ASX 200 midday update: Zip update disappoints, BHP signs Tesla deal

The ASX 200 is on form again on Thursday…

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. The benchmark index is currently up 0.7% to 7,362 points.

Here’s what is happening on the ASX 200 today:

Zip update disappoints

The Zip Co Ltd (ASX: Z1P) share price is sinking on Thursday following the release of its fourth quarter update. For the three months ended 30 June, the buy now pay later provider reported a 116% year on year increase in quarterly total transaction volume (TTV) to $1.8 billion and a 104% increase in quarterly revenue to $129.9 million. While its revenue growth was strong versus the prior corresponding period, it was only up 13% since the end of March. Investors may be concerned that the days of doubling its revenue will soon be over.

Lithium miners shine on ASX 200

The Galaxy Resources Limited (ASX: GXY) share price and the Orocobre Limited (ASX: ORE) share price are both rocketing higher on Thursday. This follows a positive response to their respective quarterly updates. You can read about Galaxy’s here and Orocobre’s here. These lithium miners are expected to complete their merger in the coming weeks.

BHP signs deal with Tesla

The BHP Group Ltd (ASX: BHP) share price has been a strong performer today. Investors have been buying the mining giant’s shares after it announced the signing of a nickel supply agreement with Tesla. BHP will supply Tesla with nickel from its Nickel West asset in Western Australia, one of the most sustainable and lowest carbon emission nickel producers in the world.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Orocobre share price with a 10% gain. This follows its quarterly update. The worst performer on the ASX 200 has been the Zip share price with a 6% decline following the release of its fourth quarter update.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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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