acquire AMP Capital’s Global Equity and Fixed Income business for up to $185 million.

AMP Capital and the private markets business as a whole have long been the most profitable segments within the AMP empire. However, there was a muted reaction from the market to this piece of news, with the AMP share price broadly unchanged.

The latest sale to Macquarie comes as AMP readies a spin-off of its private markets business. The proposed demerger comes after acquisition talks with global private equity group Ares Management fell flat.

While the last month has been underwhelming for shareholders, longer timelines don’t necessarily paint a better picture. The AMP share price is now down 28.9% year to date, 36.6% in the last 12 months and 80.1% in the last 5 years. Of course, these figures don’t include the impact of dividends on overall returns.

However, it doesn’t paint a pleasant picture for the financial services group. Former Australia and New Zealand Banking Group Ltd (ASX: ANZ) executive Alexis George is set to take over from current CEO, Francesco De Ferrari in the third quarter of this year. Investors will be hoping a change in leadership will provide a change in fortunes for the AMP share price as well.

The post Here’s why the AMP (ASX:AMP) share price is down 10% in the last month appeared first on The Motley Fool Australia.

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• AMP (ASX:AMP) share price struggles amid management fee cuts
• It hasn’t been a great 2021 so far for the AMP (ASX:AMP) share price
• ASX 200 rises, Macquarie up, Rural Funds launches capital raising
• ASX 200 midday update: Zip rockets, AMP asset sale
• Is the Macquarie (ASX:MQG) share price a buy for dividends?

Motley Fool contributor Ken Hall 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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As retail investors, it’s always fascinating to see which ASX shares the professionals have put their money in.

The public had access to such an insight this week when listed investment company WAM Leaders Ltd (ASX: WLE) hosted a webinar to present its interim results.

Wilson Asset Management staff justifiably had their chests out proud after an outstanding 2021 financial year.

“The portfolio outperformed over 9%,” said Wilson Asset Management chair Geoff Wilson.

“In terms of the performance of the portfolio, it was up 37%.”

But the real interest was in how the fund is positioned now for the coming period. What does the team think are the best bets for the months after Australia defeats the delta variant of COVID-19?

Portfolio manager John Ayoub acknowledged that the mix had now pivoted.

“In the past you would have heard us talk about sectors like gold, defensives such as Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), some of the bond proxies like Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD) as defence mechanisms in our portfolio,” he said.

“Where we find ourselves today, is we have certainly pivoted away from those stocks and we have taken more cyclical, more financial and more commodity bets, [and] more growth commodity bets for the outlook for the next 6 to 12 months.”

Let’s take a look at 3 ASX shares that WAM Leaders currently hold.

ASX share trading at 30% discount to assets

WAM Leaders is currently stocking up on an ASX stock that’s currently going for far less than what its underlying assets are worth.

According to Aoyub, shopping centre operator Scentre Group (ASX: SCG) is still trading at a 30% to 40% discount to net tangible assets. 

“People are forgetting that once we return to normal — and we will return to normal — people will visit shopping centres again,” he said.

“What we are seeing from traffic data in places like Western Australia, that not only do people return to shopping centres, they return more so than previously.”

He emphasised that WAM Leaders expects that over the next 2 to 3 years investors will witness “some serious earnings per share growth” from cyclical stocks.

Scentre shares were down 2.43% on Thursday, to trade at $2.61 late in the afternoon. The stock is down almost 6.5% for the year.

Health shares to win from elective surgeries revival

As more hospital resources are released from coronavirus duties, surgeries will ramp up to clear the pandemic-induced backlog.

Ayoub’s team likes the look of Ramsay Health Care Limited (ASX: RHC) and Sonic Healthcare Limited (ASX: SHL) to take advantage of this situation.

“As we all start to return to elective surgeries, their balance sheets are really robust and we can see good organic growth coming through over the next 3 years.”

In addition, according to Ayoub, Sonic has already benefited from the pandemic through its role as a COVID test provider.

“But equally… we see the company as a significant player in mergers and acquisitions going forward and it should grow via acquisition.”

Sonic shares were going for $38.66 on Thursday afternoon, which is 17.6% up on the year.

Ramsay stocks have been flat for the year, trading at $63.11 on Thursday.

The post 3 ASX shares to win when lockdown ends appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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 recommended Ramsay Health Care Limited and Sonic Healthcare 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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Has it been a great month so far for the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price? It certainly has.

Sydney Airport shares were trading at $5.79 at the start of July (also the start of FY2022, incidentally). As of yesterday’s closing, the company was trading at $7.81 per share. That’s a 34.89% gain for Sydney Airport in the space of 16 days.

Not a bad performance at all. Especially considering this company is ‘only’ up 21.8% year to date in 2021 so far, and up 47.9% over the past 12 months.

As you might imagine, this company is not really running at its full potential right now. The ongoing pandemic, which has resulted in international (and more recently, domestic) border closures, has put a massive dent in the airport operator. In fact, Sydney Airport (a former dividend heavyweight) hasn’t paid a dividend distribution since December 2019.

So why did the company suddenly have such a month to remember?

Sydney Airport share price takes off on takeover offer, and is still flying high

Well, we don’t have to dig too deep to answer that question. On 5 July, the airport announced that a consortium of institutional infrastructure investors had put up a $22.6 billion offer to purchase 100% of all Sydney Airport shares at a price of $8.25 per share, all to be paid for in cash. These investors included QSuper, IFM Investors and Global Infrastructure Management.

This news immediately sent the Sydney Airport share price rocketing. It was up 37% at one point that day, reaching a new 52-week high of $8.04. It has since hovered close to that number, albeit a little lower on yesterday’s close.

That’s despite the fact that Sydney Airport’s board signalled its distaste for this offer from the start. On the day of the announcement, it (perhaps acerbically) pointed to the fact that Sydney Airport shares were well above the offer price prior to the emergence of the pandemic.

And just yesterday, the board came out and formally rejected the offer. As my Fool colleague Marc discussed at the time, the board told the markets that the offer “undervalues Sydney Airport and is not in the best interests of Securityholders”.

Going further, the board called the offer “opportunistic”, and suggested the bidders were attempting to capitalise on the pandemic’s effects on the company.

Even so, investors have not bid the shares significantly lower since. In fact, the Sydney Airport share price is up more than 1% since last Friday.

At yesterday’s closing share price, Sydney Airport has a market capitalisation of $21.08 billion.

The post It’s been a great month for the Sydney Airport (ASX:SYD) share price appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, Woodside down, Sezzle rises
• Fresh blow to ASX 200 travel shares as Victoria lockdown looms large
• ASX 200 midday update: Afterpay & Zip sink again, ARB shoots higher
• Sydney Airport (ASX:SYD) share price on watch after takeover bid rejected
• 3 ASX shares to snap up before reporting season: expert

Motley Fool contributor Sebastian Bowen 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’s been a tough week on the exchange for these S&P/ASX 200 Index (ASX: XJO) tech shares. They’ve each seen their share price fall by 4% or more without uttering a single word.

In fact, many ASX tech shares have had a rough time since Monday. The S&P/ASX All Technology Index (ASX: XTX) has dropped 1.54% this week.

Let’s take a look at what’s been weighing on these 3 ASX tech giants’ share prices.

3 ASX 200 tech shares that have fallen this week

Afterpay Ltd (ASX: APT)

This week’s been a shocking ride so far for the Afterpay share price.

Right now, the ASX 200 tech giant’s shares are 10.92% lower than they were when they started the week, trading for $104.38 a piece.

Afterpay’s woes kicked off on Wednesday when both Apple Inc and Paypal Holdings Ltd released news on buy now, pay later (BNPL) offerings.

Apple’s news was of a brand-new product that it’s planning on launching that would allow Apple Pay users to pay for purchases in instalments.

The US-based tech giant is reportedly partnering with Goldman Sachs, which will provide loans for the service.

Additionally, on Wednesday Paypal announced it had launched its fee-free BNPL service in Australia.

The barrage of new competition saw the Afterpay share price slide 9.74% on Wednesday. The ASX 200 BNPL giant’s shares have continued falling since.

Zip Co Ltd (ASX: Z1P)

Zip didn’t escape the BNPL onslaught on Wednesday. In fact, the Zip share price was hit hardest.

It fell 11.35% on Wednesday and has been in the red ever since.

Right now, the ASX 200 BNPL company’s shares are swapping hands for $6.91 – 16.55% less than they were at last Friday’s close.

Tyro Payments Ltd (ASX: TYR)

Finally, the share price of ASX 200 tech share Tyro Payments has had a shocking week.

Despite seemingly missing the above-mentioned carnage, its shares have fallen 4.11% over the course of the week to trade for $3.50 apiece.

Additionally, the company hasn’t released any obvious bad news. In fact, the only uttering we’ve heard from Tyro this week was its latest weekly results, which seemed positive enough.

Unfortunately, that’s just how the cookie sometimes crumbles for ASX shares.

The post These 3 ASX 200 tech shares are down more than 4% this week appeared first on The Motley Fool Australia.

More reading

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

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Apple, PayPal Holdings, Tyro Payments, 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, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and 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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The Hipages Group Holdings Ltd (ASX: HPG) share price has been on fire over the last few weeks.

The tradie-focused online lead generation platform provider’s shares were on form on Thursday, jumping 7% to a record high of $3.50.

This means the Hipages share price is up 34% since this time last month and 44% since I suggested investors look at it in the middle of May.

Why is the Hipages share price on fire?

Interestingly, the Hipages share price has been rising strongly over the last month despite there being no news out of the company. Though, it was the subject of another bullish broker note out of Goldman Sachs on 17 June.

That note revealed that the broker had retained its buy rating and lifted its price target on the company’s shares to $3.40.

At that point, Goldman said: “In our view the strength and quality of the HPG marketplace is not reflected in the current share price. Our 12m TP of A$3.40 offers 36% upside; we maintain our Buy recommendation.”

Why is Goldman positive on the company?

Hipages is a leading Australian-based online platform and software as a service (SaaS) provider that connects tradies with residential and commercial consumers. Its platform not only helps tradies grow their businesses by providing job leads, it also allows them to communicate with customers and run general admin duties.

Goldman notes that Hipages “is building a compelling marketplace, with a healthy balance between consumers and tradies. App download data and website visits shows HPG is executing on its tradie marketing strategy.”

This is a big positive as the broker believes Hipages has a huge long term growth opportunity and has likened it to Carsales.Com Ltd (ASX: CAR) and REA Group Limited (ASX: REA) in the early days. And given how these ASX shares have performed over the last decade, this could be good news for the Hipages share price.

Commenting on the long term, Goldman said: “Over the long term, the company has clearly articulated its strategy is to further evolve the ecosystem to increase the value it can provide to a tradie. This includes development of payment solutions, insurance and materials procurement. In our view the road-map to build out the ecosystem provides a notable adjacency for HPG to grow its market share and TAM and provides a strong long-term growth driver.”

“For context, HPG captures c.5% of total industry advertising spend. We see scope for this to grow at a meaningful rate as HPG’s service offering addresses a greater proportion of a tradie’s needs, noting that REA/CAR now capture c.40-60% of spending in their respective categories,” it added.

This certainly makes Hipages one to watch closely over the coming years.

The post Here’s why the Hipages (ASX:HPG) share price is up 34% in a month 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 Hipages Group Holdings Ltd. The Motley Fool Australia has recommended REA Group Limited and carsales.com 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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