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ASX copper shares are largely in retreat this past week.

This comes after copper producers, broadly, enjoyed a banner 12 months heading into June.

S&P/ASX 200 Index (ASX: XJO) listed copper giant Oz Minerals Limited (ASX: OZL), for example, gained more than 160% from the end of May 2020 through to the beginning of June this year.

Rival ASX copper share, Sandfire Resources Limited (ASX: SFR), saw its share price rise more than 60% over that 12-month period.

What’s happening with copper prices?

While numerous factors determine a company’s share price, resources stocks are for obvious reasons highly influenced by the price of the metals they dig from the ground.

ASX copper shares Sandfire and Oz Minerals received a welcome tailwind as the price of copper soared from US$5,376 (AU$7,468) per tonne on 1 June 2020 to some US$10,245 per tonne on 1 June this year. That, after copper hit record highs of US$10,460 per tonne in mid-May.

But copper prices have been sliding since June. And prices fell particularly hard this week.

Copper prices fell 3.6% over the past 24 hours to currently be trading at US$9,316 per tonne. On Monday, when most Aussies were enjoying a day off courtesy of Queen Elizabeth, that same tonne of copper was worth US$9,972.

A bit of back of the napkin maths tells me that that’s a drop of 6.5% since 14 June.

Analysts point to the world’s 2 largest economies as driving this week’s decline.

The Federal Reserve – central bank to the United States, the world’s biggest economy – indicated this week that interest rates may rise sooner than originally forecast. Quantitative easing (QE) may also be scaled back sooner than the market had expected. Among other impacts on the commodity markets, this saw the US dollar rise.

China, the world’s number 2 economy, is also putting downward pressure on commodities, saying it will release metals from government held reserves to help suppress recent price surges.

Michael Cuoco is the head of hedge-fund sales for metals and bulk materials at StoneX Group. According to Cuoco (quoted by Bloomberg):

Risk-off is front and centre thanks to the hawkish words from the Fed, which came on the back of the Chinese government-led directives over prior weeks. Central-bank stimulus helped the markets gather steam in the spring of 2020, and now there is a bit of a macro reset.

How have these 2 ASX copper shares weathered this week’s price falls?

With copper down 6.5% since Monday, it’s no surprise to see ASX copper shares in retreat this week. A week that’s seen the ASX 200 gain 1.5%, at the time of writing.

Sandfire Resources, which is up 0.2% in afternoon trade today, is down 7.2% over the past 5 days.

The Oz Minerals share price has had an even worse week. Down 0.8% in intraday trading, Oz Minerals shares have sunk 10.5% over the past 5 days.

To keep things in perspective, despite the recent price retrace, ASX copper shares have still broadly outperformed over the past full year. Oz Minerals shares are still up 119% over the past 12 months, while Sandfire remains up 42%.

The post Why ASX copper shares are coming under pressure appeared first on The Motley Fool Australia.

More reading

• Are crashing ASX mining shares an opportunity or a disaster to run from?
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• Why Appen, Orocobre, Sandfire, & Whitehaven Coal shares are sinking
• Why the Sandfire (ASX:SFR) share price is tumbling today
• These ASX insiders are buying up more shares in their companies

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. Bernd Struben 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 Coles Group Ltd (ASX: COL) share price is pushing higher on Friday afternoon.

At the time of writing, the supermarket giant’s shares are up 1% to $16.45.

Today’s gain means the Coles share price has reduced its year to date decline to 11%.

Is the Coles share price in the buy zone?

According to a note out of Goldman Sachs this morning, the broker believes the Coles share price is good value at the current level.

In response to Coles’ strategy update this week, the broker has retained its buy rating but trimmed its price target by 5% to $19.40. This is a touch higher than its record high of $19.26.

Based on the current Coles share price, this implies potential upside of 18% over the next 12 months. And with Goldman forecasting dividends per share of 62 cents in FY 2021 and 67 cents in FY 2022, this potential return stretches to ~22% if you include dividends.

What was Goldman’s verdict on Coles’ strategy day?

Goldman has been looking through its presentation and has given its verdict on the short, medium, and long term.

In respect to the short term, the broker expects Coles to benefit from a reversal in shopping trends.

It said: “In the short term, management noted a reversal of the shopping local trend, resulting in market share recovery for the supermarkets, and e-commerce penetration improving to 5.9% in QTD 4Q21 flagging strong growth, positive signs in terms of successful progress in execution.”

Whereas things aren’t quite as positive for the medium term.

Goldman commented: “The medium term outlook for industry is less rosy, impacted by macro headwinds from a slower population growth expectation. For COL specifically, high capital expenditure from technology investments (alongside the previously announced supply chain improvements and store renewals) are expected to result in a capex outlook which is ahead of our prior forecasts.”

Nevertheless, the broker believes the investments the company is making will be worth it in the long run.

It explained: “The longer term outlook remains intact, with Coles remaining well poised to benefit from reinvestment of the smarter selling savings to drive topline growth ahead of market, the launch of the Ocado offering and strong efficiency gains from supply chain investments are expected to come through from FY24.“

In light of this, Goldman believes Coles “remains on track to achieve the longer term deliverables with focus on sustainable growth” and has retained its buy rating.

The post The Coles (ASX:COL) share price could be heading to a record high appeared first on The Motley Fool Australia.

More reading

• Latest ASX shares to be hit by a broker downgrade today
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• Why Coles, Creso Pharma, Ramelius, & Whitehaven Coal are tumbling lower

James Mickleboro does not own any shares 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. 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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ASX energy shares could find it increasingly harder to attract investors as we become more environmentally conscious.

But this doesn’t mean there aren’t buying opportunities in the sector, according to Jarden.

The broker initiated coverage on ASX oil and gas shares during these complex times as the world tries to decarbonise.

Biggest risks factors from investing in ASX energy shares

“Our in-depth initiation report analyses the shifting fortunes of six oil & gas stocks as they navigate a pathway to growth amid rising investor concern about the role of fossil fuels in the future energy mix,” said Jarden.

“Key sector risks we see include cost and labour pressures, oil and LNG and increasing regulatory and investor expectations.”

Increasing investment and costs

Four of the biggest ASX energy shares plan to invest US$6 billion a year combined over the 2021-26 period, up from US$2.9 billion a year average over the past five years.

These shares are the Woodside Petroleum Limited (ASX: WPL) share price, the Oil Search Ltd (ASX: OSH) share price, the Santos Ltd (ASX: STO) share price and Beach Energy Ltd (ASX: BPT) share price.

Best large cap ASX energy shares to buy

“Our top pick amongst large caps is OSH as it looks to progress its Alaskan oil development this year,” said Jarden.

“A supportive oil price should assist OSH in selling a 15% stake in the Pikka project, secure project funding and move to FID in late-21/early-22.”

But the broker reckons that the Woodside share price and Santos share price are sells.

Why Woodside and Santos don’t cut it for Jarden

Jarden warned that Woodside’s Scarborough development capex could run higher than the market expects. It also thinks that it could be a challenge for Woodside to keep its BBB+ credit rating, although Woodside could divest assets to address this issue.

“STO has been the favourite of the energy sector over the past three years but in our view is trading at a significant premium to valuation,” added Jarden.

“Will this premium dissipate? The free cash flow story the market has liked so much is about to end as the company prepares to invest as much as US$8.5bn over the next five years.

“The sting in the oil price rally tail for STO is the potential for ~US$200m in oil hedging losses in 2021.”

Better buys among smaller ASX energy shares

There are more buying opportunities in the sector at the smaller end of the market. The broker rates the Beach Energy share price as “overweight” despite the company’s shock profit warning earlier this year.

Confidence will take time to rebuild, but Jarden believes the stock is oversold and has a 12-month price target of $1.50 a share.

However, the Senex Energy Ltd (ASX: SXY) share price is the broker’s top pick with a $4.10 price target. Although Jarden also rates the Cooper Energy Ltd. (ASX: COE) share price as a buy.

The post appeared first on The Motley Fool Australia.

More reading

• The price of oil is falling today and so are ASX 200 (ASX:XJO) oil shares
• Why CBA, Challenger, Newcrest, & Santos are dropping today
• ASX 200 up 0.5%: Altium guidance update, Afterpay & Zip jump
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday

Brendon Lau owns shares of Santos Ltd. Connect with me on Twitter @brenlau.

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 Jumbo Interactive Ltd (ASX: JIN) share price has been a solid performer over the last 12 months. Since this time last year, the lottery ticket seller’s shares have continued on their accent, gaining almost 40%.

However, today Jumbo shares broke its 52-week barrier to hit $15.97 in early afternoon trade.

With no news released to the ASX today, let’s take a look at Jumbo’s most recent price-sensitive announcement.

What’s been driving the Jumbo share price higher?

Investors have been buying up Jumbo shares over the past year, particularly from the middle of May.

Jumbo’s last update came back in February, when the company released its half-year scorecard for FY21.

For the 6-months ending 31 December 2020, Jumbo reported a positive result, with total transaction value (TTV) surging to $232.7 million. This reflected a 25.6% increase on the prior corresponding period (pcp).

Revenue lifted to $40.9 million, a growth of 9% on H1 FY20’s performance. Somehow, the company managed to increase both TTV and revenue despite the number of large jackpots falling. Jumbo recorded 15 large jackpots, down 35% on the 23 large jackpots reached during the first-half of 2020.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) also rose to $24.1 million, a 3.7% increase over the pcp. While lower than the TTV and revenue, Jumbo attributed this to several one-off factors. Most notably, this includes the payable service fee under the Tabcorp Holdings Limited (ASX: TAH) agreement, in exchange for a 10-year licence to resell its product.

Underlying net profit after tax before amortisation (NPATA) jumped to $16.3 million, a 0.5% lift on the prior comparable period.

While no financial guidance was indicated for the second-half, the company said its lottery retailing business had a promising start.

What do the Brokers think?

After reporting its first-half results, a number of brokers rated the company with varying price points. Australian investment firm, Morgans raised its price target for Jumbo by 6.4% to $14.78. Morgan Stanley (NYSE: MS) followed suit to also increase its rating by 6.3% to $15.20.

The latest broker update came from Swiss investment bank UBS last month, issuing a price target of $14.20 for Jumbo. While it may have raised its outlook by 1.8% from its original note, this represents a downside of almost 12% on today’s price.

At the time of writing, the Jumbo share price had slightly retreated from its 52-week high to $15.81, up 2.60% for the day.

The post Jumbo (ASX:JIN) share price rises to reach new 52-week record 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. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive 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 share prices of the biggest S&P/ASX 200 Index (ASX: XJO) oil producers are going down today after the Brent crude oil price fell from a multi-year high overnight.

A barrel of oil was valued at US$74.68 on Wednesday morning – its highest price since 2018. But as we slept last night, the price dipped 2.8% over just 2 hours.

It has slightly recovered since and, at the time of writing, is now trading at US$72.53 per barrel. It’s fallen 0.75% over the past 24 hours.

According to reporting by CNBC, the strengthening US dollar has pushed the price of oil down.

As the US dollar rises, the cost of buying oil in other currencies increases. Generally, this causes the price of oil to fall.

The US dollar has been firming over the past few days after the US Federal Reserve warned it might lift interest rates soon.

Let’s take a look at how the 3 biggest ASX 200 oil producers’ share prices are tracking today.

ASX 200 oil producers

Woodside Petroleum Limited (ASX: WPL)

The Woodside share price is down 1.86% today, swapping hands for $23.27.

Woodside operates 3 offshore oil assets in Australia. They’re located near Exmouth, Western Australia and produce about 120,000 barrels of oil a day.

With a market capitalisation of $22 billion, Woodside is the largest oil producer of the ASX 200.

Santos Ltd (ASX: STO)

The Santos share price is 3.15% lower today, trading at $7.37.

Santos has oil assets in Australia’s Cooper Basin, which stretches across the north-east of South Australia into south-west Queensland, and the Northern Territory.

The company has a market capitalisation of around $15 billion.

Oil Search Ltd (ASX: OSH)

The aptly named Oil Search operates all of Papua New Guinea’s oil fields.

The Oil Search share price has fallen 2.17% today to $4.06.

Oil Search has a market capitalisation of about $8 billion.

The post The price of oil is falling today and so are ASX 200 (ASX:XJO) oil shares appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares today
• Latest ASX shares to be hit by a broker downgrade today
• Why CBA, Challenger, Newcrest, & Santos are dropping today
• ASX 200 up 0.5%: Altium guidance update, Afterpay & Zip jump
• Here are the best performing ASX 200 shares so far in 2021

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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Much of the discussion surrounding cryptocurrencies in the past few months has revolved around anything but Facebook Inc (NASDAQ: FB).

Everyone wanted to know about Bitcoin (CRYPTO: BTC)’s rise to over US$60,000 earlier in the year. And then it’s subsequent crash this month to below US$30,000. Or Ethereum (CRYPTO: ETH) rise to US$3,000 (and its own crash afterwards). Or… just Dogecoin (CRYPTO: DOGE). Even (heaven help us) Shiba Inu (CRYPTO: SHIB).

But what of Facebook’s crypto plans? Not so much. Facebook caused much fanfare a few years ago with its announcement that it wanted to launch a new cryptocurrency called Libra. But a series of setbacks and pushbacks following the initial announcement resulted in the project being put on ice. Well, that ice might be thawing.

According to a report in the Australian Financial Review (AFR) this week, Facebook may be imminently about to launch its Libra coin take two. But it won’t be called Libra, for one.

Diem (as in ‘Carpe Diem’) is the new name. Instead of the original proposal, which would have had a Swiss-based Libra pegged to a basket of global currencies and sovereign debt instruments, Diem will instead be tied to the value of just the US dollar.

The AFR reports that a “developer close to the Diem stablecoin” reckons Diem will “probably launch in the next 6 months”. Diem will reportedly consist of a ‘payments system’ that will allow users to send Diem through a new app called Novi.

Facebook’s apps (including Facebook, as well as Instagram and Whatsapp) will eventually be able to host Diem payments as well. Depending on customer demand, Diem could eventually make its way to retailers as a full payments system.

It’s not just Facebook either…

The AFR reports that it’s not just Mark Zuckerberg that has crypto aspirations. Reportedly, the US payments giants Mastercard Inc (NYSE: MA) and Visa Inc (NYSE: V) also have plans to implement a cryptocurrency linked to the US dollar – USDC – into their payment networks.

We could be seeing the future of payments in the making here, folks. So keep an eye on this space!

The post Is Facebook about to finally launch its cryptocurrency? appeared first on The Motley Fool Australia.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Facebook, Mastercard, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, Facebook, Mastercard, and Visa. The Motley Fool Australia has recommended Facebook and Mastercard. 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 National Australia Bank Ltd. (ASX: NAB) share price is treading lower during mid-afternoon trade. This comes after the Australian banking giant announced an update to the class action launched in the United States.

At the time of writing, NAB shares are fetching for $26.84, down 0.63%. In comparison, the S&P/ASX 200 Index (ASX: XJO) is sitting at 7,384 points, 0.3% higher.

What happened?

In a statement to the ASX, NAB advised it has reached an agreement to settle the Bank Bill Swap Rate (BBSW) class action complaint.

The lawsuit, filed in the United States District Court in August 2016 alleged that NAB and along with other financial institutions manipulated the BBSW. This is a short-term interest rate used as a benchmark for pricing derivatives and securities, most notably floating rate bonds. In laymen’s terms, NAB may have generated a large amount of cash from artificially fixing BBSW-based derivatives prices that benefited its trading books.

Although the claims were dismissed against NAB on jurisdictional grounds in February last year, the bank proceeded with a settlement. It feared that the dismissal could be reversed and the claims would be reinstated in the future.

NAB stated that the settlement is agreed upon without admitting any liability and remains subject to negotiation and court approval.

No financial details were given, as the bank said that the terms of the settlement are confidential. However, NAB did note that it had previously raised funds in regards to the complaint, and the financial impact is not substantial.

NAB share price summary

Over the past 12 months, NAB shares have done quite well, gaining more than 40% for investors. Since the start of 2021, the company’s share price has risen close to 20%.

NAB currently stands as the ASX’s 5th biggest company in terms of value, with a market capitalisation of $88.7 billion.

The post NAB (ASX:NAB) share price edges lower after BBSW class action update 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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The Woolworths Group Ltd (ASX: WOW) share price is on course to end the week in the red.

In afternoon trade, the retail conglomerate’s shares are down 1% to $42.96.

This follows news that the company is being taken to court by the Fair Work Ombudsman, which has offset an update on its demerger plans.

What was the demerger update?

Earlier today, Woolworths shareholders were given the opportunity to vote on the proposed demerger of its Endeavour Drinks business.

The proposed demerger will create two leading ASX-listed companies. Endeavour Group will be Australia’s leading drinks and hospitality business with a portfolio of strong retail and hospitality brands and products.

The company notes that it will also have more than 28,000 team members united around its purpose of creating a more sociable future together. Its portfolio of trusted brands includes Dan Murphy’s and BWS, as well as the nation’s largest portfolio of licensed hospitality venues.

Whereas Woolworths is expected to remain one of the 20 largest ASX-listed companies and will continue to own some of the most recognised and trusted brands in Australia and New Zealand including Woolworths, Countdown and BIG W.

In addition to this, Woolworths will retain its strong balance sheet with pro forma net cash as of 3 January 2021 of $75 million. This will allow the Woolworths Board to consider capital management options and a potential $1.6 billion to $2 billion return to shareholders.

Shareholder vote

It appears as though shareholders see value in the company’s plan, as they have voted overwhelmingly in favour of the demerger.

According to the meeting results, 99.85% of the votes cast were in favour of the demerger.

What now?

According to the release, the last day that the Woolworths share price will trade with its demerger entitlements is 23 June.

A day later on 24 June they will trade ex-entitlements and Endeavour shares are expected to trade on the ASX boards on a conditional and deferred settlement basis. After which, on 1 July, Endeavour shares will begin to trade as normal on the ASX.

It’s been a long time coming, but finally the highly anticipated demerger is about to happen. Shareholders will no doubt be hoping it unlocks value in the Woolworths share price in the coming months.

The post Woolworths (ASX:WOW) shareholders vote in favour of Endeavour demerger appeared first on The Motley Fool Australia.

More reading

• Latest ASX shares to be hit by a broker downgrade today
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• These ASX dividend shares have attractive yields
• Top brokers just upgraded these ASX shares to “buy”
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James Mickleboro does not own any shares 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 Woolworths 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 Redbubble Ltd (ASX: RBL) share price has fallen by over 47% over the last six months.

What is Redbubble?

The company describes itself as the owner and operator of leading global online marketplaces, Redbubble.com and TeePublic.com. Its community of passionate artists create uncommon designs on high-quality, everyday products such as apparel, stationery, housewares, bags, wall art and so on.

When did the Redbubble share price start falling?

The Redbubble share price fell 23% to $4.24 on the same day it released an update to the market.

In that update, Redbubble released a trading update. FY21 third quarter marketplace revenue went up 54% to $103.4 million, gross profit grew 55% to $39.8 million, earnings before interest, tax, depreciation and amortisation (EBITDA) went up $8.5 million to $2.2 million and earnings before interest and tax (EBIT) increased 91% to a loss of $0.9 million.

Redbubble also told investors about its FY21 year to date performance, with that latest quarter included. Marketplace revenue was up 85% to $456 million, gross profit was up 100% to $184 million, EBITDA was up $53 million to $51 million, EBIT was up $53 million to $41 million and operating cash inflow was up $48 million to $54 million.

The ASX share also told shareholders about its plans for the future.

Redbubble believes that its addressable market is around US$300 billion in core geographies and product categories. Within that, around 35% to 40% of customers are looking for something unique and meaningful.

Management believe that the structural shifts in 2020 to e-commerce are expected to endure. The company also said that the growing ‘creator economy’ enables scalable growth and it’s a dynamic source of unique designs.

Longer-term goals

Redbubble said that over the medium-term, its aspiration is to drive top-line growth, enabling a step change in scale and artist impact.

The company pointed to a few advantages of growing in scale:

Delivering value to artists inspires them to create more unique content.

Driving top line growth for Redbubble through customer acquisition and loyalty reinforces its competitive position.

Scaling the network impacts the customer experience and unit economics.

In 2024 onwards, the company is aiming for $1.25 billion of marketplace revenue. This goal translates to $1.5 billion of gross transaction value and $250 million of artist revenue.

Redbubble believes this is possible through organic investment and growth. It’s also going to look for acquisition opportunities that will help deliver or amplify this aspiration.

In the short-term, EBITDA as a percentage of marketplace revenue is expected to be in the mid-single digit range over an annual period. After reaching $1.25 billion of marketplace revenue, Redbubble expects the EBITDA margin to be in between 10% to 15%.

Is the Redbubble share price worth looking at?

The broker Morgans currently rates Redbubble shares as a hold, with a price target of $4.88, which suggests a potential return of more than 40% over the next 12 months.

Morgans pointed out that the growth investing is happening right when it’s going up against strong sales in the prior corresponding period. The broker doesn’t believe that mask sales made in 2020 can be repeated in 2021.

The post Is the Redbubble (ASX:RBL) share price a buy in June 2021? appeared first on The Motley Fool Australia.

More reading

• The Redbubble (ASX:RBL) share price is deflating by 8% today
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• Why Redbubble (ASX:RBL) is a bargain buy now: analyst
• The Redbubble (ASX:RBL) share price has halved from its all-time highs
• 2 fast-growth ASX shares that are being sold off

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

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The Zip Co Ltd (ASX: Z1P) share price has been largely stuck around the low $7 level since early May.

But the leading buy now, pay later (BNPL) share is finally making some moves, up 8.64% to $8.05 at the time of writing.

Despite the shorter trading week, with the Queen’s Birthday holiday on Monday, Zip shares have added an impressive 12% since Tuesday.

What’s driving the Zip share price?

Zip has been relatively quiet on the announcement front, with the most recent news on its European and Middle East expansion announced on 24 May.

Today’s strong move up could be being influenced by broader movements among tech and BNPL sectors.

US tech shares push higher

The tech-heavy Nasdaq Composite (NASDAQ: .IXIC) had a strong showing overnight, up 0.87%. This compares to the S&P 500 Index (SP: .INX) which finished the session down 0.04% and the Dow Jones Industrial Average Index (DJX: .DJI) which was also down 0.62%.

The recent strength of the Nasdaq has put it within ~0.3% of its 29 April 2021 all-time record highs.

US tech mega-caps all advanced higher, with household names including Apple Inc, Amazon.com Inc, Facebook Inc, Alphabet Inc, Microsoft Corporation and Tesla Inc all rising between 0.80% to 2.2%.

Zip’s US-listed rival, Affirm Holdings Inc (NASDAQ: AFRM) also pushed 2.94% higher to US$69.39 per share.

Affirm shares closed at all-time lows of US$48.30 on 13 May after running as high as $146.90 in February. The company’s shares have bounced more than 40% off their lows, perhaps signalling a renewed interest in the BNPL sector.

With the Nasdaq now within an arm’s reach of all-time record highs and outperforming the other indices, some investors will be hoping this signals another rotation out of value and defensive stocks, and back into growth and tech shares.

ASX tech and BNPL shares on the rise

The Zip share price is among many tech and BNPL shares in the green on Friday.

The S&P/ASX 200 Info Tech Index (ASX: XIJ) is up by almost 3% today, and around 13% this month.

Large-cap tech shares are leading the charge, with the likes of Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO), and WiseTech Global Ltd (ASX: WTC) up 5.29%, 2.01% and 1.82% respectively.

Based on the current Zip share price, the company has a market capitalisation of around $4.2 billion.

The post Zip (ASX:Z1P) share price finally moving, up 9% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.5%: Altium guidance update, Afterpay & Zip jump
• Why analysts love Zip (ASX:Z1P) and these fantastic ASX growth shares
• Are Zip (ASX:Z1P) shares cheap enough to buy now?
• NAB and Zip were among the most traded ASX shares last week
• Sezzle (ASX:SZL) share price misses out on today’s BNPL gains

Kerry Sun 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, Tesla, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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