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The end of the financial year is usually a time for portfolio reassessment. Potentially, you have an increased desire for income-producing dividend shares in your portfolio. If a few ASX dividend shares have caught your eye, be mindful that many will be going ex-dividend soon.

An investor who purchases a stock before the ex-dividend date is entitled to receive the company’s next dividend payment. If it is purchased after this date, the previous shareholder will receive the dosh.

Here are 3 ASX dividend shares going ex-dividend next week. If you want to buy any of these shares and receive their next dollarydoo delivery, take note of the dates.

ASX dividend shares going ex-dividend

The following ASX shares will be going ex-dividend next week.

Rural Funds Group (ASX: RFF)

The first cab off the rank is Rural Funds, an Australian agricultural property company. Rural Funds owns a diversified portfolio of agricultural assets ranging from macadamias to vineyards. These high quality assets are leased back to experienced producers on long term agreements.

The group’s half year earnings per unit nearly doubled compared to the prior corresponding period at the end of December 2020. Due to the sale of assets, Rural Funds increased its profit after tax for HY21 to $58.43 million, up from $29.12 million. This has boosted dividend distributions for the full year by 4% to 5.64 cents per share.

Rural Fund’s next dividend payment will be 2.82 cents per share. The cut-off date is Tuesday next week. Based on the current Rural Funds share price, the full 5.64 cents for the year comes to a yield of 2.25%.

BWP Trust (ASX: BWP)

Another ASX dividend paying share nearing its cut-off date is BWP Trust. This real estate investment trust (REIT) owns and manages approximately $2.60 billion worth of commercial properties throughout Australia — most of them Bunnings warehouses.

Despite COVID-19, the trust delivered revenue and earnings roughly in line with pre-pandemic performance. As a result, BWP will be paying a distribution of 9.27 cents per share to eligible registered shareholders prior to 29 June.

The trust’s full year distribution is expected to be 18.3 cents per share. That would represent a dividend yield of 4.21% based on the current BWP Trust share price.

National Storage REIT (ASX: NSR)

National Storage REIT is the last on our list. This one is another real estate investment trust that is invested in the self-storage solutions provided by National Storage. The company now boasts 206 storage facilities across Australasia.

More recently, the company raised $260 million through an accelerated non-renounceable entitlement offer. They hope to raise a further $65 million of capital through a retail offer expected to close tomorrow. The funds will be used to repay debt and provide further liquidity.

This ASX share goes ex-dividend on 29 June. All eligible shareholders will receive 4.2 cents per share. Analysts at Ord Minnet are forecasting a total of 8.2 cents per share in FY21. This would represent a yield of 3.94% based on the National Storage share price at the time of writing.

The post Here are 3 ASX shares going ex-dividend next week appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 RURALFUNDS STAPLED. 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 Commonwealth Bank of Australia (ASX: CBA) share price is in the red today as the bank announces its plans to re-enter the invoice financing market.

In the front half of June, CBA’s share price surpassed the $100 mark and rallied to $106.57. Since then, the CBA share price has taken a subsequent downward turn back below the century milestone.

At the time of writing, Commonwealth Bank shares are trading hands at $98.49, down 0.72%.

Keeping the cash flowing for SME

According to reports from The Australian, Australia’s biggest bank is jumping back into the invoice financing game after more than a decade.

For a bit of context, invoice financing is a method of borrowing for businesses where its accounts receivable, or ‘invoices’ are used as the collateral. This can give small and medium-sized enterprises (SMEs) access to cash to grow while waiting for customers/clients to make payments.

Reportedly, CBA will be partnering up with another ASX-listed peer to make it all possible. A company known as Waddle will provide the bank with real-time accounting data to make lending assessments through its cloud-based lending platform. If Waddle sounds familiar it might be because the company was acquired by Xero Limited (ASX: XRO) late last year.

In discussing the return to invoice financing, CBA Group Executive of business banking, Mike Vacy-Lyle said:

While small businesses traditionally use fixed assets such as property to secure an overdraft or loan, we have developed Stream Working Capital, which will allow customers to access funds by using their outstanding invoices as loan security. The loan size reduces automatically as invoices are paid, so customers never pay for credit limits they don’t need.

Invoice lending without the green tinge

While invoice financing sounds similar to the lending fiasco that derailed Greensill Capital, there is a key difference. Importantly, ASX-listed CBA won’t be directly buying businesses’ accounts receivable.

Instead, SMEs will simply be able to convert 40% to 80% of the value of their invoices to loans. The businesses will still need to manage their own invoices and ensure the payments are made.

CBA Executive General Manager, Clare Morgan detailed that now was the right time for the bank to launch a technology-enabled product. Previously, other invoice financing efforts were considered resource-intensive and vulnerable to fraud.

Furthermore, Ms Morgan commented on the move:

They are [CBA customers] also face increasing pressure from suppliers wanting to be paid earlier and buyers wanting to extend payment terms.

Using invoices to access credit addresses this issue and can provide some peace of mind for businesses which can now access cash locked up in their invoices – it’s an essential part of helping small businesses recover and grow as they continue to navigate a new operating environment during the pandemic.

More money for ASX-listed CBA

CBA didn’t become ASX’s biggest bank by being altruistic. Businesses that use the invoice financing product can expect to pay an interest rate in the high single-digits. This rate will also depend on the risk associated with the customer and invoice.

Finally, as part of the partnership Commonwealth Bank will pay Waddle a licensing fee for using its platform.

The post CBA (ASX:CBA) partners with Xero’s Waddle for new financing product appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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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Rumours are swirling that a major healthcare provider will soon be going to auction, with ASX big-wig Wesfarmers Ltd (ASX: WES) mentioned as a potential buyer. The Wesfarmers share price hasn’t been noticeably affected by the buzz.

At the time of writing, the Wesfarmers share price is $57.88 – 0.4% lower than its closing price yesterday.

The broader market isn’t fairing much better today. Currently, the S&P/ASX 200 Index (ASX: XJO) is down 0.24%.

Let’s take a look at the rumours surrounding the diversified conglomerate today.

Rumours of a major acquisition

According to The Australian, investment banks claim Wesfarmers is in the running to purchase Australia’s largest cancer care provider, Icon Group.

If it were to go ahead, Wesfarmers’ acquisition of Icon Group would be its first foray into the healthcare sector.

In a recent research report, Goldman Sachs noted Wesfarmers has been eyeing new acquisitions.

Wesfarmers is said to have billions burning a hole in its pocket after selling off part of its stake in Coles Group Ltd (ASX: COL) early last year.

According to The Australian, Icon Group will likely sell for more than $2 billion.

Headquartered in Brisbane, Icon Group has expanded its business from Australia to Singapore, Hong Kong, China, and New Zealand.

The group was formed in 2015. It was purchased by a consortium including Goldman Sachs Principal Investment Area, Queensland Investment Corporation, and Pagoda Investments in 2017. The purchase reportedly cost the consortium $1.2 billion.

Last night, The Australian reported global buyout fund Brookfield, unnamed Canadian pension funds, and New Zealand’s infrastructure investor Morrison & Co are also in the running for the acquisition. Previously, the publication has claimed Ramsay Health Care Limited (ASX: RHC) is a contender for the purchase.

Goldman Sachs and Jefferies Australia are said to be heading the sale which will reportedly go ahead in July or August.

Wesfarmers share price snapshot

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

Currently, shares in Wesfarmers are about 12% higher than they were at the start of this year. They have also gained almost 32% since this time last year.

The ASX giant has a market capitalisation of around $65.9 billion, with approximately 1.1 billion shares outstanding.

The post Wesfarmers (ASX:WES) reportedly looking to buy cancer care provider appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

Prime Day, Amazon‘s (NASDAQ: AMZN) members-only shopping event, once again set records, the company announced in a press release on Wednesday morning. Not only did the e-commerce giant sell more items than ever before, but small-business sellers on its platform also thrived, seeing their cumulative sales soar more than 100% year over year.

Here’s a close look at some of the key statistics Amazon released about its Prime Day event, which took place on Monday and Tuesday this week.

1. Customers spent more than $1.9 billion on small businesses

Amazon kicked off a special promotional offer for customers who spent $10 on small businesses, giving them a $10 Amazon credit (limited to one item per customer), during the two weeks leading up to Prime Day. The promotion led to Prime members spending over $1.9 billion across 70 million small businesses. This represented “more than a 100% year-over-year increase on sales compared to the Prime Day October 2020 promotion,” Amazon said.

2. Back-to-school sales thrived

Members took advantage of the event to prepare for the school year. Amazon said it sold 600,000 backpacks, 1 million laptops, 1 million sets of headphones, 240,000 notebooks, 40,000 calculators, and 220,000 Crayola products.

3. The most popular item was an Amazon device

While Amazon’s e-commerce platform helps third-party sellers, it also provides a lift to sales of the company’s own devices. Amazon said its Fire TV Stick, a streaming-TV device, saw greater sales during Prime Day than any other item.

Additionally, sales of TVs powered by Amazon’s own Fire TV operating system were higher than on any other Prime Day.

4. Fire tablet sales were strong

The company said it sold “hundreds of thousands” of its Amazon Fire tablets.

5. In total, over 250 million items were sold

Not only was this a record number, but members’ total savings were also greater than ever before, the company said.

What this means for Amazon’s second quarter

These statistics bode well for Amazon’s second quarter, whose results the company will likely report toward the end of next month.

Of course, management was already anticipating that the shopping event would help drive strong sales growth during the period. It’s guiding for second-quarter sales to be between $110 billion and $116 billion, translating to 24% to 30% year-over-year growth.

With a strong Prime Day, Amazon shouldn’t have any trouble hitting its guidance — particularly since the year-ago period doesn’t even include a Prime Day. Last year, Prime Day took place in October.

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

The post Amazon’s record Prime Day: Here are the stats appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Amazon. 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 has recommended Amazon. 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 Prescient Therapeutics Ltd (ASX: PTX) share price is freefalling today after the company provided an update on its next-generation immunotherapy platform.

At the time of writing, the Prescient share price has fallen 11%, trading at 20 cents.

Let’s take a look at the clinical stage oncology company’s news out today.

What did Prescient announce?

Investors are selling Prescient shares after the biotech announced it has completed a CAR-T manufacturing milestone. CAR-T cell therapy is a form of immunotherapy that uses laboratory altered T cells to fight cancer.

In today’s release, Prescient advised it has successfully incorporated SpyTag into a range of binders for its next-generation CAR-T programs. This includes the OmniCAR system, a breakthrough CAR T therapy platform that is believed to be a more safe and effective treatment when treating cancers.

In addition to the update, Prescient also received delivery of lentiviral vectors that will be used to produce CAR-T cells expressing SpyCatcher.

Both the binders and lentiviral vectors have been delivered to the Peter MacCallum Cancer Centre in Melbourne. Testing and in vitro (using live culture) and in vivo (using a living organism) development is expected to be undertaken.

Prescient CEO and managing director Steven Yatomi-Clarke commented:

Demonstrating that novel components can be manufactured is a crucial milestone in the development of an innovative next-generation CAR platform like OmniCAR.

… Prescient’s research team at the Peter Mac has completed all the preparatory work in parallel, and the delivery of the binders and vectors now enables the team to progress the development of our in-house next-generation cell therapies.

About the Prescient share price

Established in 1986, Prescient focuses on developing novel, personalised therapies for a range of cancers. This includes cancers such as Acute Myeloid Leukemia (AML), glioblastoma multiforme (GBM), as well as breast, ovarian and gastric cancers.

Despite today’s fall, the Prescient share price is up more than 185% in 2021, and has lifted 233% over the last 12 months. The company’s shares reached a multi-year high of 23 cents yesterday.

Prescient presides a market capitalisation of roughly $144 million, with approximately 640 million shares on issue.

The post Prescient (ASX:PTX) share price sinks despite positive update appeared first on The Motley Fool Australia.

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The Harris Technology Group Ltd (ASX: HT8) share price is charging higher this afternoon.

At the time of writing, the online consumer electronics retailer’s shares are up 9% to 12 cents.

Why is the Harris Technology share price charging higher?

Investors have been buying Harris Technology’s shares after it released a business update this afternoon.

According to the release, the company experienced a material uplift in sales during Amazon Prime Day.

Across June 21 and 22, the recent Amazon Australia Prime Day promotion saw a record-breaking two days of sales for Harris Technology on the marketplace. During the two days, the company recorded sales totalling $429,963. This was up 32% on the previous Prime Day promotion in 2020.

Underpinning this growth has been its expanding offering on Amazon and high levels of customer satisfaction. In respect to the latter, the company, which was previously owned by Wesfarmers Ltd (ASX: WES), revealed that it has received more than 4,750 individual customer reviews on Amazon Australia over the last 12 months. Pleasingly, 100% of these reviews have been positive.

Harris Technology’s CEO, Garrison Huang, said: “As Amazon has increased their footprint in Australia over the past 12 months, Harris Technology has enjoyed a fruitful partnership which has grown both our businesses. As the leading tech seller on the Amazon Australia marketplace, we have seen strong demand for IT and home office products which accelerated further through Prime Day.”

“The retail landscape has undergone an increasing preference towards online platforms, accelerated by the pandemic and very quick delivery times. Online marketplaces continue to grow as the convenient alternative to shopping centres, so we look forward to further growth alongside Amazon Australia which is emerging as one of the national destinations of choice for online shopping,” he added.

Despite today’s strong gain, the Harris Technology share price is down 40% since the start of the year.

The post Harris Technology (ASX:HT8) share price up 9% on Amazon Prime Day update 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. 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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The Zip Co Ltd (ASX: Z1P) share price has risen by around 23% in the month of June 2021 to date. But could it be a buy after this strong rise?

The buy now, pay later (BNPL) business has been seeing continuing growth of its key metrics in the second half of FY21.

In the third quarter of FY21, Zip saw record group quarterly revenue of $114.4 million, which was an increase of 80% year on year. Quarterly transaction volume of $1.6 billion was up 114%.

There was record transaction numbers for the quarter of 12.4 million, up 195% year on year.

Medium-term revenue growth may be supported further by rising customer numbers and merchants on the platform. At 31 March 2021, customer numbers had grown 88% to 6.4 million and merchants rose 81% to 45,300.

The company pointed to its US division as a standout performer. US transaction volume grew 234% to $762 million, revenue rose 188% to $54.4 million and customers rose 153% year on year to 3.8 million.

But it’s not just the top line that is improving. Net bad debts reduced to 1.78% (down from 1.93%) for the Australian receivables. Management said this was a very strong result, further validating the strength of its proprietary credit decision technology and ability to manage risk.

Focus on international growth

Not only is Zip trying to trying to grow Zip US (Quadpay), but it has also recently made some acquisitions for other acquisitions.

Zip is now looking to expand its BNPL operations to Europe and the Middle East with some acquisitions.

It’s buying the rest of European-focused Twisto Payments as well as Middle East business Spotii.

Zip says that Europe is a $1.1 trillion annual e-commerce market and Twisto’s license can be passported to all 27 members of the EU. The Middle East is described as one of the world’s fastest-growing global e-commerce regions.

Management explained that these strategic transactions will enable Zip to respond to the increased demand from merchants for a single global BNPL solution across multiple markets with a consistent global service quality.

Zip also said that it’s building a playbook of successfully identifying, completing and integrating strategic acquisitions.

The BNPL company believes Twisto and Spotii are now well positioned to leverage the benefits of this competency and the synergies of a global payments business.

Zip’s CEO also said that there is a large untapped opportunity to bring BNPL to emerging markets where cash on delivery remains a significant merchant challenge, and where the digitalisation of retail accelerates.

Is the Zip share price a buy?

There are polar opposites for the ratings on Zip. UBS and Macquarie Group Ltd (ASX: MQG) rate the Zip share price as a sell, with a price target of $5.60 and $5.70 respectively. That’s more than 30% lower than where it is today. Those two brokers highlight rising competition and an increase in growth expenses.

However, there’s also a view like Citi’s with a price target of $10.90. Whilst there is slowing growth, Quadpay continues to be a highlight. However, it recently reduced that price target down from $11.30 because of the slowing growth prospects.

The post The Zip share price (ASX:Z1P) has risen 23% in June, is it 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. owns shares of and has recommended ZIPCOLTD FPO. 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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The Cimic Group Ltd (ASX: CIM) share price is edging higher today. This comes after the engineering company gave a positive update about the Victorian government’s North East Link project.

At the time of writing, Cimic shares are up 0.65% to $20.14.

What did Cimic update the ASX with?

According to a statement, Cimic subsidiaries are among those selected as the preferred proponents for Melbourne’s $8 billion North East Link Primary Package. The Victorian government opted for Cimic companies Pacific Partnerships, CPB Contractors and its 50%-owned Ventia.

In addition, other members of the Spark consortium have also been chosen. They are WeBuild, GS Engineering and Construction, China Construction Oceania, Capella Capital, John Laing Investments and DIF.

The North East Link Primary Package public-private partnership will involve the construction of 2 three-lane tunnels about 6km in length.

They will pass under Banyule Flats and the Yarra River, connecting the Metropolitan ring road (M80) and Eastern Freeway (M3).

Up to 135,000 vehicles are expected to use the North East Link each day, reducing congestion on other major roads.

Subject to contract execution later this year, construction should be completed around 2027.

Cimic Group executive chair and CEO Juan Santamaria commented:

We are pleased to be part of such an important project for the people of Victoria. CIMIC Group’s role extends from end to end – from development to delivery and long-term asset management – in the biggest road transport project in Victoria’s history.

About the Cimic share price

The last 12 months have seen the Cimic share price fall by around 17%. This includes a 16% drop on 10 February when the company released its full-year results.

More recently, Cimic shares hit a 52-week low of $16.86 in April before climbing to their current levels.

Cimic has a market capitalisation of roughly $6.3 billion, with approximately 311 million shares outstanding.

The post Why the Cimic (ASX:CIM) share price is edging higher today appeared first on The Motley Fool Australia.

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

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One of the best performers on the Australian share market on Thursday has been the OM Holdings Limited (ASX: OMH) share price.

In early afternoon trade, the manganese and silicon focused mining company’s shares are up 30% to a two-year high of $1.06.

This latest gain means the OM Holdings share price is now up 93% since the start of the year.

Why is the OM Holdings share price on fire today?

OM Holdings’ shares could be racing higher today in response to an announcement by Bryah Resources Ltd (ASX: BYH).

According to the release, OM Holdings has elected to continue funding a further $500,000 of exploration in the Bryah Basin Manganese Joint Venture. This will increase OM Holdings’ interest in the joint venture from 40% to 51%.

Bryah Managing Director Neil Marston said: “We have been very successful in our exploration efforts to date and believe that there is significant potential to identify sufficient resources to support the commencement of high-grade manganese mining operations in the Bryah Basin in the near future.”

“We are very pleased that OM (Manganese) Limited [OM Holdings’ subsidiary] has elected to continue funding exploration on this exciting manganese project. These funds will be applied by Bryah to advance the project towards development in the near term.”

The release also notes that a Gradient Array IP (GAIP) survey was completed earlier this week at the Brumby Creek Prospect. This is where earlier reverse circulation and diamond drilling intersected significant high-grade manganese mineralisation.

Judging by the OM Holdings share price movement today, some investors may be optimistic that this survey will reveals further potential mineralisation for the joint venture to target.

What else could be driving its shares higher?

Also potentially giving the OM Holdings share price a boost today is its performance on the Malaysian share market, which is no doubt boosting investor sentiment.

Earlier this week the company’s shares debuted on the Malaysian Bursa. Since then its Malaysia-listed shares have stormed higher and continue to rise today. In fact, based on current exchange rates, investors are paying a meaningful premium on the Bursa to own its shares.

The post Why the OM Holdings (ASX:OMH) share price is rocketing 30% higher 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. 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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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.

It has only been two years since Hollywood legend Steven Spielberg gave streaming companies like Netflix (NASDAQ: NFLX) the cold shoulder. Content made for TV screens should not be considered equal to the true silver-screen cinema, he argued. Netflix and friends should simply not be considered for movie industry honors, such as the Academy Awards.

A lot of muddy water has passed under the bridge since then. Now, Spielberg seems to have come to terms with the modern film industry’s rapidly changing nature. His production company, Amblin Entertainment, just signed a multi-year content partnership with Netflix.

What’s new?

Amblin will produce several feature films per year for Netflix, potentially including movies directed by Spielberg himself. Ted Sarandos, Netflix content guru and Co-CEO, called Spielberg “a creative visionary and leader” whose stature in the film world casts a huge shadow even over Netflix’s game-changing role.

“We are honored and thrilled to be part of this chapter of Steven’s cinematic history,” Sarandos wrote in a prepared statement.

If Spielberg still holds a grudge over the Academy Awards commotion of 2019, he is hiding it very well. The storied director of E.T. and Schindler’s List sees “an amazing opportunity to tell new stories together and reach audiences in new ways.” Access to a hyperefficient, global-content distribution platform appears to be more important than protecting the old studio system and its traditions.

What else is Amblin up to?

The Netflix deal is not an exclusive contract. Amblin is still making movies for the big screen in a long-standing distribution arrangement with Comcast (NASDAQ: CMCSA) subsidiary Universal Pictures. In other words, this deal is about Spielberg’s studio exploring a new direction and not a complete switch from the multiplex to the living room.

Amblin always had the option to create content both for the movie theater and the TV market, including classic hits such as Animaniacs, ER, Under the Dome, and The Americans. These shows have been spread out fairly evenly across the major American TV networks and premium channels. Netflix even has a couple of Amblin shows under its belt already, including the single-season comedy All About the Washingtons and two seasons of the horror show The Haunting. But Amblin does not have a deep history of producing made-for-TV movies, so the Netflix deal will let the studio explore some brand new territory.

What’s the big deal?

The symbolic value of Spielberg joining forces with Netflix is immense, but it’s also business as usual in many ways. This is not Netflix’s first big original-content deal, and it won’t be the last. Steven Spielberg isn’t even the first larger-than-life legend in the company’s content portfolio. Martin Scorsese set that standard with the original film (and Oscar contender) The Irishman in 2019. Likewise, Spielberg has been around the block a few times, and this is just another unexpected opportunity.

It was not surprising to see that Netflix shares barely moved on the news. At the same time, this deal is a great example of what sets Netflix apart from the rising tide of rival video-streaming services. This is the gold standard of global-content distribution, the yardstick against which all other services should be measured. If Netflix is good enough for Spielberg, it’s good enough for any talent you could name. I’m not so sure that Comcast’s Peacock will sign A-list production deals like this one anytime soon.

Netflix walks softly and carries a big stick made out of more than 200 million subscribers. And we are still in the early chapters of this ambitious company’s global growth story. The stock has gained 1,300% over the last decade, building a robust $227 billion market cap. The most rambunctious hyper-growth will probably stay in the rearview mirror, but Netflix is still a fantastic investment with market-beating growth prospects today.

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

The post Hollywood giant Spielberg joins forces with former foe Netflix appeared first on The Motley Fool Australia.

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Anders Bylund owns shares of Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Comcast. The Motley Fool Australia has recommended Netflix. 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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