Tag: Motley Fool

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.

Netflix (NASDAQ: NFLX) scored big at the 93rd Academy Awards on Sunday, walking away with more trophies than any other studio. The streaming pioneer won a total of seven Oscars — nearly as many as all its previous awards combined. Walt Disney had the second-highest count with five statues.

The streaming giant went into the awards presentation with 36 Oscar nods across 17 films — more than any other distributer. Since winning its first award in 2013, Netflix had amassed eight Academy Awards. Its total now stands at 15.

Mank and Ma Rainey’s Black Bottom were Netflix’s biggest winners, notching two wins each. Mank, which led the nominations with 10 nods, won the awards for best production design and best cinematography. Ma Rainey’s Black Bottom took home statues for best hairstyling and makeup and best costume design.

Ma Rainey’s Black Bottom was also a favorite to win the best actor category. The late Chadwick Boseman, of Black Panther fame, had been awarded the best acting trophy at the Golden Globes, Screen Actors Guild, and Critics’ Choice awards for his performance in the film, but the Oscar ultimately went to Anthony Hopkins for his role in The Father.

Netflix’s Oscar wins are about more than mere bragging rights. The company has long argued that the quality of its content is the biggest draw for subscribers, which is key to Netflix’s success. This has proved to be true over the years, resulting in an industry-leading 208 million total subscribers.

The streaming giant could use a boost about now. After generating significant customer growth during the pandemic, Netflix missed its first-quarter subscriber forecast. The company added 4 million net new subscribers, much lower than the 6 million Netflix was expecting. 

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

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Danny Vena owns shares of Netflix and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Netflix and Walt Disney. The Motley Fool Australia has recommended Netflix and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Netflix wins big at the Oscars appeared first on The Motley Fool Australia.

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

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The Temple & Webster Group Ltd (ASX: TPW) share price could be an opportunity to look at right now. 

Temple & Webster has seen its shares climb by 187% over the last year. It may not be able to do the same thing over the next 12 months, but the retailer may still be a really good ASX share to think about for the coming years.

Why? These factors could make it a good investment today:

Benefiting from multiple trends

Temple & Webster is an e-commerce retail business. It’s benefiting from the large increase of customers who are buying things online. Some customers are buying furniture and homewares for the first time online, whilst others might be buying more frequently online.

There’s also the household finances situation that are helping the ASX share. Government stimulus has helped the overall picture. Households have been saving more than normal.  Spending for some people may be redirected from holidays to their homes.

Temple & Webster estimates that more than 20% of furniture and homewares were bought online in the US during 2020. Management believe that Australia is following the same trajectory. It estimates that in 2020, around 9% of Australian furniture and homewares were bought online – almost double the percentage of 2019. Online penetration in both markets is expected to continue to increase significantly.

The company thinks COVID-19 has permanently accelerated online adoption in the Australian furniture and homewares market.

Investing for growth

Over the longer-term, growth shares have the ability to deliver stronger long-term returns because of the compound growth rate.

Management believe there is scope for significant online growth. It’s planning to invest heavily in a number of areas to capitalise on this opportunity.

It’s going to spend on marketing to build strong brand awareness to achieve national brand status within the next three years. This should drive both first-time and repeat customers.

Temple & Webster aims to increase its conversion with tactical pricing and promotions.

The company will continue to invest in the customer experience with enhanced technology, data and personalisation and delivery experience.

Investing into 3D and artificial intelligence capabilities to make the customer shopping journey easier is another area.

It’s planning to improve and differentiate its range with new category additions, private label expansion, new product development and exclusive ranges with suppliers.

The final strategy of the company is to grow business to business sales, with bigger operational teams to capitalise on the return of demand in the commercial sector.

Temple & Webster’s choice to invest across all of these areas will result in a low earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 2% to 4%. It wants stay profitable though. Management are hoping for strong double digit revenue growth.

After that, the company is expecting higher profit margins with scale benefits.

Recent sell-off

The Temple & Webster share price is currently down 10% in just a week. It’s also down 27% since 25 January 2021. The entry point of an investment plays a key role in dictating the returns for an investor.

This lower price could be an opportunistic time to think about Temple & Webster shares after some investors decided to sell.

The long-term focus on growth could lead to stronger returns over the coming years if it’s able to keep capturing market share.

More reading

• Could the Resmed (ASX:RMD) share price face a similar selloff to Kogan?
• Is the Temple & Webster (ASX:TPW) share price a bargain buy?
• These are the 10 most shorted shares on the ASX
• This broker thinks you should buy the Kogan (ASX:KGN) share price dip
• Top brokers name 3 ASX shares to buy next week

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 reasons why the Temple & Webster (ASX:TPW) share price could be a buy appeared first on The Motley Fool Australia.

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Afterpay Ltd (ASX: APT) stock owners have had a wild rollercoaster ride this year.

The ASX darling of last year started 2021 at $119 then in February smashed its 52-week high by touching $160.

Since then, the rotation away from high-growth companies hit it hard, leaving it trading at $122.75 at Monday’s close.

So if you’ve been fortunate enough to own Afterpay, what do you do? Do you sell now?

Two fund managers had vastly differing views on this question.

The case to sell Afterpay shares

Perpetual portfolio manager Anthony Aboud doesn’t have much doubt as to which way he would go.

“Look, respectfully, I think it’s a sell,” he told a Livewire video.

“I’m probably the wrong person to ask since I’ve got this wrong for a while. My problem is: for $35 billion what are you getting?”

Aboud was concerned about the immediate risks the fintech is facing that could put a massive dent in its share price.

“They’re facing regulatory risks, credit cycle risks, and even margin risk with their partners,” he said.

“But you know what? I’ve been wrong to date. I could be wrong going forward.”

The case to not sell Afterpay shares

The opposite of Aboud was Sage Capital chief investment officer Sean Fenton. 

“It is a global leader in buy now, pay later with a massive pipeline of growth ahead of it,” he said in the same video.

“It is very hard to put a valuation on it, but whilst we’re seeing that momentum and that land-grab continue, we might as well just stick with it.”

But rather than just sticking with it, he would actually go a step further and buy up more Afterpay stock.

“It’s a tough one. It’s gone up a long way, but I’ll sit with ‘buy’ at this stage.”

How do you solve a problem like Maria?

It seems other experts and investment houses are just as polarised as to what Afterpay shareholders should do.

Just last week, The Motley Fool reported Credit Suisse has a price target of $145 for the fintech. But UBS Group reckons it’ll plunge to $36.

Good night and good luck.

Meanwhile, Afterpay is exploring how it can list in the US. How current ASX shareholders will be treated when that happens is up in the air.

More reading

• 2 highly rated ASX growth shares for May
• 5 things to watch on the ASX 200 on Tuesday
• If Afterpay leaves the ASX, what happens to the shares?
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• Afterpay (ASX:APT) share price given $40 price target

Motley Fool contributor Tony Yoo owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

On Monday after market hours, Tesla Inc (NASDAQ: TSLA) reported a quarter that smashed the company’s previous records for production and deliveries, while crushing profitability estimates. But skeptical investors traded the company’s stock down regardless.

The company booked first-quarter revenue of $10.39 billion, which was a sturdy 74% higher year over year. That was on the back of a 109% increase in total vehicle deliveries during the period to a new high of 184,800. Adjusted net profit more than quadrupled over that stretch of time to hit $1.05 billion, or $0.93 per share.

The company still has lofty ambitions to get many more of its vehicles on the road. In its letter to shareholders regarding the first-quarter results, Tesla wrote that — in accordance with remarks made by CEO Elon Musk in January — it still plans to hit 50% average annual growth in total deliveries over the next few years. At certain points such as this year, the company added, it should exceed that goal.

None of this was stopping a slump in Tesla’s share price after the results were unveiled. The company’s stock was down by nearly 2% in early post-market trading Monday.

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

More reading

• High-flying ASX tech shares could fall another 90%: fundie
• Aussie investors snapped up Coinbase (NASDAQ:COIN) shares last week
• Why Tesla stock dropped on Monday
• Tesla settles lawsuit with ex-employee over autopilot source code
• Could Tesla’s electric vehicle deliveries soar 85% this year?

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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.

The post Tesla shares slip after hours despite Q1 earnings beat appeared first on The Motley Fool Australia.

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

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If you’re looking at options for your retirement portfolio, then the ASX 50 index could be a great place to start your search.

The ASX 50 index is a large cap index which represents 50 of the largest and most liquid shares listed on the Australian share market based on their float-adjusted market capitalisation.

But which ASX 50 shares would be good options for retirees? The two listed below are highly rated:

Coles Group Ltd (ASX: COL)

Coles could be a quality ASX 50 share for retirees to own. This is due to its solid long term growth potential, cost cutting, generous dividend policy, and defensive qualities. The supermarket giant has displayed the latter during the pandemic, delivering solid earnings and dividend growth despite the crisis.

And while it is now cycling the panic buying from a year ago and is likely to report lower sales in its upcoming third quarter update, it looks well-placed to resume its growth in FY 2022.  

Goldman Sachs is positive on the company. Its analysts currently have a buy rating and $20.70 price target on its shares. This compares to the latest Coles share price of $15.64.

Ramsay Health Care Limited (ASX: RHC)

Another ASX 50 share that is highly rated is Ramsay Health Care. The private hospital operator could be worth considering for a retirement portfolio due to its very positive long term growth outlook.

This is thanks to a number of tailwinds that are expected to lead to growing demand for healthcare services over the next decade and beyond. It also has a penchant for acquisitions and could bolster its growth inorganically in the coming years.

Goldman Sachs is also a big fan of Ramsay. The broker currently has a buy rating and $75.00 price target on the company’s shares. This compares to the latest Ramsay share price of $67.71.

Goldman has suggest that Ramsay will recover strongly from the pandemic and is forecasting its operating earnings to grow at a compound annual growth rate of 7% between FY 2021 and FY 2024.

More reading

• Looming grocery price shock to impact on these ASX shares
• What to expect from the Coles (ASX:COL) Q3 update
• 3 ASX dividend shares with fully franked yields over 5% today
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• Wesfarmers’ (ASX:WES) Bunnings open to hosting COVID vaccine hubs

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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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Orocobre Limited (ASX: ORE) shares are having a bumper time on the ASX of late. Shares in the lithium miner jumped 5.1% higher yesterday even as the S&P/ASX 200 Index (ASX: XJO) slid 0.2% lower to 7,045.60 points.

That means the Orocobre share price is now up 46.7% in the year to date after closing at $6.66 yesterday. So, what’s driving the Aussie lithium share higher this year?

Why the Orocobre share price is on fire

It’s worth mentioning that it hasn’t all been good news for Orocobre shareholders in recent times. The Orocobre share price had been sliding from January 2018 until mid-2020. However, the tides seem to be turning in the early part of this year.

Increasing demand for electric vehicles, and the meteoric rise of Tesla Inc. (NASDAQ: TSLA), have certainly helped. It seems the electric vehicle market has well and truly kicked back into gear after sitting quietly for some time.

That has been good news for lithium demand given the importance of the raw material in making lithium-ion batteries. According to a release from global ratings agency S&P Global Inc, lithium prices continue to rise. In fact, lithium carbonate CIF Asia prices rose 11% in March to US$10,000 per tonne – the largest monthly increase since January.

That was good news for the Orocobre share price which surged higher in yesterday’s trade. Strong plug-in electric vehicle demand in China and general recovery in ex-China auto sales have also been positives for lithium prices.

That has investors piling into the Aussie lithium mining share like there’s no tomorrow. That’s despite S&P Global forecasting lithium prices to edge lower in the June quarter to US$9,900 per tonne.

The current pricing environment is a remarkable turnaround from as recently as December 2020. That has sent the Orocobre share price surging alongside rivals like Galaxy Resources Limited (ASX: GXY) and Pilbara Minerals Ltd (ASX: PLS).

More reading

• ASX lithium shares are soaring. Is it too late to jump onboard?
• Brokers weigh in on Galaxy (ASX:GXY) and Orocobre (ASX:ORE) merger
• ASX miners in focus as the copper price looks poised to crack above 10-year highs
• Why Eagers Auto, Orocobre, Sims, & Titomic shares are storming higher
• Galaxy Resources (ASX:GXY) share price jumps on merger news

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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.

The post Why the Orocobre (ASX:ORE) share price is at a 52-week high appeared first on The Motley Fool Australia.

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The IOOF Holdings Limited (ASX: IFL) share price is one to watch this morning after a late afternoon update from the Aussie wealth manager.

Why is the IOOF share price on watch?

IOOF yesterday provided a response to a media release by the Australian Securities Investment Commission (ASIC). ASIC had earlier published a release titled “21-084MR IOOF advice licensees to implement changes following ASIC surveillance”.

ASIC has been reviewing IOOF advisors’ work as part of the wealth manager’s remediation efforts under the regulator’s industry surveillance program. The regulator found two IOOF subsidiaries had potentially exposed a number of clients to harm. ASIC reviewed both Bridges Financial Services Pty Ltd and RI Advice Group Pty Ltd in December 2020.

ASIC found 15% of client files at Bridges and 17% of files at RI Advice “contained indications of some potential client detriment”. The IOOF share price climbed 2.3% higher yesterday despite the regulatory note.

IOOF said that less than 5 files contained indications of some potential client detriment in relation to advice provided. Those numbers recorded are since introducing IOOF’s uplifted governance program and ASIC REP 515 compliant file review standards.

The IOOF share price is one to watch in early trade as investors weigh up the regulator’s latest findings. IOOF said it remains committed to ensuring the highest advice governance standards. According to the release, IOOF has conducted all advice reviews to the heightened ASIC REP 515 standards since 1 January 2020.

The review comes nearly three years since IOOF was hauled over the coals in the 2018 Financial Services Royal Commission. ASIC did note that IOOF has “agreed to develop and implement remedial action plans”.

Foolish takeaway

The IOOF share price is in focus this morning after the company responded to the regulator’s latest findings. Investors will be watching the Aussie wealth manager closely in early trade for signs of any movement.

More reading

• Why the Iress (ASX:IRE) share price will be in focus this morning
• Here’s an ASX telco share tipped to rise 40%
• LIVE COVERAGE: ASX to rise; tech shares on watch
• Why these ASX shares just hit 52-week lows or worse
• 2 highly rated ASX growth shares for May

Motley Fool contributor Ken Hall 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 Iress Ltd (ASX: IRE) share price will be on watch this morning after the company provided a market update.

At Monday’s market close, the financial software company’s shares finished the day at $9.93.

Let’s take a look and see what Iress announced in yesterday’s late market release.

Iress highlights progress on executing growth strategies

Iress shares could be on the move today after the company reported a number of positive updates.

In its announcement, Iress advised that the acquisition payments to the vendors of QuantHouse have now been completed. Approximately 8 months ahead of schedule, the company will now focus on integrating its teams and business strategy.

In addition, the deployment of Automated Super Administration is on track, with two clients scheduled to go live this year.

Iress noted that in Australia, 66% of services under its cloud transition program have now moved to the cloud. Year to date, global services migration has increased by 33% when compared to the 2020 financial year.

Two lenders are expected to go live in 2021 with the company’s mortgage lending software, MSO. Project activity and sales pipeline in the United Kingdom market is growing, further building on revenue and margin.

OneVue’s corporate and functional integration met all milestones in the quarter. Iress now plans to release the combined OneVue and Xplan offering in Q3 FY21.

Upgraded FY21 guidance

In further news that could boost Iress shares today, the company revised its net profit after tax (NPAT) guidance for FY21.

Due to the one-off provision release of QuantHouse earnout arrangements, NPAT is expected to exceed guidance by $14 million. As a result, FY21 NPAT in constant currency is forecast to be in the range of $70 million to $77 million. This is a significant uplift when compared to the previous projection in February of $56 million to $63 million.

Year-to-date performance up to 31 March 2020 is in line with current estimates. Iress revealed that pro forma segment profit is up by 2% against the prior corresponding period in constant currency. Pro forma NPAT is recording an 11% jump against the same time frame.

Iress chief executive Andrew Walsh commented on the company’s outlook, saying:

2021 promises to be a productive year for Iress as we implement major client projects, integrate OneVue with Xplan and increase our revenue and margin in the UK as the market continues to recover.

Our focus is clear. We continue to grow a highly competitive business with scale in key markets to drive margin expansion and increased returns on invested capital. We look forward to delivering on expectations as the year progresses.

Iress share price summary

The Iress share price has fallen by around 4.5% over the past 12 months. Year-to-date, the company’s shares have fared even worse, sitting around 7% down.

Based on the current share price, Iress presides a market capitalisation of roughly $1.9 billion, with 193.3 million shares outstanding.

More reading

• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended IRESS 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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A fund manager has singled out one small cap ASX-listed telecommunications business as capable of a 40% rise in share price to match its valuation.

Montgomery Investment Management founder Roger Montgomery told his subscribers that Macquarie Telecom Group Ltd (ASX: MAQ) is a structural winner.

“Structural winners might be part of a global megatrend, have long runways for growth, are disruptive and/or market share takers with a long-term total addressable market that is theirs to lose.”

The Macquarie share price has dipped in recent times. It started the year above $52 but was trading at $50.75 at the market close on Monday.

Priced as yesterday’s hero

Montgomery said the market seems to perceive Macquarie as a winner only during COVID-19 when demand for telco services was at a peak.

“Experience tells us the patient will be rewarded,” he said.

“Our valuation estimate is currently circa $70.”

If the share price rose to match Montgomery’s valuation estimate, it will have grown almost 40% from current levels.

The fund manager explained that Macquarie recently separated its cloud services/government (CSG) and data centres (DC) into distinct divisions to help investors see the growth in each.

The company also has a telecom arm, which sells data, voice and mobile.

“Data centres’ revenue and earnings are what we see as the crown jewels,” said Montgomery. 

“The wholesale customer at [data centre] IC3 East is expected to commission its contracted capacity next financial year and billings, and therefore earnings from it will emerge the year after.”

He isn’t the only analyst bullish on Macquarie. Just a few weeks ago, Canaccord Genuity rated the stock as a buy while slapping on a price target of $68.

About Macquarie Telecom

Just last month, Macquarie terminated its mobile wholesale supply deal with Telstra Corporation Ltd (ASX: TLS) to switch to rival Optus.

Macquarie was founded in 1992 upon the deregulation of the telecommunications industry in Australia.

The company listed on the ASX in October 1999 and currently has a market capitalisation of just over $1 billion.

More reading

• These ASX dividend shares have attractive fully franked yields
• 2 fantastic ASX 200 dividend shares rated as buys
• Is the Telstra (ASX:TLS) share price going to keep rising?
• Is the Telstra (ASX:TLS) share price better value than the TPG (ASX:TPG) share price?
• What’s next for the Telstra (ASX:TLS) share price?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s an ASX telco share tipped to rise 40% appeared first on The Motley Fool Australia.

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More reading

• Why these ASX shares just hit 52-week lows or worse
• 2 highly rated ASX growth shares for May
• These ASX dividend shares have attractive fully franked yields
• 5 things to watch on the ASX 200 on Tuesday
• 2 fantastic ASX 200 dividend shares rated as buys

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and 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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