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The MyFiziq Ltd (ASX: MYQ) share price is on the move today after the company announced a new deal with health and fitness company MVMNT Inc. 

The MyFiziq share price is currently trading 0.42% lower at a price of $1.19. In comparison, the All Ordinaries Index (ASX: XAO) has dropped 0.3% to 6414 points at the time of writing.

MyFiziq completes new deal

The technology company announced a deal to integrate MyFiziq’s body scanning technology into MVMNT’s platform. MVMNT is the digital delivery arm of FitLab LLC and integrates fitness solutions with athletes and sport brands.

Under the agreement, MyFiziq’s technology will be made available to all subscribers within MVMNT’s branded digital training experiences. This includes some pretty impressive partners. For example, the first MVMNT partners to use the technology will include Floyd Mayweather Boxing and Fitness and McGregor Fast, by Conor McGregor. With a current combined Instagram reach of more than 50 million people globally, the deal is expected to boost value both in revenue and product awareness.

So how does MyFiziq get paid?

Under the terms of the agreement, MyFiziq will be paid on the following volume based pricing model.

• If the number of active users is 999,999 or below, MyFiziq will make US$1.50 per month per user.
• If the number of users is between 1 million and 3 million, the company will make US$1.00 per month per user
• And, for any number higher than 3 million active users, MyFiziq will be paid US$0.80 per user.

Currently, the respective platforms have a combined user base of roughly 1.16 million active users per month.

However, it should be noted that where new opportunities arise, additional commercial contracts will be created. This creates the potential for more revenue.

What now for the MyFiziq share price

The MyFiziq share price has been wildly volatile in recent days, moving more than 7% in 4 of the last 5 trading days. This is likely in part due to its impending initial public offering (IPO) on the Nasdaq Composite (NASDAQ: .IXIC).

Shares in the info-tech company are trading at $1.18 at the time of writing.

More reading

• Why the MyFiziq (ASX:MYQ) share price is falling today
• 3 ASX shares I think could be the next Afterpay (ASX:APT)
• Why has the MyFiziq (ASX:MYQ) share price surged 5% today?
• Top ASX growth shares to buy in October 2020
• MyFiziq (ASX:MYQ) share price at record high. Here’s why.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The MyFiziq Ltd (ASX: MYQ) share price is on the move today after the company announced a new deal with health and fitness company MVMNT Inc. 

The MyFiziq share price is currently trading 0.42% lower at a price of $1.19. In comparison, the All Ordinaries Index (ASX: XAO) has dropped 0.3% to 6414 points at the time of writing.

MyFiziq completes new deal

The technology company announced a deal to integrate MyFiziq’s body scanning technology into MVMNT’s platform. MVMNT is the digital delivery arm of FitLab LLC and integrates fitness solutions with athletes and sport brands.

Under the agreement, MyFiziq’s technology will be made available to all subscribers within MVMNT’s branded digital training experiences. This includes some pretty impressive partners. For example, the first MVMNT partners to use the technology will include Floyd Mayweather Boxing and Fitness and McGregor Fast, by Conor McGregor. With a current combined Instagram reach of more than 50 million people globally, the deal is expected to boost value both in revenue and product awareness.

So how does MyFiziq get paid?

Under the terms of the agreement, MyFiziq will be paid on the following volume based pricing model.

• If the number of active users is 999,999 or below, MyFiziq will make US$1.50 per month per user.
• If the number of users is between 1 million and 3 million, the company will make US$1.00 per month per user
• And, for any number higher than 3 million active users, MyFiziq will be paid US$0.80 per user.

Currently, the respective platforms have a combined user base of roughly 1.16 million active users per month.

However, it should be noted that where new opportunities arise, additional commercial contracts will be created. This creates the potential for more revenue.

What now for the MyFiziq share price

The MyFiziq share price has been wildly volatile in recent days, moving more than 7% in 4 of the last 5 trading days. This is likely in part due to its impending initial public offering (IPO) on the Nasdaq Composite (NASDAQ: .IXIC).

Shares in the info-tech company are trading at $1.18 at the time of writing.

More reading

• Why the MyFiziq (ASX:MYQ) share price is falling today
• 3 ASX shares I think could be the next Afterpay (ASX:APT)
• Why has the MyFiziq (ASX:MYQ) share price surged 5% today?
• Top ASX growth shares to buy in October 2020
• MyFiziq (ASX:MYQ) share price at record high. Here’s why.

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Ecofibre Ltd (ASX: EOF) share price has plummeted in mid-morning trade following the company’s release of a first quarter update. At the time of writing, the Ecofibre share price has dropped 24.49% to $1.85.

What’s pushing the Ecofibre share price lower?

The Ecofibre share price is in freefall today after the company reported disappointing results marked by severe impacts of COVID-19 for the quarter ending 30 September.

The company said that cash flow and revenue are on track, however a loss is expected to be incurred in H1 FY21. Ecofibre advised the setback is due to the pandemic causing political and social disruption to retail in the United States.

Revenue for the first three months of FY21 came in at $7.1 million, down 51% on the prior corresponding period. As trading conditions remain difficult, the company is forecasting to break even in FY21.

On a positive note, Ecofibre said that it is starting to see early signs of recovery in its US independent pharmacy segment. The company is further developing its relationship with customers through its Ananda Health business, supporting a return of normal operations. Engagement and education to its customers are seen as key pillars to drive future growth.

The company recorded cash on hand of $15.6 million, as compared to $18.3 million at the end of June. Limited further investment is expected in FY21 to preserve capital until the business can see improvements in the economic climate.

New developments

At the end of the quarter, shipping commenced of Ecofibre’s batch of Balans Labs products to CVS Health Corp (NYSE: CVS) stores. The range of topical hemp products will be distributed to over 4,000 retail locations across the United States. Additional expansion plans are underway to provide more items.

Completed acquisition

The company stated that the acquisition of TexInnovate in August 2020 has been completed and is progressing well. TexInnovate, now renamed to Hemp Black, produced revenues of $2.6 million for the quarter. The sales were split between face mask sales and revenues from the original TexInnovate business.

Hemp Black said it has customers in segments including medical yarns, high performance polymers, outdoor turf, furniture applications and personal protective equipment (PPE). The company is focused on supplying a target segment that will exist over the medium term.

Management commentary

Ecofibre CEO, Eric Wang, commented on the poor performance encountered for the quarter. He said:

Trading conditions remain difficult in the US CBD market and the demand for PPE has reduced. As discussed last quarter, we are reshaping our business priorities to adjust for changes in purchasing behaviours with our distributors and independent pharmacies.

We are working to ensure we retain and grow our leadership position in the US retail pharmacy channel. There is strong confidence in the long-term future of hemp-derived CBD in this channel as it will be the preferred channel for patients with health conditions that are advised by pharmacists and medical practitioners.

More reading

• More royal commission pain: NAB (ASX:NAB) gets a $15 million fine
• 3 things to tell someone who has never invested in ASX shares
• Tabcorp (ASX:TAH) releases Q1 results ahead of AGM
• ASX 200 down 0.2%: Afterpay rockets on Westpac deal, Zip climbs, BHP’s Q1 update
• 3 ASX 200 shares hit with broker downgrades

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends CVS Health. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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National Australia Bank Ltd (ASX: NAB) is going to be fined another $15 million because of its referral program, according to reporting by the BusinessInsider. This adds further pain with the COVID-19 difficulties. 

NAB previously had an introducer referral program that rewarded people for referring potential customers. If the customer took out a loan then the referrer would get a commission.

The programme generated “a very large number of loans” worth billions of dollars. It operated from at least 2000.

The major bank admitted that it has engaged in conduct that broke the law 260 times. However, the judge said: “I have a nagging feeling of disquiet that the true picture of the extent of the problems with the programme has not been revealed because there was not a real regulatory desire to pursue a thorough investigation as to what in truth occurred.”

It was noted in the judgement that were no requirements for introducers to be from particular industries aligned with the provision of credit activities or to have any particular qualifications or training. There were no uniform processes for the on-boarding of introducers and this was generally done by the individual bankers or the national referral partners (NRPs) and no consequences for non-compliance. There was no formal training for frontline bankers regarding the programme including on what information the introducer could provide.

It was also noted by the judge that the investigation by ASIC was very limited “as to the true scope of what has occurred during the relevant period and the significant reliance by ASIC on the internal work done by NAB in its investigations (by its officers or by a professional services firm it had engaged) as to where the problems were located within NAB and what went wrong.”

The judge said the programmes at times resulted in the bank receiving information from documents about customers from financially interested third parties. At any one time there were at least hundreds of these untrained introducers. “What could possibly go wrong?” the judge said.

The royal commission has been painful for NAB

This is just the latest financial pain for NAB from the royal commission.

When NAB reported its FY19 result it said that its cash earnings included $1.1 billion of additional after-tax charges for customer-related remediation, and it had $2 billion of provisions. In the FY20 half-year result it recognised $400 million of customer-related remediation costs.

NAB has recognised that it had previously done the wrong thing. It said: “An important part of earning trust involves making things right for customers who have been treated poorly in the past…We also need to make sustainable change to avoid the mistakes of the past and get it right for customers every time.”

Reputations can be destroyed quickly in a process like the royal commission. Though it wasn’t just NAB that suffered severe economic pain. Many other financial businesses were dragged through the mud during the Hayne royal commission including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), Suncorp Group Ltd (ASX: SUN) and Insurance Australia Group Ltd (ASX: IAG).

More reading

• Up 10% this month: Is the NAB (ASX:NAB) share price a buy?
• Are ANZ (ASX:ANZ) shares a buy for dividend income today?
• ASX 200 Weekly Wrap: Promises of easy money push ASX 200 to post-crash high
• ASX 200 flat: Rio Tinto Q3 update, big four banks higher, GUD impresses
• ASX 200 jumps more than 1%, big ASX banks rise

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I’m someone who lives and breathes ASX shares, investing and using money to make more money. It’s hard to look at the kinds of returns the S&P/ASX 200 Index (ASX: XJO) has delivered for over 100 years to investors, and imagine not being part of this process. Especially in our modern era of near-zero interest rates. There are few things more depressing in today’s financial world than seeing your hard-earned savings sitting in the bank and losing value in real (inflation-adjusted) terms (in my view anyway).

The answer seems obvious: put your money in ASX shares (or any other growth asset) instead. And yet, for most Australians, the share market remains this mythical casino, where only the rich, the brave and the foolish (and not the ‘capital F’ type foolish) go to get their kicks. It can be frustrating to hear these misconceptions because they are very far from the truth.

How many Aussies invest in shares?

According to a report released by the ASX, and put together with data from the Australian Bureau of Statistics (ABS), there are roughly 19.4 million adults living in Australia today. Of those 19.4 million adults, 9 million are estimated by the ABS and the ASX to own some form of investment outside their super fund and the family home. Of those 9 million, 58% directly hold ASX shares or exchange-traded funds (ETFs).

That’s a lot of room to make up. So what do you say to someone who has never invested in ASX shares? Here are 3 things I would say…

3 things to convince someone to invest in ASX shares

Shares go up most of the time

It’s always the dramatic share market crashes that get the media attention. But the reality is that most years, the ASX 200 records a positive gain. Over the past 10 years (2010-2019), the ASX has given investors 8 years of positive returns and just 2 years when shares went backwards. In 5 out of the 10 years, the annual return was more than 10%, and 3 out of 10 delivered a return of more than 20%.

It’s easy if you want it to be

Many investors think shares are about stock picking and digging through company data. Whilst many of us do enjoy those things, index ETFs are an easy and almost effortless alternative that anyone who doesn’t want to devote any time to the share market can use. Just take the Vanguard Australian Shares Index ETF (ASX: VAS). This ETF tracks the largest 300 companies on the share market and essentially gives you an ‘average’ return of the whole thing. It’s easy, you only have to buy this one investment to benefit from the power of the share market. Now a fund like VAS won’t wake you rich overnight. But it has delivered an average return of 7.33% per annum over the past 5 years. That looks a lot better than 1% in a bank account.

Shares pay you back

When you buy ASX shares, many of them pay you just to hold them. I’m of course talking about dividends. Dividends are a cash payment that many companies pay their shareholders every 6 (sometimes 3 or 12) months. Not all ASX shares pay dividends, but most of the larger ones do. Let’s take Coles Group Ltd (ASX: COL) — a company we’d all probably be familiar with. On current prices, Coles shares are offering a dividend yield of 3.19%. This means that for each $100 you have invested in Coles shares, you can reasonably expect to be paid $3.19 every year. And that’s on top of any share price appreciation you might enjoy as well.

Foolish takeaway

It can be hard convincing your friends and family to invest in ASX shares. But I hope these 3 reasons to invest can help make a difference. Investing is about more than just making money, it’s about making the fruits of your labour work harder for you so you can live the life you want to. I think that’s something everyone deserves a shot at.

More reading

• ASX 200 down 0.2%: Afterpay rockets on Westpac deal, Zip climbs, BHP’s Q1 update
• ASX 200 shares are at a 100-day high. Is now the time to buy?
• Why the Silver Lake (ASX:SLR) share price is one to watch today
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 rises 1%, Cimic (ASX:CIM) up 8% on sale

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In preparation for its annual general meeting (AGM) today, Tabcorp Holdings Limited (ASX: TAH) has released its first quarter results, FY21. Subsequently it has revealed a continuing downward trend in company revenue. In particular, a 6.9% reduction in lotteries versus the prior corresponding period, and a 55.2% reduction in gaming services pcp. The company’s wagering and media business, however, saw revenues increase by 2.9% pcp.

What went wrong in Q1 results?

Overall group revenue was down by 5.7% pcp in Q1 results. In lotteries, this was due to a series of strong jackpot sequences. For instance, Powerball jackpots of $110 million and $150 million.  In the gaming vertical, it is predominantly due to the closure of venues, in particular in Vitoria. However, in the wagering vertical, Tabcorp has seen increases due to major sports completing suspended seasons. 

This is a continuation of the poor performance seen for FY20 due largely to the impacts of COVID-19. In particular the Fy20 gaming business saw revenues drop by 42.5%, and wagering fell by 19.5% after major sports cancelled seasons. 

However, there were also several positive signs for the remainder of FY21. For instance, the integration of Tabcorp and Tatts is substantially complete. In addition, the company launched $5 million Saturdays from 10 October in an effort to smooth impacts from fewer large jackpots. Finally, the company is seeking to improve efficiency and productivity via a focus on digital for lotteries and wagering, a turnaround program in gaming, and a company wide optimisation program. 

Undeclared in the Q1 results is the windfall in the sale of the company’s 11.6% interest in Jumbo Interactive Ltd (ASX: JIN), for an approximate gross proceeds of $98 million. The company also recently undertook an equity capital raising with gross proceeds of approximately $600m. 

Tabcorp share price performance

The Tabcorp share price is down 25.5% in year to date trading. After today’s release of Q1 results it is trading slightly down by 0.1% at the time of writing. Nevertheless, it presently trades at a price to earnings (P/E) ratio of 24.85 and has a trailing 12-month dividend yield of 6.45%.

More reading

• Jumbo (ASX:JIN) share price on watch after Tabcorp (ASX:TAH) sells its stake
• 5 things to watch on the ASX 200 on Tuesday

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Tuesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. The benchmark index is currently down 0.2% to 6,216.9 points.

Here’s what has been happening on the market today:

Afterpay share price breaks $100 level on Westpac deal.

The Afterpay Ltd (ASX: APT) share price has surpassed the $100 market for the first time after announcing a partnership with banking giant Westpac Banking Corp (ASX: WBC). According to the release, Afterpay will provide Westpac transaction and savings accounts and other cashflow management tools to its 3.3 million customers in Australia from the second quarter of 2021. Management believes this has the potential to facilitate new revenue streams over time, without needing to develop traditional banking or credit products. The new money management services will be provided by Westpac’s new digital bank-as-a-service platform.

Zip share price higher on Tap & Zip news.

Afterpay isn’t the only buy now pay later provider making the headlines on Tuesday. The Zip Co Ltd (ASX: Z1P) share price is pushing higher today following the announcement of its Tap & Zip product this morning. Zip’s new product allows its customers to make purchases in store anywhere that accepts contactless Visa payments. With just 13% of stores in Australia accepting buy now pay later options, management feels this gives it access to a large untapped market.

BHP quarterly update.

The BHP Group Ltd (ASX: BHP) share price is trading lower following the release of its first quarter update. For the three months ended 30 September, the mining giant recorded iron ore production of 66.04 Mt. This was a 1% quarter on quarter decline, but up 7% on the prior corresponding period. Looking ahead, all production and unit cost guidance remains unchanged for the 2021 financial year. This excludes guidance for Cerrejón production, which is under review due to an ongoing strike.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Tuesday is the Afterpay share price with a gain of 7.5%. Investors have responded very positively to its partnership with Westpac. The worst performer has been the IDP Education Ltd (ASX: IEL) share price with a 5% decline. This follows the release of its annual general meeting update today.

More reading

• 3 ASX 200 shares hit with broker downgrades
• Why Afterpay, Cochlear, Dicker Data, & Zip shares are charging higher today
• How to tell if an ASX share is a bargain or a dog
• Zip (ASX:Z1P) share price defies broader market-sell off. Here’s why
• IDP Education Ltd (ASX: IEL) share price weakens after AGM

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) has been grinding higher recently and managed to reach a new, 7-month high last week. However, some popular ASX 200 shares are not getting the institutional love they want and have been hit with broker downgrades. 

ASX 200 shares hit with downgrades 

1. Woodside Petroleum Limited (ASX: WPL) 

Credit Suisse has lowered the Woodside Petroleum share price target from $25.20 to $24.70 but retains an outperform rating. The broker believes its capex and funding issues are not as imbalanced as the market is expecting.

This follows the recent stability in oil prices to around US$40 per barrel. However, a number of uncertainties continue to put downward pressure on the oil price. These include uncertainty surrounding when an effective COVID-19 vaccine will be available, whether consumer behaviour has changed for good regarding working from home, and the future policies of the OPEC group.

2. Zip Co Ltd (ASX: Z1P) 

Citigroup has lowered the Zip share price target from $6.70 to $6.55 which represents an approximate 10% discount to today’s price (at the time of writing). Citi also retains its sell rating. The broker is impressed with Zip’s recent trading update showing strong growth in merchant sales volumes and subscribers. However, it can’t ignore the downside risks due to increasing competition. 

This follows the 30% increase in the Zip share price in October leading up to the company’s Q1 update. The record Q1 metrics failed to impress the market and the Zip share price was consequently sold off. Buy now, pay later (BNPL) shares appear to be in a constant cycle of ‘buy the rumour and sell the news’. 

Contrary to this statement, today, Zip announced a new product feature that allows Zip Pay users to shop anywhere that accepts Visa. Its share price has pushed up 1.67% to $7.29 at the time of writing. 

3. Rio Tinto Limited (ASX: RIO) 

Macquarie Group Ltd (ASX: MQG) has lowered its Rio Tinto share price target from $112 to $111. The group has retained its outperform rating but downgraded its forecast earnings by around 2% on the back of Rio’s September production report. 

Iron ore prices recently hit a 6-year high of US$123 per tonne. This has been driven by China’s significant infrastructure stimulus to boost the country’s economic growth. China’s demand side consumption combined with supply side challenges from leading iron ore producing countries such as Brazil and India have buoyed commodity prices. 

More reading

• ASX 200 down 0.2%: Afterpay rockets on Westpac deal, Zip climbs, BHP’s Q1 update
• Why Afterpay, Cochlear, Dicker Data, & Zip shares are charging higher today
• Zip (ASX:Z1P) share price defies broader market-sell off. Here’s why
• 5 things to watch on the ASX 200 on Tuesday
• Looking to invest in non-bank lending ASX shares?

Lina Lim 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 and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has bounced back from an early decline and is edging ever so slightly higher. At the time of writing, the benchmark index is up at 6,229.8 points.

Four shares climbing more than most today are listed below. Here’s why they are charging higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 5% to $102.42 after announcing a partnership with Westpac Banking Corp (ASX: WBC). This partnership will allow Afterpay to provide Westpac transaction and savings accounts and other cashflow management tools to its 3.3 million customers in Australia from the second quarter of 2021. The company notes that the arrangement has the potential to facilitate new revenue streams over time, without needing to develop traditional banking or credit products.

Cochlear Limited (ASX: COH)

The Cochlear share price has climbed almost 2.5% to $222.83. This follows the release of a first quarter update this morning. That update revealed that the hearing solutions company’s sales have been recovering in FY 2021. For the three months ended 30 September, Cochlear advised that its cochlear implant revenue was 94% of what it achieved a year earlier in constant currency terms.

Dicker Data Ltd (ASX: DDR)

The Dicker Data share price has charged 4% higher to $9.42. Investors have been buying the computer hardware and software distributor’s shares since the release of its third quarter update. For the nine months to 30 September, Dicker Data delivered net profit before tax growth of 28.3% to $60.8 million.

Zip Co Ltd (ASX: Z1P)

The Zip Co share price is up 2% to $7.32. This follows the announcement of its Tap & Zip product this morning. This product allows Zip customers to make purchases anywhere accepting Visa. It notes that just 13% of stores in Australia accept buy now, pay later options. The company feels this gives it a large untapped market opportunity.

More reading

• How to tell if an ASX share is a bargain or a dog
• Zip (ASX:Z1P) share price defies broader market-sell off. Here’s why
• Cochlear (ASX:COH) share price pushes higher on Q1 update
• 5 ASX shares hitting record all-time highs this week
• Afterpay (ASX:APT) share price on watch after announcing Westpac (ASX:WBC) partnership

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 Cochlear Ltd. and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Cochlear Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

Although Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary Google is primarily a digital company with a minimal physical footprint, it is still negatively affected by the coronavirus pandemic. That’s because many of the businesses that use its platforms for advertising are enterprises that rely on people to leave their homes to consume their products or services. 

Further, some companies in the leisure and hospitality areas are not permitted to reopen to the public. It follows then that such companies would have little need to advertise and, in fact, may need to shut off ad spending completely to conserve cash. That being said, people are spending more time at home and, as a result, more time on their computers or mobile devices conducting searches on Google or watching videos on YouTube. 

Those forces will be on display when Alphabet reports its third quarter results on Oct 29. Here are three critical factors to watch.

Alphabet is searching for an increase in revenue as businesses reopen 

First, you will want to look at the reported revenue growth. In the most recent quarter, revenue decreased by 2%. Even though there was more engagement with its services, the price of the services decreased. Investors will want to know what portion of overall revenue came from its lucrative Google Cloud business. That’s because it’s one of the more profitable areas of the company. An increase in the portion of revenue coming from Google Cloud is more likely to increase profits. 

Speaking of profits, that’s the next important factor shareholders will want to look at in the report. In the most recent quarter, the company’s operating margin decreased to 17% from 24% in the year prior. 

Lastly, those interested in Alphabet will want to observe how many shares of its stock the company purchased in the quarter. The board recently authorized an additional $28 billion of share repurchases, and the company still had $5.4 billion remaining from an existing program. Alphabet has one of the highest quality balance sheets with $121 billion in cash and marketable securities and only $4 billion in long-term debt as of June 30.

What this means for investors

The worst of the pandemic may be behind Alphabet as cities, states, and countries continue to allow more businesses to reopen. Those companies will need to get the word out that they are open and are likely to use Alphabet’s platforms. 

The consensus revenue forecast among analysts on Wall Street is for $42.7 billion in the quarter and earnings per share of $11.09. The tech stock is up about 16% year to date and could have more room to run up if it reports better than expected results on Oct 29.

Additionally, if the stock drops after the report, Alphabet may use that as an opportunity to accelerate share buybacks.

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

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• Will ASX media stocks get a $1.4 bn Google boost?

Parkev Tatevosian owns shares of Alphabet (C shares). Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 things Alphabet (NASDAQ:GOOGL) investors should watch ahead of its earnings report appeared first on Motley Fool Australia.

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

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