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The Alterity Therapeutics Ltd (ASX: ATH) share price is soaring today, up by more than 20% at the time of writing. The Alterity share price is currently trading at 4.7 cents a share.

Alterity Therapeutics is an Australian biotechnology company that focuses on commercialising research into Parkinsonian movement disorders, Alzheimer’s disease, Huntington disease, and other neurodegenerative disorders.

Michael J Fox Foundation puts up funding, Alterity share price soars

Alterity Therapeutics announced today that the company has been awarded a US$495,000 research grant from The Michael J. Fox Foundation for Parkinson’s Research.

The funding will be put toward determining the optimal dosing of ATH434 for Parkinson’s disease (PD) based on imaging of brain iron.

After Alzheimer’s disease, PD is the second most common age-related neurodegenerative disorder. It occurs when brain cells that make dopamine degenerate and ultimately die. 

ATH434 is Alterity Therapeutics’ lead drug candidate for the treatment of PD. It’s considered the first of a new generation of small molecules designed to inhibit the aggregation of pathological proteins implicated in neurodegeneration.

This is the second grant the company has received from The Michael J. Fox Foundation to continue its ATH434 research.

Highlights from the Alterity Therapeutics Q2 FY21 report

In addition to today’s news, Alterity Therapeutics released its second-quarter FY21 report on 28 January 2021.

Following a successful $35 million placement, Alterity advised that the company will continue to progress the Phase 2 clinical development program for ATH434. 

Some of the big institutional Alterity Therapeutics shareholders include UBS AG, Australia, Merrill Lynch International Limited, and Credit Suisse AG.

Discussing Q2 FY21 achievements, the company’s new CEO Dr David Stamler said: 

We’ve made important progress throughout the quarter with our commercialisation program for ATH434, including the initiation of our MSA natural history study and growing scientific validation of our library of compounds. I look forward to evaluating new opportunities for PBT2 in the important area of antibiotic resistance. We are well capitalized to continue to advance the company in the coming year.

Geoffrey Kempler, who founded the company in November 1997, stepped down from the CEO role and continues as non-executive chair.

The Alterity share price has powered up roughly 116% over the previous 12-month period.

More reading

• CBA, Westpac, ANZ adopt same tech as Bitcoin
• Afterpay and Zip were among the most traded ASX shares last week
• ASX retail shares show strong signs of resurgence 
• Boral (ASX:BLD) share price slumps as dividend cut
• 3 ASX dividend shares with higher yields

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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Three big banks have launched the first-ever blockchain product to be used in commercial banking in Australia.

A privately-held business named Lygon made the announcement on Tuesday, showing how it implemented blockchain to create digital bank guarantees.

The company is a joint venture between Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking GrpLtd (ASX: ANZ), Westfield owner Scentre Group (ASX: SCG) and IBM (NYSE: IBM).

Blockchain, also referred to as a decentralised database, is a technology that “chains” together bits of data stored with individual users to form one big coherent picture. It’s the same technology that cryptocurrencies like Bitcoin, Ethereum and Dogecoin are based on. 

Paper-based bank guarantees have a more than 200-year-old history in Australia. 

Lygon chief Justin Amos said the digitisation of such an old system was a massive milestone.

“Lygon is paperless, transparent, accessible, and standardised, removing the inefficiencies, costs, and risks associated with a paper-based system,” he said.

“The ability to reduce the risk of fraud and handling errors is a major advantage to Lygon, particularly given the heightened focus on digital security for businesses of all sizes and scale these days.”

Reducing a 4-week transaction into 1 day

Bank guarantees assure a payee that if a payer defaults on money owed, the financial institution would cover the shortfall.

In the example of a residential tenancy agreement, Lygon’s blockchain has condensed a manual process that can take 4 weeks into potentially 1 day.

“Banks can maintain database ledgers of all digital guarantees in existence, with access to a full and auditable history of every transaction ever made,” said Amos.

“Landlords are not at risk of losing or holding invalid guarantees, and retailers, as well as other tenants, have a simplified and fast system for providing security and accessing premises sooner.”

ANZ banking services lead Nigel Dobson said 3 parties were usually involved in a bank guarantee.

“The Lygon platform actually benefits all 3. It’s a win-win-win situation.”

For CBA global client solutions chief Jessica Dwyer, the blockchain technology lies in cutting out numerous gratuitous manual steps.

“Reducing the multiple hand-off points, reducing the necessity of our customers to walk in and out of a branch, buying down the risk that’s associated with fraud.”

The Lygon joint venture is also working on other financial uses for blockchain, Amos said.

“Our core technology can be applied to other types of payment guarantees and financial instruments, such as performance bonds, offering a wide range of opportunities to pursue as we expand Lygon’s reach and service offering.”

More reading

• Motley Fool CIO, Scott Phillips, talks to Sky News: Tesla’s bitcoin bandwagon, and ASX dividends back on menu
• Scentre (ASX: SCG) dividend restart fails to quell sceptics
• SCA (ASX:SCP) share price rises on double-digit increase in dividend and profit
• 2 blue chip ASX dividend shares to buy
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal

Motley Fool contributor Tony Yoo 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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Australia’s leading investment platform provider CommSec has released data on the most traded ASX shares on its platform from last week.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

This buy now pay later (BNPL) provider’s shares were the most traded on the CommSec platform by some distance. Zip shares accounted for 3% of total trades last week. However, just 39% of these came from buyers. Unfortunately for the sellers, the Zip share price recorded a sizeable 19% gain over the five days. A new chair appointment and a strong BNPL update from PayPal helped drive its shares higher.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This exchange traded fund (ETF) was popular with investors and accounted for 1.7% of trades on CommSec. A sizeable 78% of these trades came from buyers. They may have been buying the ETF in response to strong updates from Amazon and Apple.

Silver Mines Limited (ASX: SVL)

This silver-focused mineral exploration company’s shares were heavily traded last week, accounting for 1.5% of trades by CommSec investors. Almost two-thirds of these trades came from buyers who appear to have been looking for exposure to the precious metal after Reddit tried to initiate a short squeeze.

Afterpay Ltd (ASX: APT)

Afterpay shares were among the most traded shares again last week. They were responsible for 1.3% of trades on CommSec, with sellers accounting for 60% of these trades. As with rival Zip, these sellers will be disappointed to have missed out on a 12% gain over the five days. This appears to have been driven partly by a bullish broker note out of Bell Potter.

Rent.com.au Ltd (ASX: RNT)

This online rental listings company’s shares were very popular with investors last week. Rent.com.au shares were attributable for 1.2% of trades on CommSec, with close to two-thirds coming from the buy side. Investors were fighting to get hold of its shares after renowned tech investor, Bevan Slattery, took part in an institutional placement. The Rent.com.au share price jumped almost 500% last week.

More reading

• Why Challenger, DEXUS, Emeco, & Zip shares are tumbling lower
• ASX 200 rises 0.6%, Vocus jumps on takeover offer, Afterpay hits new record
• Will LimePay IPO drive ASX BNPL shares even higher?
• Why the Afterpay (ASX:APT) share price is exploding even higher today
• Why the Zip (ASX:Z1P) share price is storming 10% higher 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 BETANASDAQ ETF UNITS and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. 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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Australia’s retail industry has demonstrated its resilience over the past six months. Despite dire predictions at the start of the COVID-19 pandemic, ASX retail shares have performed strongly with rising sales and profits.

According to the Australian Bureau of Statistics, retail sales rose 2.5% in the December quarter on a seasonally adjusted basis. This follows a 6.5% rise in the September quarter. Consumers unable to travel are instead choosing to spend discretionary income on homewares, furniture, and electronics.

ASX retail shares are taking advantage of these shifting spending patterns and outperforming the dire predictions that proliferated last year. 

Online shopping surges 

Online shopping has surged in the wake of the pandemic, with the global e-commerce market expected to reach $4.5 trillion in 2021.

Many ASX retail shares have seen this trend reflected in their own sales statistics. JB Hi-Fi Limited (ASX: JBH) reported 161.7% growth in online sales in the first half of FY21, while Adairs Ltd (ASX: ADH) reported a 99.7% increase in online sales in the first 23 weeks of FY21. Premier Investments Limited (ASX: PMV), the company behind Smiggle, Peter Alexander, Just Jeans, and Dotti, saw a 60% increase in online sales in the first 24 weeks of FY21. 

Online-only retailers are sharing in the e-commerce spoils. Temple & Webster Group Ltd (ASX: TPW) reported a 118% increase in revenue in the first half of FY21, with active customer numbers growing 102% to 687,000. “The advantages of being the online market leader are apparent as we continue to grow our market share,” said CEO Mark Coulter in the company’s most recent update.

Online beauty retailer Adore Beauty Group Ltd (ASX: ABY) has updated its revenue forecast for the first half of FY21 to $95.2 million, a 7% increase on the prospectus forecast. “We are pleased to report strong sales ahead of our Prospectus forecasts. The business has continued to scale, deliver content, and meet the needs of our customers at a time when they need it most,” said CEO Tennealle O’Shannessy.

Travel spend diverted to retail 

As consumers find themselves stuck on Australian shores, many are reallocating their offshore travel spend to domestic adventures. This has resulted in a sales surge for Super Retail Group Ltd (ASX: SUL), the company behind popular stores BCF, Rebel Sports, and Super Cheap Auto.

Super Retail Group reported unprecedented consumer demand in the first 26 weeks of FY21, with like-for-like sales up 24%. The BCF brand reported a 51% uplift in sales as customers sought accessories to allow them to take advantage of adventures in their own backyard. BCF grew online sales by 113% while Super Retail Group reported an 87% overall increase in online sales. As a result, Super Retail Group upgraded its forecast profits and vowed it would repay $1.7 million in JobKeeper support. 

Consumers spending more time at home have also looked to upgrade their surroundings, spending big on furnishings and homewares. Nick Scali Limited (ASX: NCK) reported an exceptional six months of trading in the first half of FY21, with sales revenue up 24.4% to $171.1 million. This flowed through to a 99.5% increase in net profit after tax, which reached $40.5 million.

“The first half of financial year 2021 had many challenges to navigate including government-mandated store closures, supply chain issues and significant delays experienced with global shipping providers,” said CEO Anthony Scali. “Despite these events, the team was able to capitalise on shifting consumer spending patterns and deliver a record result for the company.” 

Adairs and Temple & Webster also reported strong results thanks to increased spending on the home. Adairs reported an increase in total sales of 23.4% in the first 23 weeks of FY21, upgrading group sales guidance for the first half of FY21 to $235–$245 million (compared to $179 million in the prior corresponding period). CEO Mark Ronan noted: “It is now clear our first half FY21 result will be outstanding ….whilst we have clearly been a COVID-19 beneficiary, the result has been delivered through the team’s strong execution against our articulated business strategies.”

Temple & Webster reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $14.8 million in the first half of FY21, up from $2.3 million in the prior corresponding period. 

Electronics and whitegoods in favour 

Consumers spending more time at home are not just looking to upgrade their furnishings — new appliances and entertainment options are also favoured.

Whitegoods retailer Harvey Norman Holdings Limited (ASX: HVN) reported a 28.2% increase in sales revenue for the period between 1 July 2020 and 21 November 2020, while profit before tax was up 160.1% between 1 July 2020 and 31 October 2020. These results were achieved despite lockdowns shuttering many stores during the period.

JB Hi-Fi also reported strong sales momentum in the first half, with continued elevated customer demand for consumer electronics and home appliance products. Sales surged 23.7% to $4,941 million, providing an 86.2% boost to profits, which reached $317.7 million. 

Kogan.com Ltd (ASX: KGN) reported that business growth continued at a strong pace over the Christmas period, with 7 of its biggest 10 trading days ever occurring in the period surrounding Black Friday. Gross sales grew by 96% in the first half of FY21, while gross profit was up more than 120%. The company now boasts more than 3 million active customers, with over a million customers served during the Christmas period.

“The Black Friday week saw some of the most extraordinary trading we have ever seen. We are proud to have delivered another record half while undertaking significant investments into the future of the business,” said founder and CEO Ruslan Kogan.

Retail resurgence 

Despite early concerns about the impact of COVID on Australian retail, ASX retail shares have shown great resilience in the face of the pandemic. Customers unable to utilise their travel budgets are turning instead to retail therapy, boosting returns for ASX retailers. Whether this trend will continue as the vaccine begins to roll out and borders open remains to be seen. But for now, many ASX retail shares are rewarding investors with strong results. 

More reading

• Scentre (ASX: SCG) dividend restart fails to quell sceptics
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• Here’s a bargain ASX share in a sea of expensive stocks
• 2 ASX dividend shares rated strong buys by brokers
• 3 great ASX tech shares to buy

Kate O’Brien 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’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited and Super Retail Group Limited. The Motley Fool Australia has recommended ADAIRS FPO and 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.

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Boral Limited (ASX: BLD) shares are dropping lower today after the company released its half-year results for FY21. At the time of writing, the Boral share price has fallen 4.6% to $5.16. 

What’s pushing the Boral share price lower?

The Boral share price is on the slide today after the company reported a net profit after tax of $156 million, which is on par with its first-half performance in FY20. The company advised that this number excludes significant items.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the period ending 30 December 2020 was $486 million, down 1% on the prior corresponding period (PCP). The EBITDA figure also excludes significant items.

Boral Australia experienced an 8% fall in revenue to approximately $1.6 billion for the first-half FY21. This compares to the previous year’s $1.7 billion in revenue. The company associates the revenue loss with lower volumes and pricing, particularly caused by a decline in major project work across New South Wales and Queensland.

Boral North America also took a 9% revenue hit on its continuing operations. First-half FY21 revenue was around $1.1 billion compared to $1.2 billion for 1H FY20.

Free cash flow took a massive leap from $35 million in the first-half FY20 to $333 million in 1H FY21.

And while Boral last year paid investors a 13.5 cent dividend for the period, the directors decided that no interim dividend would be paid for the 1H FY21. 

This decision was based on the company’s current net debt (including leases) which weighed in at $1.9 billion. The board determined not to pay the interim dividend since this number was higher than its $1.5 billion target.

Looking ahead

In today’s update, Boral noted uncertain market conditions in both Australia and the US. However, it expects some disruptions (such as coronavirus) to impact the remainder of FY21 considerably less.

Boral advised that transformation initiatives being executed by the business delivered $65 million of gross benefits during the first-half FY21. 

The company expects the full year FY21 transformation benefits to be around $170 million to $190 million before inflation and hopes this gain will offset the revenue losses caused by business slowing down.

Transformation initiatives implemented to date include the sale of 50% interest in USG Boral for US$1.01 billion and Meridian Brick for US$250 million. Both transactions are scheduled for completion in FY21.

Boral has appointed a new CEO and CFO, and set in place revised growth strategies. The transformation initiative has also boosted sales and marketing activities.

Boral share price and company snapshot

Boral Australia is an integrated construction materials and building products manufacturer and supplier. Its products include cement, aggregates, concrete, asphalt, bricks, roofing, masonry products and timber. Boral also maintains a network of concrete, asphalt and manufacturing sites across Australia.

Based on the current Boral share price, the company has a market capitalisation of $6.6 billion and has 1.2 billion shares outstanding.

Over the past six months, the Boral share price has gained nearly 40%.

More reading

• This key ASX stock pick in the building sector has multiple re-rating opportunities
• The ASX 200 stock facing a day of reckoning at the February reporting season

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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There are some ASX dividend shares that offer higher yields.

Here are three ideas to consider:

Brickworks Limited (ASX: BKW)

Brickworks is an ASX dividend share with one of the longest dividend records on the ASX. It hasn’t cut its dividend in over 40 years.

The business may be best known for its Australian building products divisions, but it’s actually the other assets that entirely support the Brickworks dividend.

Brickworks has a 50% stake of an industrial property trust along with Goodman Group (ASX: GMG). Brickworks supplies the land, which is excess to requirements, and then Goodman provides the necessary infrastructure works and the contacts with quality potential tenants.

One example of this arrangement working is the gigantic high-tech warehouse that is currently being built for Amazon in Sydney. Amazon is one of Goodman’s largest global tenants. Another big warehouse is also being built for Coles Group Ltd (ASX: COL). After those two warehouses are built, it’ll increase the gross assets of the trust by around $900 million to $3 billion. It’ll also grow the rental profit distributions to Brickworks by at least 25%.

The other asset supporting the Brickworks dividend is its approximate 40% holding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Soul Patts is an ASX dividend share itself, it owns a diversified portfolio with investments across telecommunications, building products, resources, financial services, listed investment companies (LICs) and agriculture.

At the current Brickworks share price it has a grossed-up dividend yield of 4.25%.

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT) that has long rental contracts with high quality tenants. It’s rated as a buy by the broker Citi.

At 31 December 2020, the ASX dividend share had a weighted average lease expiry (WALE) of 14.1 years, which was slightly up from 14 years at 30 June 2020.

It has tenants like Telstra Corporation Ltd (ASX: TLS), Australian government entities, BP, Woolworths Group Ltd (ASX: WOW), Inghams Group Ltd (ASX: ING), Coles and David Jones.

Those tenants are spread across property classes like telecommunication exchanges, service stations, agri-logistics, offices and long WALE retail.

In the FY21 half-year result which was just released, operating earnings per share (EPS) and the distribution per security grew by 3.6% to 14.5% cents.

The net tangible assets (NTA) increased by 5.1% to $4.70. It had balance sheet gearing of 29%, with look through gearing of 39.3%.

At the current Charter Hall Long WALE REIT share price, it has a FY21 distribution of at least 6.1% based on management guidance of operating EPS.

360 Capital REIT (ASX: TOT)

This is another REIT, it’s managed by 360 Capital Group Ltd (ASX: TGP).

The REIT ASX dividend share invests across the entire real estate industry to take advantage of varying market conditions in order to maximise returns for investors.

In a recent change of strategy, 360 Capital REIT is now focusing on equity investing in real estate assets and businesses, and exiting its debt investments.

One example of recent investment includes the $78.6 million investment into Irongate Group (ASX: IAP). 360 Capital REIT also announced it had agreed terms to become a major equity partner in an unlisted real estate funds management platform with settlement expected this month.

Based on the recurring nature of the income from the above investments, the REIT decided to provide guidance of 6 cents per unit for FY21. At the current 360 Capital REIT share price, that equates to a distribution yield of 6.8%.

More reading

• 2 ASX dividend shares rated strong buys by brokers
• ASX 200 rises 0.6%, Vocus jumps on takeover offer, Afterpay hits new record
• What’s moving the Charter Hall Long WALE (ASX:CLW) share price today?
• 2 ASX dividend shares with yields above 5%
• 2 secret ASX dividend shares with large yields

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, Telstra Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET and 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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Scott Phillips appeared on Sky News today to provide his take on the latest financial news.

Below, he discusses the day’s headline items, including bitcoin being propelled into the mainstream by Tesla’s pledge to accept the cryptocurrency as payment, and the welcome return of ASX dividend payments in 2021 after the COVID-induced squeeze last year.

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More reading

• How CEP Energy ‘world’s largest battery’ will shake up the energy market
• Bitcoin skyrockets to a new all-time high after Tesla invests $1.5 billion in the popular cryptocurrency
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal
• Should short selling be banned?
• Top brokers name 3 ASX shares to sell next week

Scott Phillips 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.

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The Aerometrex Ltd (ASX: AMX) share price has been a particularly positive performer on Tuesday.

In afternoon trade the aerial mapping company’s shares are up a sizeable 9% to $1.31.

Why is the Aerometrex share price surging higher?

Investors have been buying Aerometrex shares today following the release of an update on its US operations.

According to the release, the Nearmap Ltd (ASX: NEA) rival has signed its first enterprise client in the United States market. And while the company hasn’t named the customer, the release explains that it is a leading US Defence contractor.

In addition, although the financial impact of the sale is immaterial, management believes it is an exciting milestone in the company’s growth strategy.

It explained that the sale is for a specific project and has the potential to develop into a much larger program in the future.

In the meantime, Aerometrex is continuing to pursue large enterprise opportunities in the US and notes that it has been gaining traction.

Aerometrex’s Managing Director, Mark Deuter, commented: “The US market provides a tremendous growth opportunity for Aerometrex’s 3D modelling and aerial imagery. We have carefully planned out our growth strategy for the US market, and the signing of our first enterprise client in the US is an exciting step as we begin commercialising our technology in this market. We have been gaining good traction in the US and look forward to announcing further new client signings.”

Supporting this growth will be its team of trained sales and technical staff in the US. Its sales staff are located in California, Florida, and Denver. Whereas its imagery capture program is centred in Denver. All production and delivery services continue to be headquartered in Adelaide.

Management also revealed that despite the impact of COVID-19, it is proceeding with its US 3D capture program. It has now captured the downtown (Central Business District) areas of the City of Denver, Centennial, Orlando, and Miami. A capture program of San Francisco will be undertaken at the next available weather opportunity

More reading

• Better Buy: Alphabet vs The Trade Desk
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• Got cash to invest? Here are 3 ASX shares to buy
• BikeExchange (ASX:BEX) share price jumps 23% on ASX IPO
• How I’d identify the best shares to buy in a stock market recovery

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 Nearmap Ltd. The Motley Fool Australia has recommended Nearmap 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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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.

Alphabet Inc‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google and Trade Desk Inc (NASDAQ: TTD) are both in the digital ad business, an industry that is expanding rapidly as marketers move toward digital channels and measurable, data-driven campaigns. Over the last three years, both companies have outperformed the broader market, though The Trade Desk has surged more than 1,700%, while Alphabet is up just 84%. But which of these growth stocks is the better buy today?

Alphabet: The search giant

Alphabet’s Google has more than 90% search engine market share, ranking the company nearly 89 percentage points ahead of second-place Bing.

That nearly inconceivable level of success is something few companies ever achieve, but it’s just the tip of the iceberg for Alphabet. The company also owns the rights to Android, YouTube, and Chrome, all of which are market leaders in their own categories. This incredible network of content platforms has allowed Google to collect troves of consumer data – the kind of data that’s valuable to marketers.

Not surprisingly, Google’s many content platforms have allowed the company to claim the top spot in the US digital ad market, though investors should note that the company has lost significant ground recently. Even so, Google’s advertising business continues to generate mountains of cash – $147 billion in the past year. And that figure represents more than 80%  of the company’s total sales.

But Alphabet’s not done yet. Google Cloud Platform (GCP) ranks third globally among public cloud service providers. And the company’s reenergized, partner-based growth strategy has made Google Cloud the fastest-growing part of Alphabet’s business. In 2019, partners like Deloitte and Globant brought 85% more new customers to the platform than in 2018, and revenue attributable to partners jumped 195%. While this segment represents only a fraction of Alphabet’s top line, if the strong growth continues, this could be another big revenue stream for the company.

As a final note, investors should be aware that Alphabet is facing litigation. The US Department of Justice has sued the company for “anticompetitive tactics to maintain and extend its monopolies in search and advertising”. And it’s entirely possible that this lawsuit will hurt Google’s ad business, putting the company’s primary source of revenue in jeopardy.

The Trade Desk: The content-neutral platform

The Trade Desk primarily earns revenue through its AI-powered demand-side platform (DSP), which allows marketers to plan, launch, and optimise digital ad campaigns. The company also generates revenue by providing clients with data captured by its platform; this second-party data is used alongside the client’s first-party data to improve ad targeting and, as a result, operational efficiency.

The Trade Desk differentiates itself through its content-neutral strategy, meaning the company doesn’t own content platforms like YouTube or Google Search. Additionally, The Trade Desk only works on the buy-side of ad transactions, which eliminates the conflicts of interest and transparency concerns that come with Google’s presence on both the buy-side and sell-side.

According to Gartner, both The Trade Desk and Google are leaders in the ad tech market, though The Trade Desk outranks Google in campaign setup, management, and results analysis. These performance advantages, paired with The Trade Desk’s content-neutrality, have helped the company grow its client base quickly while keeping churn (client turnover) below 5%. That combination has powered exceptional growth in revenue and free cash flow.

Metric	2017	Q3 2020	Change
The Trade Desk revenue	$308.2 million	$732.1 million	138%
The Trade Desk free cash flow	$18.2 million	$132.3 million	629%
Alphabet revenue	$110.9 billion	$171.7 billion	55%
Alphabet free cash flow	$23.9 billion	$34.0 billion	42%

Data source: The Trade Desk and Alphabet SEC Filings.

Going forward, The Trade Desk is betting heavily on connected TV (CTV). The company has expanded access to CTV inventory through integrations with supply-side partners, and CEO Jeff Green believes that premium video will eventually represent about 50% of global ad spend. For reference, eMarketer estimates that ad spend in 2020 hit $615 billion. That’s a big market opportunity.

The verdict

In the coming years, Alphabet’s market share in the digital ad space may continue to fall as competition intensifies with Amazon and The Trade Desk. Moreover, the looming legal consequences raise questions about the company’s future in the ad market. So Alphabet’s other businesses will have to pick up the slack. But Google Cloud Platform faces intense competition from the likes of Amazon and Microsoft, and Google hardware (Google Nest, Pixelbooks, Pixel phones) doesn’t have the same mass appeal as products from Apple and Samsung.

By comparison, The Trade Desk is much smaller, and it’s growing more quickly. During the most recent earnings call, Green told investors that the company gained significant market share in fiscal 2020. Moreover, the company’s content-neutral strategy promotes transparency, which helps separate it from walled gardens like Google. These advantages give The Trade Desk more long-term potential in my opinion and should help the company continue to outpace Alphabet in the future.

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

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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. Trevor Jennewine owns shares of The Trade Desk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Microsoft 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, 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The ASX share market looks set to gain yet another new tranche of indexes in 2021.

Until now, ASX exchange-traded funds (ETFs) that track the Australian share market follow a very narrow range of ASX-based indexes. These mostly revolve around the flagship S&P/ASX 200 Index (ASX: XJO). However, there are other less-used indexes, such as the S&P/ASX 300 Index (ASX: XKO).

But as you might have noticed, most of these ‘ASX-only’ indexes are run by S&P Global Inc (NYSE: SPGI).

But today, we have news that another global index provider in MSCI is set to join the party.

Who’s this?

MSCI (formerly Morgan Stanley Captial International) is a New York-based company known for its globe-spanning indexes. Although MSCI currently does not offer ETFs, ASX investors might be familiar with some ASX ETFs that already track MSCI indexes around the world.

These include the Vanguard MSCI Index International Shares ETF (ASX: VGS), the iShares MSCI South Korea ETF (ASX: IKO) and the iShares MSCI Emerging Markets ETF (ASX: IEM).

But in Australia, MSCI is moving from the backroom to the open in offering its own indexes that exclusively track ASX shares. The Australian Financial Review (AFR) reported today that MSCI is launching more than 50 Australian indexes this week. According to the report, MSCI has been “quietly” working with super funds, ETF providers and fund managers over the last few months on the new offerings.

The new indexes will be grouped into four areas: market capitalisation, factor, thematic, and ESG (environmental, social and governance).

The market cap indexes will group ASX shares based on size (eg large-cap, small-cap), while the factor indexes will revolve around labels like value, quality or momentum.

Thematic indexes will cover specific sectors or areas of interest, such as real estate or resources. The ESG offerings will include a universal ESG index and others based on factors like climate change and excluding fossil fuels.

ASX is the pick of the bunch

The AFR reports that Australia is one of only 2 markets that MSCI has chosen to build a portfolio of domestic indexes. That’s due to 2 reasons.

Firstly, the large capital base that our unique superannuation system provides. With at least 9.5% of the country’s pre-tax income going into the superannuation system every year, there is a wide capital base to work off and a long runway for growth. Clearly, MSCI has noticed and is banking on super funds offering investments that may track MSCI’s indexes in the future.

Secondly, the shift towards ESG investing in Australia. That AFR report states there is “a hunger for index-based strategies that can better replicate their investment philosophies”. That spills over into which super products and investments Australians might choose to direct their super into.

MSCI clearly sees an opportunity here as the report states that the company wants to “work with each fund to create custom indexes that can reflect the fund’s ESG view”.

More reading

• ASX 200 down 0.4%: Macquarie impresses, Challenger disappoints, & Suncorp rises
• Real reporting season surprise isn’t about profits but dividends
• Here’s a bargain ASX share in a sea of expensive stocks
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises 0.6%, Vocus jumps on takeover offer, Afterpay hits new record

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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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