The Fortescue Metals Group Ltd (ASX: FMG) share price is threatening a new year-to-date low on Friday, down 0.14% to $14.00.

We take a look at what could be weighing on the iron ore giant's shares today.

Iron ore prices tumble

Iron ore prices tumbled US$7.21 or 6.02% on Thursday night to US$112.65 a tonne. Sources told Fastmarkets that prices fell after stricter emissions restrictions were introduced in China's steelmaking hub of Tangshan.

Chinese iron ore futures on the Dalian Commodity Exchange fell on open on Friday, with the most actively traded contracts for delivery in January 2022 sliding 3.9% to around 650 yuan (US$101) a tonne.

China intervenes in commodity markets

In further news possibly affecting the Fortescue share price, Chinese policymakers have beefed up measures to take the heat out of surging commodity prices.

According to Reuters, thermal coal prices plunged 10% after the state planner asked major coal-producing provinces to probe and regulate illegal storage sites and crack down on hoarding behaviours.

Looking over at steel and iron ore demand, analysts with CITIC Securities said: "Affected by energy consumption controls, environmental curbs during winter heating season and the Winter Olympics… steel supply is expected to be restricted continuously, iron ore demand will be dented in the long term."

Fortescue share price snapshot

The Fortescue share price hit a 12-month low of $13.91 on October 7 but has since been hovering around the low $14 level. Its recent rallies to above $15 have also been short-lived, followed by snap selloffs back to $14.

On one hand, China's slowing economic growth could serve as a potential tailwind for iron ore prices. Earlier this month, the world's second-largest economy flagged a 4.9% year-on-year increase in third-quarter GDP, the slowest since a year ago.

On the contrary, the Fortescue share price might appear 'cheap' given its 43.5% year-to-date decline and coming off the back of a record year of earnings.

Fortescue shares are down 15.8% over the past 12 months.

The post Fortescue (ASX:FMG) share price wobbles as crackdown hits iron ore prices appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares rebounded while consumer stocks fell last week
• If I invest $20,000 in Fortescue shares, how much passive income will I receive in 2027?
• 6 ASX 200 shares that lost favour with brokers this week
• Are ASX mining giants BHP, Fortescue, and Rio Tinto shares a buy for November?
• Five ASX blue chips, five verdicts. One of them I wouldn't touch right now

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The PointsBet Holdings Ltd (ASX: PBH) share price is down another 9% on Friday to $7.85 at the time of writing.

It was even worse in earlier trading with the PointsBet share price falling to a 12-month low of $7.73.

Shares in the sports betting darling have tumbled 24.4% in the past two trading sessions. This follows the company releasing its first-quarter trading update on Thursday morning.

Was the first quarter update really that bad?

The first-quarter update reads well at face value, with strong growth across all key operating metrics.

Group turnover increased 42% on the prior corresponding period (pcp) to $979.9 million.

The gross win margin (dollar amount received from clients' losing bets less the dollar amount paid to clients' winning bets, excluding promotional costs) improved to 11.9% from 10.2%.

Overall net win lifted 76% to $67.3 million (net win includes promotional costs).

The number of cash active clients continued its upwards momentum, bolstered by a 367% increase in US clients to 185,880.

From a financial perspective, however, PointsBet continued to burn through cash worth $38.1 million in the September quarter.

PointsBet has followed a "spend money to make money" narrative. Its FY21 results highlighted a 159% increase in revenue to $194.7 million, fuelled by a 314% increase in losses to $164.3 million.

Since its initial public offering in June 2019, PointsBet's valuation has ballooned to $2.7 billion, even after this week's sell-off.

During this time, the company has initiated three capital raisings to help fund its US growth plans.

As the company continues to burn through cash to capture market share in the lucrative US sports betting market, investors might finally be asking, "What's the end game?".

Another factor potentially weighing on the PointsBet share price is its failure to grab an Arizona licence.

According to the company's earnings call, PointsBet CEO Sam Swanell said:

We thought we had a license and it was subsequently not – our partner was subsequently not included in the list of licenses that have been handed out.

PointsBet will be in Arizona. Any state that has 20 available licenses, PointsBet will get into that state. The question – the big question is when."

An ugly year for the PointsBet share price

The PointsBet share price rallied almost 50% between January and mid-February, briefly hitting an all-time high of $17.60.

But things have only gone downhill from there.

Whether it's the company's immense cash burn, capital raising overhang or investors losing interest in its US growth story, PointsBet is now down 31% year-to-date.

The post PointsBet (ASX:PBH) share price extends losses on Friday, down 25% this week appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The Pointerra Ltd (ASX: 3DP) share price is struggling on Friday after the company released a sales update for the September quarter.

Third quarter highlights

Pointerra recapped a strong September quarter following the addition of new customers and increased spending from existing customers across key target sectors.

The company reported a September quarter annual contract value (ACV) of US$1.9 million, or a 19% increase against the June quarter. Total ACV as at 29 October now sits at US$11.7 million.

Pointerra was pleased to highlight a step change in its sales mix from being dominated by the US utilities and mapping sectors to a broader adoption across most target sectors. The target sectors being Survey & Mapping, Architecture, Engineering and Construction (AEC) industries, utilities, oil & gas, transport as well as mining across the United States and Australia.

The company believes this also reflects its investment in new business development and sales resources, focused outside of utilities and mapping sectors.

Pointerra noted that its quarter-on-quarter cash receipts might vary as customers are onboarded with different payment cycles including multi-year in advance agreements.

Pointerra share price snapshot

The Pointerra share price posted some extraordinary gains between June 2020 and February this year, surging more than 2,000% from a mere 4 cents to all-time highs of 92.5 cents.

After hitting an all-time high of 92.5 cents on 15 February, the Pointerra share price has trended lower, hitting lows of 35 cents by late August.

Encouraging announcements such as its 14 September corporate presentation helped drive some life back into its share price, hitting a 3-month high of 58 cents shortly after.

However, the move to the upside was shortly met with selling pressure, sliding to the mid-low 40 cent level by October.

The Pointerra share price is down 18% year to date.

The post Pointerra (ASX:3DP) share price stalls after September quarter update appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The Splitit Ltd (ASX: SPT) share price is edging higher on Friday morning. This comes after the company released its third-quarter results for FY21.

At the time of writing, the buy now, pay later (BNPL) company's shares are up 2.5% to 41 cents apiece.

Third-quarter highlights

In an update that could be pushing the Splitit share price higher, the company recapped a quarter of moderate growth against a backdrop of COVID and "choppy macro conditions".

Splitit achieved a record quarter in terms of merchant sales volume (MSV). This was up 31% year-on-year to US$93 million.

Gross revenue increased 20% year-on-year to US$2.6 million. The company said MSV growth was higher than revenue growth due to a more diversified merchant base and a higher proportion of MSV through its basic model.

Total merchants increased by 144% to approximately 3,300. This was driven by the company's new merchant expansion, the appointment of executive advisors, and the launch of Splitit Plus.

Total shoppers increased by 78% to around 644,000 supported by a growing acceptance of Splitit and ongoing consumer engagement activities. Splitit pointed out its average order value (AOV) of more than US$1,000 remains a "critical differentiator" for the business.

Product innovations

In a further positive for the Splitit share price, the company went live with a number of product innovations. These helped to drive its total addressable market, acquire merchants, and streamline the onboarding process.

Splitit extended its reach by white-labeling its platform, turning it into a Platform as a Service offering. The new offering drove new partnerships with BNPL providers, tabby and QisstPay.

During the quarter, Splitit began offering its installment services to Discover Global Network cardholders worldwide. This partnership agreement will help Splitit tap into more than 50 million merchant acceptance locations and more than 20 alliance partner networks across the world.

More recently, Splitit completed integration with Salesforce Commerce Cloud, making it easier for e-commerce and retailers to offer Splitit services at the checkout.

Splitit share price in the deep red

The Splitit share price is down around 68% year-to-date as the rout continues to deepen between established and emerging ASX-listed BNPL players.

While the likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have managed to stay in positive year-to-date territory, smaller players including Splitit have seen valuations more than halve.

The post Splitit (ASX:SPT) share price climbing after third-quarter update appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The Sezzle Inc (ASX: SZL) share price could be a mover on Friday after the company released its third-quarter market update.

We take a look at how the buy now, pay later (BNPL) provider performed during the quarter ending 30 September 2021.

Third-quarter highlights

Market watchers will be keeping a keen eye on the Sezzle share price after the company recapped its September quarter. It announced triple-digit year-on-year growth across most key performing metrics. Highlights include:

• Underlying merchant sales rose 101.9% to US$460.7 million;
• Total income grew 78.8% to US$28.5 million;
• Active merchants jumped 112.5% to 44,400;
• Active customers rose 77.9% to 3.2 million; and
• Launched Sezzle Capital for merchants.

On 20 July, Sezzle launched its Capital program via a partnership with Wayflyer. The program enables the funding of working capital for up to US$10 million for qualified merchants. The partnership enables qualified Sezzle merchants to apply and receive funding, without adding any credit risk or capital requirements to Sezzle.

Looking ahead, Sezzle said it was excited for the upcoming holiday season and the increase in consumer and merchant engagement it brings.

The company plans to promote several campaigns in the fourth quarter to help consumers shop for the best deals, drive traffic and consumer engagement for merchant partners.

However, it wasn't a great quarter for the Sezzle share price — it fell almost 35% between July 1 and September 30.

International markets

International markets have been the name of the game for many ASX-listed BNPL players, most notable Zip Co Ltd (ASX: Z1P).

Sezzle continued to see "promising activity" in its international markets, pointing to early-stage growth across Canada, Europe, and India.

Sezzle Canada reached a "key milestone" of 3,000 active merchants in its second year of operations. The company said Canada's underlying merchant sales run rate currently sits in excess of US$100 million annually. Additionally, consumer adoption remains strong, reaching nearly 190,000 active customers, a 232% year-on-year increase.

Elsewhere, Sezzle Europe and India are in very early stages following recent launches. The performance of both regions remains immaterial to the overall company but shows positive growth rates across key operating metrics.

Sezzle share price snapshot

The Sezzle share price is down 14.5% year-to-date, broadly consistent with the sluggish performance of the broader ASX-listed BNPL sector. It is also down 22.4% over the past 12 months.

The post Sezzle (ASX:SZL) share price on watch following third-quarter update appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

ASX 200 energy shares are on the back foot following a sharp two-day selloff for oil.

West Texas Intermediate has slumped around 4% since Wednesday, down to US$80.90 a barrel. The global benchmark, Brent crude, is posting similar declines, down to US$82.56 a barrel.

Following suit, Woodside Petroleum Limited (ASX: WPL) is down 2.2% on Thursday to $23.73.

Santos Ltd (ASX: STO) is edging slightly lower, down 1.1% to $7.15.

The Oil Search Ltd (ASX: OSH) share price is also posting a small loss, down 1.2% to $4.40.

While Beach Energy Ltd (ASX: BPT) is down 1.39% to $1.42.

What's driving ASX 200 energy shares lower?

Oil has eased from multi-year highs amid profit-taking as prices are now reaching overbought territory, according to S&P Global Platts.

"… crude oil prices have posted gains for the past nine weeks, with the Relative Strength Index on a daily chart for the NYMEX contract showing oil prices sitting squarely in overbought territory. Analysts have said that at current levels, oil prices were due for some profit-taking."

In addition, it flagged that data from the American Petroleum Institute reported a 2.32 million-barrel build in US commercial crude oil stockpiles last week. While economists were expecting a build of around 1.7 million barrels.

Despite a small pullback, analysts remained bullish about a persistent supply imbalance and ongoing energy crisis across Europe and China.

"The energy crisis could maintain a bullish momentum in crude for the coming days and weeks, interrupted by small pullbacks," said Vandana Hari of Vanda Insights.

"The bottom line is that the bullish narrative has taken a strong hold and despite a fair amount of speculative froth in crude, there is nothing on the horizon so far to trigger a correction."

Despite a small pullback for ASX 200 energy shares, most have enjoyed a strong rally in the past two months thanks to surging oil prices.

The post Why ASX 200 energy shares are tanking on Thursday appeared first on The Motley Fool Australia.

More reading

• How the US midterm elections could move 3 key types of ASX Stocks
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• If I invest $5,000 in Santos shares today, what could they be worth by late October 2027?
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The Champion Iron Ltd (ASX: CIA) share price is falling on Thursday after the company released its second-quarter results for FY22.

At the time of writing, the Champion Iron share price is down 6.32% to $4.22.

Second-quarter highlights

Champion Iron achieved revenues of $331.0 million and $876.4 million for the three and six-month periods ended 30 September. By comparison, it achieved $311.0 million and $555.6 million for the same periods in 2020.

The company achieved a marginally higher earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $200 million for the three-month period compared to $199 million a year ago.

Similarly, net income came in at $114.6 million compared to $112.2 million in 2Q21.

During the quarter, the company produced 2.089 million wet metric tonnes (wmt) of high-grade 66.3% iron ore concentrate compared to 2.269 million wmt for the same period in 2020.

Champion Iron achieved an average gross realised price of US$174.6 per tonne, up 42.8% year-on-year.

Growth projects making significant progress

Champion Iron completed several critical construction items during the quarter, enabling the company to evaluate a potential accelerated completion schedule for its Bloom Lake Phase II expansion project, currently expected by mid-2022.

The Phase II project aims to double Bloom Lake's nameplate capacity to 15 million tonnes per annum of 66.2% Fe iron ore concentrate.

Why is the Champion Iron share price plunging?

At its peak year-to-date return, the Champion Iron share price was up almost 65% to $7.86 thanks to surging iron ore prices.

The opposite is now taking place with iron ore prices tanking from May's all-time highs of approximately US$230 a tonne to US$120 a tonne.

The quarterly update flagged the weak pricing environment, saying its realised selling price was "impacted by sales provisionally priced using forward prices at quarter end, which were at a significant discount compared to the P65 index average for the period".

The post Here's why the Champion Iron (ASX:CIA) share price is sliding 6% today appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Bank of Queensland, Champion Iron, Resmed shares
• 3 ASX shares UBS has tipped to increase 44% to 76%
• Champion Iron posts $403.9 million Q2 FY2027 revenue in preliminary results

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The Global Lithium Resources Ltd (ASX: GL1) share price requested a trading halt within the first hour of trade on Thursday.

The trading halt put an end to what was a record day for Global Lithium, surging 15.48% to all-time highs of 48.5 cents.

What's the trading halt for?

Global Lithium requested the trading halt, pending an announcement regarding a proposed capital raising.

The company said that it anticipates the trading halt to remain in place until Monday, 1 November or when the announcement is released.

Interestingly, Global Lithium is a relatively new addition to the ASX, having successfully completed a $10 million initial public offering back in May.

More recently, the company's September quarter results highlighted a cash balance of $7.3 million with no debt.

Global Lithium incurred $882,000 in exploration and evaluation expenditure during the quarter.

About Global Lithium

Global Lithium is currently focused on growing its Marble Bar Lithium Project (MBLP).

The company believes it has a "similar geological setting" as nearby Pilgangoora which is owned by Pilbara Minerals Ltd (ASX: PLS) and Wodgina which is owned by Mineral Resources Ltd (ASX: MIN).

An exploration program is underway at MBLP including 10,000 metres of Reverse Circulation (RC) drilling as well as soil survey and reconnaissance mapping on southern tenements.

Global Lithium has also identified potential gold targets to the north of MBLP, with its fourth quarter exploration program including RC drilling to follow up on the potential discovery.

The Global Lithium share price can expect a number of catalysts in the near term as exploration results are released in the coming months.

Global Lithium share price snapshot

The Global Lithium share price closed at 28 cents on its first day of listing, an impressive 40% return for those that managed to participate in the 20 cent IPO.

It is now up 73% year-to-date at an all-time high of 48.5 cents. However, investors should be wary about the size and discount of the proposed capital raising.

The post Here's why the Global Lithium (ASX:GL1) share price rocketed 15% before a trading halt appeared first on The Motley Fool Australia.

More reading

• 3 ASX mining shares with 43% to 322% upside ahead: brokers
• 3 ASX shares to buy amid a volatile market: experts

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The Openpay Group Ltd (ASX: OPY) share price is struggling to catch a bid on Thursday after the company released its first-quarter update for FY22.

At the time of writing, the Openpay share price is down 2.19% to $1.34.

Openpay share price lower despite UK and US expansions

Openpay recapped a strong first-quarter performance with successful expansions across the UK healthcare sector and its debut in the United States. Highlights included:

• Active merchants rose 87% against the prior corresponding period (pcp) to approximately 4,300;
• Its active customers increased by 56% to about 579,000;
• Active plans surged 110% to 2.2 million;
• Record 85% of new plans from repeat customers and 55% of active customers with multiple plans;
• Total transaction volumes (TTV) up 51% to $103 million; and
• Total revenues of $7.0 million, impacted by Australian lockdowns.

"Through Q1FY22, we delivered continued strong operating and financial results despite challenging market circumstances for our key verticals in ANZ," said Openpay CEO Michael Eidel.

What happened to Openpay in Q1?

Openpay is currently undergoing an aggressive strategy to acquire new customers in the Australia and New Zealand regions. Its initiatives include Officeworks co-marketing program, Bunnings magazine placements, a Melbourne Storm campaign, and MyHealth1st engagement for health customers.

This helped the company achieve a 73% increase in active plans in the region and a record TTV of $73 million.

Openpay's services went live in the UK's healthcare sector with its partner ezyVet and integration with Software of Excellence, a provider of dental software. That was in addition to expanding its retail, luxury, and music partnerships.

While the UK's growth figures are coming off a low base, the region nevertheless achieved a 279% and 204% increase in active merchants and active plans.

Yesterday, Openpay announced it has successfully gone live in the United States. However, the news didn't excite investors and the Openpay share price ended the day about 1% lower.

The company's consumer product offers differentiated, longer-term (up to 24 months), larger-value, and customised payment plans. These are focused on specific verticals including healthcare, auto repair, home improvement, education, and big-ticket retail.

Openpay believes its US product fills the gaps not met by traditional buy now, pay later offerings.

"Our first US plans were signed and transacted in October, taking Openpay into its third major geographic opportunity. This was a major scene-setter for the step-change in business performance expected as we welcome customers in the world's largest consumer payments market," said Eidel.

What's next for Openpay?

Looking ahead, Openpay said the US company could represent approximately two-thirds of the business over the next three years, despite the concurrent growth across the UK and Australia.

Openpay also stated its growth, now taking place across three major regions, will allow the business to grow at scale. This will ensure a clear path to profitability in the mid-term.

Openpay share price snapshot

The Openpay share price has declined 43% year-to-date.

Its weak performance might come as no surprise given its struggling small-cap peers such as Splitit Ltd (ASX: SPT) and Laybuy Holdings Ltd (ASX: LBY) have both tumbled more than 60% in 2021.

The post Openpay (ASX:OPY) share price edges lower despite bumper Q1 update appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The PointsBet Holdings Ltd (ASX: PBH) share price tumbled on open after the company released its first-quarter trading update for FY22.

At the time of writing, the PointsBet share price is down 8.62% to $9.65.

PointsBet share price slides despite triple digit growth in US

PointsBet recapped yet another solid quarter of growth fuelled by the fast-growing North American sports betting market.

Some key Group highlights include:

• Turnover rose 42% on prior corresponding period (pcp) to $979.9 million
• Gross win margin improved to 11.9% from 10.2% (gross win is the dollar amount received by PointsBet from clients who placed losing bets less the dollar amount paid to clients who placed winning bets, excluding promotional costs)
• Net win increased 76% to $67.3 million (net win factors in promotional costs)
• Cash active clients in Australia rose 79% to 222,622
• Cash active clients in the US surged 367% to 185,880

What happened to PointsBet in Q1?

PointsBet's Australia business grew at a moderate pace, with turnover up 20% to $631.4 million. This is in addition to achieving a record quarterly result for net win and numbers of first-time bettors.

PointsBet US continues to be the company's focal point for growth. Its US business delivered triple-digit growth across the board. There was a 112% increase in turnover to $348.6 million and a 378% jump in total net win across sports betting and iGaming operations.

During the quarter, PointsBet successfully launched sports betting operations in West Virginia and iGaming operations in New Jersey.

PointsBet is ramping up its operations in Canada and has signed two long-term partnerships to offer its betting services.

From 27 August, single-game sports betting was made legal in Canada, at the discretion of its provinces and territories.

During the quarter, net cash from operating activities (excluding movement in player cash accounts) was negative $38.1 million.

Why is the PointsBet share price struggling?

At face value, PointsBet delivered an impressive first-quarter performance with double-digit growth for the Group and triple-digit growth in the US.

However, PointsBet continues to burn through cash, with negative cash flows of $38.1 million.

Looking back at its FY21 results, the company reported a 159% increase in revenue to $194.7 million. However, that wasn't without its shortcomings, in the form of a 314% increase in losses to $164.3 million.

The post PointsBet (ASX:PBH) share price slides 8% after Q1 trading update appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The BlueBet Holdings Ltd (ASX: BBT) share price is soaring on Thursday after the company released its first-quarter results for FY22.

At the time of writing, the BlueBet share price is up 8.09% to $1.87. It had earlier risen as high as $1.97.

What did BlueBet announce?

The BlueBet share price is surging after the company delivered a record first-quarter performance across key metrics. These included bet count, turnover, and net win. Highlights included:

• Turnover of $125.9 million, up 67.4% relative to the prior corresponding period (pcp);
• Net win of $14.8 million, up 87.6%;
• Active customers at 39,195, up 63.8%;
• Operating cashflow of $3.3 million; and
• Cash balance of $57.8 million at 30 September 2021.

However, BlueBet faced a major speed bump in its ambitions to enter the lucrative US sports betting market.

In early September, the company withdrew its application for a sports betting permit in the US State of Virginia. BlueBet was advised the licences would, at this point in time, be granted to operators which had experience in other states.

As a result, the BlueBet share price tumbled 21.6% to $1.935 on the day of the announcement.

Despite its shortcomings, BlueBet highlighted its Iowa licence remains on track after its Advanced Deposit Sports Wagering Operator Agreement with Q Casino was approved by the Iowa Racing and Gaming Commission.

BlueBet expects to take its first bets in Iowa in March 2022.

In addition, the company said it remains agile in the pursuit of additional licences. Its current targets are Colorado, Tennessee, and Maryland.

BlueBet share price summary

BlueBet made its ASX debut on 2 July at a listing price of $1.14. It closed 55% higher at $1.775.

The BlueBet share price surged to an all-time high of $3.03 by late August but then proceeded to go full-circle. The shares have since been trading around the $1.80 level.

The post BlueBet (ASX:BBT) share price jumps 8% on record first quarter appeared first on The Motley Fool Australia.

More reading

• Morgans sees more than 120% upside in these 2 ASX small caps

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BlueBet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The Nitro Software Ltd (ASX: NTO) share price is within an arms reach of all-time highs after the company announced its September quarter results.

At the time of writing, the Nitro Software share price is up 2.25% to $3.63.

September quarter highlights

The document productivity software company posted strong growth rates across its key operating metrics. Some key highlights include:

• Annual recurring revenue (ARR) up 50% year-on-year
• Transition to a software-as-a-service business model gathering momentum, subscription revenue now represents 68% of total revenue compared to 56% a year ago
• Cash receipts rose 24% to US$14.0 million
• Cash and cash equivalents of US$31.4 million as at 30 September

Upgraded guidance

Nitro upgraded its FY21 guidance, reflecting its strong performance in the third quarter.

This is likely a catalyst driving the Nitro Software share price in today's trading session.

The company reaffirmed its ARR from US$39 million to US$42 million.

It upgraded its revenue forecasts to between US$49 million and US$51 million, up from its previous guidance of US$47 million and $50 million.

Its operating earnings before interest, taxes, depreciation and amortisation (EBITDA) loss was also improved, forecast to be within the range of US$8 million to US$10 million compared to its previously US$9 million to US$11 million guidance.

Management commentary

Nitro's Co-Founder and CEO Sam Chandler commented on the results, saying:

The response from existing and new customers has been terrific, and as our customers have adapted to the new work-from-anywhere environment, they have clearly embraced the flexibility offered by our trusted set of productivity tools. This is reflected in the acquisition of new customers, the expansion within our existing customer base, and the resulting growth of subscription revenues as a percentage of our overall business

Nitro Software share price snapshot

The Nitro Software share price is up 14% year-to-date and within an arms reach of its September all-time highs of $3.79.

The post Why is the Nitro Software (ASX:NTO) share price on the rise on Wednesday? appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The Wisr Ltd (ASX: WZR) share price slipped on Wednesday morning, despite the company announcing a record first-quarter performance.

At market open Wisr shares dropped 3.64% to 26.5 cents. They have since regained some of that loss, at the time of writing down 1.82% to 27 cents.

First quarter highlights

Wisr delivered a record performance across key operating metrics. Some key highlights include:

• Record operating revenue of $12.1 million, up 195% on Q1 2021 and up 25% on Q4 2021
• Record loan originations of $132 million, up 113% on prior corresponding period (pcp)
• Total loan originations of $743 million, up 142% on pcp
• Wisr Financial Wellness Platform surpassed 505,000 profiles, up 70% on pcp

In July, Wisr launched a major national brand campaign – For your smart part – to support its brand redesign.

The campaign was a broadcast and digital sponsor of the Tokyo Olympic Games with Seven West Media Ltd (ASX: SWM).

Metrics post-campaign have shown that Wisr was able to reach an astonishing 16.5M Australians, significantly exceeding expectations and Wisr's expected return on investment.

The company said that the strong campaign helped it achieve the 500,000 profile target a quarter ahead of internal expectations.

The brand campaign drove a big jump in expenses, with a Q1 2022 cash earnings before tax, depreciation and amortisation (EBITDA) loss of $5.5 million compared to a $1.6 million loss in Q4 2021.

Management commentary

Looking ahead, Wisr CEO Anthony Nantes is optimistic about easing restrictions and what that means for consumer financing.

We expect to see increased demand in the personal finance market as lockdown restrictions start to lift and consumer demand naturally rises in the personal loan categories that had been impacted by COVID-19, creating a strong tailwind for us as we head into 2022.

With two Wisr Warehouse facilities in operation and ready to drive significant, sustained growth, we're in an incredibly strong position to push through our medium-term target of a $1B loan book, accelerate our revenue, path to profitability and operating leverage into H2 and beyond.

Wisr share price snapshot

The Wisr share price has rallied 38% year to date. This is following an impressive growth trajectory of 21 consecutive quarters of revenue growth.

The post Wisr (ASX:WZR) share price slumps 4% despite record quarter appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The Openpay Group Ltd (ASX: OPY) share price is trading higher on Wednesday after the company announced its official launch in the United States.

At the time of writing, the Openpay share price is 1.81% higher to $1.41.

Openpay live in lucrative US market

Openpay is now live and transacting in the US healthcare market. More specifically, it's operating in the veterinary sector via its partner ezyVet.

ezyVet is currently distributing Openpay services across its 1,200 US veterinary hospitals and clinics through its leading practice management platform.

"The US specialty veterinary market has high transaction values for procedures such as MRIs, CT scans, and reconstructive surgery," Openpay said.

"OpyPay is conducting a controlled roll-out with the first live OpyPay ezyVet locations in California, Michigan, Virginia, and Ohio."

Openpay believes it provides the US market with a differentiated payments solution. It is looking to offer consumers flexible instalment plans designed for larger purchases in sectors including healthcare, dental, auto repair, education, and big-ticket retail.

Management commentary

Openpay's CEO and Global Chief Strategy Officer Brian Shniderman hailed the milestone:

We're thrilled to announce the successful US launch of OpyPay – a milestone for the Openpay Group and a clear affirmation of our US strategy.

Our longer, larger, customized installment plans are built for life's unexpected and important expenses, such as emergency dental surgery, sudden auto repair, and medical care for a beloved pet.

In partnership with ezyVet, OpyPay will be made available to 1,200 US clinics as the rollout progresses – and we look forward to other partnerships to efficiently access our target verticals.

Openpay share price snapshot

The Openpay share price has declined 37% year-to-date, broadly consistent with its struggling small cap peers such as Splitit Ltd (ASX: SPT) and Laybuy Holdings Ltd (ASX: LBY).

However, it's managed to stabilise in the last three months, holding around the $1.30 to $1.40 level.

The post Openpay (ASX:OPY) share price rallies as services go live in the US appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The Humm Group Ltd (ASX: HUM) share price opened lower on Wednesday after the company released its investor strategy day presentation.

At the time of writing, the Humm share price is 0.54% lower at 92 cents.

Humm's big reveal

Humm revealed two major announcements this morning. The first was a return to dividends commencing in the first half of FY22.

Humm is one of the only profitable ASX-listed buy now pay later companies. It delivered a cash net profit after tax (NPAT) of $68.4 million in FY21.

Its profitability makes it look relatively cheap from a price-to-earnings perspective, trading at just 7 times FY21 NPAT.

Humm said that its board approved the recommencement of dividends with a payout ratio of 30% to 40%.

In addition, Humm highlighted that "following significant market interest, hummgroup is currently exploring a possible divestment of the New Zealand commercial business".

Humm noted that its current New Zealand commercial portfolio consists primarily of laptops, telecommunications, and office equipment with an average transaction value of $9,000.

The divestment is subject to any proposed sale meeting management's valuation expectations.

Humm first quarter results

Humm released its first-quarter results on Friday last week, recapping another strong period of sustained growth.

Some key highlights include:

• Group 1Q22 total transaction volume (TTV) rose 39.6% against the prior corresponding period (pcp) to $763.3 million
• BNPL TTV up 44.5% to $308.8 million
• Total hummgroup customers rose 6.1% to 2.7 million including a 16% increase in BNPL customers

The company was pleased with the performance of its BNPL segment, consisting of humm, bundll and hummpro. The 44.5% increase in TTV was driven by strong volume growth in its humm 'little things' campaign in Australia.

Despite an encouraging performance, the Humm share price closed Friday's session just 0.55% higher to 91 cents.

Humm share price snapshot

The Humm share price is down 16% year-to-date, broadly in line with the struggling BNPL sector.

The post Humm (ASX:HUM) share price falls despite revealing recommencement of dividends appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The Pilbara Minerals Ltd (ASX: PLS) share price could be a mover on Wednesday after the company released its third Battery Material Exchange (BMX) auction results.

Results of third BMX auction

Up for grabs was a cargo of 10,000 dry metric tonne (dmt) of spodumene concentrate at a target grade of 5.5% for a deferred delivery date of February 2022.

Pilbara Minerals received 25 bids online during the 45-minute auction window. They consider this very strong interest, despite the deferred delivery date.

The highest bid came in at US$2,350/dmt free on board (FOB), or US$2,629/dmt when costs, insurance and freight (CIF) are added.

The bidder is now required to enter into a sales contract. The contract will require them to pay a 10% deposit in the coming days, and be bound by an irrevocable letter of credit.

This could further drive the bullish performance of the Pilbara Minerals share price. On Tuesday the company announced an agreement with Korean giant POSCO to develop a lithium hydroxide monohydrate conversion facility. Following the announcement, Pilbara shares surged 8.1%.

It was 6 weeks ago that Pilbara Minerals released the results of its second spodumene concentrate BMX auction results.

The highest bidder came in at US$2,240/dmt FOB or US$2,500/dmt CIF. In comparison, the company's inaugural BMX auction in July received bids ranging from US$700/dmt to US$1,250/dmt FOB.

Lithium prices balloon to record highs

The auction results might come as no surprise following the surge in domestic Chinese lithium carbonate and hydroxide prices.

According to S&P Global, battery-grade lithium carbonate prices rallied to 195,000 yuan (~US$3,050) per metric tonne last week. At the same time, battery-grade lithium hydroxide was trading at 190,000 yuan (~US$2,970).

"The [spodumene] auction next week is sending some nervous energy in the market," a Chinese lithium dealer said. "People are desperate to secure materials in the market today before prices shoots [sic] up again."

Pilbara Minerals share price

The Pilbara Minerals share price has been trading sideways since early August after surging more than 150% year to date.

It has stalled around the low $2 level, with a brief sell-off to a two-and-a-half-month low of $1.78 on 5 October.

The post Pilbara Minerals (ASX:PLS) share price on watch after record lithium auction results appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• These are the 10 most shorted ASX shares
• ASX 200 mining shares rebounded while consumer stocks fell last week
• The 5 ASX shares I'd hold for the next 20 years, including one left-field pick
• 6 ASX shares experts see as buying opportunities in a weaker market

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The Liontown Resources Limited (ASX: LTR) share price is a gift that keeps on giving, surging 340% year-to-date with only momentary breathers along the way.

Earlier, the Liontown share price has added another 7.85% on Tuesday, lifting to a fresh all-time high of $1.855. At the time of writing, it has given up some of its gains and is now trading for $1.80, up 4.8%.

What's driving the Liontown share price?

The broader ASX lithium sector is surging on Tuesday following some bullish overnight news.

Last night, the Tesla Inc (NASDAQ: TSLA) share price experienced a frenzy of buying after rental car company Hertz, revealed plans to buy 100,000 Teslas.

Tesla shares surged 12.66%, breaking above both the US$1,000 a share level and US$1 trillion market capitalisation for the first time on record.

The jump in valuation was on the back of significant volumes, with 62.85 million shares trading hands, the highest since early March.

The cheapest Tesla models cost around US$40,000, which implies that Hertz would splurge US$4 billion on its new electric vehicle fleet.

ASX lithium shares surged sharply following the news, with heavyweights Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) surging 7.4% and 4% respectively.

While a number of explorers are lifting double digit percentages including Piedmont Lithium Inc (ASX: PLL) and Lake Resources N.L. (ASX: LKE).

What does this mean for Liontown?

The Liontown share price is joining in on the buying frenzy, marking a new all-time high on Tuesday.

The surging demand for electric vehicles and lithium-ion batteries spells good news for the company, which is targeting lithium production by 2024.

Liontown owns the "globally significant" Kathleen Valley Project, a world-class lithium deposit with an initial ~40 year life of mine and competitive costs.

According to its recent company presentation, the company is "well progressed" with offtake agreements, with interest indicated for volumes far in excess of its production capacity.

The company's planned production has made firm ESG commitments, targeting 50% renewable power for its first production in 2024. And scaling towards 100% renewable power and clean mining/fleet by 2034.

The post Why is the Liontown (ASX:LTR) share price roaring 5% higher today? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Liontown, Suncorp, and Wesfarmers shares
• Top brokers name 3 ASX shares to buy next week
• ASX 200 mining shares rebounded while consumer stocks fell last week
• ASX lithium shares take a hit amid 20% fall in lithium price
• Are PLS Group or Liontown shares more likely to double in the next 5 years?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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.

The Hazer Group Ltd (ASX: HZR) share price is rallying on Tuesday, up 8.71% to an almost 8-month high of $1.435.

Hazer is developing a low-emissions HAZER Process that can effectively convert natural gas and similar feedstocks into hydrogen and high-quality graphite for both vehicle fuel and energy applications.

Hydrogen ETF hits fresh all-time high overnight

Global X launched its Hydrogen Exchange Traded Fund (ETF) on 14 July when it closed at US$23.93 a piece.

The ETF slumped 16% to all-time lows of US$20.04 by 6 October, coinciding with the broader market selloff driven by factors such as the US debt ceiling, China's Evergrande crisis, and concerns about rising interest rates.

The Hydrogen ETF has since surged almost 25% from October lows and 5.67% last night, closing at a fresh all-time high of US$24.97 last night.

The surging Hydrogen ETF could be a factor influencing the bullish performance of the Hazer share price on Tuesday.

About the Hydrogen ETF

The Hydrogen ETF invests in companies that "stand to benefit from the advancement of the global hydrogen industry".

This includes companies engaged in hydrogen production, integration of hydrogen into energy systems, development of hydrogen fuel cells, and other related technologies.

Its top 3 holdings, which make up about 35% of its net assets, include:

• Hydrogen fuel cells developer Plug Power
• Developer and manufacturer of proton exchange membrane fuel cell products Ballard Power Systems
• Solid oxide fuel cell manufacturer Bloom Energy

Interestingly, Bloom Energy shares surged 37.2% overnight after the company signed a deal with South Korean industrial company SK Group.

Unfortunately, there are no ASX-listed hydrogen players within the ETF.

Hazer share price snapshot

The Hazer share price is up 75% year-to-date, with most of its gains taking place between January and early February.

After trading sideways for most of the year, the Hazer share price is climbing in October.

The post The Hazer (ASX:HZR) share price jumps 8% as hydrogen ETF hits all-time high appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

The Swoop Holdings Ltd (ASX: SWP) share price is lifting higher on Tuesday after the company announced plans to acquire Sydney-based voice service provider, VoiceHub.

At the time of writing, the Swoop share price is up 3.59% to $2.02.

Swoop expands into voice services

VoiceHub offers a combination of traditional voice communication inbound services as well as more sophisticated products such as virtual numbers, SMS messaging solutions and Advanced Intelligent Networking. The business operates across both Australia and New Zealand.

According to the announcement, VoiceHub has invested significantly in upgrading its operations and automation technology. Swoop believes this provides a "strong springboard" for continued growth in this space.

The acquisition will cost $6 million, comprised of $4 million in cash and $2 million in Swoop shares.

The purchase price represents a 4 times multiple of VoiceHub's FY21 normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA).

VoiceHub is entitled to an earnout of up to a maximum of $2.5 million based on its FY22 EBITDA.

The transaction is expected to be complete on 31 October subject to conditions including obtaining consent to change ownership and VoiceHub employees entering into new employment agreements.

Management commentary

Swoop CEO Alex West commented on the acquisition, saying:

Acquiring VoiceHub's network provides another opportunity for Swoop to further expand the range of services we can offer across our growing client base in Australia.

Swoop share price snapshot

The Swoop share price has almost surged fourfold since its 50 cents initial public offering (IPO) in late May. It closed at $1.25 on its first day of listing, marking a year-to-date return of 58%.

During this time, the company has successfully acquired four acquisitions to expand its regional fixed wireless network.

Swoop completed a $41 million capital raising this month to prop up its balance sheet and provide flexibility in financing future acquisitions.

The post Swoop (ASX:SWP) share price lifts amid acquisition news appeared first on The Motley Fool Australia.

More reading

• 5 reasons to buy NEXTDC shares this month
• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• 1 ASX dividend stock down 37% I'd buy right now
• Everything you need to know about the Westpac dividend
• Gold plunges to a 1-year low, triggering global sell-off. Time to buy gold or miners?

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

It's another bumper day so far for ASX lithium shares. Heavyweights Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) are among those leading the charge, up 3.6% and 7.2% respectively.

Emerging US-based lithium producer, Piedmont Lithium Inc (ASX: PLL), is surging 10% to a near 3-month high of 88 cents.

Coined as Australia's next lithium producer, Core Lithium Ltd (ASX: CXO) is up 5.2% to 60 cents, not far off last week's all-time high of 66 cents. This morning, Core announced that construction has kicked off for its flagship Finniss lithium project. The company said its Finniss project is the"only new Australian company forecast to initiate lithium production in 2022".

Elsewhere, explorers including Lake Resources N.L. (ASX: LKE), AVZ Minerals Ltd (ASX: AVZ), and Liontown Resources Limited (ASX: LTR), are also catching bids, rallying 7.9%, 7.8%, and 6.7%, respectively.

What's driving ASX lithium shares?

Lithium ETF hits fresh all-time high overnight

The Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) surged 3.9% overnight to a fresh all-time high of US$91.26. The ETF is up 11.7% in October alone and 47.5% year-to-date.

The Lithium ETF invests in the full lithium cycle, from miners and refiners through to battery production and electric vehicles. Its performance provides a useful gauge as to how the overall sector is performing.

Its top holdings include the world's largest provider of lithium for electric vehicle batteries, Albemarle, and China's largest lithium player, Ganfeng Lithium.

The ETF has smaller allocations in ASX lithium shares including Mineral Resources Limited (ASX: MIN), Pilbara Minerals, and Orocobre.

Tesla joins the US$1 trillion club

Shares in Tesla Inc (NASDAQ: TSLA) crossed the $1,000 a share mark for the first time on record. This brought its market capitalisation to an eye-watering US$1 trillion.

The Tesla stock price surged overnight amid news rental car company, Hertz, was planning to buy 100,000 Teslas to add to its existing fleet.

The bullish news and price action for Tesla has likely propped up ASX lithium shares on Tuesday.

The post Why ASX lithium shares are surging higher on Tuesday appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: PLS Group, Woolworths, CSL shares
• Buy, hold, sell: Liontown, Suncorp, and Wesfarmers shares
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• ASX 200 mining shares rebounded while consumer stocks fell last week

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended 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.