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For anyone wanting to pay for their next pint at the pub using Bitcoin (CRYPTO: BTC), things are looking promising.

A partnership between unlisted Australian start-up CryptoSpend and payment provider Visa Inc (NYSE: V) is set to make it all easier using standard point-of-sale terminals for the first time on the Visa network.

The revelation was unveiled in an interview published by Tuesday’s The Australian Financial Review.

CryptoSpend gets first tick from Visa

There have been other debit and credit payment options for paying with Bitcoin before. However, this marks the first one for any of the major international card schemes in Australia.

So, who managed to convince a US$517 billion company to provide the offering in Aus? It was the duo of Andrew Grech and Richard Voice at CryptoSpend. The two met through their studies at the University of Technology Sydney around 3 years ago.

According to the interview, the global payment provider took a close look under the bonnet to be comfortable with customer privacy, security, and anti-money laundering obligations being met.

The start-up is already operating with the new payments platform (NPP). This enables CryptoSpend users to instantly move Bitcoin funds into Australian bank accounts. As a result, current customers can pay bills and other people through the app.

However, co-founder Andrew Grech noted the drive for a debit spending card:

We have a lot of demand for the card. If the market is green, someone could say it’s time to spend some of my profits. On the other side of the fence, another person might say it’s going to keep going up, I’ll hold onto it. But we have seen more spending volume when the price is going up.

Making Bitcoin spending a reality

As well as partnering with Visa, CryptoSpend will be working alongside two other companies that will assist it in making the Bitcoin payment card possible.

Firstly, the cards themselves will be issued by Novatti Group Ltd (ASX: NOV). In addition, BitGo will be onboard as the custodian of cryptocurrency holdings. CryptoSpend is expected to launch the offering to users of its app in September.

While Bitcoin is the hallmark of the offering, the debit card will also make seamless payments possible with Ripple (CRYPTO: XRP), Bitcoin Cash (CRYPTO: BCH), and Ethereum (CRYPTO: ETH).

All of this is quite intriguing considering recent reports indicate 75% of Aussies think the Bitcoin bubble will burst.

The post Aussie startup set to launch first Bitcoin (CRYPTO:BTC) payment card with Visa appeared first on The Motley Fool Australia.

More reading

• 75% of Aussies think the Bitcoin (CRYPTO:BTC) bubble will burst
• How does the ATO know how much money I made from cryptocurrencies?
• This little known token has gained 40 times more than Bitcoin today
• These 5 cryptos outperformed Bitcoin in FY21, delivering more than 2500%
• This is the only reason to invest in Bitcoin

Motley Fool contributor Mitchell Lawler owns Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Visa. 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 was one of the worst performers on the S&P/ASX 200 Index (ASX: XJO) on Wednesday.

The buy now pay later (BNPL) provider’s shares ended the day over 11% lower at $7.32.

This was the worst daily performance by the Zip share price since 17 February.

Why did the Zip share price sink?

Investors were heading to the exits in a hurry yesterday amid reports that tech behemoth Apple is planning to enter the BNPL market.

As I wrote here, Bloomberg is reporting that Apple is planning to launch a new offering, Apple Pay Later, with support from Goldman Sachs.

While Apple has declined to comment on the speculation, Bloomberg has reportedly spoken with people involved in the development of the product. It understands that the service will be have similarities to the offerings of both Afterpay Ltd (ASX: APT) and Zip.

Apple Pay Later is expected to allow consumers to buy items in store and online with an interest-free Apple Pay in 4 option and a longer-term option with interest called Apple Pay Monthly Instalments.

Why enter BNPL?

The report explains that Apple is interested in entering the BNPL market to help increase Apple Pay adoption. As Apple takes a cut from transactions made with Apple Pay, increased use would be a boost to its US$50 billion per year services business.

It wasn’t just the Zip share price sinking on Wednesday. Given that this news has potential ramifications for the whole industry, it will come as no surprise to learn that Affirm, Afterpay, and Sezzle Inc (ASX: SZL) shares also tumbled significantly lower.

Also weighing on the Zip share price yesterday was news that PayPal is removing late fees for its BNPL service. While nowhere near as unexpected as Apple’s news, it highlights just how competitive the landscape is getting in the lucrative market.

One positive, though, is that despite yesterday’s decline, the Zip share price is still up 31% year to date.

The post The Zip (ASX:Z1P) share price just had its worst day since 17 February. Here’s why appeared first on The Motley Fool Australia.

More reading

• The Afterpay share price just had its worst day since February 2021. Here’s why
• 5 things to watch on the ASX 200 on Thursday
• Here are 3 of the most heavily traded ASX 200 shares today
• ASX 200 rises, Afterpay sinks, Macquarie Telecom soars
• BNPL ASX share prices tumble as PayPal declares no BNPL late fees

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 AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 Adore Beauty Group Ltd (ASX: ABY) share price might be one to think about after its volatility over the last three months.

Adore Beauty is an e-commerce beauty business. It sells over 260 brands with 10,800 products.

Recent Adore Beauty share price movement

If you look at the Adore Beauty share price over the last three months, it hasn’t much that much. But it dropped all the way to around $3.30 in the middle of May and has since climbed around 55% to be at the current share price.

Trading update

A couple of months ago, it released its FY21 third quarter trading update. In the update, it said that revenue was up 47% to $39.4 million.

Active customers at the end of the third quarter had reached 687,000 – this was an increase of 69%.

Adore Beauty boasted that it has been seeing strong retention and re-engagement rates for new customers acquired during the COVID-19 period.

The e-commerce business said that it’s on track to achieve full year FY21 revenue growth of between 43% to 47% year on year.

Adore Beauty is continuing to pursue disciplined investment to drive revenue growth and further expand its online leadership position. Management advised the FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) will reflect the company’s continued investment, including in marketing and advertising, as well as the cost of increased staff levels.

Management believe that the company continues to grow its market share, but it wants more. It wants to improve its range and believes there are adjacency expansion opportunities. Adore Beauty is also working on private label development.

The potential opportunity for Adore Beauty?

Adore Beauty says the beauty and personal care market in Australia is worth $11.2 billion and is expected to grow at a compound annual growth rate of 26% to 2024.

Online sales make up 11.4% of the beauty and personal care market. The Australian digital penetration rate is lower compared to countries like the US, the UK and China.

Due to the size of that potential opportunity, Adore Beauty plans to invest to grow its market share by increasing brand awareness, winning new customers and improving customer retention.

Management are expecting higher profit margins over time:

Given the predominately fixed nature of the business’ cost base, management expects scale benefits to increase operating leverage and deliver EBITDA margin expansion in the longer term as the company continues to grow revenue.

Is the Adore Beauty share price an opportunity?

The broker UBS rates the Adore Beauty share price as a buy with a price target of $5.60.

Whilst UBS notes an e-commerce slowdown in the short-term, it believes that online beauty is a good growth trend for Adore Beauty in the long run. The company can invest in advertising and see customer loyalty improve over time.

It is expecting Adore Beauty to be able to generate over $360 million of sales in FY25.

If UBS is right with its priec target, then the Adore Beauty share price might go up just under 10% over the next 12 months.

The post Is the Adore Beauty (ASX:ABY) share price a buy? appeared first on The Motley Fool Australia.

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

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If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Here’s why analysts have given them buy ratings:

National Storage REIT (ASX: NSR)

The first ASX dividend share to look at is National Storage. It is one of the largest self-storage operators in the ANZ region with a network of over 200 centres.

Though, it looks unlikely to stop at that number. National Storage recently raised $326 million to strengthen its balance sheet and replenish its investment capacity. This could mean further earnings accretive acquisitions in the highly fragmented market in the future.

Combined with favourable trading conditions being driven by the booming housing market, this bodes well for the coming years.

Analysts at Ord Minnett currently have an accumulate rating and $2.20 price target on the company’s shares. Its analysts are also forecasting dividends of 8.2 cents per share in FY 2021 and then 8.6 cents per share in FY 2022. Based on the latest National Storage share price of $2.10, this will mean yields of 3.7% and 4.1%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend share to consider is Transurban. It is one of the world’s leading toll road operators with key roads in Melbourne, Sydney and Brisbane, as well as in Greater Washington, United States and Montreal, Canada.

In addition to being a toll road company, Transurban considers itself to be a technology company. It notes that it researches and develops innovative tolling and transport technology that makes travel easier for everyone.

Recent lockdowns have certainly been a blow to the company. However, as has been proven previously during the pandemic, traffic bounces back reasonably quickly once restrictions ease. And with the Australian vaccine rollout starting to gather momentum, it may not be too long until lockdowns are a thing of the past and its roads are busy with traffic again.

This could make it worth being patient with Transurban’s shares. Especially given the prospect of big dividend increases in the future.

Macquarie is confident in the company’s recovery and is expecting its distributions to rebound strongly in FY 2022. The broker is forecasting dividends of 36 cents per share in FY 2021 and then 59.1 cents per share in FY 2022. Based on the latest Transurban share price of $14.76, this will mean yields of 2.4% and 4%, respectively, over the next two years. Macquarie currently has an outperform rating and $15.20 price target on the company’s shares.

The post 2 buy-rated ASX dividend shares appeared first on The Motley Fool Australia.

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• Transurban (ASX:TCL) share price jumps following broker upgrade
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It’s been a good week for the BHP Group Ltd (ASX: BHP) share price. Shares in the Aussie mining giant are up 3.4% since Friday’s close, translating to a $149.4 billion market capitalisation.

Here’s why shares in the iron ore miner are enjoying solid gains at the moment.

Why the BHP share price has surged higher this week

In good news for shareholders, the Aussie mining share continues to hover just shy of its $51.82 per share record high.

The most recent run started on Monday as the BHP share price rocketed higher to start the week. Pleasingly for shareholders, those gains have largely been maintained including a 0.5% gain on Thursday.

One key regulatory change from China’s central bank has been a factor boosting BHP’s fortunes in recent days. As noted in the Australian Financial Review on Monday, the People’s Bank of China announced a change in bank reserve requirements which could free up hundreds of billions of additional liquidity in the Chinese economy.

That helped spark share price rallies in global markets last Friday with resources shares being particular winners. The BHP share price, alongside fellow iron ore giants Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Ltd (ASX: RIO), followed suit and surged when markets reopened on Monday.

Crude oil prices have also been climbing, aided by declining inventories and increasing tensions amongst the OPEC oil cartel. Both Brent and WTI crude prices climbed higher and sparked a surge in BHP shares on Monday. According to its 2020 annual report, BHP generated US$4.1 billion or 9.5% of its revenue from petroleum in FY2020.

That means the company has exposure to climbing commodity prices through potentially higher realised sale prices in significant volumes.

The BHP share price is sitting just 1.7% from its all-time high. That’s not bad for an S&P/ASX 200 Index (ASX: XJO) share hit hard in the March 2020 bear market.

The post Why the BHP (ASX:BHP) share price has surged 3% this week appeared first on The Motley Fool Australia.

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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 Afterpay Ltd (ASX: APT) share price just had its worst day since February 2021, falling by around 9.6%.

Afterpay wasn’t the only one that suffered a big sell off on Wednesday. The Zip Co Ltd (ASX: Z1P) share price also declined by around 11.4%. The Sezzle Inc (ASX: SZL) share price fell a little less than that, dropping by approximately 10.3%.

Apple Pay Later

It is being reported by Bloomberg that Apple and Goldman Sachs are planning to launch a buy now, pay later service that could be a rival to operators like Affirm as well as Afterpay.

Bloomberg said that Apple is working on a service that is internally known as Apple Pay Later. It will mean that consumers can use Apple Pay for any purchase in instalments over a certain amount of time.

It won’t be Apple as the lender of the loans, but Goldman Sachs. The two US giants have already been partners with the Apple Card credit card for the last couple of years. But, according to Bloomberg, consumers won’t need an Apple Card for the purchases.

What would Apple get out of this? It is reportedly hoped that it would increase the adoption of Apple Pay and lead to more consumers using the iPhone to pay for things instead of their normal payment card. Apple makes money from transactions paid with Apple Pay.

Bloomberg reports that a consumer using Apple Pay Later can either pay for it interest-free across four payments every fortnight, or over a few months with interest.

This will be reportedly available for both in-store and online purchases.

People that want to use this Apple Pay Later service will need to be approved through an iPhone Wallet app application with ID.

Some of these payment plans will exclude late fees and processing fees. It also won’t require running a credit check on users, according to Bloomberg.

At this stage, this new service is still in development. The final product could have changes. 

Afterpay share price volatility

Investors also learned that PayPal wouldn’t be charging late fees. 

Despite the heavy decline on Wednesday, the Afterpay share price is still up around 24% over the last two months.

But it has dropped by approximately 33% since the high in February 2021 before it reported its FY21 half-year result.

The post The Afterpay share price just had its worst day since February 2021. Here’s why appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are 3 of the most heavily traded ASX 200 shares today
• ASX 200 rises, Afterpay sinks, Macquarie Telecom soars
• BNPL ASX share prices tumble as PayPal declares no BNPL late fees
• Why ASX BNPL shares like Afterpay, Zip, and Sezzle are sinking

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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Some ASX dividend shares offer quite large income yields and have been growing underlying earnings as well.

COVID-19 provided plenty of impacts and volatility during FY21. But there are some businesses that are expected to report large shareholder payouts in FY21 and FY22.

Here are two that may be candidates as dividend ideas:

Charter Hall Long WALE REIT (ASX: CLW)  

This is one of the larger real estate investment trusts (REITs). It has a market capitalisation of around $3 billion according to the ASX.

It is invested across a variety of different property sectors, but the overarching theme is that the ASX dividend share aims to find quality tenants that will sign up to long-term leases.

Charter Hall Long WALE REIT is invested in a number of different sectors including ‘long weighted average lease expiry (WALE) retail’, industrial, office, social infrastructure and agri-logistics.

To be more specific, its portfolio income exposure is split as follows: government (20%), telecommunications (15%), grocery and distribution (14%), fuel and convenience (12%), pubs and bottle shops (10%), food manufacturing (9%), waste and recycling (2%) and ‘other’ (18% – which includes Bunnings).

It also has a number of high-quality tenants like Telstra Corporation Ltd (ASX: TLS), BP, Endeavour Group Ltd (ASX: EDV), Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: WES), David Jones and Metcash Limited (ASX: MTS).

The ASX dividend share recently made some more acquisitions, which included spending $135.2 million on a 33.3% tenants in common title interest in the Myer Holdings Ltd (ASX: MYR) Bourke Street Mall property in the Melbourne CBD. Those combined acquisitions had a passing yield of 5.1% and a long WALE of 11.2 years.

With a 100% distribution payout ratio, it’s expecting FY21 operating earnings per share (EPS) of 29.2 cents – that represents a distribution yield of 6%. Operating EPS is then expected to grow by another 4.5% in FY22.

It’s currently rated as a buy by Citi with a price target of $5.30.

Adairs Ltd (ASX: ADH)

Adairs is one of the leading homewares retailers on the ASX.

One of the main ways that it is increasing its market share is by rapid online sales growth.

In the first half of FY21, total sales were up 34.8% to $243 million. Group online sales were $90.2 million, being 37.1% of the total. Adairs online sales increased by 95.2%, whilst Mocka sales (which is completely online) went up 44.4% to $28 million.

The company has been working on its gross profit margin, which saw an increase of 500 basis points in the first six months of FY21, the underlying Adairs gross profit margin improved 690 basis points to 67.8%.

This strong improvement in the margin allowed the company to grow its underlying group earnings before interest and tax (EBIT) by 166% to $60.2 million. Statutory net profit after tax (NPAT) grew 233.4% to $43.9 million and EPS came in at 25.9 cents. This allowed the board to declare an interim dividend of 13 cents per share.

The ASX dividend share has a number of initiatives to grow further. It wants to continue improving the Adairs online offering, improve the Mocka market share in Australia, upsize its stores and finish its new national distribution centre.

According to Commsec, Adairs is valued at 11x FY22’s estimated earnings with a forward grossed-up dividend yield of 9.4%.

The post 2 top ASX dividend shares with BIG yields appeared first on The Motley Fool Australia.

More reading

• What’s happening to the Telstra (ASX:TLS) share price?
• Why has the Endeavour share price gone nowhere this month?
• Macquarie Telecom (ASX:MAQ) rockets 12% to new all-time high
• Here’s why the Woolworths (ASX:WOW) share price is up 10% since May
• This ASX telco grew 3 times faster than the Telstra (ASX:TLS) share price

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO, COLESGROUP DEF SET, and 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 Telstra Corporation Ltd (ASX: TLS) share price appears to have regained investors’ attention this year. After a tough 5 years or so for the Aussie telco, its shares have climbed 26% higher in 2021.

That’s a good return for shareholders given the S&P/ASX 200 Index (ASX: XJO) is up 11% over the same period. In case you’ve missed it, here’s a quick recap of how the Telstra share price has performed recently.

What’s happening to the Telstra share price?

Wednesday’s session was yet another good one for Telstra, with the group’s shares gaining 0.80% to close at $3.78 per share. Many investors will be wondering if they’re finally going to see the fruits of Telstra’s ambitious turnaround plans.

There are a number of forces at play in the Aussie telecommunications sector right now. There is the ever-present threat of NBN Co taking over market share, while Telstra is now competing against the recently-merged TPG Telecom Ltd (ASX: TPG). That means Australia’s leading telco has moved to adapt and make changes to boost its long-term prospects.

One such move has been the company’s cornerstone $2.5 billion productivity program. The program is focused on cost-cutting and creating a simplified entity. It seems to be working, with Telstra reporting a further $201 million reduction in fixed costs in its half-year results release.

By slashing its cost base, Telstra can ultimately target higher earnings figures. Even if revenue remained unchanged, a reduction in operating expenses would mean higher earnings before interest, tax, depreciation and amortisation (EBITDA), all else remaining equal.

Higher earnings is music to the ears of dividend-hungry investors. Telstra paid out 125% of underlying earnings in 1H 2021 and investors would be hoping for more if the telco can continue to generate strong cash flow and earnings.

What does recent spin-off mean for shareholders?

It’s not just cost management that has the Telstra share price climbing higher right now. One of the biggest trading days came on June 30, when the telco’s shares spiked 4.4% in value.

The catalyst was an announcement on the sale of its mobile tower business TowerCo. Telstra announced the sale of a 49% stake to a consortium comprising the Future Fund, Commonwealth Superannuation Corporation and SunSuper.

The transaction values Telstra InfraCo Towers at $5.9 billion, with expected net cash proceeds of $2.8 billion. That creates a real possibility of higher dividends for shareholders with the telco flagging 50% of net proceeds would be paid to shareholders in FY2022.

Foolish takeaway

The Telstra share price has been running hot in 2021. Shares in the Aussie telco are up 26% this year and outperforming the benchmark Aussie index.

Investors will be hoping this is a change in fortunes for the perennial dividend share and not just a flash in the pan.

The post What’s happening to the Telstra (ASX:TLS) share price? appeared first on The Motley Fool Australia.

More reading

• Macquarie Telecom (ASX:MAQ) rockets 12% to new all-time high
• This ASX telco grew 3 times faster than the Telstra (ASX:TLS) share price
• Is your money safe in Telstra (ASX:TLS) shares right now?
• Why Telstra (ASX:TLS) and this dividend share could be buys
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat

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 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form and pushed higher. The benchmark index rose 0.3% to 7,354.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to give back some of its gains on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% lower this morning. This follows a mixed night of trade on Wall Street, which saw the Dow Jones rise 0.1%, the S&P 500 climb 0.1%, but the Nasdaq fall 0.2%.

Oil prices sink

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be in the red today after oil prices sank overnight. According to Bloomberg, the WTI crude oil price is down 3.4% to US$72.72 a barrel and the Brent crude oil price has fallen 2.7% to US$74.44 a barrel. Oil prices tumbled after Saudi Arabia and UAE reached an agreement that will see global oil supplies boosted.

Afterpay and Zip on watch

All eyes will be on Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) shares today after they recorded severe declines on Wednesday. Investors were selling the buy now pay later (BNPL) providers amid reports that Apple is going to enter the market with Apple Pay Later. Overnight, US-listed BNPL provider Affirm continued to sink on the news.

Gold price rises

It could be a good day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price rose overnight. According to CNBC, the spot gold price is up 1% to US$1,828.50 an ounce. The precious metal pushed higher after the US Federal Reserve reassured investors that it would continue with its accommodative monetary policy despite a strong inflation reading.

ARB update

The ARB Corporation Limited (ASX: ARB) share price will be one to watch on Thursday following the release of a market update by the 4×4 parts manufacturer. ARB reported a 33.9% increase in unaudited sales revenue to $623 million. On the bottom line, it expects its profit before tax for FY 2021 to be within the range of $145 million to $150 million. This will be an increase of 85.5% to 92% on FY 2020’s $78.1 million.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• ARB (ASX:ARB) share price on watch after reporting stellar FY2021 growth
• Here are 3 of the most heavily traded ASX 200 shares today
• ASX 200 rises, Afterpay sinks, Macquarie Telecom soars
• Broker warns that small lenders are set to beat ASX bank shares
• BNPL ASX share prices tumble as PayPal declares no BNPL late fees

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 AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended ARB 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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If you have room for a tech share or two in your portfolio, then you might want to consider the two listed below.

Here’s why these rapidly growing ASX tech shares are highly rated:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is this San Francisco-based technology company. It is the app maker behind the hugely popular family-focused Life360 mobile app, which is used by 28 million monthly active users globally.

It was a surprisingly strong performer in FY 2020 despite facing headwinds from lockdowns and lower mobility. For the 12 months ended 31 December 2020, Life360 reported a 39% increase in normalised revenue to US$81.6 million.

The good news is that its strong form is expected to continue in FY 2021. Life36o recently revealed that it expects its annualised monthly revenue to be at the high end of its guidance of US$110 million to US$120 million. The high end represents a 34% year on year increase.

In addition to this, the company announced the creation of a Family Advisory Council that will bring together well-known celebrities and influencers. The Council will help shape the company’s product and marketing strategy.

One broker that is very positive on the company is Morgan Stanley. It currently has an overweight rating and $8.60 price target. Morgan Stanley has been impressed with Life360’s user base growth and feels that the market under appreciates this.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX tech share to look at is PointsBet. It is a growing sports wagering operator and iGaming provider offering innovative sports and racing betting products and services in the ANZ and US markets.

The latter is the market which is expected to be the key driver of its growth in the future. Thanks to regulation changes and the company’s partnerships, like the one it has with NBCUniversal, PointsBet appears well-placed to capture market share and grow its sales over the next decade. The agreement with NBCUniversal puts the PointsBet brand in front of 184 million of the sports broadcaster’s viewers.

Analysts at Goldman Sachs are bullish on PointsBet. The broker currently has a buy rating and $17.20 price target on PointsBet’s shares. It notes that PointsBet is well-positioned in a US market forecast to be worth US$53 billion at maturity.

The post 2 rapidly growing ASX tech shares named as buys 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 Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Life360, Inc. The Motley Fool Australia has recommended Pointsbet Holdings 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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