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The ECS Botanics Holdings Ltd (ASX: ECS) share price started this morning flying high following a supply agreement from Murray Meds. At the time of writing, the agribusiness and hemp food company’s shares have since retreated are now trading up 3.2% at 6.4 cents.

Supply agreement propels the ECS Botanics share price

The ECS Botanics share price is surging today following the company’s latest announcement.

In today’s release, ECS advised that Murray Meds has entered into a supply agreement with an Australian cannabinoid company. This is the second supply contract that Murray Meds have signed within the last 4 weeks. The previous deal related to a three-year supply agreement with the Armour Group to sell and export medicinal cannabis oils in Germany and the United Kingdom.

Under the newly signed contract, Murray Meds will supply medicinal cannabis dried flower, concentrate, and oils to the undisclosed cannabinoid company.

The term will run over 3 years and generate total revenue of $750,000. However, the bulk of this ($500,000) will be spent within the first year. ECS has kept all other details about the supply agreement under wraps, particularly around pricing and units.

Who is Murray Meds?

In January, ECS signed a binding term sheet to acquire 100% of Murray Meds, a Victoria-based medical cannabis cultivator. Shareholders approved the acquisition this week, with settlement expected soon.

Located on the Murray River in North Western Victoria, Murray Meds operates a licenced medical cannabis cultivation and manufacturing facility. The company produces around 3,500kg of medicinal cannabis per year, consisting of dried flower, oils, and tinctures.

Words from the managing director

ECS managing director Alex Keach welcomed the news, saying:

This is the second supply contract Murray Meds has signed in recent weeks and validates that a low capex and operating medicinal cannabis facility can still meet pharmaceutical quality of the oil and premium priced dry flower market. I am so pleased that this narrative is becoming a reality in the market place.

ECS has previously collaborated and worked closely with the customer. We look forward to furthering this relationship and, with the acquisition of Murray Meds, expanding the ECS sales network from our production hubs in Victoria and Tasmania.

ECS Botanics share price snapshot

The ECS share price has rocketed since the beginning of December, gaining more than 113%. Recent positive announcements from the company look to have pushed its shares higher, to within sights of its all-time high.

Based on the current share price, ECS has a market capitalisation of close to $28 million.

More reading

• ECS Botanics (ASX:ECS) share price edges lower despite positive update

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.

The post Why the ECS Botanics (ASX:ECS) share price is moving higher today appeared first on The Motley Fool Australia.

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The Aerometrex Ltd (ASX: AMX) share price is trading relatively flat today despite the company announcing the online opening of its MetroMap Store. At the time of writing, the aerial mapping company’s shares are up 0.45% to $1.105.

Let’s take a closer look and see what Aerometrex updated the ASX market with.

New product solution

The Aerometrex share price is faltering today as investors appear unfazed by the company’s positive update.

According to this morning’s release, Aerometrex advised that it has launched its online MetroMap 3D Store. Targeted to small-to-medium sized businesses (SME), the new offering allows customers to access Aerometrex’s off-the-shelf 3D modeled data. This presents an attractive opportunity for the company as it had not previously addressed the lucrative SME market.

Prior to the opening of the MetroMap 3D Store online, customers could only access 2D imagery and 3D model data. This occurred through a subscription. However, users are now able to define geographical locations and select their preferred data format when purchasing the 3D datasets. This is then quickly sent electronically helping the customer make informed decisions.

Aerometrex stated that its clients will have access to the most recent data on file. Additionally, they will be notified when new updates are available.

What did the managing director say?

Aerometrex managing director Mark Deuter commented:

This new product solution by Aerometrex meets the requirements of the Company’s customers at their time and point of need and supports us to truly penetrate the large SME market opportunity with a no-touch sales approach. The launch of our MetroMap 3D Store builds on the release of our MetroMap LiDAR data which is also available for purchase on-line.

We see further avenues to enhance our product offering, with a development path to offer Digital Terrain Model and Digital Surface Model data on the same online store, as well as Artificial Intelligence-derived analytics.

Aerometrex share price snapshot

The Aerometrex share price has fallen heavily in the past 12 months, losing close to 40% of its value. The company’s shares hit an all-time low of 70 cents in March 2020 before rebounding to $1.84 in May. However, since then, its shares have continued to trend lower, reflecting concerns about its current operating environment caused by COVID-19.

More reading

• Why the Aerometrex (ASX:AMX) share price is surging 9% higher

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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For anyone who is invested in ASX tech shares, or even just watches them for fun (you know who you are), volatility is a constant companion. Whenever the S&P/ASX 200 Index (ASX: XJO) moves around, you can almost always count on ASX tech shares moving around more. And on those days, it’s often in the opposite direction to the general market as well.

Take yesterday. Yesterday, the ASX 200 gained a modest 0.6% over the trading day. Yet tech shares like Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) were both down more than 2% each. Year to date, the ASX 200 is currently (at the time of writing) up roughly 1.1%. Yet Xero is down more than 19% over the same period. Afterpay was up around 33% at one point last month (10 February). But today, Afterpay is down ~2% year to date. Swings like this are very common with most ASX tech shares, whether that be Zip Co Ltd (ASX: Z1P) or WiseTech Global Ltd (ASX: WTC).

So what gives?

P/Es and cash flows

It is possible that the relatively extreme volatility we see in the ASX tech space comes from the way ASX shares are often valued by professional and institutional investors (who are the ones who move the markets most of the time). It’s pretty easy to work out what a mature business that generates positive cash flow will earn its investors. Take Transurban Group (ASX: TCL). Transurban operates toll roads, which have a set pricing scheme, and fairly predictable traffic volumes backed up by lots of historical data. Thus, it’s pretty easy to (roughly) work out how many vehicles will use Transurban’s roads, and by extension how much money will flow to the company.

But it’s a whole different kettle of fish with tech shares. Many tech shares aren’t even profitable on a statutory basis. That’s why Afterpay doesn’t yet have a price-to-earnings (P/E) ratio. When it comes to the tech space, investors are usually trying to value the fastest-growing companies based on what their future cash flows might be, not what they are delivering this year (or next year for that matter). That’s why the market is happy to assign a (seemingly sky-high) P/E ratio of 500 to Xero. It’s expecting Xero to earn way more in the future than what it earns today.

ASX tech shares are hard to value

But basing a company’s current valuation on what it could deliver years down the track is fraught with risk. None of us knows what the future holds at the best of times. Thus, small changes to the regulatory or economic environment today can have big implications in 3 or 5 years. With a company like Transurban, it’s a lot easier to work out what those changes might do to the company because we can see immediate effects on its mature cash flow. But with a fast-growing company with nothing more than a promising pipeline of potential profits, it gets a lot murkier.

It could be for this reason that the valuations of ASX tech shares move around so much. It’s just harder to predict how profitable a company will be in the future if that company isn’t making profits today.

More reading

• 2 quality SaaS ASX shares to buy in March 2021
• Why the Xero (ASX:XRO) share price is on watch today
• 5 things to watch on the ASX 200 on Thursday
• The Flexiroam (ASX: FRX) share price rockets 35% after new announcement
• ASX 200 rises, Rio chair will leave, Nine gets a new CEO

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO, Transurban Group, WiseTech Global, and 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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De Grey Mining Limited (ASX: DEG) shares are failing to ignite today despite the company providing a positive drilling update. At the time of writing, the De Grey share price is trading flat at 95 cents. This comes following a 10.53% surge in the De Grey share price during yesterday’s session. 

The minerals & exploration sector bounced back yesterday after a three-day lull. Mining companies including Piedmont Lithium Ltd (ASX: PLL) and Ramelius Resources Limited (ASX: RMS) finished the session with gains of over 12%.

Let’s take a look at what De Grey announced this morning. 

Positive drilling results

This morning, De Grey released its latest drilling results relating to the company’s Hemi Gold Discovery project.

Summarising the discovery, De Grey managing director Glenn Jardine said:

The large Crow/Aquila gold system continues to expand and be defined across multiple stacked subvertical lodes. The dominant lodes of McLeod and Aquila are oblique to each other, intersect at the eastern end and are expected to support a combined open pit scenario. Both lodes demonstrate high grade mineralisation that should also provide underground mining potential below any open pit mining limits.

The company reported “significant new gold results” in drilling. This includes 24.8m @ 2.1g/t Au from 308.19m at the McLeod Lode and 52.2m @ 2g/t Au from 519.83m at the Aquila Zone site.

Change in substantial holding

In other news, De Grey also announced this morning that London-based Jupiter Asset Management Limited has grown its position in the business. 

Jupiter purchased approximately 2.1 million more shares over the past two days and now holds 6.04% voting power in the exploration company.

Average trading volumes of De Grey shares have been exceeded in three out of the past five days.

De Grey share price snapshot

Over the past 12 months, the De Grey share price has soared by more than 300%. However, year to date, De Grey shares have lost nearly 15%. Based on the current share price, the company has a market capitalisation of around $1.2 billion with 1.3 billion shares outstanding.

More reading

• 3 ASX 200 shares that doubled profits this reporting season 
• These 2 ASX mining shares have gained over 8% this week
• Government’s strategic roadmap to give these ASX miners a boost
• Synlait (ASX:SM1) share price crashes 7% on cancelled guidance
• 2 fantastic blue chip ASX 200 shares to buy

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February reporting season was an opportunity for S&P/ASX 200 Index (ASX: XJO) shares to demonstrate that the economic effects of COVID-19 are largely behind us and business is starting to get back on track.

Earlier this week, Commsec advised in its Economics Insights report that 86% of companies were able to report a statutory profit for the six months to December 2020, but that aggregate interim earnings fell by 17%. 

Despite the broader earnings weakness for ASX 200 shares, here are three that managed a significant turnaround in net profits. 

ARB Corporation Limited (ASX: ARB) 

ARB is Australia’s largest manufacturer and distributor of 4×4 vehicle accessories. The company’s half-yearly report is a true earnings recovery story with profit after tax up 113.5% on the prior corresponding period to $54 million. The company attributed the turnaround to pent up demand created during the early period of lockdown. 

The company highlighted a respectable 14.0% increase in sales to the Australian vehicle aftermarket, while export sales grew strongly by 36.7% and represented more than a third of the company’s total sales. 

Despite profits doubling, the ARB share price is down nearly 9% since the company released its half-yearly report. But looking at the bigger picture, the ARB share price has run by more than 200% since the initial March 2020 COVID-19 selloff. 

Harvey Norman Holdings Limited (ASX: HVN) 

Harvey Norman delivered a record half-yearly result which saw its reported profit after tax surge 116.3% to $462.03 million. The company pointed to strong growth in areas such as technology, with computers and related peripherals, leading the way due to the continuation of working from home.

Other categories that supported its surging revenues include gaming, boosted by the launch of PS5 and XBox Series X in November 2020, whitegoods, furniture and bedding. 

The company also highlighted apparent trends that supported growth in new areas such as outdoor furniture and outdoor cooking categories, as consumers rushed to transform their backyards and other entertainment spaces. 

The strong uptake of the federal government’s HomeBuilder grant also supported Harvey Norman’s home & lifestyle segment. The company sees the surge in new dwelling constructions and major renovations as a catalyst to drive sales and new opportunities moving forward. 

Ramelius Resources Limited (ASX: RMS) 

The gold spot price has been grinding lower to US$1,700 after hitting a record US$2,075 per ounce in August 2020. This has translated to weakness across the board for ASX gold mining shares. 

However, Ramelius has been a quiet achiever, with its half-yearly results highlighting a 57% increase in gold production to 144,240 ounces and a 294% surge in net profit after tax to $81.3 million. 

The company has a strong track record of increasing gold production, with year-on-year gold production increasing 21.5% since FY15. The company noted that its strong cash generation will be invested in current and future projects, and also a return to shareholders. 

More reading

• These 2 ASX mining shares have gained over 8% this week
• These are the latest ASX shares to be hit by broker downgrades
• Leading brokers name 3 ASX shares to buy today
• Has the Harvey Norman (ASX:HVN) share price peaked?
• The Harvey Norman (ASX:HVN) share price slips despite soaring profits

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB 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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Piedmont Lithium Ltd (ASX: PLL) and Ramelius Resources Limited (ASX: RMS) shares both blew up by over 12% yesterday. And despite a volatile week of trade on the ASX, these two miners are both outperforming the All Ordinaries Index (ASX: XAO) for the week so far.

Let’s take a closer look at what the companies have been up to. 

Piedmont Lithium share price shoots up

The Piedmont Lithium share price zoomed 12.2% higher during yesterday’s trading session and finished the day at $1.05. However, at the time of writing on Thursday, Piedmont shares have slumped 10.38% to 95 cents. Despite today’s falls, this still puts the company’s shares up by more than 14% for the week so far.

Earlier this week, Piedmont announced that the business has made progress pursuing re-domiciliation from Australia to the United States.

If the proposal is passed by the court, Piedmont US, a newly formed US corporation, will acquire Piedmont.

The Supreme Court of Western Australia has now ordered the proposed Scheme Booklet be circulated to shareholders for consideration and, if seen fit, approved.

A shareholder meeting will be held in Perth on 7 April 2021.

Presently, Piedmont has a market capitalisation of around $1.5 billion and there are 1.4 billion shares outstanding. Over the past 12 months, the Piedmont share price has soared by more than 740%.

Ramelius Resources share price bangs 14% up

The Ramelius Resources share price finished yesterday’s session with a 14.5% gain.

According to the company’s latest earnings statement, HY21 net profit after taxes (NPAT) jumped 297% to $81.3 million.

Gold production soared 57% with the miner producing 144,240 ounces for the period.

Total sales revenue also flew higher with a 116% boost to come in at $342.2 million.  

Earnings before interest, tax, depreciation and amortisation (EBITDA) was $192.8 million at the end of the HY21 period. That’s a 193% improvement compared to the HY20 $65.9 million EBITDA reported.

At the time of writing, the Ramelius share price has jumped 1.64% to $1.3925. Over the past year, Ramelius shares have climbed by around 12%. The company has a current market capitalisation of approximately $1.1 billion with there are 814 million shares outstanding. 

Foolish takeaway

Following a three day losing streak, Australia’s mining sub-index posted its biggest intraday trading bounce yesterday since 22 February 2021.

The metals & mining sector is the largest industry sector by number of companies on the ASX. 

More reading

• Why the Piedmont (ASX:PLL) share price just hit an all-time high
• Did you know Piedmont (ASX:PLL) and Mesoblast (ASX:MSB) are listed on the NASDAQ?
• The Piedmont (ASX:PLL) share price surged 12% today. Here’s why

Motley Fool contributor Gretchen Kennedy 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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Some ASX miners are likely to benefit from the federal government’s $1.3 billion plan to process more critical minerals on our shores.

These ASX shares can thank the US-China trade war and COVID-19 for this new tailwind. These events have convinced Prime Minister Scott Morrison to develop a 10-year roadmap for critical minerals, reported the Australian Financial Review.

It’s become painfully apparent that Australia and the world have become too reliant on China for raw materials used in electronics and advanced manufacturing.

The Chinese government could restrict the supply of these minerals to gain the upper hand in any trade dispute. Another global pandemic could also bring key industries to their knees.

ASX mining shares that could get new government funds

The irony is that Australia has some of the world’s biggest deposits of these commodities. Our miners mostly dig them up and send them overseas to be processed into higher value products used in electric vehicles, advanced weapons, telecom equipment and green tech.

The Australian government wants to capture more of the value chain and acknowledges that it will need to invest alongside industry to achieve this.

This is good news for the likes of the Lynas Rare Earths Ltd (ASX: LYC) share price and Iluka Resources Limited (ASX: ILU) share price. The former mines rare earths while the latter mineral sands.

Australia joins others in funding critical minerals

There is a global trend for governments to contribute to such projects. The US and South Korean governments are only a few examples.

But rare earths and mineral sands are unlikely to be the only commodities that our government would like to support.

ASX lithium and nickel miners may also be able to tap into federal government grants as these are used extensively in batteries.

Such a move could support the IGO Ltd (ASX: IGO) share price, Galaxy Resources Limited (ASX: GXY) share price and Pilbara Minerals Ltd (ASX: PLS) share price.

10-year roadmap details

The AFR reports that our prime minister will reveal details of the 10-year roadmap tomorrow. The plan will help position Australia as not just a global resources powerhouse, but also a leader in manufacturing and value-added processing.

The initiative is seen as a way for the Morrison government to win over voters in coal mining regions of Australia, while pacifying city voters concerned about climate change.

Much of the $1.3 billion in funds could be used to develop processing facilities in the Hunter and Central Queensland.

More reading

• Synlait (ASX:SM1) share price crashes 7% on cancelled guidance
• 2 fantastic blue chip ASX 200 shares to buy
• Nasdaq slumps overnight, ASX 200 shares to open weaker
• 2 strong ASX healthcare shares to buy this month
• 2 small cap ASX shares that are growing rapidly

Motley Fool contributor Brendon Lau owns shares of Lynas Rare Earths Ltd and Iluka Resources Limited. Connect with me on Twitter @brenlau.

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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Synlait Milk Ltd (ASX: SM1) shares have opened sharply lower today after the New Zealand dairy processor announcing the cancellation of its full-year profit guidance for FY21. At the time of writing, the Synlait share price has slumped 7.24% to $3.33. 

Let’s take a closer look at what Synlait announced.

What’s impacting the Synlait share price?

The Synlait share price is on the slide after the company this morning provided a statement to the ASX advising the withdrawal of its FY21 guidance for the following reasons:

1. Ongoing uncertainty surrounding demand from A2 Milk Company Ltd (ASX: A2M) for the remainder of FY21.
2. The impact of this fall in demand on Synlait’s production. According to the company, production of infant formula base powder will drop “significantly”.
3. Continued global shipping delays, which the company claims, “may still further impact the FY21 result.”
4. Commodity price volatility.

In further bad news for the Synlait share price, the company also proclaimed:

“The company’s previous guidance, that the overall FY21 [net profit after tax] NPAT result will be approximately half that of the FY20 NPAT result, will now not be attainable.”

Synlait is scheduled to release its half-year results on 29 March.

Synlait’s relationship with A2 milk

In November 2019, A2 Milk and Synlait extended their supply agreement for an additional 2 years – ending in 2025.

Synlait is the producer of A2 Milk’s signature product, its Platinum Infant Formula. The powdered dairy product is heavily sought after in China, with the daigou market acting as the main intermediary for the formula to reach the People’s Republic.

The effects of COVID-19 and resulting border closures have wreaked havoc on daigou channels into Australia. As a result, demand for A2 Milk’s baby powder plummeted.

Synlait describes A2 Milk as “a strategic partner”. Additionally, A2 Milk is Synlait’s second-biggest shareholder, owning nearly 20% of the company’s shares.

Synlait and A2 Milk share price snapshot

Both the A2 Milk and Synlait share prices have taken a beating over the past year. A2 Milk shares have fallen by more than 43% over the past 52 weeks. In early trade today, the A2 Milk share price is trading 1.7% lower at $9.24.

Although not as steep, the Synlait share price has slumped by around 38% over the past year. 

Based on the current Synlait share price, the company has a market capitalisation of $784.7 million. Meanwhile, A2 Milk’s market cap is $7 billion.

More reading

• ASX 200 slides lower, A2 Milk surges, Gold Road sinks
• The a2 Milk (ASX:A2M) share price is down 50% in 6 months: Time to buy?
• ASX shares on watch: Chinese investment in Australia has dropped 61%
• Where to next for the A2 Milk (ASX:A2M) share price?
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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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If you’re wanting to construct a balanced portfolio, having a few blue chip ASX shares in there could be a smart move.

But which blue chip ASX 200 shares should you buy? Two that are highly rated are listed below:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share to look at is biotherapeutics giant CSL. Its shares have come under pressure recently and are trading well below their 52-week high.

This has been driven partly by its half year results last month. For the six months ended 31 December, CSL revealed a 16.9% increase in revenue to US$5,739 million and a massive 45% jump in net profit after tax to US$1,810 million. 

While this was far stronger than expected, to the disappointment of the market, management only held firm with its guidance for FY 2021. It expects net profit after tax of US$2,170 million to US$2,265 million in constant currency for the full year. This represents year on year growth of just 3% to 8%, which will mean a sharp decline in its performance in the second half.

However, UBS remains positive on its long term growth and sees this share price weakness as a buying opportunity. It recently reaffirmed its buy rating but trimmed its price target slightly to $330.00.

ResMed Inc. (ASX: RMD)

Another blue chip to look at buying is ResMed. This medical device company has continued its strong form in FY 2021 despite the pandemic.

During the second quarter, ResMed posted a 9% increase in quarterly revenue to US$800 million and, thanks to further margin expansion, a 17% increase in net profit to US$206.4 million.

Looking ahead, ResMed appears well-placed for growth over the long term. This is thanks to its enormous addressable market. In fact, management has set itself a goal of improving 250 million lives in out-of-hospital healthcare in 2025.

Assisting the company with this goal will be its digital health ecosystem. At the end of December it reached over 12 million cloud connectable medical devices.

Credit Suisse is a fan of the company. It currently has an outperform rating and $29.50 price target on ResMed’s shares.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Is it time to buy these 2 hot ASX healthcare shares?
• What you need to know about the CSL (ASX:CSL) dividend
• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings
• 2 highly-rated ASX growth shares to buy

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 CSL Ltd. The Motley Fool Australia has recommended ResMed Inc. 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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Increasing bond yields continue to be the talk of the town, raising concerns about stretched company valuations and higher interest rates. Overnight in the United States, selloff woes continued for tech and growth-related sectors, with the Nasdaq Composite (NASDAQ: .IXIC) falling by 2.70%. 

What happened overnight? 

Benchmark US government yields inched higher overnight to close at 1.47%. To add some perspective, yields have been continuously falling from 3% in late-2018 to as low as 0.50% in mid-2020. Record low-interest rates have aided in propping up equity markets globally. Near-zero interest rates have helped buoy the economy and business activity. However, the recent resurgence in bond yields has raised concerns over higher interest rates in the near-term. 

Rising yields could translate into higher interest rates which, in turn, lead to higher borrowing costs. This could also result in a shift away from higher-risk investments such as shares and back to low-risk investments such as government bonds. 

Nasdaq continues to underperform 

Rising yields tend to stir up more trouble for richly valued shares. Meanwhile, value sectors including financials, real estate and commodities tend to perform better under a higher interest rate environment. 

The tech-heavy index slumped 2.70% overnight, while the S&P 500 Index (SP: .INX) fell 1.31% and the Dow Jones Industrial Average Index (DJX: .DJI) fell only 0.39%. 

A similar narrative played out last week when yields briefly touched 1.60% on Thursday. The Nasdaq finished last week down 4%, compared to the 1.70% and 1.85% respective falls from the S&P 500 and Dow Jones. 

Tech shares experienced heavy selling across the board in the US overnight with big names such as Facebook Inc (NASDAQ: FB), Apple Inc (NASDAQ: AAPL), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), Microsoft Corporation (NASDAQ: MSFT) and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) all falling between 1.40% and 5%.

Other notable losers included a 12.50% fall from e-commerce marketplace Etsy Inc (NASDAQ: ETSY), a direct competitor of Redbubble Ltd (ASX: RBL), and a 6% decline from US-based buy now pay later provider Affirm Holdings Inc. 

The ASX 200 is set to open lower on Thursday, but tech shares could be under even greater pressure given the falls in the Nasdaq overnight. 

More reading

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• Better Buy: Netflix vs. AT&T
• Why the Nine (ASX:NEC) share price hit another 52-week high
• Warren Buffett’s share portfolio revealed!
• Exploring the golden window of opportunity for ASX ESG investors

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. Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Etsy, Facebook, Microsoft, and Netflix and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, and Netflix. 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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