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The Syrah Resources Ltd (ASX: SYR) share price is on the move today after the graphite miner’s latest quarterly report.

Why is the Syrah share price on the move?

Shares in the Aussie graphite fell 0.5% in early trade after providing an update for the period ended 31 March 2021 (Q1 2021). 

Syrah’s key value proposition remains in the electric vehicle (EV) market. Syrah is a primary producer of high quality graphite and graphene, which are key components for EV batteries.

The Aussie miner reported strong EV sales during the quarter, up 140% on Q1 2020 to over 1.1 million units. Ramp-up is continuing at the group’s flagship Balama Graphite Operation with positive grade and recoveries.

The Syrah share price has been on a recovery path in the past 12 months, climbing over 350% to the current $1.06 per share valuation. Shares in the graphite producer are falling this morning following the update despite reporting growing plant utilisation and production volumes.

Syrah reported increased natural graphite demand from EV sales growth. Active Anode Material (AAM) production volumes continue to grow after being disrupted by the coronavirus pandemic on both the supply and demand side.

Syrah said that was supportive of the production resumption at Balama in March 2021 ahead of schedule. Easing COVID-19 restrictions, stronger market conditions and new enquiries from customers all played a part in the decision.

Syrah produced 4,700 tonnes and shipped 2,300 tonnes of prior sales from product inventory to established customers. That comes after restructuring to enhance yield unit cost reduction upon commencement.

Increasing plant utilisation and natural graphite production have the company working towards 15,000 tonnes per month subject to demand.

Foolish takeaway

The Syrah share price has been under pressure following the update as the broader market slumps lower. At the time of writing, shares in the Aussie miner are down 0.5% to $1.06 per share as investors react to the latest news.

More reading

• Syrah (ASX:SYR) share price dips lower despite positive update

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 Nuheara Ltd (ASX: NUH) share price is on the move this morning. This comes after the company announced a positive development with a major contract.

At the time of writing, the hearing solutions provider’s shares are swapping hands for 5.3 cents, up 6%.

What did Nuheara announce?

Investors are pushing Nuheara shares higher following the company’s latest update.

According to this morning’s release, Nuheara advised it has begun mass production of HP Elite Wireless Earbuds for HP Inc (NYSE: HPQ). This follows HP’s recent approval of the initial samples, paving the way for commercial production.

Nuheara highlighted that this will be the first product to be manufactured under the umbrella supply agreement. Both parties entered into a partnership arrangement in late December last year.

The Elite Wireless Earbuds will be offered as bundled options to customers with the purchase of select HP notebook computers.

Large-scale manufacturing of the Elite Earbuds has started, with shipment to take place in early May 2021.

What did the CEO say?

Nuheara CEO Justin Miller commented on the partnership agreement:

We are incredibly proud to be working and developing products for HP, a global technology leader. Nuheara’s co-development of the new HP Elite Wireless Earbuds has seen this new product delivered, from concept to mass production, in record time.

Our strong working relationship with HP has been critical in developing and manufacturing this product seamlessly. As global leaders in our respective markets of PCs and Hearables, Nuheara anticipates the strengthening of this partnership over the next three years to continue the supply of innovative audio solutions to HP’s customers.

About the Nuheara share price

The Nuheara share price has accelerated to more than 200% in the last 12 months, particularly from July 2020 onwards. The company’s shares reached a 52-week high of 6.6 cents in August before moving in circles thereafter.

On valuation grounds, Nuheara commands a market capitalisation of around $86.1 million, with 1.7 billion shares on issue.

More reading

• Why the Nuix (ASX:NXL) share price is crashing 16% lower today
• Why the Splitit (ASX:SPT) share price is sinking 5% lower today
• Altium (ASX:ALU) share price tumbles on broker downgrade
• Leading brokers give their verdict on the Afterpay (ASX:APT) share price
• PayPal will target cross-border payments in China

Motley Fool contributor Aaron Teboneras 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 Nuix Ltd (ASX: NXL) share price is crashing lower on Wednesday following the release of an update to its guidance for FY 2021.

At the time of writing, the investigative analytics and intelligence software provider’s shares are down 16% to $4.27.

What did Nuix announce?

According to the release, during April, a significant and larger than expected number of Nuix’s customers, including one of its largest, elected to transition from module-based subscription licenses to consumption and Software-as-a-Service (SaaS) license models.

This has resulted in a shift in both revenue and Annualised Contract Value (ACV) profiles.

In addition to this, Nuix revealed that some of its law firm, advisory and service provider customers have also recently informed it of a reduced add-on (upsell) requirement for existing licenses.

This is because of both their unutilised license capacity in the current climate, as well as the recovery in legal case backlog being slower than anticipated.

Management notes that the accelerated switch to consumption licenses, including SaaS, is primarily driven by changing customer business models. This is being caused in part by a shift from office settings to remote working environments and the need to have flexible global licensing to manage projects in line with data privacy and sovereignty requirements.

Nuix notes that it also reflects the attractiveness for many customers of a decision by the company to provide greater choice in deployment. This includes on-premise and in the cloud hybrid solutions, which assists customers as they evaluate their transition toward consumption licenses.

What impact will this have on its guidance?

The above factors have led to Nuix downgrading its guidance just over six weeks after reaffirming it following media criticism.

Nuix is now expecting pro forma revenue of $180 million to $185 million in FY 2021. This compares unfavourably to its guidance of $193.5 million.

The company’s ACV is now expected to be in the range of $168 million to $177 million this year. This falls well short of its forecast of $199.6 million.

One slight positive, though, is that its pro forma EBITDA is expected to be $64.6 million to $66.6 million, which is higher than its guidance of $63.6 million.

Nuix’s CEO, Rod Vawdrey, commented: “Over the last 18 months, Nuix has enabled its customers to move from module-based subscription licenses to more flexible consumption-based licensing models. The increasing rate of adoption of consumption licenses has had a positive impact on new business and existing retention notwithstanding a transitory downward impact on FY21 revenue. Giving our customers the choice in how they consume Nuix is a key competitive advantage.”

“The fundamental revenue drivers for Nuix are strong and underpinned by a growing order book and pipeline. It reflects the underlying strength of the Nuix software offering, a sticky, loyal customer base, strong growth in new business and an increase in order size. We look forward to shareholder participation in Nuix’s Investor Day in May.”

More reading

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

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The Splitit Ltd (ASX: SPT) share price is under pressure this morning following the release of its first quarter update.

At the time of writing, the buy now pay later (BNPL) provider’s shares are down 5% to 80.5 cents.

How did Splitit perform in the fourth quarter?

Splitit has just completed a reasonably disappointing first quarter of FY 2021.

Although the headline number looks impressive, digging a little deeper there are worrying signs for the BNPL provider.

For the three months ended 31 March, the company achieved Merchant Sales Volume (MSV) of US$82 million. While this was an increase of 247% compared to the same period last year, it was actually down 5% quarter on quarter from US$86.3 million.

It is also well short of what many of its rivals are reporting. For example, Afterpay Ltd (ASX: APT) just reported quarterly underlying sales of $5.2 billion and Zip Co Ltd (ASX: Z1P) delivered quarterly transaction volume to $1.6 billion.

In respect to revenue, Splitit recorded first quarter gross revenue of US$2.7 million, which was up 292% on the prior corresponding period. Though, once again, it was down from gross revenue of US$2.9 million in the fourth quarter.

If this trend continues throughout the remainder of FY 2021, it will lead to Splitit going backwards in respect to MSV and revenue. This could be bad news for the Splitit share price given its lofty valuation on limited revenue.

Why is slowing Splitit’s growth?

Management blamed the slowdown in its growth on a deliberate shift away from debit cards. It believes its MSV in Q1 2021 would have surpassed its fourth quarter MSV if it were not for the shift.

The company advised that it has made the switch as credit cards present a significantly lower risk profile for the company.

What else did Splitit report?

The company’s closing cash position was US$75 million. This follows cash burn of US$7.6 million during the quarter.

Also catching the eye was management’s intriguing decision to no longer report repeat shoppers, 12-month active customers, or 12-month active merchant data.

It doesn’t believe these are appropriate near-term performance metrics but rather long-term growth avenues. As a result, it will cease reporting these metrics for the foreseeable future.

Given how these are good indicators of how BNPL providers are performing, and standard metrics in the industry, its decision to not disclose them could be concerning for investors.

In light of this and its slowing growth, it isn’t overly surprising to see the Splitit share price tumble today.

More reading

• How does Afterpay’s (ASX:APT) growth rates compare to peers?
• Why IGO, Orocobre, Splitit, & Zip shares are charging higher
• Why the Splitit (ASX:SPT) share price is up 7% this morning
• The Afterpay (ASX:APT) share price is up almost 20% this month
• What’s with the Splitit (ASX:SPT) share price today?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD 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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The Altium Limited (ASX: ALU) share price has come under pressure for a second day in a row.

In morning trade, the electronic design software company’s shares are down 3% to $27.59.

Why is the Altium share price under pressure?

On Tuesday the Altium share price tumbled lower following the release of a note out of Citi.

Although the broker remains positive and has held firm with its buy rating, it suggested the company could fall short of expectations in FY 2021.

This follows some heavy discounting, which it fears could be a sign of weak market conditions.

Why is it dropping further today?

It hasn’t taken long for another broker to pick up on this discounting.

This morning Bell Potter responded to the news by downgrading the company’s shares to a sell rating and cutting the price target on them by 3.5% to $27.50.

However, based on the current Altium share price, this implies only modest downside from where it trades now.

What did Bell Potter say?

Bell Potter commented: “Altium is discounting the price of a term licence for its Altium Designer (AD) software by 50% in the first year. At this stage the offer is valued for two months – till 18th June – and is limited to two licenses per customer at this price. The price for a perpetual licence, however, appears to be unchanged and, for instance, in Australia remains A$11, 590 (A$9,495 for the licence and A$2,045 for the one year subscription).”

“The discounting of just the term licence differs from around this time last when the company was aggressively discounting the price of a perpetual licence by around 40%. The discounting suggests Altium is pursuing subscriber growth before the end of the financial year – both in new AD seats sold and 365 users – though this will have negative short term impact on revenue. The impact is also likely to be accentuated as it will further incentivise new customers to buy a term rather than perpetual licence,” it added.

More reading

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• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• 2 five-star stocks to buy

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

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On Tuesday the Afterpay Ltd (ASX: APT) share price dropped lower despite the release of an impressive third quarter update.

The payments company’s shares dropped almost 1% to $125.23.

What happened in the third quarter?

For the three months ended 31 March, Afterpay continued its strong form by reporting a 104% increase in underlying sales to $5.2 billion.

This comprises a 167% increase in North American sales to $2.6 billion, a 48% lift in ANZ sales to $2.1 billion, and a 246% jump in the UK sales to $0.5 billion.

This strong performance was driven by a 75% increase in active customers globally to 14.6 million and increasing customer frequency across all regions.

Also catching the eye was news that there may soon by an Afterpay share price trading on US markets. Afterpay notes that the US is now its biggest market and its shareholder base is increasingly becoming more globally focused. It feels a US listing would further accommodate this growing interest.

Where do brokers think the Afterpay share price is going?

Analysts at Credit Suisse were pleased with Afterpay’s sales growth during the quarter. And while its customer growth fell a touch short of expectations, the broker has retained its outperform rating and $145.00 price target.

The ultra bearish UBS has held firm with its sell rating and $36.00 price target on the company’s shares. They are concerned that its US listing could distract management, particularly given the requirement for more rigorous quarterly reporting.

Over at Morgans, its analysts have retained their hold rating and trimmed its price target slightly to $121.00.

Analysts at Wilsons have reduced their price target but remains positive on the company. Wilsons has a buy rating and $151.05 price target on Afterpay’s shares.

And yesterday, after a first look at its result, Macquarie Group Ltd (ASX: MQG) held firm with its neutral rating and $120.00 price target. It noted that Afterpay’s numbers were in line with its expectations.

Over at RBC Capital, yesterday its analysts noted that Afterpay fell a touch short of its expectations in the third quarter. However, it remains confident it can still achieve its full year forecasts. RBC had an outperform rating and $150.00 price target at that point.

Based on the above, brokers appear largely undecided on the direction the Afterpay share price is going from here.

More reading

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• Is the Afterpay (ASX:APT) share price in the buy zone after its update?
• 650,000 Aussies sign up for Afterpay (ASX:APT) Mastercard

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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.

In an interview with CNBC, PayPal (NASDAQ: PYPL) revealed plans to develop a digital wallet in China, the world’s largest payments market. This comes after PayPal completed its acquisition of GoPay in December, making it the first and only foreign enterprise to operate a China-based payments company.

For the last several months, the fintech company has kept quiet about its plans in the country. But the China CEO for PayPal, Hannah Qiu, recently shed some light on the situation. Specifically, Qiu said the company won’t compete against giants like Ant Group’s Alipay and Tencent Holdings‘ WeChat Pay, which have a collective user base that exceeds 1 billion.

Instead, Qiu explained that PayPal is working in cooperation with local payment companies, though she didn’t mention any names. She added, “What we need to do is to build a bridge, bringing good Chinese products overseas and taking good overseas products back to China.” In other words, PayPal’s new wallet will target cross-border payments.

This differs slightly from CEO Dan Schulman’s commentary during the most recent earnings call. At the time, Schulman said PayPal would first grow its cross-border business, then “slowly but surely add incremental services into the domestic market.” Either way, this could be a big opportunity for the fintech company. According to Statista, the business-to-business cross-border payments market in China should hit $875 billion in 2021.

That matters because PayPal primarily earns revenue as a percentage of the total payment volume (TPV). Last year, the company achieved record results, growing TPV 31% to $936 billion. That drove revenue to $21.5 billion. Even so, if this new product gains traction, PayPal could see a meaningful bump in TPV from its China business, and that could translate into meaningful top-line growth.

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

More reading

• Square’s ready to take on PayPal
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Trevor Jennewine owns shares of PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends PayPal Holdings and recommends the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. 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.

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When lithium prices finally bottomed in late 2020, depressed ASX lithium shares were quick to re-rate. This resulted in the shares doubling or even tripling in a matter of months.

Investors might be left with an all too familiar feeling sitting on the sidelines and watching shares run up. 

With ASX lithium majors Galaxy Resources Limited (ASX: GXY), Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) quickly running into multi-year highs, is it too late to consider ASX lithium shares? 

Higher spot prices to drive valuation  

It might be worth looking at ASX iron ore shares that have experienced a similar narrative of surging demand and sky-high share prices. 

China’s significant infrastructure-focused stimulus combined with supply-side challenges sent iron ore prices soaring. Up from the US$90/tonne level in early 2020 to more than US$170/tonne today. 

During this period, Fortescue Metals Group Ltd (ASX: FMG) more than doubled in value. While heavyweights BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) soaring to decade highs. 

There are concerns that iron ore prices could cool down in the short-to-medium term. However, for the time being, ASX iron ore miners are enjoying record profits while paying out market-leading dividends. 

What about ASX lithium shares?

While the top might be in for iron ore prices, the same can’t be said about lithium. 

In Galaxy and Orocobre’s merger presentation, it points to robust demand for lithium in the mid-long term. It highlights that Chinese spot lithium carbonate prices have increased 90% between December 2020 and the end of March 2021. With lithium chemical inventories decreasing faster than expected.

Fastmarkets provides regular updates for the lithium industry. In its most recent update, it cited that “battery-grade lithium hydroxide price in China jumped by 3.75%, while the equivalent grade lithium carbonate price held despite slower trades”. While prices across Europe and the United States “continued to post sharp gains on the global bullish trend and tight supply”.

Brokers have also joined the mix with positive updates for Galaxy and Orocobre after its $4 billion merger update. 

Foolish takeaway

Any asset class that runs up quickly in a short span of time can be subject to profit-taking and increased volatility. But both ASX lithium shares and brokers are positive on the medium to long term outlook of spot prices underpinned by a global commitment to electric vehicles and net-zero emissions. 

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops, Challenger plummets, Lynas falls
• Aussie dollar shoots higher! Here are some ASX winners
• BHP (ASX:BHP) share price lower despite natural gas update
• Treasurer outlines federal budget focus as IMF upgrades Australian outlook

Motley Fool contributor Kerry Sun 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 Renergen CDI (ASX: RLT) share price will be on watch this morning following the announcement of a milestone agreement.

At yesterday’s market wrap, the helium and LNG producer’s shares finished the day at $2.27.

Partnership agreement

Renergen shares could be on the move today after the company provided investors with a positive update.

According to this morning’s release, Renergen advised it has entered into an agreement with DPD Laser for the supply of 110 Cryo-Vacc cases.

Established in 1999, DPD Laser is a leading South African express logistics company. The group specialises in time-sensitive courier services as well as road freight express delivery.

Under the deal, Renergen will sell its Cryo-Vacc cases at a fixed price using a combination of 3 different case sizes. The large case holds up to 2,400 vials, medium case up to 1,200 vials, and the smaller case up to 240 vials. Cases can be distributed to suit customer needs such as using the smaller case for pharmacies and medical clinics.

Renergen noted that the agreement has been signed ahead of the Phase II vaccination program for South Africa.

The deal is not expected to be material from a revenue perspective but represents another checkpoint passed by the company.

The Cryo-Vacc cases are expected to be delivered to DPD Laser towards the end of next month.

Words from management

Renergen CEO Stefano Marani touched on the company’s progress, saying:

We believe the technology works, and as time progresses, we will continue to enhance and improve the Cryo-Vacc as we gain valuable data from people in the field using the product.

The analogy we see here is that version 12 of a smartphone was not the first version released; they got there over time. Cryo-Vacc will continue to evolve, and this is the exciting part as it becomes more flexible and useful in the field, which is the goal.

DPD Laser CEO Anton Visagie, added:

We have the ideal solution, storage and distribution, given the current uncertainty on which vaccines will be used at various vaccination points across South Africa.

Our technology can handle all three required temperatures of 2-8 degrees, -20 degrees and -70 degrees Celsius without being dependent on an external power supply for periods between 7 and 35 days.

About the Renergen share price

For most of 2020, the Renergen share price remained relatively flat until surging at the beginning of 2021. The company’s shares have gained more than 120% year-to-date. In comparison, the S&P/ASX 200 Index (ASX: XJO) has gained a modest 77% over the same time frame.

More reading

• Why the Bega Cheese (ASX:BGA) share price is at a 52-week high
• Why the Commonwealth Bank (ASX:CBA) share price is flying right now
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• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 drops, Challenger plummets, Lynas falls

Motley Fool contributor Aaron Teboneras 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 Northern Star Resources Ltd (ASX: NST) share price is on watch after the Aussie gold miner’s latest quarterly results and merger update.

Why is the Northern Star share price on watch?

Northern Star this morning provided a quarterly performance update after its merger with Saracen Mineral Holdings Ltd (ASX: SAR).

The gold miner reported that March quarterly gold sold 368,273 ounces for the period that ended 31 March 2021. That came at an all-in sustaining cost (AISC) of A$1,598 or US$1,235 per ounce.

Kalgoorlie site production contributed 234,419 ounces with Yandal and North American production of 94,116 ounces and 40,008 ounces, respectively. The Northern Star share price will be one to watch as it looks to hit full-year production guidance.

Gold that sold for the 9 months till 31 March 2021 came in at 1.15 million ounces. The Aussie miner is targeting a full year guidance production of 1.5 million to 1.7 million ounces at an AISC of A$1,370 to A$1,470 per ounce for Australian operations.

Investors will be watching the Northern Star share price following this morning’s update – the first since the Saracen merger. Northern Star and Saracen announced a $16 billion merger of equals which was implemented on 12 February 2021.

For the March quarter, Northern Star reported an average realised price of A$2,222 per ounce for revenue of A$772 million. The group had cash and bullion of A$696 million at the quarter end after dividends, acquisitions and growth capital expenditure.

The Aussie gold miner will provide an exploration and reserves/resources update in early May 2021. Investors will be keeping a close eye on the newly-formed gold giant’s next release.

Foolish takeaway

An important takeaway from today’s release is the reassurance that Northern Star remains on track to achieve Pro-forma FY2021 guidance despite a number of one-off events.

The Northern Star share price will be one to watch in early trade following the latest update on its March performance.

More reading

• Brokers weigh in on Galaxy (ASX:GXY) and Orocobre (ASX:ORE) merger
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Why these 3 ASX 200 gold shares are racing higher today
• ASX 200 down 0.2%: Origin sinks on earnings downgrade, gold miners charge higher

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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