Why Afterpay, Bubs, Fortescue, & Zip Co shares are charging higher

Afterpay Ltd (ASX:APT) and Fortescue Metals Group Limited (ASX:FMG) shares are two of four charging higher on Monday. Here's why…

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After a poor start to the day, in late morning trade the S&P/ASX 200 Index (ASX: XJO) has edged ever so slightly higher. At the time of writing the benchmark index is up a fraction to 6,114.9 points.

Four shares that are climbing more than most today are listed below. Here's why they are charging higher;

The Afterpay Ltd (ASX: APT) share price is up 3.5% to $81.60. This morning the payments company announced its expansion into mainland Europe through the acquisition of Spanish buy now pay later provider Pagantis. It currently provides a range of buy now pay later and traditional credit services across Spain, France, and Italy. It also has regulatory approval to operate in Portugal. Management notes that the addressable ecommerce market in these four countries exceeds 150 billion euros or $247 billion.

The Bubs Australia Ltd (ASX: BUB) share price has pushed 5.5% higher to 97.5 cents. This follows the announcement of a memorandum of understanding (MOU) with joint venture partner Beingmate. The MOU gives Bubs the opportunity to acquire an ownership interest in one of Beingmate's infant formula manufacturing facilities in China and obtain its support in securing a SAMR brand slot. It appears to believe this is the best option it has for gaining entry into the lucrative market. Unfortunately, it will mean sharing its China-based profits with Beingmate. It is also worth noting that Beingmate doesn't have a great track record. Fonterra lost hundreds of millions of dollars when it teamed up with the infant formula manufacturer.

The Fortescue Metals Group Limited (ASX: FMG) share price is up 3.5% to $18.62. This morning the iron ore producer released its full year results and revealed record shipments, revenue, earnings, and cashflow in FY 2020. Over the 12 months the mining giant's net profit after tax lifted 49% to US$4.7 billion. This allowed the Fortescue board to pay a fully franked full year dividend of $1.76 per share. An increase of 54% on the prior corresponding period.

The Zip Co Ltd (ASX: Z1P) share price has jumped 8.5% higher to $7.15. Investors have been buying the payments company's shares after it provided an update on its soon-to-be-acquired US-based QuadPay business. According to the release, QuadPay achieved record monthly transaction volume in excess of US$70 million in July. This represents a 30% increase on the June quarter average and a 600%+ increase year on year.

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 BUBS AUST FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BUBS AUST 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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