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A strange observation can be made of many ASX exchange-traded funds (ETFs) right now. Namely, that they seemingly boast dramatic and what one might perceive to be unrealistic trailing dividend distribution yields right now.

Take the iShares S&P 500 AUD Hedged ETF (ASX: IHVV). Today, this ASX ETF has a trailing distribution yield of 21.42%. Typically, if an ASX dividend share has a yield of, say, 4%, it’s considered a potentially strong income share. But 21.4%? Is this too good to be true?

It’s not just that particular ASX ETF either.

Some more high-yielding ASX ETFs

Today, the BetaShares Global Cybersecurity ETF (ASX: HACK) seemingly offers its investors a trailing distribution yield of 9.6%. Not quite as impressive as 21.4%, but still substantial nonetheless.

Or the Vanguard International Fixed Interest (Hedged) ETF (ASX: VIF). It’s putting up a trailing yield of 15.05% right now. For the BetaShares Global Sustainability Leaders ETF (ASX: ETHI), a yield of 9.05% is apparently on offer.

By now, you might be smelling a rat here. Most ASX ETF investors know that the US S&P 500 Index (INDEXSP: .INX) is not a market known for its generous dividend payments. So a 20%-plus yield for an ASX ETF covering this index seems very out of place, even if it is hedged.

And interest rates are still at record lows right now (0.1% in Australia) so the Vanguard Fixed Interest ETF should not be offering a yield of more than 15% right now. So what’s going on here?

Well, these payments are not true dividend distributions. An ETF works by holding a basket of shares within them. In the case of the S&P 500 ETF above, this is the 500 or so companies in the S&P 500 Index.

Many of these companies pay a dividend so the ETF receives this money and passes it onto its investors. But that’s not what’s happening for the most part here.

Not all is as it seems…

Another notable feature of an ETF is how it rebalances itself. An ETF normally tracks an index, an index whose underlying shares change in value over time. The ETF needs to take this into account, otherwise it wouldn’t be doing its job of faithfully tracking its index.

As such, ETFs, like those above, periodically ‘rebalance’ themselves. They do this by selling the shares that have increased outside their index allocations and by buying the shares that go under. In times of rising markets, there are usually more winners than losers in this regard.

Because of this, the ASX ETFs in question usually find themselves with a surplus of cash after the rebalancing is complete.

What to do with this extra cash? Send it out the door in the form of dividend distributions, of course. So that’s why these ASX ETFs seemingly boast such high trailing yields right now.

So don’t get too excited when you see the IHVV ASX ETF pay out a distribution of 21.4%. It can be classed more as a one-off capital return rather than a consistent dividend yield.

Digging a little deeper, and iShares tells us that IHVV’s ‘true’ trailing dividend yield (what it receives from its underlying shares) is actually sitting at 1.41% per annum.

Sorry to burst the bubble.

The post Why do some ASX ETFs have dividend yields of 20% right now? appeared first on The Motley Fool Australia.

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• The Australian Ethical (ASX:AEF) share price lower despite positive earnings guidance

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. owns shares of and has recommended Australian Ethical Investment Ltd. and BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Australian Ethical Investment 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

It was a wild first year as a public company for insurance-tech upstart Lemonade (NYSE: LMND). Shares fell 11% through the first half of 2021, according to data from S&P Global Market Intelligence.

But the path to getting there was dramatic. After its initial public offering (IPO) in July 2020 through January 11, 2021, the stock skyrocketed more than 160% on investor optimism on Lemonade’s prospects for disrupting the massive global insurance industry.

Things came undone at that point, though, as Lemonade came under attack from short-sellers, and other shareholders took some profit off the table. At one point, Lemonade fell all the way back to where it made its publicly traded debut last summer before rallying in May and June.

Data by YCharts.

So what

Detractors from Lemonade argue that the company holds no real technological advantage over the many large insurance incumbents out there and that sooner or later, Lemonade will run out of steam. After all, though the company touts being a tech outfit that makes use of AI and behavioral finance throughout its operations, it still operates at steep losses at this stage. As of the end of June, an estimated nearly 13% of Lemonade’s shares outstanding were being sold short, indicating that many traders are betting against the stock.

Nevertheless, it’s undeniable that Lemonade is winning with young consumers, many of whom are purchasing insurance policies for the first time. As of the end of March 2021, Lemonade said its customer count was up 50% from the year prior to nearly 1.1 million, and in-force premium was up 89% to $252 million. While current financial results alone don’t justify the company’s $5.7 billion market cap, Lemonade clearly is doing something right and growing at a rapid pace.

Now what

The jury is still out on Lemonade, and that’s OK. It’s only a year removed from its IPO, so it’s far too soon to tell how successful this tech-enhanced insurer will ultimately be.

However, though it still operates at a loss, this small firm isn’t at risk of running out of cash anytime soon. It had nearly $1.2 billion in cash and investments on hand and no debt at the end of March. Investors should stay focused on the pace of new customer acquisition and the rollout of new products — like the upcoming Lemonade Car auto insurance that will be making its debut later in 2021.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Lemonade stock fell 11% in the first half of 2021 appeared first on The Motley Fool Australia.

More reading

• Why BlueBet, Orocobre, Praemium, & Sandfire shares are racing higher
• Harmoney (ASX:HMY) share price surges 12% on update
• ASX midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade
• Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO
• Why is the Eroad (ASX:ERD) share price halted today?

Nicholas Rossolillo owns shares of Lemonade, Inc. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain on Wednesday. In afternoon trade, the benchmark index is up 0.2% to 7,345.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Bluebet Holdings Ltd (ASX: BBT)

The Bluebet share price has jumped 7% to $1.76. Investors have been buying the sports betting company’s shares after it provided an update on its US operations. According to the release, the company has signed an agreement with Dubuque Racing Association that will allow BlueBet to conduct its online sportsbook operations in the state of Iowa. Though, this remains subject to the completion of regulatory approval and licensing.

Orocobre Limited (ASX: ORE)

The Orocobre share price is up 4% to $7.40. This lithium miner’s shares were given a boost this morning from a bullish broker note out of Ord Minnett. According to the note, the broker has upgraded Orocobre’s shares to a buy rating with an $8.45 price target. The broker believes the company is well-positioned to benefit from strong lithium prices. It feels this will especially be the case if its merger with Galaxy Resources Limited (ASX: GXY) completes successfully.

Praemium Ltd (ASX: PPS)

The Praemium share price has jumped 14% to $1.11. Investors have been fighting to get hold of the investment platform provider’s shares after it announced plans to divest its international operations and released a very strong quarterly update. In respect to the latter, Praemium revealed record quarterly inflows of $1.2 billion for the fourth quarter. This took its funds under administration (FUA) to a record of $41.7 billion at the end of June.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is up 2% to $6.83. This follows the release of an update on the copper producer’s performance during FY 2021. According to the release, Sandfire has exceeded its annual copper production guidance. The miner produced 70,845 tonnes of contained copper and 39,459 ounces of contained gold with a C1 unit operating cost of US$0.81 per pound of payable copper. This underpinned a 24% increase in sales revenue in FY 2021 to $813 million.

The post Why BlueBet, Orocobre, Praemium, & Sandfire shares are racing higher appeared first on The Motley Fool Australia.

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• ASX midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade
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• Sandfire (ASX:SFR) share price charges higher after beating FY21 guidance
• Is BlueBet or Pointsbet the better bet right now?

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Praemium Limited. The Motley Fool Australia has recommended Praemium 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 Harmoney Corp Ltd (ASX: HMY) share price surged more than 12% in early trade. The bullish price action comes after the company released an update earlier today.  

At the time of writing, shares in Harmoney are now trading up 7.84%, at $2.20. The Harmoney share price was up more than 12% earlier, after hitting an intra-day high of $2.30.

Let’s take a look at what Harmoney announced and why investors are scrambling for the company’s shares.

Harmoney shares soar on strong originations growth

Earlier today, Harmoney released an update on the company’s performance for the second half of FY21.

The update was highlighted by a 144% increase in total new originations for the half. In addition, Harmoney noted that Australian new customer originations grew by 260% in the second half to $47 million.

Overall, Harmoney recorded total group originations of NZ$250 million, compared to $193 million in the first half. The company noted that growth in new customers could lead to a strong increase in repeat customer originations in the following six months.

Harmoney also noted group receivables of NZ$501 million, yielding a net interest margin of 11%. The company’s Australian receivables also grew by 33% in the 6 months since December 2020.

Harmoney’s CEO and Managing Director David Stevens noted;

“It’s pleasing to see Harmoney’s new customer originations have surpassed pre-COVID levels. New customer originations is a lead indicator for receivables growth as more customers become eligible for our 3Rs repeat program.”.

In addition to its performance in the second half, Harmoney also alluded to forecasts for FY22. The company noted that group receivables are forecast to grow at significantly higher levels in the new financial year. The company cited higher new customer originations and the release of LibraTM 1.7 in Australia.

Harmoney also noted its strong capital position, with undrawn funding lines of NZ$216 million as at 30 June 2021.  

More on Harmoney

Harmoney is an online direct personal lender that operates across Australia and New Zealand. The company provides customers with unsecured personal loans of up to $70,000 that are easy to access and competitively priced.

Despite today’s jubilant price action, the Harmoney share price remains more than 22% lower for the year.

The post Harmoney (ASX:HMY) share price surges 12% on update appeared first on The Motley Fool Australia.

More reading

• ASX midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade
• Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO
• Why is the Eroad (ASX:ERD) share price halted today?
• Why the Wesfarmers (ASX:WES) share price is wobbling today
• Behind the Nearmap share price surge, upgrades for Rio and BHP. Scott Phillips on Nine’s Late News

Motley Fool contributor Nikhil Gangaram 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is defying weakness on Wall Street by pushing higher. The benchmark index is currently up 0.35% to 7,358.4 points.

Here’s what is happening on the ASX 200 today:

Afterpay sinks amid reports Apple to enter BNPL market

The shares of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are sinking on Wednesday amid speculation that Apple is going to enter the buy now pay later (BNPL) market. Bloomberg understands that the upcoming service, known internally as Apple Pay Later, will allow consumers to pay for any Apple Pay purchase in instalments. The tech giant will use Goldman Sachs as the lender for the instalment loans.

NAB higher on Citi interest

The National Australia Bank Ltd (ASX: NAB) share price is edging higher today after it confirmed reports that it is interested in acquiring the Australian Consumer business of Citigroup. NAB advised that it is in discussions with Citi but warned that there is no certainty these discussions will lead to a transaction. A price of $2 billion is expected to be required to snare the business.

Orocobre shares upgraded

The Orocobre Limited (ASX: ORE) share price is rising on Wednesday. This follows the release of a broker note out of Ord Minnett this morning. According to the note, the broker has upgraded the lithium miner’s shares to a buy rating with an $8.45 price target. It believes the company is well-positioned to benefit from favourable lithium prices, particularly if its merger with Galaxy Resources Limited (ASX: GXY) completes successfully.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Blackmores Limited (ASX: BKL) share price with a 3.5% gain. This is despite there being no news out of the health supplements company. The worst performer on the ASX 200 has been the Zip Co Ltd (ASX: Z1P) share price with a 9% decline. This follows speculation of Apple’s entry into the BNPL market.

The post ASX midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade appeared first on The Motley Fool Australia.

More reading

• Why the Zip (ASX:Z1P) share price is down 10% on Wednesday
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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 and Blackmores 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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It’s been an exciting time for fans of 29Metals – its share price has shot up 12% since its Initial Public Offering (IPO) nearly a fortnight ago.

29Metals shares are currently trading for $2.26, after selling for $2.00 apiece during the company’s IPO.

Earlier today, the 29Metals share price reached $2.37 – its highest point yet.

Let’s take a look at what’s been going on with 29Metals since it debuted on the ASX on 2 July.

Quick refresher

29Metals is a copper producer with interests in gold, zinc, silver, and lead.

The company owns the Golden Grove mine in Western Australia. Golden Grove produces high-grade copper, zinc, and precious metals.

29Metals also holds Queensland’s Capricorn Copper mine which produces high-grade copper and silver, among other ores. Finally, it has an exploration portfolio in Chile.  

Placing its share price at $2.00 apiece made 29Metals’ IPO the largest ASX mining debut in a decade.

A good run so far

Despite gaining 12% on its IPO price, 29Metals has yet to announce any price sensitive news to the market.

Still, it’s seemingly managed to capture the attention of market watchers.

29Metal’s IPO saw it raise around $527 million before going to market.

Additionally, offering its shares for $2.00 apiece saw 29Metals with an expected market capitalisation of around $960 million.

At its current share price, 29Metals’ market capitalisation is around $1.07 billion.

Since the company listed, the price of copper has been wavering in a relatively flat trend, so it’s not likely to be driving the 29 Metals share price higher.

29Metals share price snapshot

The 29Metals share price has had a dramatic journey already.

Its shares fell 1.4% over their first 3 sessions on market before gaining a whopping 12.9% over another 4 sessions for no apparent reason.

They’ve since seemingly stabilised, closing at $2.27 yesterday and opening at $2.29 today.  

The post Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO appeared first on The Motley Fool Australia.

More reading

• 29Metals (ASX:29M) slips on biggest ASX mining debut in a decade

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

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

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The S&P/ASX 200 Index (ASX: XJO) is having something of a shaky start to this Wednesday’s trading session. At the time of writing, the ASX 200 is up 0.39% to 7,361 points after briefly dipping on market open this morning. But one ASX share that isn’t participating much today is Eroad Ltd (ASX: ERD).

The Eroad share price is currently stuck at $5.78 a share, right where it finished up yesterday afternoon. And that’s where it’s going to stay, at least for a while.

This morning, Eroad came out and told investors through an ASX release that its shares will be entering a trading halt. On both the New Zealand and ASX stock exchanges. Why? Here’s some of what Eroad had to say:

We would like the trading halt to commence from the opening of trading on Wednesday 14 July 2021 and be lifted at the opening of trading on Thursday 15 July 2021. Or on any earlier announcement regarding the outcome of the capital raising discussed below…

EROAD is proposing to raise up to NZ$80.5 million of new capital by way of an NZ$64.4 million placement… followed by an NZ$16.1 million share purchase plan (SPP).

A new road for Eroad shares

So Eroad is conducting a concurrent share replacement and share purchase plan (SPP). What will it be spending this NZ$80.5 million on? Well, Eroad has also released another update on this subject this morning.

The company has told investors it has “entered into a conditional agreement to acquire 100% of Coretex Limited”. Coretex is a “telematics vertical specialist provider delivering enterprise grade solutions”.

This purchase will cost Eroad NZ$157.7 million in upfront consideration. Plus a further NZ$30.6 million if “certain performance milestones” are met. This share placement and SPP that was also announced today will partly fund this acquisition. That is, if shareholders vote in favour of the plan at the company’s annual general meeting on 30 July.

The rest of the funding will come from the issuance of new shares (worth NZ$96 million). As well as NZ$11.8 million in cash from Eroad.

Why is the company buying Coretex?

So why is Eroad proposing to buy Coretex? The company listed a number of reasons:

• The Acquisition accelerates EROAD’s key growth metrics by two years enabling it to capture the significant growth opportunity in North America and Australia
• The Acquisition drives synergies and accelerates revenue growth by adding new strategic verticals, providing broader product market fit and increasing customer base …
• Acquisition is accretive from an earnings basis in FY23, following growth investment in FY22 to drive synergies

And here’s some of what Eroad CEO Steven Newman had to say on this proposal:

The acquisition of Coretex is truly transformational for EROAD…

EROAD and Coretex both aspire to create a safer, more sustainable and more productive society. Combining EROAD’s expertise in broadly adopted regulatory telematics solutions with Coretex’s extensive vertical telematics expertise and products creates an advanced market fit.

At the current (and frozen) Eroad share price, the company has a market capitalisation of $473.4 million, and a price-to-earnings (P/E) ratio of 228.

The post Why is the Eroad (ASX:ERD) share price halted today? appeared first on The Motley Fool Australia.

More reading

• Why the 29Metals (ASX: 29M) share price has surged 12% since its IPO
• Why the Wesfarmers (ASX:WES) share price is wobbling today
• Behind the Nearmap share price surge, upgrades for Rio and BHP. Scott Phillips on Nine’s Late News
• Why the Zip (ASX:Z1P) share price is down 10% on Wednesday
• As markets fall, big business fights back against disruptive growth stocks

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. owns shares of and has recommended EROAD Limited. The Motley Fool Australia owns shares of and has recommended EROAD 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 Wesfarmers Ltd (ASX: WES) share price is up and down today after the company’s bid for Australian Pharmaceutical Industries Ltd (ASX: API) faces new pressure from shareholders.

At market open Wesfarmers shares surged to $58.61 before dipping down to $58.01. At the time of writing, the Wesfarmers share price is up 0.47% to $58.70.

Let’s take a look in a little more detail.

New pressure from shareholders

Wesfarmers shareholders are concerned the offer for the pharmaceutical retailer and distributor is too low, and that it opens the gates for rival bids to surface.

Key stakeholders have been outspoken, advocating to lift the bid. They say the offer, “undervalued [Australian Pharmaceutical] and a counter offer was not impossible,” according to yesterday’s Australian Financial Review.

The news comes after 19.3% shareholder Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) gave its seal of approval on the $1.38 per share offer.

Since Monday’s announcement, the API share price skyrocketed almost 20%, reaching a high of $1.38 yesterday.

API is the owner of Priceline Pharmacy and Clear Skincare beauty clinics, both of which operate throughout Australia.

Wesfarmers values the company’s assets at $687 million, excluding $135 million debt on its balance sheet.

As such, the $1.38 per share offer is close to API’s current market price at the time of writing.

Speaking on the proposal on Monday, Wesfarmers managing director Rob Scott said:

If the proposal is successful, API would form the basis of a new healthcare division of Wesfarmers and a
base from which to invest and develop capabilities in the health and wellbeing sector.

The offer is still subject to due diligence, clearance from the ACCC, and board approval from API.

Wesfarmers share price snapshot

The Wesfarmers share price has posted a year-to-date return of ~16%, extending the previous 12 month’s return of 27.68%.

These returns have outpaced the S&P/ASX 200 Index (ASX: XJO)’s return of ~11.7% since 1 January this year.

At the time of writing, Wesfarmers has a market capitalisation of $66.5 billion.

The post Why the Wesfarmers (ASX:WES) share price is wobbling today appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended 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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Nine’s Late News on Tuesday night to discuss Nearmap’s (ASX: NEA) share price jump, upgrades for BHP (ASX: BHP), Rio Tinto (ASX: RIO), Ampol (ASX: ALD) and Viva Energy (ASX: VEA), and a sharp fall in NAB’s business survey.

The post Behind the Nearmap share price surge, upgrades for Rio and BHP. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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Motley Fool contributor Scott Phillips 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 Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap 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 rollercoaster ride for the Zip Co Ltd (ASX: Z1P) share price continues on Wednesday, tumbling 9.2% to $7.50.

What’s driving the Zip share price selloff?

Investors might be selling their Zip shares today in response to another giant entering the buy now pay later (BNPL) space.

This morning, Bloomberg reported that Apple is working on a new BNPL service with classic interest-free instalment features.

The report said that Apple will be teaming up with another behemoth, Goldman Sachs, to act as the lender for the BNPL loans.

While Zip might be the second-largest ASX-listed BNPL player, it pales in comparison to the US$2.4 trillion giant that is Apple.

The broader BNPL sector is also feeling the pressure, with the likes of Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL) sliding 8.8% and 9.13% respectively.

Whipsaw-like action for Zip

The Zip share price has displayed immense volatility in the last month.

Looking back, the broader BNPL sector bounced back in late June, with the Zip share price closing at a 2-month high of $8.78 on 24 June.

By 6 July, Zip shares had tumbled 17.5% to $7.25.

Just as things began to look bearish for Zip, rumours emerged that a rival BNPL provider had acquired a strategic stake in the company.

According to the Australian Financial Review, Swedish based rival Klarna acquired a 4% stake in Zip.

The report suggests this move was “designed to give it options should the buy now, pay later sector consolidate down to two or three main players globally”.

These rumours sent the Zip share price surging back to 2-month highs of $8.88 by 9 July.

Today, the Zip share price has tumbled back to $7.50 at the time of writing.

For investors who purchased Zip shares in late January or May, this would mean returns have slipped back to square one.

The post Why the Zip (ASX:Z1P) share price is down 10% on Wednesday appeared first on The Motley Fool Australia.

More reading

• As markets fall, big business fights back against disruptive growth stocks
• Why the Sezzle (ASX:SZL) share price is sinking 10% on Wednesday
• Why the Afterpay (ASX:APT) share price is crashing 9% on Wednesday
• Here are the 5 best ASX fintech shares of the 2021 financial year
• Afterpay and Zip shares on watch amid Apple Pay Later speculation

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Apple, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: 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. 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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