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The Asaleo Care Ltd (ASX: AHY) share price has returned to trade this morning and is pushing higher again.

At the time of writing, the personal care products company’s shares are up 3% to $1.27.

This means the Asaleo Care share price is now up a sizeable 26% over the last two days.

Why is the Asaleo Care share price rocketing higher?

Investors have been scrambling to buy its shares after Asaleo Care became the latest company to receive an unsolicited takeover approach.

Last night the company confirmed that it received an unsolicited, indicative, conditional and non-binding proposal from the ultimate parent of its major shareholder, Essity Aktiebolag (Essity AB).

Essity AB is a global hygiene and health company, with its headquarters in Stockholm, Sweden.

According to the release, Essity AB has made a proposal to acquire all of the ordinary shares in Asaleo at a price of $1.26 per share in cash, less any dividends or distributions declared or paid.

The release also notes that Essity AB has reserved its right to terminate discussions and to withdraw the proposal, for any reason or for no reason, at any time prior to the execution of a binding implementation agreement.

An Essity AB subsidiary currently owns 36.2% of the issued share capital of Asaleo.

What now?

Management notes that the offer is subject to a number of conditions. This includes due diligence, a unanimous recommendation by the Asaleo independent directors, and certain regulatory and other approvals. The latter will include approval from the Foreign Investment Review Board.

Asaleo is obtaining advice from its financial and legal advisers but for now has advised shareholders to take no action in relation to the proposal.

It also feels the proposal of $1.26 per share reflects a low takeover premium to recent market prices and is highly opportunistic in timing. Particularly given how its full year outlook remains strong and its earnings are on track to hit the upper end of its guidance range.

It also notes that its balance sheet is strong and should put it in a position to pay a final dividend again in FY 2020.

The company will continue to update shareholders and the market, in accordance with its continuous disclosure obligations.

More reading

• Asaleo Care (ASX:AHY) share price shoots 22% higher following takeover bid
• Why Asaleo Care, Fortescue, Perpetual, & Starpharma shares are storming higher

Motley Fool contributor James Mickleboro 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 oOh!Media Ltd (ASX: OML) share price has surged 5.75% higher to $1.84 this morning, on the release if its business and 2020 financial year trading update.

After a horror first 3 months of the year, which saw oOh!Media’s share price crash by 81% between January and 30 March as coronavirus lockdowns saw demand for its outdoor advertising business dry up, the company has been steadily regaining ground.

Since the 30 March lows, the share price is up 200%. Year-to-date, shares remain down 42%. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 2%.

What does oOh!Media do?

oOh!Media Ltd specialises in outdoor and public venue advertising and communications. The company operates in Australia and New Zealand. oOh!Media boasts an extensive network of ore than 37,000 digital and static advertising locations spanning road, rail, airports, retail centres, universities and office towers. The company owns digital media brands Junkee and Punkee as well as printing business, Cactus.

oOh!Media shares first began trading on the ASX in 2014.

What did oOh!Media report to send its shares higher?

In this morning’s trading update to the ASX, oOh!Media reported a strong recovery in its key Out of home’ audiences since the COVID-19 lockdowns have lifted. It stated that performance has been heading back towards 2019 levels in its biggest revenue and audience reach formats: Road, retail and street furniture.

On the back of rebounding revenues in the fourth quarter, the company is forecasting FY20 revenues of $420–430 million.

Having cut more than $15 million from its operating costs in the financial year, without including the JobKeeper savings, net debt is expected to in the range of $120–130 million as at 31 December.

oOh!Media reported its third quarter revenues were 43% lower than Q3 2019, while it expects its fourth quarter revenues to be 28–34% lower than the same quarter last year.

Commenting on the company’s continuing recovery from the pandemic slowdown, oOh! CEO Brendon Cook, said:

As the market leader in Out of Home across Australia and New Zealand, oOh! is well positioned to leverage the ongoing recovery in audience growth and advertiser sentiment which is becoming increasingly evident.

While Out of Home was clearly the most impacted media during the COVID-19 period from March to September, it is rebounding strongly. Our strategy remains focused on capitalising on the positive key structural drivers of growth in Out of Home and leveraging our diverse product portfolio, backed by data, to deliver results for advertisers.

We are proud of the role we have played during COVID-19, with our assets used to convey public health messaging across the country, helping keep Australians informed.

As travel restrictions continue to ease, the oOh!Media share price will be one to keep an eye on.

More reading

• Why the Syrah (ASX:SYR) share price is sinking 10% lower today
• This is when ASX airport shares will take off
• The Marley Spoon (ASX:MMM) share price is rising today. Here’s why.
• Westpac (ASX:WBC) share price lower on AGM update
• Why the Plenti (ASX:PLT) share price is edging higher today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended oOh!Media 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 Syrah Resources Ltd (ASX: SYR) share price has returned from its trading halt and tumbled lower on Friday.

In early trade the graphite producer’s shares have fallen 10.5% to 91 cents.

Why is the Syrah share price sinking lower?

The Syrah share price has come under pressure today after completing a fully underwritten placement.

According to the release, Syrah has raised approximately $56 million (US$42 million) through a placement of 62.2 million new shares to professional and sophisticated investors.

These funds were raised at a price of 90 cents per new share, which represents an 11.3% discount to its last close price.

The company will now push ahead with its plan to raise a further $12 million (US$9 million) via a non-underwritten share purchase plan.

It will also now seek shareholder approval for a $56 million (US$42 million) convertible notes issue to AustralianSuper.

Why is Syrah raising funds?

A portion of the proceeds will be used to progress the company’s natural graphite Active Anode Material (AAM) facility in the United States towards a final investment decision for the construction of a 10ktpa AAM plant.

A recent Bankable Feasibility Study confirmed a strong business case for natural AAM production at the facility. Its completion also allowed discussions for project development to progress with potential offtake partners and financiers.

In addition to this, further proceeds will provide additional liquidity to manage a restart decision at Balama Graphite Project in Mozambique. This will put the company in a position to potentially benefit from the burgeoning electric vehicle market.

Syrah’s Managing Director and CEO, Shaun Verner, explained: “We are extremely pleased with the strong level of support that Syrah has received for this Placement. The Company is now in a robust financial position to progress the Vidalia Battery Anode Material Project towards a final investment decision, with additional liquidity to manage a Balama restart decision in an orderly manner in line with market conditions.”

“The lithium ion battery sector continues to advance at a rapid rate and creates substantial opportunity for Syrah – with delivery of our objectives for Vidalia and Balama we will be well placed to maximise this opportunity for the benefit of our shareholders,” he concluded.

More reading

• Why the Syrah Resources (ASX:SYR) share price is in a trading halt
• Here’s why the Syrah (ASX:SYR) share price jumped to a 52-week high today

Motley Fool contributor James Mickleboro 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’s been much talk about travel shares like Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT) making a roaring comeback.

But what about those poor airports? COVID-19 completely killed off flying and devastated these usually reliable infrastructure shares.

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is still down 25% compared to January, and Auckland International Airport Limited (ASX: AIA) is negative 13% for the same interval.

Interstate borders have now almost completely reopened, and there is some hope for international travel with multiple vaccines in the pipeline.

So is it worth holding airport shares in anticipation of a looming revival?

Unfortunately, you’ll need to be very patient. According to S&P Global Ratings, a decent pickup won’t take place for a while.

“We expect a firm recovery won’t start until at least late 2021 for ANZ airports given international travel remains elusive,” S&P Global Ratings lead credit analyst Parvathy Iyer said. 

She added that third waves of the current coronavirus in the northern hemisphere are not helping.

“Fiscal 2021 will be weaker than our previous expectations for most airports given recent setbacks.”

Where are airports at now?

New Zealand airports are ahead of the game, while a resuscitation in Australian airports has been held back by bickering over state border closures.

Kiwi domestic travel is now back up to 60% of pre-COVID levels, according to S&P Global Ratings, while Australia is up to about 40% to 50%.

But a proper recovery can’t take place until airlines and governments figure out a way to reopen international travel.

“A meaningful and steady recovery of international traffic in fiscal 2022 and beyond will be important for airports’ balance sheets,” Iyer said.

Qantas Airways Limited (ASX: QAN) chief Alan Joyce suggested last month that the airline would make COVID-19 vaccination compulsory for passengers in order to safely revive international flights.

“Talking to my colleagues in other airlines around the globe, I think it’s going to be a common theme,” he told television show A Current Affair.

“What we’re looking at is how you can have a vaccination passport, an electronic version of it, that certifies what the vaccine is. Is it acceptable to the country that you’re travelling to?”

More reading

• Why this broker thinks it’s time to buy Qantas (ASX:QAN) shares
• Qantas faces union in court over 2,000 sackings
• Leading brokers name 3 ASX shares to sell today
• Zip and Creso Pharma were among the most traded shares on the ASX last week
• Will the Qantas (ASX:QAN) share price go higher with reopened borders?

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited, Sydney Airport Holdings Limited, and Webjet Ltd. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Marley Spoon AG (ASX: MMM) share price shot up 5.2% to $2.61 at open today before retreating slightly as the company announced its investment plans to support further growth in 2021. 

Marley Spoon is a leading global subscription-based meal kit provider. The company services customers in Australia, the United States, and across Europe.

At the time of writing, the Marley Spoon share price is trading up 2.42% at $2.54.

Management team

Marley Spoon kicked off its update by touching on previous announcements that saw its CEO and founder, Fabian Siegel, re-commit to his role.

The company expanded its management team by adding Julie Marchant-Houle as CEO of its United States segment in January.

Similarly, Ebony Morczinek joined as CEO of Europe to support the team and head its expansion overseas.

Manufacturing centre progress

As COVID-19 has changed shopping dynamics, Marley Spoon believes the shift to online shopping is just the beginning. In order to capture the increasing volumes in customer’s orders, the company has been building its production capacity.

During the second-quarter of FY21, Marley Spoon will take possession of its new custom-built Sydney manufacturing centre. This in effect, will triple its current capacity to 14,000sq m.

In addition, the company also recently took control of its third Australian manufactory facility in Perth, Western Australia. This month, Marley Spoon launched its Dinnerly brand throughout the region.

Across the Pacific, the company will seek to capitalise on the United States market by increasing production in California next year. Like its Sydney operations, Marley Spoon is planning to triple its manufacturing footprint to 12,000sq m.

Furthermore, the company will employ computer aided manufacturing technology in Europe and the United States during 2021. This will allow increased efficiency and picking quality.

This comes as Marley Spoon focuses to increase investments in the research and development space. Advances in technology platforms and scaling big data infrastructure is expected to bring prediction technology across its value chain.

Revenue guidance reaffirmed

After conducting a capital raise and conversion of bonds during the quarter, Marley Spoon used the proceeds to repay its senior loan facility. This in turn, significantly freed up the company’s balance sheet, making its organic growth strategy more simplified.

As its products continued to be driven by demand, Marley Spoon reaffirmed its FY20 revenue guidance. European reported revenue is anticipated to fall in the middle of its guidance range, representing up to 100% of year-on-year growth.

What did the CEO say?

Welcoming the progress, Marley Spoon CEO Fabian Siegel said:

After an extraordinary growth year in 2020, we have a confident and positive outlook for 2021. With our strengthened balance sheet, we can self-fund investments in technology, capacity and capability to support ongoing solid growth.

With a stronger team than ever, we are well placed to execute on our clear infrastructure investment roadmap and take advantage of the growth opportunities presented to us. We believe we are still in the early days of consumer behaviour switching from offline to online shopping in our category, supporting growth at attractive unit economics in 2021 and the years beyond.

About the Marley Spoon share price

The Marley Spoon share price is up more than 1,000% in the last 12 months. The company reached an all-time high of $3.80 in August, and a 52-week low of 18 cents in December last year.

Marley Spoon has a market capitalisation of $634.9 million.

More reading

• Marley Spoon (ASX:MMM) rival set to list on the ASX

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 Westpac Banking Corp (ASX: WBC) share price is trading lower on the day of its annual general meeting.

At the time of writing, the banking giant’s shares are down 0.5% to $19.89.

What did Westpac say at its annual general meeting?

At the meeting the bank provided investors with a summary of its performance in FY 2020 and its targets for the future.

Speaking about FY 2020, Westpac’s Chief Executive Officer, Peter King, revealed that he was disappointed with the company’s performance.

He said: “The 2020 financial year was clearly disappointing, with reported profit down 66%. Much of the fall was due to our own issues, including the AUSTRAC penalty. COVID directly impacted us contributing to slower loan growth, lower margins, higher expenses, and a material increase in impairment charges.”

The Chief Executive also touched on the AUSTRAC matter, which weighed heavily on both its performance and the bank’s priorities over the last 12 months.

Mr King commented: “Shareholders are rightly disappointed. This simply should not have happened, and I apologise. I also recognise that the civil penalty and the impact of COVID resulted in lower dividends and this made it hard for many of you.”

“While our failings were not intentional, significant changes and consequences have occurred. This included Board and management changes along with remuneration consequences for those in the chain of responsibility. I and the Executive team also took collective accountability with 2020 short-term variable rewards cancelled,” he added.

Outlook.

Westpac has been encouraged by the quick economic recovery since the height of the pandemic and expects it to continue in 2021.

Though, Mr King acknowledges that not all of the bank’s customers will recover as quickly.

“The Government’s support has played a critical role in helping Australian families and keeping businesses afloat and we expect the economic recovery to continue through next year. Nevertheless, some customers will find conditions difficult. The gradual unwinding of Government support must be offset by increased activity if we are to minimise the impacts on customers,” he commented.

The Chief Executive concluded by confirming the bank’s aim to simplify its business and create value for shareholders.

He said: “At the same time, we are working hard to resolve our issues and simplify the business. We are underway but have much more to do. As CEO, my role is to build sustainable long-term value for shareholders, and I am personally committed to see this through.”

“Shareholder value is created by a strong customer franchise; strong relationships; and by being there for customers when they need us. Right now, that means supporting customers and the economy through this pandemic,” Mr King concluded.

More reading

• 2 ASX dividend shares with attractive yields
• 5 things to watch on the ASX 200 on Friday
• Morgans picks the best ASX stocks to buy for 2021
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on Monday

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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Non-bank lender Plenti Group Ltd (ASX: PLT) shares are edging higher today after the company announced it has secured a new $100 million warehouse loan facility. At the time of writing, the Plenti share price has inched 0.97% higher to $1.04.

The new facility will allow the company to make further inroads into renewable energy lending and personal loans.

What’s driving the Plenti share price?

The Plenti share price is responding favourably to news that the company’s new $100 million facility will support the rapid growth of its loan portfolio. 

The company expects the majority of new renewable energy and personal loan originations to be funded by the new facility, while its marketplace platforms continue to provide important sources of capital and funding diversification.

As the company’s loan portfolio scales, the facility is expected to be upsized, subject to funder approval.

Plenti says the facility has an 18-month availability period, and has a funding cost of approximately 3.0% per annum on a fully drawn basis. This is significantly lower than the company’s existing funding sources for renewable energy and personal loans. 

Without naming the institutions, Plenti advised that senior funding was provided by a major domestic bank, with mezzanine funding coming from two new domestic investors.

The company also announced it has upsized its existing automotive loan warehouse facility from $150 million to $275 million.

Commenting on the new warehouse facility, Plenti CEO and founder Daniel Foggo said:

This facility marks another important milestone for Plenti. As well as adding further impetus to our exceptional growth, it makes our business more resilient by materially improving the economics on new loans, while further diversifying our funding sources.

About the Plenti share price

Plenti first listed on the ASX on 23 September 2020 at an offer price of $1.66. 

On its ASX debut, the Plenti share price had a shocker, closing the day at $1.30 and down 21% from its listing price.

In November, the company delivered healthy first-half results, beating forecasts on its prospectus on all key financial metrics. Plenti reported revenue of $26 million, representing growth of 41% on the prior corresponding period, and 2% ahead of prospectus forecast, driven by strong loan portfolio growth.

It also achieved record loan originations of $167 million for the half, 33% above the first half of FY20 and 7% ahead of its prospectus forecast. 

However, that didn’t stop investors from offloading Plenti shares. After rising to $1.30 in November, the Plenti share price has plummeted again to the current levels, which are its lowest levels to date.

Plenti commands a market capitalisation of $174 million.

More reading

• Plenti (ASX:PLT) share price soars 5% after solid first half results

Motley Fool contributor Eddy Sunarto 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 Australian dollar surged to a fresh two and a half year high and is at a point that will provide a decent tailwind to some ASX stocks.

The Aussie hit US75.33 cents – it’s highest level since June 2018. Some economist believe that the currency will leave a distinct mark on our economy and corporate earnings once it crosses the US75 cent level.

While CSL Limited (ASX: CSL) may have called off clinical trials for its COVID‐19 vaccine, optimism that a successful drug will be available soon is lifting risk appetite.

Why the Australian dollar surged to new highs

Our dollar tends to appreciate when sentiment is positive, and the rebound in China’s economy along with the strong iron ore price completes the trifactor for the Australian dollar.

The Aussie battler has surged around 32% since hitting the lows of around US57 cents in March as the pandemic caused markets to crash. It’s sitting on gains of around 7% this calendar year.

A strong local dollar is not good for our economy as it makes our exports more expensive. But on the flipside, local importers will get a profit boost.

ASX retail stocks the biggest winners

This means the rally in the retail sector may not be over as some, not all, will see margins increase thanks to the exchange rate.

The retailers that benefit most as those that source products directly from overseas and carry their own brands.

ASX stocks best placed to benefit from the exchange rate

UBS noted that those with extensive private label products include the Wesfarmers Ltd (ASX: WES) share price, Premier Investments Limited (ASX: PMV) share price, Super Retail Group Ltd (ASX: SUL) share price and Adairs Ltd (ASX: ADH) share price.

Automotive parts suppliers like the Bapcor Ltd (ASX: BAP) share price and GUD Holdings Limited (ASX: GUD) share price also stand to benefit.

But the broker noted that the positive currency tailwind may be muted by any hedging contracts these companies have in place.

ASX share price correlation to the Australian dollar

What’s interesting is that when USB studied the correlation between share price and currency movements, the Harvey Norman Holdings Limited (ASX: HVN) share price stood out.

Shares in the electronics and furniture retailer generated a 0.25% market-relative return when the AUD/USD rate increased by 1%. If other currencies are factored in, the market-relative return drops to 0.08%.

That may not sound like much, but the Harvey Norman share price is the most sensitive to currency movements of all stocks covered by UBS.

Foolish takeaway

I say that’s interesting because this isn’t what I was expecting. Many of the brands Harvey Norman carries are bought from local distributors. This means Harvey Norman pays in Australian dollars and it’s the distributors that typically wear the currency fluctuations.

But correlation is not causation. There are many factors that can influence share price movements. Something to think about if you are investing solely for the exchange rate.

More reading

• Why the IGO (ASX:IGO) share price shot up 18% in early trade today
• Australian ETFs just smashed multiple records
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops on Thursday
• JB Hi-Fi (ASX:JBH) share price lifts today on broker rating upgrade

Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended Bapcor, Premier Investments Limited, and Super Retail Group Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended ADAIRS 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 Woolworths Group Ltd (ASX: WOW) share price has been a positive performer in 2020.

Since the start of the year, the retail conglomerate’s shares are up a solid 9%.

Can the Woolworths share price go higher from here?

One broker that believes Woolworths shares are fully valued now is Goldman Sachs.

This morning the investment bank reiterated its neutral rating and $39.90 price target.

This price target implies potential upside of 1% over the next 12 months excluding dividends and approximately 3.5% including them.

What did Goldman Sachs say?

Goldman Sachs recently met with Woolworths’ management and notes that there were a few key takeaways from the meeting.

One was that inflation has started to ease but continues in categories other than fresh. This has led to downtrading in categories like red meat, but premiumisation continues in categories like beer, wine, and spirits.

Pleasingly, competition remains rational, with most retailers passing through inflation to customers. Woolworths hasn’t seen much of a shift towards value, except in certain demographics and geographies. Promotional programs are back to prior levels

In respect to its online business, Goldman advised that management noted good take-up of the subscription model with reasonable retention. Work is being undertaken to unlock more delivery windows and capacity. Its micro fulfilment centres are in the early stages but are showing good signs so far.

Another key takeaway was the improving performance of its BigW business. It notes that the closure of speciality stores during lockdowns led to customers coming back into BigW. Management expects BigW to gain some of the share that it had lost in recent years.

So why isn’t Woolworths a buy?

Given this positive feedback, investors may be wondering why Woolworths is not being rated as a buy. 

The reason for this is its current valuation, particularly in comparison to rival Coles Group Ltd (ASX: COL).

The broker commented: “WOW is delivering a consistent performance across online and in-store and also looks well positioned as further capacity is made available for online. The prospect of capital management over the next 12 months should also provide support for the stock, despite its elevated P/E multiple versus COL.”

It currently has a buy rating and $20.50 price target on Coles’ shares. 

More reading

• This dividend share has the most franking credits on the ASX
• Woolworths (ASX:WOW) opens new Sydney store customers can’t go to
• Goldman says buy the Metcash (ASX:MTS) share price ahead of next week’s results
• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• ASX 200 Weekly Wrap: ASX 200 on track for a top month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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The Zip Co Ltd (ASX: Z1P) share price is on the move on Friday after the release of an announcement.

At the time of writing, the payments company’s shares are up 3% to $5.32.

What did Zip announce?

This morning the buy now pay later provider announced a partnership with social media giant Facebook.

According to the release, the agreement will allow small and medium-sized Australian businesses to use Zip Business to pay for advertising on the global social platform.

The company notes that the service, which is currently in testing, will enable small businesses that are advertising on the platform to reach the millions of Australians now shopping online, drive sales, and invest in growth, without impacting their cash-flow.

Management believes the partnership is the next exciting step in the development of Zip Business. This follows a recent agreement with eBay Australia.

The full service will commence with a controlled, staged roll-out, starting with Facebook pre-paid advertisers.

Zip’s Co-Founder and COO, Peter Gray, commented: “With 14 million Australians using Facebook every day, the social network is an increasingly important advertising channel for small businesses. Providing Zip as a payment option makes Facebook advertising even more accessible and valuable to business owners and helps smooth their cash-flow.”

“Small businesses are a crucial part of the Australian economy, making up almost 98 percent of the business sector. For many of these businesses, cash-flow is a primary concern, and 92 percent of small businesses believe they would have generated more revenue in the previous year if their cash-flow was better.”

“Partnering with Facebook is an important step not only in the expansion of Zip Business, but in helping small business owners to capitalise on recent growth in the ecommerce sector and to get ahead,” he concluded.

This sentiment was echoed by Facebook Australia and New Zealand Director, Paul McCrory.

He said: “Small to medium businesses are the heartbeat of the Australian economy. When businesses succeed the entire community benefits. We are excited to launch the buy now pay later advertising payments integration, that will help businesses access capital to grow. This innovation, coming directly from Australia, holds great potential to ensure small business thrives.”

More reading

• Facebook allegedly crossed a line in buying up the competition
• Could this be why the Zip (ASX:Z1P) share price is underperforming?
• What’s wrong with the Zip (ASX:Z1P) share price?
• These 2 FAANG leaders will drive the Nasdaq in 2021
• Zip and Creso Pharma were among the most traded shares on the ASX last week

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 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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