Today's share price uptick means the shares are now 60% higher year to date and 60% higher over the year.

What did Articore post in its H1 FY26 results?

Here's what the e-commerce business posted for the six months ending 31st December 2025:

• Marketplace revenue was down 4.5% to $220.3 million
• Gross profit was up 6% to $107.5 million
• Gross profit after paid acquisition was up 8.9% to $60.9 million
• Earnings before interest and tax (EBIT) was $12.1 million
• Underlying cash flow was $12.3 million

What happened in H1 FY26?

Articore's marketplace revenue showed improvement over the six-month period, moderating to $220.3 million, down 4.4% from the prior corresponding period (pcp). While a decline, this is an improvement from the marketplace revenue in the first quarter of FY26, which was down 6.6%. 

The business said the improvement reflects stronger paid marketing effectiveness, data-driven pricing, and more targeted promotional strategies.

Meanwhile, there was a material margin expansion, with gross profit up 6% on the pcp to $107.5 million, and gross profit after paid acquisition was 8.9% higher at $60.9 million. This was driven by supply-chain synergies and artist fee changes, which were designed to strengthen the marketplace and its dynamics.

Operating expenses were down 4.3% for the six-month period, reflecting lower employee and software costs and continued cost discipline.

Elsewhere, EBIT increased materially to $12.1 million, reaching the highest level in five years and representing a $14.3 million uplift on the pcp.

Group CEO and Managing Director Vivek Kumar said, "Our first-half performance validates our turnaround strategy. We materially improved profitability, generating a $14 million uplift in EBIT, expanded margins, and strengthened our marketplace revenue trajectory, while continuing to invest in platform capability and customer experience."

What's the outlook for Articore in FY26?

Management has raised its FY26 EBIT guidance to $6 million to $10 million, up from $2 million to $8 million previously. It also tightened its underlying cash flow guidance to the top end of its previous range, now $8 million to $12 million, from $5 million to $12 million previously.

In the second half of FY26, Articore said it will build on the momentum achieved in the first six months of the financial year to accelerate its return to marketplace revenue growth. 

The business added that key areas of focus include growing revenue through both acquiring new customers and increasing its repeat customer base, further leveraging AI across the Group to improve operational efficiencies, and improving its external engineering capability to increase scalability and performance.

The post Articore shares fly 11% higher following half-year result appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Articore Group Ltd (ASX: ATG)

The Articore Group share price is down over 2% to 22.5 cents. This morning, the company formerly known as Redbubble revealed that group CEO Vivek Kumar has been appointed to the board as managing director. Articore's chair, Robin Mendelson, said "Vivek's appointment as Managing Director reflects the Board's clear focus on performance, accountability and long-term shareholder value. Under his leadership, the Group has delivered a step-change in results, including our strongest fourth quarter in five years and record gross profit margin. This appointment reinforces our confidence in Vivek's ability to execute the turnaround and deliver sustained value through operational discipline and strategic focus."

Aurizon Holdings Ltd (ASX: AZJ)

The Aurizon Holdings share price is down 3.5% to $3.14. This appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has downgraded the rail freight operator's shares to a neutral rating (from outperform) with a trimmed price target of $3.31 (from $3.39). It said: "Near-term risk is Mt Isa with Glencore and Dyno Nobel and whether the operations will continue. Upside reflects BHP win and further wins on SA/NT. Upside also reflects the below rail reset, albeit clarity around this would come later in the year."

Light & Wonder Inc. (ASX: LNW)

The Light & Wonder share price is down almost 6% to $134.10. This follows a poor night of trade for the gaming technology company's NASDAQ-listed shares on Wall Street overnight. As the company is scheduled to release its second quarter results tonight, it seems that some investors are expecting Light & Wonder to disappoint and have been selling shares ahead of the release. The consensus estimate is for revenue of US$854.15 million and earnings per share of US$1.40.

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price is down a further 4% to 29.25 cents. This morning, the graphite producer's pro rata accelerated non-renounceable entitlement offer opened to retail shareholders. The company is aiming to raise a further $28 million through the issue of new fully paid ordinary shares at an offer price of $0.26 per new share. Last week, Syrah raised $42 million from institutional investors at the same price.

The post Why Articore, Aurizon, Light & Wonder, and Syrah shares are falling today appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are pushing higher:

Breville Group Ltd (ASX: BRG)

The Breville share price is up 4% to $23.17. This appears to have been driven by a broker note out of Goldman Sachs. This morning, the broker upgraded the appliance manufacturer's shares to a buy rating with a $24.50 price target. It is "structurally positive on BRG's unique positioning in global coffee premiumisation trend."

Lithium Power International Ltd (ASX: LPI)

The Lithium Power International share price was up 19% to 41.5 cents before being paused from trade. This follows reports that the lithium explorer is close to agreeing to a takeover deal. Corporación Nacional del Cobre de Chile (also known as Codelco) is reportedly close to agreeing to a deal to acquire Lithium Power International for $315 million or 50 cents per share.

Redbubble Ltd (ASX: RBL)

The Redbubble share price is up 24% to 57 cents. This follows the release of an update from the e-commerce company. According to the release, Redbubble returned to positive underlying cash flow during the three months ended 30 September. It reported underlying cash flow of $0.7 million, which is up from a cash outflow of $17.6 million in the prior corresponding period.

Webjet Limited (ASX: WEB)

The Webjet share price is up 2% to $6.63. This also appears to have been driven by a broker note out of Goldman Sachs. The broker has upgraded the online travel agent's shares to a buy rating with an $8.30 price target. Goldman believes "the recent sell off [is] overdone."

The post Why Breville, Lithium Power International, Redbubble, and Webjet are pushing higher appeared first on The Motley Fool Australia.

In morning trade, the ASX growth stock is up 30% to 60 cents.

Why is this ASX growth stock rocketing?

Investors have been buying the e-commerce company's shares today after it released an update on its first-quarter performance.

According to the release, Redbubble returned to positive underlying cash flow during the three months ended 30 September.

For the period, its underlying cash flow came in at $0.7 million, which is up massively from a cash outflow of $17.6 million in the prior corresponding period. It is also up from a cash outflow of $6.2 million during the fourth quarter of FY 2023.

What is driving this turnaround?

Margin improvements have been the driver of this ASX growth stock's turnaround.

Even though marketplace revenue (MPR) was 6% lower than the prior responding period, it was able to achieve positive underlying cash flow thanks to a 490 basis points increase in its gross profit after paid acquisition (GPAPA) margin.

Management advised that this reflects the benefits of a number of recently implemented initiatives. This includes the introduction of artist account tiers on the Redbubble and TeePublic marketplaces and a dynamic order routing system for the Redbubble marketplace in the US, as well as further optimisation of paid marketing spend.

Redbubble's CEO, Martin Hosking, said,

The Group has had a good start to the financial year. Our ongoing focus on a narrow set of priorities continues to drive margin expansion and absolute GPAPA growth. These improvements, combined with our continued focus on cost discipline, has enabled the Group to achieve positive underlying cash flow this quarter, a particularly strong feat as the first quarter is a seasonally-low revenue period.

Outlook

While the company continues to expect trading conditions to remain soft in key markets, particularly the US, it has reaffirmed its guidance for FY 2024.

It expects its FY 2024 GPAPA margin to be between 23% and 26% and its FY 2024 operating expenditure to be between $92 million and $100 million.

And after achieving positive underlying cash flow during the first quarter, management believes the ASX growth stock is on track to deliver positive underlying cash flow for the full year.

The post Guess which ASX growth stock is rocketing 30% after a major turnaround in fortunes appeared first on The Motley Fool Australia.

Retail sales were flat overall in the month of April, following very small increases in March and February.

The bottom line is that retail sales are slowing in 2023, as the impact of rising inflation and interest rates starts to flow through the economy.

ABS head of retail statistics Ben Dorber said:

Retail turnover has plateaued over the last six months as consumers spent less on discretionary goods in response to cost-of-living pressures and rising interest rates.

Spending was again soft in April but was boosted by increased spending on winter clothing in response to cooler and wetter than average weather across the country.

What does weaker spending mean for ASX retail shares?

Household consumption is worth about 50% of Australia's gross domestic product (GDP), so that's why retail sales are an important yardstick for our economic health.

The data also provides insight into the categories of retail that are receiving more of our dollars.

According to today's figures, only two categories recorded higher spending in April. They were clothing, footwear, and personal accessories (up 1.9%) and department stores (up 1.5%).

Household goods spending declined by 1% — its third consecutive monthly fall.

We also saw the first fall in food spending following 13 months of increases. Spending at cafes and takeaway outlets fell by 0.2%, and general food shopping declined by 0.1%.

On the market today, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is among six out of 11 market sectors on the rise, up 0.33%. Meantime the S&P/ASX 200 Index (ASX: XJO) is up 0.07%.

Here are the risers and fallers among ASX retail shares on Friday, and how they're trending year to date (YTD).

Rising retail shares on Friday

Some of the top risers among ASX retail shares today are:

• The Dusk Group Ltd (ASX: DSK) share price is up 3.3% to $1.10, but down 41% YTD
• The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is up 3.2% to $47.16, but down 29% YTD
• The Lovisa Holdings Ltd (ASX: LOV) share price is up 1.4% to $21.37, but down 7% YTD
• The Adairs Ltd (ASX: ADH) share price is up 2.4% to $1.91, but down 16% YTD

Falling retail shares on Friday

Some of the fastest fallers among ASX retail shares today are:

• The Universal Store Holdings Ltd (ASX: UNI) share price is down 5.1% to $2.98, and down 43% YTD
• The City Chic Collective Ltd (ASX: CCX) share price is down 5% to 38 cents, and down 17% YTD
• The Mosaic Brands Ltd (ASX: MOZ) share price is down 5.3% to 18 cents, and down 36% YTD
• The Mighty Craft Ltd (ASX: MCL) share price is down 5% to 9.5 cents, and down 47% YTD

Hitting 52-week lows today

The ASX retail shares hitting 52-week lows today include Mighty Craft shares, which dipped to 9.3 cents in earlier trade, Redbubble Ltd (ASX: RBL) shares at 38 cents, and Elixinol Wellness Ltd (ASX: EXL) shares at 1.4 cents.

The post Soft spending: How ASX retail shares are responding to a weak month appeared first on The Motley Fool Australia.

As you can see on the chart below, during this time the ASX tech share has lost almost 60% of its value.

Things are even worse if you go a little further back. After peaking at over $7.00 in 2021, the online artist marketplace platform provider's shares have crashed approximately 95%, closing yesterday's session at 40 cents. Ouch!

Investors may be wondering if this sizeable decline has created a buying opportunity. Well, let's find out!

Is this ASX tech share a bargain buy now?

Goldman Sachs has been running the rule over this ASX tech share one final time before dropping coverage (for an unspecified reason).

While its analysts see plenty of value in the Redbubble share price, it still doesn't appear to be enough to create a sufficient margin of safety.

As a result, the broker has dropped coverage with a final rating of neutral and a price target of 59 cents.

Goldman explained that there is a lot of uncertainty at the moment and believes investors should be waiting for more clarity on Redbubble's cost reductions and the impact this has on its revenue before considering an investment. It explains:

The company has shifted its focus towards cost management as a response to a weaker consumer environment which has seen demand ease and promotional intensity step up. While we think this is prudent as management focuses on preserving its existing cash balance, we are more cautious on the impact this may have on the revenue outlook and RBL's ability to scale over the medium term given the pull back in revenue generating investment (Redbubble marketplace headcount, brand investment).

We believe the market will need to see greater clarity on RBL's strategy to scale the business under the new cost base, as well as a stabilisation of near term revenue growth trends to garner a re-rate. We believe the current valuation adequately reflects the risk/reward profile of the business. Our final rating is Neutral. Our 12m TP of A$0.59 is derived based on DCF.

The post Down 95% from its high: Is this beaten up ASX tech share a bargain buy? appeared first on The Motley Fool Australia.

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Capital H Management portfolio manager Harley Grosser casts his eyes over three ASX shares that are now going for a huge discount.

Bargain buy or value trap?

The Motley Fool: Let's examine three ASX shares that have been devastated this year, and see if you think each of these fallen stars is now a bargain to pick up or if you'd stay away.

The first one is Mighty Craft Ltd (ASX: MCL), a small-cap ASX stock that's plunged about 40% since last Easter.

Harley Grosser: Mighty Craft's an incubator and investor in beverage brands. We have met with them and quite like the business. Their star brand is Better Beer, which was started by the social media group Inspired Unemployed, which has got a massive following online. They just actually announced a restructure there, but Mighty Craft [still] owns 33% of Better Beer. 

So we don't own Mighty Craft at the moment. But I think if you watch the performance of Better Beer, that's probably the key there. Because if they continue on this trajectory, which has been just phenomenal growth every month, then MCL's a relatively cheap way to gain exposure there.

I think there were a couple of options — [one] was to sell their stake and cash out, but it seems like Better Beer's decided to raise more money and go even harder. So we don't own it, but we'll keep watching how Better Beer performs.

MF: I'm not a beer drinker myself, so I don't fully understand how such a small brand can take off so fast.

HG: Yeah, me too. I don't drink it either, but I have a lot of mates that all of a sudden have stocked their fridges with Better Beer, so they're doing something right.

MF: Next one is Dusk Group Ltd (ASX: DSK), which is down about 40% since last Easter as well.

HG: Yeah, they're a candle retailer and they've got a good business in their own niche. 

We took a view that we would just be avoiding retailers completely, probably around April of 2022 when we started to get concerns around inventory positions. And to be fair to retailers, it must have been a very hard time to manage inventory from the switch from in-store to online, then back now to in-store. 

But on the other side of that, we're happy to start looking at opportunities, and I think Dusk is a good brand and it's a business that we would own at the right price. 

Their first half numbers were still a little bit messy as everything normalises, but it's on our radar as one we would buy if it got to the right price. But it's not there yet for us.

MF: The third one is Redbubble Ltd (ASX: RBL), which has really taken a hammering. It's down 93% since the start of last year. What do you think?

HG: Yeah, we never invested in Redbubble. Years ago we looked at it and we did talk to some of the artists that used the platform, and we didn't think it was going to be a long-term winner. 

And then COVID just proved us really, really wrong there. The stock just took off. Obviously, since then, it's all unwound. 

For us, I know it's probably not the perfect answer, but we like to invest in [a] business that we can understand and then have a reasonable chance of forecasting. So Redbubble's been smashed and it might be the bargain of century, but it's too hard for us to try to model out what it looks like in three, four, five years. 

So it might look cheap, but it's just one that we have to put in the "too hard" basket and say no to.

The post Here's one hot, one lukewarm and one cold ASX share: fundie appeared first on The Motley Fool Australia.

Among the market's blazers are three ASX All Ords tech shares bouncing back from the fall-out of Silicon Valley Bank's (SVB) collapse.

On the flip side, two ASX All Ords tech shares are tumbling, despite only small exposures to SVB.

Let's take a look.

ASX All Ords tech shares bouncing back today

To re-cap, SVB was a commercial lender specialising in technology companies.

It was shut down by regulators in the US last Friday.

It's the biggest bank failure in the US since the global financial crisis (GFC).

Following the news, we've seen a roll-out of statements from ASX All Ords tech shares disclosing their exposure to SVB.

Of these, Life360 Inc (ASX: 360) shares are screaming 7.2% higher today to trade at $5.21 at the time of writing.

As my Fool colleague James reported last week, Life360 estimates its exposure is US$5.6 million in deposits. It also has US$75.4 million in shares of money market mutual funds invested in short-term, AAA-rated US Government treasury securities that are in SVB custodian accounts.

Life360 has updated shareholders today to confirm it "has regained access to its funds in SVB
accounts, and is transacting normally".

Sezzle Inc (ASX: SZL) shares are also up today. The Sezzle share price is currently 53.5 cents, up 0.94%.

The buy now, pay later (BNPL) company has US$1.2 million in deposits with SVB.

Sezzle shares may have extra momentum today due to the company's plans to list on the NASDAQ.

Finally, Xero Limited (ASX: XRO) shares are up 4% to $88.52 currently.

The accounting software company's exposure to SVB is approximately US$5 million.

The Xero share price has steadily risen since the company revealed plans to reduce costs and drive growth. Xero shares are up 12.6% since the announcement last week.

ASX All Ords tech shares that are struggling

Meantime, Siteminder Ltd (ASX: SDR) shares are down 2.42% today to $3.425 at the time of writing.

The accommodation e-commerce platform provider updated the market on its exposure to SVB today.

After transferring some of its cash holdings to other lenders upon hearing of SVB's collapse, SiteMinder was left with a cash exposure of A$10 million.

It also has a US$20 million revolving credit facility with SVB for contingency purposes that has not been drawn on since its initial public offering (IPO).

Today, the company said:

Following actions taken by the Federal Deposit Insurance Corporation and the Bank of England to fully protect SVB and SVBUK depositors, SiteMinder no longer expects any impact to its cash holdings.

SiteMinder has received confirmation from SVB that it will honour the Group's US$20m revolving credit facility.

SiteMinder is working with other banks to further broaden its banking arrangements.

Redbubble Ltd (ASX: RBL) shares are also in the red today, down 4.34 to 50.7 cents at the moment.

The arts online marketplace provider has an A$1.3 million exposure to SVB.

The Redbubble share price is down 66% over the past 12 months.

The post 3 ASX All Ords tech shares rebounding strongly from the SVB fallout (and 2 still tumbling) appeared first on The Motley Fool Australia.

Given that SVB had a big presence in the tech sector, a large number of ASX tech shares were customers and had funds in its bank accounts.

With the bank now falling into insolvency, it is unclear what will happen to these funds and what ramifications it will have on their operations and access to capital.

Though, the good news is that no ASX tech shares appear to have put all their eggs in one basket, underlying the importance of diversification and limiting their exposure to this collapse.

Here's a summary of tech shares with SVB exposure:

Bigtincan Holdings Ltd (ASX: BTH)

This sales enablement platform provider revealed that it has no material exposure to SVB.

Life360 Inc (ASX: 360)

This location technology company is a little more complex than others but estimates that its exposure is US$5.6 million. However, Life360 acknowledges that it also has US$75.4 million in shares of money market mutual funds invested in short-term, AAA-rated U.S. Government Treasury and Government Agency securities that are in SVB custodian accounts. It believes that these accounts were not co-mingled with SVB's assets.

Nitro Software Ltd (ASX: NTO)

This document productivity software company has US$12.2 million of its cash reserves held on deposit at SVB. This compares to its cash balance of US$28 million at the end of December. Positively, though, the company revealed that this development has not impacted its takeover approach from Potentia.

Redbubble Ltd (ASX: RBL)

This struggling ecommerce company estimates that its cash exposure to the SVB collapse is $1.3 million. However, it had a first-half closing cash balance of $97 million, so this is immaterial.

Sezzle Inc (ASX: SZL)

This buy now pay later provider had limited exposure to SVB. Just US$1.2 million of its US$68 million was held at the collapsed bank.

Siteminder Ltd (ASX: SDR)

This travel technology joined in on the bank run on Friday and "had success in transferring some of its cash holdings to other banking partners." However, cash holdings of up to A$10 million were not able to be transferred. The company also revealed that it has an undrawn US$20 million revolving credit facility with SVB. Nevertheless, it currently has A$58 million in cash outside SVB to fund its operations.

Xero Limited (ASX: XRO)

This cloud accounting platform provider revealed that its total exposure to SVB is approximately US$5 million. This represents less than 1% of its most recent cash and cash equivalents balance.

Latest development

In the last few minutes, the US government has announced that it will be stepping in.

According to CNBC, depositors at both SVB and Signature Bank in New York, which has also just closed, will have full access to their deposits on Monday.

A joint statement from Fed Chair Jerome Powell, Treasury Secretary Janet Yellen, and FDIC Chair Martin Gruenberg, said:

Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.

After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. Depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.

This news has given Wall Street a major lift and sent US futures hurtling higher.

The post These ASX tech shares have exposure to the Silicon Valley Bank collapse appeared first on The Motley Fool Australia.

However, these two All Ords companies are outperforming their peers after reporting strong half-year results.

Pact Group Holdings Ltd (ASX: PGH)

This ASX All Ords share shot up a whopping 8.4% this morning to $1.10 after the packaging manufacturer reported its FY23 half-year results. The company's share price is currently 2.17% higher at $1.037.

Pact Group is the largest rigid packaging plastics manufacturer in Australia and New Zealand with a growing overseas business.

Pact reported $998 million in revenue for the half, which was 8% up on the prior corresponding period (pcp) of 1H FY22.

Its underlying earnings before interest and taxes (EBIT) was $75 million, 3% above the top of its guidance range but down 8% pcp.

Underlying net profit after tax (NPAT) was $26 million, down 33% pcp but "in line with the performance of the business and increased finance costs", the company said.

The All Ords business said the recovery of costs and volume growth had driven the increased revenue.

It noted increased demand for sustainable packaging and recycled products, new contract wins, and contract re-pricing of existing contracts during the half.

The ASX All Ords share will not pay an interim dividend, reflecting "the desire to preserve cash to allow the Company to reduce debt and continue its capital program in line with its Vision to lead the Circular Economy".

Pact reiterated its guidance for FY23 underlying EBIT to be slightly ahead of FY22 underlying EBIT.

Redbubble Ltd (ASX: RBL)

Rebubble also reported its FY23 half-year earnings this morning. The ASX All Ords share was not out of the blocks as fast as Pact Group but is steadily climbing in lunchtime trade. The Redbubble share price is currently up 3.19% at 48.5 cents.

Redbubble is an online artwork and design marketplace selling a range of products. The All Ords company reported a 1% lift in revenue to $343.8 million for 1H FY23 compared to the pcp of 1H FY22.

Gross profit is down 6% at $101.3 million and the gross profit margin fell 2.5%.

Operating expenses excluding brand investment were 20% higher at $63.6 million.

Looking forward, Redbubble CEO Michael Ilczynski said:

Enhancing the Redbubble marketplace's content quality and search and discovery is a primary focus for the Group to ensure customers can find products among four billion listings which appeal to their
specific interests and needs.

We are uniquely positioned to benefit from recent improvements in AI, which could revolutionize search and discovery of artists' content and greatly enhance new and existing customers' experience.

Early signs are positive and we expect to roll-out implementation of this technology at scale this calendar year.

The post 2 ASX All Ords shares leaping higher with one up 8% on half-year results appeared first on The Motley Fool Australia.

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Eley Griffiths portfolio manager Nick Guidera takes a look at three heavily discounted small-cap ASX shares.

Cut or keep?

The Motley Fool: Let's examine three ASX shares that have been devastated in the past year, and see if you think each of these fallen stars are now a bargain to pick up or if you'd stay away.

The first one is Wisr Ltd (ASX: WZR), a fintech stock that's plunged 64% over the last 12 months.

Nick Guidera: At this point in time, we believe it is too early [to buy]. 

The team at Wisr have built a disruptive next-generation personal lender with a focus on building financial products, apps, and services that are designed to improve the wellness of Australians. A track record of growing new loans since inception, Wisr now has a sizable loan book of close to $900 million and is targeting profitability in 2023. 

While the market opportunity is large, competition remains intense, and higher interest rates have meant the cost of funding has increased. As the economic outlook deteriorates in Australia, there is also likely to be further pressure on the consumer.

MF: Art marketplace Redbubble Ltd (ASX: RBL) has been slashed 76% in the past year. Would you pick it up as a bargain?

NG: At this stage, no. Redbubble has delivered a series of successive earnings downgrades, as the inflated revenue unwinds from the COVID bump. The CEO is embarking on a turnaround of sorts, however, the challenging trading conditions have meant there is a need to focus on cost out to conserve cash. 

MF: How about online furniture retailer Temple & Webster Group Ltd (ASX: TPW)? It's dropped about 40% over the past 12 months.

NG: At this stage, yes we are likely to [buy]. 

While there are consumer headwinds in Australia, Temple & Webster is the clear leader in the online furniture and homewares category. It has demonstrated it can continue to grow its customer base at a time where penetration remains low for online spend in the category relative to other developed markets.

The post Bargains or traps? Fundie reveals if these 3 ASX shares are worth buying cheap appeared first on The Motley Fool Australia.

Four ASX shares that have not been able to follow the market higher today are listed below. Here's why they are sinking:

HUB24 Ltd (ASX: HUB)

The HUB24 share price is down 6.5% to $24.95. In response to this investment platform provider's "weaker than expected" quarterly update on Tuesday, analysts at Citi have retained their neutral rating but cut their price target to $29.00. HUB24's funds under administration was 2% lower than Citi's estimates.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down 2% to $25.29. This morning, analysts at Morgan Stanley downgraded the retailer's shares to an equal-weight rating with a $25.00 price target. The broker has concerns that demand could be easing.

Redbubble Ltd (ASX: RBL)

The Redbubble share price is down 12% to 50 cents. This ecommerce company's shares have been sold off following the release of another disappointing update. Redbubble revealed that trading conditions have been "increasingly challenging" during the first half. This has led to the company reporting an $18 million operating loss for the half, down from an operating profit of $10.5 million a year earlier.

Warrego Energy Ltd (ASX: WGO)

The Warrego Energy share price is down 2.5% to 37 cents. This is despite there being no material news out of the company today. However, investors appear to have been betting on a bidding war inflating the takeover price for the energy explorer. They may now be concerned that the war is over and the takeover offer price won't rise beyond current levels.

The post Why HUB24, Lovisa, Redbubble, and Warrego shares are sinking today appeared first on The Motley Fool Australia.

For example, listed below are two ASX shares that have made big moves in opposite directions on Wednesday following the release of their updates. Here's what's happening:

Ampol Ltd (ASX: ALD)

This fuel retailer's shares were up as much as 4% to $29.87 following the release of its quarterly update. Ampol, formerly known as Caltex, revealed that its fourth quarter group RCOP earnings before interest and tax is expected to be slightly ahead of the third quarter result.

The company also revealed that the Lytton Refiner Margin (LRM) for the fourth quarter remained above historical levels averaging US$11.75 per barrel. Furthermore, refinery production for the period was 1,580 ML, increasing from 1,546 ML in the third quarter.

Overall, a solid quarter from the fuel giant.

Redbubble Ltd (ASX: RBL)

Investors have been selling down Redbubble's shares after the release of yet another disappointing update. The ecommerce company's shares are currently down over 12% to 50 cents, which means they are now down approximately 80% since this time last year.

This morning, Redbubble reported a modest increase in second quarter marketplace revenue, which led to flat first half revenue. However, higher costs mean that it expects to post an $18 million operating loss for the half. This compares to a $10.5 million operating profit a year earlier. Management blamed "increasingly challenging" trading conditions and higher promotional activity.

This loss has led to Redubble's cash balance falling by approximately $46 million over the last 12 months to $97 million.

Unfortunately, management expects "macroeconomic conditions to remain challenging in the near term." As a result, the company has decided to adjust its operating expenditure with the aim of being sustainably cash flow positive by the end of 2023.

The post 2 ASX shares making big moves following quarterly updates appeared first on The Motley Fool Australia.

2. Elements of the equity markets will recover from their recent lows. In the US, I'd be looking at large-cap tech stocks like Microsoft Corp (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), and Meta Platforms Inc (NASDAQ: META). Australia is a little trickier, given commodity stocks have been strong, bank stocks relatively stable, and some tech stocks, even after their shellacking this year, still look expensive.

3. Many stocks will never again reach their 2021 all-time highs. Many former market darlings and COVID-19 beneficiaries would have to 10x from here to get back to where they traded at their peak. It just isn't going to happen. I'm looking at you Zip Co Ltd (ASX: ZIP), Sezzle Inc (ASX: SZL), and Redbubble Ltd (ASX: RBL), and they've got plenty of mates.

4. That said, some fallen heroes will stage remarkable recoveries, rising 300% or more from these depressed levels. I own a few that have taken big tumbles for which I hold out hope of recovery, and in more recent times, I've taken bites in a few beaten-down ASX small and microcap stocks that are still growing quickly.

Recovery hopefuls: Pinnacle Investment Management Group Ltd (ASX: PNI), Aussie Broadband Ltd (ASX: ABB)

Newer bites: Field Solutions Holdings Ltd (ASX: FSG), Alloggio Group Ltd (ASX: ALO), Mighty Craft Ltd (ASX: MCL)

5. The economy will slow as interest rate rises start to bite. This will put pressure on corporate earnings, particularly in consumer discretionary retailers like Harvey Norman Holdings Limited (ASX: HVN), Kogan.com Ltd (ASX: KGN), and Temple & Webster Group Ltd (ASX: TPW). Profit warnings will likely outpace profit upgrades.

6. Even though some companies are likely going to experience falling profits in FY23, in some cases this has already been priced into their cheap stock prices. I'm certainly no energy and commodity stock expert, and I'm always very conscious of their cyclicality, but Woodside Energy Group Ltd (ASX: WDS) and BHP Group Ltd (ASX: BHP) trading on 8 to 10% trailing fully franked dividend yields and on trailing single digit multiples have significant future falls in the iron ore and oil price already reflected in their share prices.  

7. On a trailing basis, some retailers look dirt cheap. At $2, the Dusk Group Ltd (ASX: DSK) share price trades at seven-times profit and on a fully franked dividend yield of 10%. The specialty retailer of home fragrance products didn't provide FY23 guidance given "ongoing uncertainty surrounding the macro-environment". Dusk is capitalised at $125 million, has $21 million cash, and no debt. 

8. If you believe the economy will recover (it always has done so in the past) and corporate profits will be higher three to five years from now (as they have been in the past), and that will translate to a higher stock market in the future (as it has done so in the past), one of the simplest investing strategies and processes is to dollar-cost average into a low-cost exchange-traded fund (ETF).

My favoured option is the Vanguard MSCI Index International Shares ETF (ASX: VGS). Since its inception in 2014, it has returned 11.4% per annum, something that would have turned an initial $10,000 investment into almost $23,000. The ETF holds stakes in large US companies, including Apple, Microsoft, Amazon, Tesla, Johnson & Johnson, and Exxon Mobil. 

If you want to throw in a local flavour, consider adding the Vanguard Australian Shares Index ETF (ASX: VAS). You'll get exposure to the big miners, the big banks, and the big supermarkets.

9. Interest rates will start turning lower around the third quarter of next year as the economy slows in response to standard variable mortgage rates of around 7.5 to 8%. Consumer confidence has already taken a big hit, dropping to its lowest level since April 2020 amid higher interest rates and surging inflation. 

To the points above, discretionary spend – retail, food and beverage, even travel – is about to take a hit.

10. The forward-looking stock market has already priced much of what's coming into the prices of individual stocks. It knows not how far spending will fall, nor how much some corporate profits will shrink. 

Just as the stock market is falling now, despite an economy with near-record-low unemployment, the forward-looking stock market will go higher in the face of a sharply weaker economy. Bad news is good news for the stock market.

In the meantime, volatility is likely to persist. There could even be another bear market from here, where the S&P/ASX 200 Index (ASX: XJO) falls a further 20%.

For stock pickers, use it to your advantage to add to your favourite existing stocks, and to throw a couple of new positions into your portfolio. 

For ETF investors, continue making regular (fortnightly or monthly) contributions, come hell or high water. With annualised returns potentially around the 8% level, an investment made today would double in nine years. 

It reminds me of the Bill Gates quote…

"Most people overestimate what they can do in one year and underestimate what they can do in ten years."

The post These 10 predictions could help you profit from the stock market regardless of inflation, interest rates or even another bear market appeared first on The Motley Fool Australia.

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Forager Funds Management portfolio manager Alex Shevelev evaluates three ASX shares going for cheap right now.

Cut or keep?

The Motley Fool: Let's take a look at three ASX shares that have plunged this year, to see if you think each of those fallen stars are now a bargain or if you'd keep away.

The first one is online marketplace Redbubble Ltd (ASX: RBL), which has fallen a horrendous 85% in 2022.

Alex Shevelev: There's a lot of fallen stars out there, but that's been one of the most significant of those fallen stars. 

It sells products to consumers with designs by independent artists. It's been a very volatile ride for long-term Redbubble shareholders — $1 pre-COVID, to 50 cents in the early stages of the COVID market panic, to $7 during the online COVID buying boom, and now back to 50 cents. 

It's really very uncertain as to whether this business is actually going to be able to earn the required margins in what is actually a very competitive space. And the recent first quarter update didn't do the business many favours. There was $17 million worth of losses at the EBIT line and lower year-on-year revenue, which is quite problematic.

MF: Some investors might see that it has annual revenue of half a billion dollars but the market cap's now down to $135 million, and consider it a very cheap valuation. But you reckon it might be a bit of a value trap?

AS: Well, I think it is very important that whatever the level of revenue is that the business can structurally achieve free cash flows from that revenue. And in Redbubble's case, that is not something that they have been able to successfully do outside of some very buoyant COVID periods.

MF: Next one is Viva Leisure Ltd (ASX: VVA), which has halved this year. What do you reckon about that one?

AS: That's right. So, this is a gym group and it's hardly had a break during its listed life, given the closures during COVID over the last couple of years. 

During that period, though, they've been opening new locations, they've been acquiring other locations. It now has 150 locations, gyms around the country. It's moving closer to 190 by financial year end as well, to make it a significant gym group. 

We've seen a lot of inflation over the last six to nine months. The business has been able to pass that inflation onto its members by increasing membership prices, which in the context of its business is actually [a] very, very good achievement. 

The company's given guidance for this current financial year, the margins in that guidance are actually holding up quite well. So, 21-odd per cent is a good outcome for the business and that margin should grow from that point. 

As it improves its margins, as it continues to get growth on locations and revenue, they will actually garner more investor attention.

MF: Fantastic. The third one is sports tech provider Catapult Group International Ltd (ASX: CAT), which has also almost halved in share price year to date. 

AS: This is a business that provides wearables and video analytics to professional sports teams. It's also very sticky, very low-churn revenue, and it's a pretty small relative cost for a very useful product for teams. 

The wearables part of the business, it's been growing 30-odd per cent for years. Last year, Catapult made an acquisition in advanced video analytics, the business was called SBG. And that's really going to help drive the video side of the business that had been lagging previously.

It's been free cash flow generative before, but spent money over the last couple of years integrating those two products together into something that combines the wearables and the video analytics and actually looks to be a first for that market, which is very exciting. 

From next year, the company has said that it's going to be free cash flow positive, if only slightly. But that will put it on good footing because from that point, we'd still be expecting their preferred metric of revenue to be growing 20%-plus over the next couple of years with some good operating leverage. 

So that's another one where a value should flow through and be more clear over the next few years.

MF: Your fund holds both Catapult and Viva at the moment?

AS: We hold both of those, yes.

The post 2 ASX shares to buy that have HALVED in price this year: fund manager appeared first on The Motley Fool Australia.

However, a number of ASX All Ords shares are performing materially better on Melbourne Cup Day. Here's why these three shares are off to the races today:

EML Payments Ltd (ASX: EML)

The EML share price has bounced back from a heavy decline on Monday and is up 38% to 56 cents. Investors were selling the payments company's shares yesterday after the company revealed that regulatory action was being taken against the UK operations of its Prepaid Financial Services business.

Janison Education Group Ltd (ASX: JAN)

The Janison share price was up as much as 7.5% to 50 cents this morning before giving back some gains. The education technology company's shares are currently up over 3% to 48 cents at the time of writing. That's despite there being no news out of Janison.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has surged over 13% higher to 58.5 cents. Once again, this is despite there being no news out of the ecommerce company today.

Why are these ASX All Ords shares storming higher?

One potential reason for the strong gains being recorded by these ASX All Ords shares is news that Readytech Holdings Ltd (ASX: RDY) has received a takeover offer this morning.

The enterprise technology company is the latest in a growing list of beaten down tech shares that private equity and larger peers have been running the rule over following heavy declines this year.

So, with EML, Janison, and Redbubble all down materially since the start of the year, some investors may be snapping up their shares today on the belief that they could be next in line to receive an offer.

Time will tell if that is the case.

The post Here are 3 ASX All Ords shares that are off to the races today appeared first on The Motley Fool Australia.

There are definitely some cheap shares out there, according to Elston Asset Management portfolio manager Justin Woerner.

Speaking to Livewire, Woerner singled out a number of cheap ASX All Ords tech shares that have slumped by more than 80% this year to date.

He did not suggest whether or not these specific companies are good opportunities. However, he believes the sell-off in tech shares has much more to do with changing investor risk appetites and interest rate hikes than negative adjustments to their fundamentals.

Woerner said:

Technology businesses tend to be less mature and rely on long-term revenue growth to justify valuations. Higher interest rates have worked to discount valuations. So, most of the price damage has been due to contracting PE (price-to-earnings) ratios rather than weakening earnings.

If you're willing to look through the short-term volatility, we see long-term value for several of the higher-quality technology businesses.

Here are the three ASX All Ords tech shares mentioned by Woerner as the biggest fallers this year. However, he urged caution when it comes to investing in the tech sector, saying companies need to be assessed on their individual merits.

EML Payments Ltd (ASX: EML)

The EML Payments share price is down by 81% year to date. It ended Friday's session at 63 cents.

The payment solutions platform was ousted from the ASX 200 in September due to not keeping up with the pack in terms of market capitalisation. Other bad news included being one of the most shorted ASX shares on 12 September.

However, some positive news emerged in August when the company announced its full-year results for FY22. EML Payments shares leapt 11% amid its earnings card hitting the market.

The company posted record revenue of $234.41 million, as well as a group underlying net profit after tax (NPAT) of $32.1 million. A $20 million share buyback program was also announced.

Redbubble Ltd (ASX: RBL)

The Redbubble share price is down 85% so far this year, closing on Friday at 50 cents.

The e-commerce company for artists has been having a rough ride in the recent past, including crashing 26% when it announced its first-quarter update on 20 October.

Red Bubble's earnings before interest and tax (EBIT) turned sharply negative during the quarter, ending with a $17 million loss. To put this into perspective, in the previous quarter this ASX All Ords share reported a $0.9 million profit.

It also inflated its expenses during the quarter, including a $3.8 million brand investment, and increased staff salaries and wages by $4.7 million.

Disappointing results were also recorded for FY22, as its earnings before interest, taxes, depreciation and amortisation (EBITDA) nose-dived 121.25% year over year to $11.2 million.

Dubber Corp Ltd (ASX: DUB)

The Dubber Corp share price is down 88% year to date to 32 cents.

Although the cloud-based call recording company's shares have been on a downward slide since late last year, shares slipped a massive 35% on 10 October due to its accounts being audited and then posted to the market.

The audit showed that its revenues were $10.3 million lower than its unaudited results described. Not only were its revenues lower, but its costs had also been significantly underestimated, too. Its total current loss stands at $83.2 million, compared with the previous unaudited figure of $64.7 million.

In a separate release to the market that day, the ASX All Ords share announced it was relieving its CFO Peter Curigliano of his duties with immediate effect.

On Tuesday, the company released its latest quarterly activities report. It reported cash receipts in the September quarter of $9.5 million, up 42% quarter-on-quarter. Operating cash costs increased by $500,000 to $20 million, while revenue was $6.6 million — down 3% quarter-on-quarter and up 10% year-on-year. Cash on hand at 30 September was $73.8 million.

The Dubber share price fell 8.6% on the day of the release.

The post Down more than 80% in 2022, are these ASX All Ords shares now screaming bargains? appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Allkem Ltd (ASX: AKE)

The Allkem share price is down 1.5% to $14.68. This follows the release of the lithium miner's quarterly update this morning. Although Allkem reported strong revenue and cash margins thanks to sky high lithium prices, investors appear concerned by rising project costs.

Bowen Coking Coal Ltd (ASX: BCB)

The Bowen Coking Coal share price is down 14% to 32.2 cents. This has been driven by the coal miner announcing the successful completion of an $85 million placement at discount of $0.30 per share. The funds raised from the placement will be applied to infrastructure guarantees and prepayments, growth and working capital.

Pantoro Ltd (ASX: PNR)

The Pantoro share price is down 16.5% to 14.2 cents. This has also been caused by the completion of an equity raising this morning. The gold miner revealed that it has received firm commitments for an institutional placement to raise $28.5 million at a discount of 14.5 cents per share. Proceeds will be applied to support the Norseman Project as it ramps up to full production, as well as for working capital.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has continued its decline and is down a further 4.5% to 50.7 cents. Investors have been selling off this ecommerce company's shares this week following another poor update. As well as lacklustre top line growth, the company revealed a significant increase in its salaries and wages to $19.3 million for the quarter. This annualises at a massive $77.2 million.

The post Why Allkem, Bowen Coking Coal, Pantoro, and Redbubble are dropping today appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is down 3.5% to $6.12. This morning analysts at Credit Suisse downgraded the auto parts retailer's shares to a neutral rating and cut the price target on them by 90 cents to $6.60. This followed the release of a trading update at Bapcor's annual general meeting on Wednesday which revealed higher than expected costs.

BrainChip Holdings Ltd (ASX: BRN)

The BrainChip share price is down 6% to 88.5 cents. This is despite there being no news out of the heavily shorted semiconductor company. Though, it is worth noting that the tech sector is a sea of red today, with the S&P/ASX All Technology Index currently down 3.9%.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down 7% to $1.87. Investors have been selling this gold miner's shares following a drop in the gold price and the release of its quarterly update. The former has seen a number of gold shares tumble today. This has led to the S&P/ASX All Ordinaries Gold index falling 2.7%.

Redbubble Ltd (ASX: RBL)

The Redbubble share price has crashed 26% to 53.5 cents. This follows the release of another poor update from this ecommerce company. To the disbelief of many, the loss-making Redbubble is increasing its costs materially in FY 2023. This includes increasing its salaries and wages by $4.7 million during the first quarter, which took them to $19.3 million and annualises at a massive $77.2 million. That's more than half its market capitalisation. Incredibly, further increases to its wages of at least $9.3 million are expected over the remainder of FY 2023!

The post Why Bapcor, BrainChip, Evolution Mining, and Redbubble shares are sinking appeared first on The Motley Fool Australia.

In morning trade, the e-commerce company's shares are down 26% to a two-year low of 53 cents.

This makes it the worst performer on the All Ordinaries Index (ASX: XAO) today.

It also means the Redbubble share price is now down 84% since the start of the year.

Why is the Redbubble share price crashing?

Investors have been heading to the exits in their droves this morning following the release of the company's first-quarter update.

For the three months ended 30 September, Redbubble reported a 5% decline in gross transaction value (GTV) to $134.9 million and a 5% reduction in underlying marketplace revenue (MPR) to $102 million. Both metrics were down 8% in constant currency despite the Australian dollar's significant weakness this year.

While that wasn't great, things got worse the further down the income statement you travelled.

For example, Redbubble's gross profit fell 7% to $39.4 million or 10% in constant currency terms.

Finally, the company's earnings before interest and tax (EBIT) turned negative during the quarter and went from a profit of $0.9 million to a whopping $17 million loss. That's despite its gross profit only falling $3 million year on year.

Bizarrely, at a time when most companies are cutting costs, Redbubble has increased its costs materially. It made a $3.8 million brand investment, which didn't even deliver sales growth, recorded a $4 million increase in other expenses, and increased its salaries and wages by $4.7 million.

The latter means that its salaries and wages totalled $19.3 million for the first quarter. Annualised, this equates to $77.2 million, which is the equivalent of half the company's market capitalisation!

But it won't stop there, it intends to increase its salaries and wages by $14 million to $18 million in FY 2023. This means at least another $9.3 million increase over the remainder of the year.

Management commentary

Redbubble's CEO Michael Ilczynski commented:

The MPR this quarter was down $5.1 million versus the pcp. This largely reflects the impact of cycling $4 million of mask sales within the Accessories category, and the encouraging and continued growth in the T-Shirts category of 12% or $7 million. The growth in T-Shirts was not sufficient to offset the decline in the Artwork and Homeware categories. The MPR result was impacted by slightly lower sales in Australia, Europe and the UK than expected, particularly in September. Importantly, the Group's largest market, North America, remained resilient in the first quarter of FY23.

Salaries and wages totaled $19.3 million for the first quarter. The increase in salaries and wages reflects our strategy to invest to drive revenue and margin growth, with 76% of new FTEs since July 2021 added to our growth focused areas of Product & Technology, Marketing, Commercial and Supply Chain & Logistics.

FY 2023 guidance

Redbubble's guidance for FY 2023 remains unchanged.

It continues to expect revenue growth and "compelling" unit economics, as represented by the GPAPA margin, supported by the 6% average base price rise from early May 2022.

The post Why did this ASX All Ordinaries share just crash 26%? appeared first on The Motley Fool Australia.