But as we now know, a bunch of companies emerged as COVID winners due to catapulting demand for their products and services as we all settled in for a completely new way of life over three years.

With the pandemic now over, many of those ASX shares have now crashed, or at least returned to the price levels they were trading at before the pandemic hit us.

Let's review the performance of these eight ASX shares.

As the charts below show, all of the companies experienced strong share price gains over 2020 and 2021 before commencing a long and slow drift back down.

Marley Spoon SE (ASX: MMM)

High demand for home grocery delivery services sent the Marley Spoon share price skyrocketing. Marley Spoon delivers recipe-based meal kits to households around the world.

Consumers under lockdown looked for new ways to get their groceries, and Marley Spoon provided an answer. These ASX shares went from less than 30 cents in February 2020 to $3.55 in August 2020.

As at yesterday's market close, the Marley Spoon share price finished at 11.5 cents, down 4.17% for the day.

Domino's Pizza Enterprises Ltd (ASX: DMP)

While couped up at home, Australians ordered a lot of takeaway food. Stimulus payments gave many more households the budget to order in, and initiatives such as Zero Contact Delivery made Domino's additionally appealing to germ-wary consumers.

The Dominos share price went from about $63 in February 2020 to a peak of about $162 in September 2021.

At yesterday's close, Dominos shares finished at $43.55 apiece, down 5.86% on Tuesday.

Yesterday, the company announced a raft of store closures, including its entire network in Denmark.

Zip Co Ltd (ASX: ZIP)

During the pandemic, the whole world went shopping online, which provided a boon for ASX BNPL shares like Zip.

The Zip share price went from about $3.65 in February 2020 to a peak of about $12.35 in February 2021.

Yesterday, the Zip share price closed at 50 cents, down 1% for the day.

Harvey Norman Holdings Limited (ASX: HVN)

Harvey Norman was one of many ASX retail shares to benefit from the online shopping craze during the pandemic.

As people spent more time in their homes, they began renovating and redecorating to improve their new 24/7 work and living environments.

The Harvey Norman share price went from about $4.75 in February 2020 to a peak of about $6 in March 2021.

Ansell Limited (ASX: ANN)

It was a great time in history to be a manufacturer of medical-grade gloves and other personal protective equipment (PPE).

Ansell was among a number of ASX healthcare shares to experience strong gains during the COVID era.

Ansell shares went from about $31.50 apiece in February 2020 to a peak of about $42.30 in April 2021.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Long periods of lockdown meant Australians needed to be entertained for many more hours during the day than usual.

This provided an opportunity for entertainment services companies such as Nine, and their ASX shares went up as a result.

The Nine share price went from about $1.75 in February 2020 to a peak of $3.10 in November 2021.

Aristocrat Leisure Limited (ASX: ALL)

Another way Australians kept themselves entertained during the pandemic was through online gaming.

COVID prompted Aristocrat to turbocharge its online gaming business.

As we reported at the time, Aristocrat's FY21 half-year results revealed a 28% surge in revenue in its digital gaming business and an 18% increase in net profit after tax (NPAT) despite ongoing pubs and clubs closures.

Aristocrat shares went from about $37.30 in February 2020 to a peak of about $48.30 in November 2021.

REA Group Ltd (ASX: REA)

One of the biggest surprises of the pandemic was an all-out real estate boom.

COVID led to one of the most significant structural population shifts seen in Australian history, with tens of thousands of people selling their homes and relocating to suit their new circumstances.

Many city dwellers, particularly in Sydney and Melbourne, sold up and moved away from expensive inner-city areas to the urban fringe, where they could afford to buy large family houses on big blocks.

Working from home meant they no longer needed to be close to their CBD offices.

Many people upped stumps altogether and headed to regional areas or interstate, with the Gold Coast and Sunshine Coast two of the biggest beneficiaries of this internal migration.

The REA share price went from about $114 in February 2020 to a peak of $176.80 in November 2021.

The ASX All Ords crash and recovery

The S&P/ASX All Ordinaries Index (ASX: XAO) fell by 33% between late February and late March 2020.

It went from about 7,230 points to 4,855 points over this short time frame.

The ASX All Ords is currently trading higher than its pre-pandemic level, finishing at 7,329 points at yesterday's market close.

The All Ords closed up 0.23% for the day on Tuesday and is 2.78% higher in the year to date.

The COVID-19 market crash also provided an opportunity to pick up some ASX shares on the cheap for long-term growth.

We recently featured 9 ASX shares that investors should have bought and held in 2020.

The post 8 ASX shares that were COVID winners but have now crashed appeared first on The Motley Fool Australia.

The S&P 500 Index (SP: .INX) rose a modest 0.73% whilst the Nasdaq Composite (NASDAQ: .IXIC) index gained just over 1%. The ASX 200 is making headway in afternoon trade on Wednesday, with Block (ASX: SQ2) shares the biggest gainer, up 8.3%, but still down 41% over the past 12 months. 

The softer-than-expected US inflation print gives the green light to US Federal Reserve chair Jerome Powell to raise interest rates by 50 basis points overnight Wednesday.

The main game in town now for stock market watchers is predicting the terminal interest rate and when the Fed will start cutting interest rates.

Quoted on Bloomberg, Jason Katz, managing director and private wealth adviser at UBS, expects interest rates will stay higher for longer.

If they cut rates in the latter part of next year, that's going to be because they broke things along the way and things are ugly. So it's our view that the terminal rate lands anywhere between 5%-5.25% and remains there for the full calendar year.

Such an outcome would likely continue to put pressure on global stock markets, certainly for the first half of next year. Although the ASX 200 has had a good year, certainly when compared to the double-digit losses widely seen on Wall Street, you'd imagine there would be some comeuppance should US markets continue to fall.

2) Of course, not everyone shares the same views as Jason Katz – the divergence of opinion and thoughts is what makes a market.

"The coming year for investing may turn out to be better than many expect for stocks even though a recession appears likely," pros at Natixis Investment Management said Wednesday on MarketWatch.

"I'm bullish because everybody is bearish," said Jack Janasiewicz, portfolio manager and lead portfolio strategist at Natixis Investment Management Solutions. "The downside is already reflected in the market."

Simple is often best, especially given how hard it is to predict what might happen to the economy, to the consumer, to interest rates, to unemployment, to inflation, and more.

3) Writing in their November monthly update, the Surrey Australian Equities Fund said they "are positive on the outlook for Australian equities over the medium term".

Our view remains that inflation has been materially impacted by supply chain issues and as these normalise and higher interest rates take effect, inflation could ease and with it the recent sharpness of interest rate increases… Should rates increases start to slow and the US 10-year bond yield settles, we are positive on equity valuations.

The fund also notes, when it comes to small-cap stocks, positive recoveries often follow down years. 

In 2022, huge gains in resources stocks have helped offset massive losses in growth stocks, such that the S&P/ASX Small Ordinaries Index (ASX: XSO) is down "only" 19% so far this year. Adopting the simple technique of being bullish because everyone else is bearish, I'd guess a basket of beaten-down small-cap growth stocks will outperform in 2023.

I own more than my fair share of small-cap "dogs of 2022", although thankfully I haven't owned them all year, somewhat limiting my losses. 

Moving into 2023, I'm holding out recovery hopes for these dogs, with their one-year share price performance noted. In alphabetical order…

BlueBet Holdings Ltd (ASX: BBT) – down 73%

Field Solutions Holdings Ltd (ASX: FSG) – down 51%

Marley Spoon (ASX: MMM) – down 81%

Plenti Group Ltd (ASX: PLT) – down 64% 

RPM Automotive Group Ltd (ASX: RPM) – down 44%

Swoop Holdings Ltd (ASX: SWP) – down 77%

Hydration Pharmaceuticals Co Ltd (ASX: HPC) – down 72%

Touch Ventures Ltd (ASX: TVL) – down 64%

It's a motley group of companies, with little in common, apart from the devastating falls experienced by shareholders over the past 12 months.

That said, apart from Touch Ventures, which is an investment vehicle trading at a significant discount to its net asset value, they are all growing quickly, mostly have cash or little to no debt, and are either profitable or trade around break-even.

Here's hoping for a happier 2023 and beyond for these dogs, and to the micro-cap (and fun but risky, so please don't try this at home) portion of my portfolio. I look forward to reporting back on progress come this time next year. 

The post "Bullish because everybody is bearish" – here are 8 dogs of 2022 I'm backing for the win in 2023  appeared first on The Motley Fool Australia.

At the time of writing, the ASX share is trading 12% higher at 27 cents apiece having blown off an intraday high of 30.5 cents.

Marley Soon share price rallies following quarterly

Key takeouts from the quarter include:

• Q2 2022 net revenue at $158 million, +35% growth year-over-year
• H1 2022 net revenue of $308 million, +34% growth year-over-year (+26% growth in constant currency)
• Global Contribution Margin in Q2 at 27.2%, a 50 basis point improvement over the prior
  corresponding period (PCP)
• Q2 Operating EBITDA loss of $4.37 million
• Operating Cash Flow at negative $7.72 million and quarter end cash balance of $42 million
• On track to deliver full year 2022 guidance

What else happened this quarter for Marley Spoon?

The company says that it successfully executed its "three-pillar growth strategy" during the quarter.

This included investment in growing active subscribers, growing basket size and complementing the meal kit business.

Active subscribers grew 13% in the quarter to 309,000 nearly the same level of growth seen in Q1 2022, whereas basket size grew 23% year on year.

Overall, net revenue for Q2 2022 grew 35% year on year leading to an operating EBITDA loss of around $4.4 million, however the company is on track to deliver its full year guidance.

Management commentary

Speaking on the results, Marley Spoon CEO, Fabian Siegel said:

In the second quarter we continued to see good growth that was driven by the successful execution of all three pillars of our growth strategy. We continue to acquire subscribers at attractive unit economics, we have increased average order volumes by expanding our offering to our customers and revenue from our newly acquired ready-to-heat business, Chefgood, further drives growth of our Australian segment.

While the business is growing healthily, we were also able to keep margins stable year-over-year,
offsetting operational headwinds and inflation.

What's next for Marley Spoon?

Marley Spoon expects further challenges from inflation and supply chain volatility. It reaffirms full-year guidance of "mid-to-high teens YoY net revenue organic growth plus full year contribution from Chefgood; Contribution Margin in-line with 2021 [and]; Operating EBITDA better than [$21 million]".

Marley Spoon is down more than 90% in the past 12 months.

The post Guess which beaten down ASX share is surging 20% today appeared first on The Motley Fool Australia.

The S&P/ASX All Ordinaries Index (ASX: XAO) has weathered a 0.8% decline since the beginning of the month. Though, a subset of companies inside the index might receive more punishment this month.

Commonly, investors that are ready to call it quits on an underperforming investment begin to action their sell orders in June as the end of the financial year draws near. As you might imagine, this can momentarily depress the performance of ASX shares.

In particular, companies that have already experienced significant falls in the financial period tend to have a greater chance of landing on the chopping block.

In light of this, here are nine companies that might be subjected to increased selling this month.

ASX All Ords shares that could be tax time targets

One common market adage is, "sell in May and go away." Though, this isn't such a feasible approach for long-term investors. Additionally, the share market isn't predictable enough to confine it to such simple rules. If it were, we'd all be timing the market perfectly — and, we know that isn't the reality.

However, it is always helpful to mentally be readied for potential short-term share price weakness. Furthermore, if these are companies shareholders believe are winners over the long-term, any downside this month could serve as a buying opportunity.

Below is a list of ASX All Ords shares that have experienced the greatest falls during the financial year. Based on the above-mentioned logic, these companies could be in the sights of investors looking to make use of capital losses:

From the above table, we can see that buy now, pay later (BNPL) companies fell out of favour during this time. ASX All Ords shares such as Sezzle and Zip have both been incinerated, tumbling more than 90% since 1 July 2021.

Meanwhile, other ASX shares that could experience further selling this month include former standouts. Companies like Cettire, Pointsbet, and Dubber were all stellar performers in FY21. Unfortunately, this financial year has seen their respective share prices turn and retreat.

A previous version of this article mistakenly included Tabcorp Holdings Limited (ASX: TAH), which has since been removed given YTD share price falls were attributable to The Lottery Corp Ltd (ASX: TLC) demerger.

The post 9 ASX All Ords shares that could be stung by tax-loss selling appeared first on The Motley Fool Australia.

We profile three of these ASX shares below.

Bigtincan Holdings Ltd (ASX: BTH) 

The first ASX share to look at is enterprise mobility software provider, Bigtincan. It's trading at 63 cents on Wednesday afternoon — down 7.34% — and hit a new 52-week low of 61 cents earlier. We haven't heard any price-sensitive news from Bigtincan since 25 February when it released a very pleasing half-year report. Revenue hit a record $45.9 million — up 142% on the prior corresponding period (pcp). Annualised recurring revenue (ARR) was $112 million — up 132%. Plus, the company turned its adjusted EBITDA around to $1.2 million in the green compared to $3.6 million in the red in the prior period.

Bigtincan CEO David Keane described 1H FY22 as a "transformational period", particularly due to the Brainshark acquisition. All sounds very positive, right? Well, get this. The stock has tumbled by 23% since that report was released. Is this a classic buying the dip opportunity? For perspective, the 52-week high is $1.53.

Marley Spoon AG (ASX: MMM)

You might remember when ASX share Marley Spoon was among the most spectacular COVID-19 winners. Of course it was — those home-delivered meal packages came in very handy during the lockdowns. The Marley Spoon share price flew during the first six months of the pandemic. It went up a remarkable 1,024% from 29 cents to around $3.20 between mid-February and mid-August 2020. Yep, no kidding. The All Ords fell 13.3% over the same period.

But as society has gotten a handle on the virus, the share prices of some of the pandemic winners have returned to Earth. The Marley Spoon share price has been dwindling downwards since July 2021. This morning it hit a 52-week low of 38 cents. It later rebounded to 41 cents — a healthy daily gain of 7.89%.

Megaport Ltd (ASX: MP1)

Megaport is down 0.11% at the time of writing to trade at $8.90. Earlier it dipped to $8.55, which was a new 52-week low for the ASX tech share. A recent quarterly update disappointed ASX investors, with the Megaport share price dipping 18% on the day it was released. But this might be an opportunity, according to Goldman Sachs. The broker continues to rate the network-as-a-service (NaaS) provider a buy. However, it has cut its price target for Megaport shares to $13.10. Goldman believes "the long term opportunity for MP1 is unchanged." Megaport's 52-week high is $22.

The post Is this opportunity knocking? 3 ASX shares hitting 52-week lows today appeared first on The Motley Fool Australia.

Whilst Australian benchmarks like the S&P/ASX 200 Index (ASX: XJO) have snapped back in the past month of trade, the tech index has failed to enjoy such a luxury.

Instead, the S&P All Technology Index (ASX: XTX) started the year up at 2,984 and slipped down to 2,536 by the quarter's end, eventually booking a 15% loss.

Now as yields on government bonds – also used as the discount rate in share valuations – surge past 3% for the first time in years, pressure remains on heavily volatile tech shares at present.

The trend's been in situ since trade restarted back in January, and there have been some seriously underwhelming performances in that time. Here's a look at the laggards in the tech industry from last quarter.

Last place in from March quarter goes to…

Undoubtedly there was some serious carnage last quarter for ASX tech shares. Taking the bottom 41 names in descending order, as a group, the average loss was 31.84% whilst the median loss (exactly in the middle) was 28.43%.

Leading the way was Cettire Ltd (ASX: CTT) with a stunning 68% loss for the three months, whilst Advanced Human Imaging Ltd (ASX: AHI) also lost 67%.

Sezzle Inc (ASX: SZL) wasn't far behind printing a 55.5% backstep for the quarter, whilst Marley Spoon AG (ASX: MMM) topped out the number 10 spot, with a 46% slippage.

In fact, checking a list of the top and bottom performing ASX tech names provided by Bloomberg data, the two top performing names were Brainchip Holdings Ltd (ASX: BRN) and Computershare Ltd (ASX: CPU) at 42% and 24.80% respectively.

However, there were only 6 names that finished in the green, with all the other tickers posted in the top and bottom performing stocks each falling deep into the red.

As a basket, tech shares have been weighed down by a number of non-specific macroeconomic catalysts. Most easy to see is the rotation out of growth and tech shares back into defensible such as mining and financials.

But there's more at play, as we've now got the first conflict in Europe in decades, and let's not forget that crazy little virus called COVID-19.

With the current commodity inflation, backed by the prospects of rising interest rates, this only adds fuel to the fire in these two industries, which appear to have stolen the gains tech shares posted last year.

Not only that, but the tech industry's earnings per share (EPS) are also the lowest in the last 7 years for the segment, according to Bloomberg data.

It remains to be seen where the direction of earnings will go from here.

The post Here's a look at the laggards from ASX tech shares last quarter appeared first on The Motley Fool Australia.

• Marley Spoon share price up 9% on strong revenue growth
• US and Aussie markets post strongest growth
• More supply chain volatility expected

The Marley Spoon AG (ASX: MMM) share price is up 8.5% in afternoon trade to 70 cents per share.

Shares in the global subscription-based meal kit provider leapt as high as 75 cents in morning trade as ASX investors digested the company's strong results for Q4 2021, for the quarter ending on 31 December.

Marley Spoon share price lifts on 24% quarterly revenue growth

• Net revenue for FY21 of 322 million euros up 27% year-on-year
• Fourth quarter net revenue of 85 million euros up 24% year-on-year
• Q4 Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of 4.8 million euros
• Year-end cash balance of 39 million euros

(1 euro = AU$1.59 at time of writing.)

What else happened during the quarter?

The 322 million euros in net revenue for FY21 was within the company's guidance range. The boost in revenue resulted in a 2-year Compound Annual Growth Rate (CAGR) of 56%.

Marley Spoon reported that Australia and the United States drove the fourth quarter revenue growth, with revenue in the Aussie market up 52% and in the US up 15%. The company attributed this to its broader range of product offerings and continued investment into increasing its subscriber base.

Shortly after the end of the reporting quarter, Marley Spoon completed its acquisition of Chefgood Pty Ltd in Australia. The acquisition is intended to expand the company's customer choice and increase its average revenue per user (ARPU).

What did management say?

Commenting on the results, Marley Spoon's CEO, Fabian Siegel said:

We are particularly pleased with our team's strong operating performance leading to the highest quarterly contribution margin of 31% in a challenging operating environment. The contribution margin performance was aided by successful price increases, demonstrating the pricing power our brands enjoy.

We also improved our marketing efficiency allowing us to acquire more customers at costs in-line with previous years despite significant CPM inflation. The contribution margin expansion and disciplined investment in marketing led to an improvement in Operating EBITDA versus previous quarters, landing at €(4.8m), in line with our expectations.

What's next?

In its guidance for the full 2022 calendar year, Marley Spoon said it will "focus on continued growth within its current balance sheet capacity".

The company expects customer behaviour to remain volatile along with supply chain disruptions and inflation. Guidance (excluding the contribution of Chefgood) was reported as:

• Mid-to-high teens year-on-year net revenue organic growth (plus full year contribution from Chefgood)
• Contribution Margin in-line with 2021
• Operating EBITDA better than €(15m)

Marley Spoon share price snapshot

The Marley Spoon share price is down 28% so far in 2022. That compares to a loss of 8% posted by the All Ordinaries Index (ASX: XAO).

The post Marley Spoon (ASX:MMM) share price leaps 9% today on revenue growth appeared first on The Motley Fool Australia.

At the time of writing, Marley Spoon shares are fetching 82 cents apiece, up 17.27%. Earlier in the day, they hit a high of 86 cents, a gain of almost 24% on yesterday's closing price.

Marley Spoon boosts existing portfolio of brands

Investors are pushing up the Marley Spoon share price after the company revealed the acquisition will expand its addressable market.

According to the release, Marley Spoon has entered into an agreement to take over Melbourne-based ready-to-heat meal provider, Chefgood.

Offering more than 30 meals rotating every week across different subscription plans, Chefgood targets healthy and weight-conscious consumers. The company's manufacturing facilities in Melbourne produce high-rating Australian ready-made meals.

Under the deal, Marley Spoon will acquire 100% of the share capital in Chefgood for a total purchase price of up to $21 million. This will be payable in three tranches in January 2022, September 2022, and May 2023.

In addition, there are earn-outs of up to $5.6 million over the next 2.5 years based on the achievement of revenue targets.

The acquisition is expected to give Marley Spoon a foothold in a growing and complementary category.

Chefgood is operating at a $26 million net revenue run-rate based on the 3-month period of September to November 2021. This represents a growth of 137% year on year.

Furthermore, the company is generating positive earnings before interest, tax, depreciation, and amortisation (EBITDA) and net cash flow.

The acquisition is anticipated to close in January 2022 at which the first payment tranche of $10 million is due.

Marley Spoon will fund the transaction through an $8 million equity placement, and an $11 million extension to its existing debt facility.

About the Marley Spoon share price

Marley Spoon is a leading global subscription-based meal kit provider. The company services customers in Australia, the United States, and across Europe.

In the past 12 months, the Marley Spoon share price has fallen by around 70%, despite today's strong gains. Investor sentiment has waned in the company which has seen its shares sink by almost 50% since late October.

Based on today's price, Marley Spoon presides a market capitalisation of $214.46 million and has approximately 284.05 million shares outstanding.

The post Marley Spoon (ASX:MMM) share price leaps 17% on acquisition news appeared first on The Motley Fool Australia.

Marley Spoon shares started the day flat before trading as low as 80 cents during intraday trading. They finished the day at 82 cents apiece, up 0.62%.

It's been a bumpy ride down south for the company these past few months, and shares are now trading at 3-month lows after coming off a high of $2.09 in September.

The Marley Spoon share price is now down 20% for the month as a result, and lags the benchmark S&P/ASX 200 Index (ASX: XJO) by a considerable amount in that time.

What's up with Marley Spoon shares lately?

Investors began selling Marley Spoon shares in droves again in October when the company released its update for the quarter ending 30 September 2021.

During the 3 months, the company grew revenue 14% year on year to 79.2 million euro. It left the quarter with 33 million euro in cash on the balance sheet – a 17% jump from the previous year.

However, investors were quick to compare Marley Spoon's H1 FY21 trading update – where sales grew by 38% – and its most recent results.

Investors were equally spooked by the company's guidance downgrade. It now estimates a lower sales growth of 26%–28% compared to previous guidance of 30%–35% growth at the top line.

The company blamed its downward revision of guidance on "volatile customer behaviour" at the time, alongside "staffing challenges, higher labour rates, and food cost inflation".

Nonetheless, investors violently sold off their Marley Spoon positions following the trading update, and the share price tanked in vertical fashion in the days afterwards. It hasn't reversed course since.

Since then, the market hasn't wanted a slice of Marley Spoon's meal-kit service. For example, today total volume of Marley Spoon shares traded was at just 30% of its 4-week average volume. For comparison, the day before its trading update, it traded on a volume of 1.25 million shares.

Without the forward earnings guidance to bite into, it appears investors have left the Marley Spoon party and show no sign of returning any time soon.

Marley Spoon share price snapshot

It's been a year of pain for Marley Spoon shareholders, with the share price collapsing 50.5% in the last 12 months. It has tanked 63.6% just this year to date.

These results are well behind the benchmark ASX 200 index's return of around 10% in the last year.

The post The Marley Spoon (ASX:MMM) share price just hit another 52-week low. What's going on? appeared first on The Motley Fool Australia.

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

Audio Pixels Holdings Ltd (ASX: AKP)

The Audio Pixels share price has tumbled 11% to $23.55 following the release of its quarterly update. Investors may be concerned with the digital speaker development company's balance sheet. At the end of the period, the company had cash of just under $500,000 and a $2 million loan facility. This gives it just 1.7 quarters worth of funding.

Marley Spoon AG (ASX: MMM)

The Marley Spoon share price has crashed 31% to $1.04. This follows the release of the meal kit delivery company's quarterly update. Due to volatile consumer behaviour, the company has downgraded its full year revenue growth guidance. It now expects growth of 26% to 28% compared to previous guidance of 30% to 35% growth.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is down 6% to $8.11. Investors have been selling the sports betting company's shares since the release of its first quarter update yesterday. That update revealed softer growth than the market was expecting. Goldman Sachs believes the selloff is a buying opportunity.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan Energy share price is sinking 14% to $12.89. This morning this lithium developer's shares returned to trade after responding to a scathing report from short-focused activist investor J Capital. In response, Vulcan stated that the report contains many claims that are wrong and misleading. Despite this, a good number of investors appear to have been spooked and have been rushing to the exits on Friday.

The post Why Audio Pixels, Marley Spoon, PointsBet, and Vulcan shares are sinking appeared first on The Motley Fool Australia.

At the time of writing, shares in the company are trading for $1.04 – down 31.1%. Earlier, shares hit an intraday and 52-week low of 99 cents per share, which is a 34.4% pummelling.

Let's take a closer look at the news.

Why the Marley Spoon share price is in freefall

The Marley Spoon share price is heading south and it comes after the company's Q3 FY21 update, released after the market closed yesterday.

What is seemingly spooking investors is the downward revision of its full-year net revenue. The company blames "volatile consumer behaviour" for the downward growth rate of only 26-28% as opposed to the previously advised 30-35%.

Specifically, the company says "staffing challenges, higher labour rates, and food cost inflation are continuing to impact contribution margin". This is in addition to "extensive" summer holidays from Europeans enjoying leisure activities after months of lockdown. Apparently, this resulted in "higher skip rates and lower acquisition volume".

As well, Marley Spoon advised revenue grew 14% on the prior corresponding period (pcp) to 79.2 million Euros ($112.8 million) and a total cash position of 33 million Euros ($51.1 million) – up 17% on the pcp.

Compared with net revenue from its H1 21 update – which grew 38% — this is a massive downgrade in growth projections.

Management commentary

Commenting on the update likely driving down the Marley Spoon share price, CEO Fabian Siegal said:

Q3 net revenue growth is broadly in line with our expectations and an acceleration vs. the last quarter. Nevertheless, volatile customer behaviour during the Northern Hemisphere summer resulted in higher-than-normal skip rates and a higher cost acquisition environment. In order to maintain attractive unit economics, we reduced customer acquisitions, which will impact Q4 and therefore require us to revise our 2021 net revenue growth to 26-28%.

We have since seen a recovery in base behaviour and improved customer acquisition costs. Given these factors, Q4 net revenue growth is trending higher than Q3 2021 and the PCP. The overall structural growth trend for online groceries remains intact and gives us confidence that we will continue to sustain high growth rates at attractive unit economics.

In Q4 we expect continued revenue growth and expanded margins to lead to a significantly lower level of operating EBITDA [earnings before interest, taxes, depreciation, and amortisation] losses vs. Q3.

Marley Spoon share price snapshot

Over the past 12 months, the Marley Spoon share price has crashed by around 60%. Year-to-date it is down by a similar percentage.

Marley Spoon has a market capitalisation of approximately $302 million.

The post Marley Spoon (ASX:MMM) share price crashes 34% to new 52-week low appeared first on The Motley Fool Australia.

Here are the 5 worst performing ASX shares (with a market capitalisation greater than $300 million) that wound up in the bargain bin last month.

5 worst performing ASX shares in September

1. Jindalee Resources Ltd (ASX: JRL)

The Jindalee Resources share price comes in as one of the worst performing ASX shares last month, tumbling 38% to $2.34.

The company's preliminary scoping study for its McDermitt Lithium Project was a major catalyst behind its sharp declines.

The announcement, released on 16 September, struggled to provide investors with enough tangible metrics to determine the feasibility of its lithium project.

The preliminary scoping study cautioned that it was "based on an indicated and inferred mineral resource … there is a low level of geological confidence associated with inferred mineral resource".

Jindalee shares tumbled 10.95% to $3.01 on the day of the announcement.

2. Marley Spoon AG (ASX: MMM) 

The Marley Spoon share price took a major hit in early September when Woolworths Group Ltd (ASX: WOW) decided to sell its stake in the company.

On 6 September, the supermarket giant offloaded 28,026,000 Chess Depository Interests (CDIs) or 9.87% of the company at $1.91 per CDI.

Marley Spoon shares plunged 10.34% on the day. They finished last month down 30.6% to a 15-month low of $1.47.

3. Fortescue Metals Group Ltd (ASX: FMG)

The Fortescue share price has wound up between underperforming small caps, tumbling 28% in September to a 15-month low of $14.96.

Unlike its peers, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) that have diversified mining portfolios, Fortescue copped the brunt of the selling as iron ore prices hit as low as US$92 a tonne.

4. BlueBet Holdings Ltd (ASX: BBT)

Sports betting shares like BlueBet, Betmakers Technology Group Ltd (ASX: BET), and PointsBet Holdings Ltd (ASX: PBH) have fallen out of favour in recent months.

The BlueBet share price took a 21% dive on 6 September after the company withdrew its application for a Sports Betting Permit in the US State of Virginia.

The company advised that the decision "follows an exhaustive licence application process comprising 18 applications for only 5 available permits".

The BlueBet share price tumbled 27% in September to a 2-month low of $1.83.

5. Mount Gibson Iron Ltd (ASX: MGX)

Mount Gibson is another iron ore name winding up in September's worst performing ASX shares list.

Iron ore prices reversed so fast that Mount Gibson made the tough call to ramp down and suspend operations at its Shine project.

Mount Gibson said that "given recent significant adverse movements in iron ore prices, product discounting and shipping freight rates, the Company will implement a staged suspension of operations at the Shine mine site to reduce expenditure and preserve the value of the deposit, as well as to provide time to assess the outlook for the iron ore market".

Its shares tumbled 24% in September, close to 2-year lows of 48 cents.

The post These were the 5 worst performing ASX shares in September appeared first on The Motley Fool Australia.

Shares in the supermarket giant have stalled after the company announced a change to its holdings.

Let's take a look at what Woolworths announced.

Woolworths sells $54 million stake in Marley Spoon

Earlier today, Woolworths announced that the company has ceased being a substantial holder in Marley Spoon AG (ASX: MMM).

As reported by my Foolish colleague, the retail conglomerate has sold its stake in the food box delivery company.

Woolworths announced that it had sold 28,026,000 Chess Depository Interests (CDIs) in Marley Spoon via an underwritten block trade.

The trade, worth approximately $54 million, represented a 9.87% stake in Marley Spoon.

Woolworths sold its interest at $1.91 per CDI, equating to a 6% discount on Marley Spoon's previous closing price.

In 2019 and 2021, Woolworths invested nearly $30 million in the food box delivery company via its subsidiary W23 Investments Pty Ltd.

More on Woolworths

Apart from the Marley Spoon announcement, the Woolworths share price has been in the spotlight recently.

In May, the supermarket giant made headlines following the demerger of its Endeavour business.

The demerger saw Endeavour Group Ltd (ASX: EDV) become a separately listed entity that owns retail and drinks businesses.

Late last month, shares in Woolworths received a boost after reporting strong full-year results for FY21.

Highlights from the company's report included;

• Group sales rose 5.7% to $67,278 million
• eCommerce sales surged 58.1% to $5,602 million
• Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
• Group net profit after tax up 22.9% to $1,972 million
• Final dividend of 55 cents per share

Most recently, Woolworths released its first annual sustainability report.

Since launching its Sustainability Plan 2025 in 2020, Woolworths announced its carbon emissions are 27% less than its 2015 baseline.

For FY21, the company also highlighted it has reduced its plastic usage by more than 2,500 tonnes.

Snapshot of the Woolworths share price

Shares in the company have had a stellar year thus far, hitting record highs in late August.

Since the start of the year, the Woolworths share price has surged more than 16%.

At the time of writing, shares in the supermarket giant are trading slightly lower for the year at around $40.42.

The post Woolworths (ASX:WOW) share price lower after selling stake in meal box company 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:

Appen Ltd (ASX: APX)

The Appen share price has fallen almost 4.5% to $10.53. This decline appears to have been driven by profit taking after a strong gain in recent sessions. Prior to today, this artificial intelligence data services company's shares were up almost 10% since the start of September.

BlueScope Steel Limited (ASX: BSL)

The BlueScope share price is down 1.5% to $23.46. The catalyst for this decline has been the steel producer's shares trading ex-dividend this morning for its 44 cents per share final dividend. Eligible shareholders can now look forward to receiving this dividend in just over a month on 13 October.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has dropped 3% to $18.00. This follows a sizeable decline in the iron ore price overnight. According to Metal Bulletin, the benchmark iron ore price fell 9.3% to US$131.50 a tonne. This was in response to Chinese authorities taking a stricter stance against steelmakers on steel production curbs and the start of sintering restrictions.

Marley Spoon AG (ASX: MMM)

The Marley Spoon share price is down 9% to $1.84. Investors have been selling the meal kit delivery company's shares after Woolworths Group Ltd (ASX: WOW) revealed that it has sold its stake in the company. According to the release, the retail conglomerate has sold 28,026,000 Chess Depository Interests (CDIs) via an underwritten block trade. This represents a 9.87% stake in the company. Woolworths agreed to sell its interest for $1.91 per CDI, which equates to a discount of 5.9%.

The post Why Appen, BlueScope, Fortescue, & Marley Spoon shares are dropping appeared first on The Motley Fool Australia.

In morning trade, the meal kit delivery company's shares are down 8% to $1.86.

This means the Marley Spoon share price is now down 31% from $2.71 since the start of the year.

Why is the Marley Spoon share price sinking?

The catalyst for the weakness in the Marley Spoon share price today was news that Woolworths Group Ltd (ASX: WOW) has sold its stake in the company.

According to the release, the retail conglomerate has ceased to be a substantial holder following the completion of a sale of 28,026,000 Chess Depository Interests (CDIs) or 28,026 ordinary shares in Marley Spoon via an underwritten block trade. This represents a 9.87% stake in the company.

Woolworths has agreed to sell its interest for $1.91 per CDI, which equates to a discount of 5.9% to where Marley Spoon shares were trading at Monday's close.

This values Woolies' offloaded stake at approximately $53.5 million.

What now?

One positive for the Marley Spoon share price is that Woolworths may no longer be a shareholder, but it doesn't plan to leave the company high and dry.

The release notes that in June 2019, Woolworths and Marley Spoon entered into a five year strategic growth alliance. This alliance covers things such as marketing support and customer origination programs, as well as cooperation on logistics and supply chain operations.

Positively, Woolworths continues to remain committed to the ongoing growth alliance at least until the end of the agreement in 2024.

The retail giant has not yet commented on the reason for the sale of its Marley Spoon stake. Nor has it revealed what it plans to do with the proceeds.

The post Marley Spoon (ASX:MMM) share price sinks 8% after Woolworths sells its stake appeared first on The Motley Fool Australia.

Shares in the subscription-based meal-kit provider are trading lower after releasing its results for the first half of FY21 at the close of yesterday's session.

Let's take a look at how Marley Spoon performed in the first half.

How did Marley Spoon perform for the first half of FY21?

For the first half ending 30 June 2021, Marley Spoon delivered solid topline results.

The company's report was headlined by a 36% growth in revenue – 158 million euro ($255 million) – for the first half.

Marley Spoon attributed the strong growth to a 37% increase in active subscribers, which hit 272,000 in the first half.

Despite revenue growth, the company cited operational challenges for the first half driven by supply chain disruptions.

As a result, Marley Spoon reported a contribution margin (CM) of 27.3% for the first half. This compares to 30.1% in the prior corresponding period.

In addition, the company noted that increased investment in marketing resulted in general expenses increasing to 19% of revenue.

Overall, Marley Spoon reported global operating earnings before interest, tax, depreciation and amortisation (EBITDA) loss of 14.8 million euro ($23.9 million). This compares to a loss of 2 million euro ($3.2 million) in the first half of 2020.

The company finished the first half with a cash balance of 46.3 million euro ($74.8 million). It cited breakeven cash from operations.

Outlook for Marley Spoon

Marley Spoon anticipates continued growth for the second half of 2021.

As a result, the company reaffirmed its full-year net revenue guidance of 30%–35% growth compared to the prior corresponding period.

Marley Spoon also expects CM to increase in the second half. The company expects full-year CM expected to be in line with last year's full-year margin of 29%.

As a result of continued investment in growth marketing, it expects to incur further operating EBITDA losses in the second half of 2021.

Marley Spoon noted that this strategy will translate to negative cash from operating activities for the second half.

The company noted its strategy for 2022 and beyond will focus on continued investment for strong customer and revenue growth.  

Marley Spoon CEO Fabian Siegel highlighted, "We are excited about our long-term growth potential over the coming years, and we believe we are adequately funded to fulfil these growth ambitions."

Snapshot of the Marley Spoon share price

Marley Spoon is the second largest subscription-based meal-kit provider in Australia. The company delivers fresh ingredients to customers in Australia, the United States and Europe.

The Marley Spoon share price has struggled to gain traction in 2021. Shares in the company are trading more than 27% lower since the start of the year.

At the time of writing, Marley Spoon shares have tumbled 2.48% in early trade, hitting an intra-day low of $1.86.

The post Marley Spoon (ASX:MMM) share price tumbles on half-year result appeared first on The Motley Fool Australia.

Here is what the team have come up with…

Tristan Harrison: Pushpay Holdings Ltd (ASX: PPH) 

Pushpay is a digital giving payments business, focusing on US churches. It also develops church management software. 

The business has seen a large increase in donations during the COVID-19 period, though Pushpay said it hasn't seen a return to non-electronic donating with the US opening up. There has seemingly been a permanent shift among many donors to digital donations. 

Pushpay is seeing operating leverage and expects more to come as it grows. FY21 saw operating revenue rise 40%, but net profit grew 95% and operating cash flow surged 145%.  

The Pushpay share price is currently valued at around 28x FY23's estimated earnings. 

Motley Fool contributor Tristan Harrison does not own shares of Pushpay Holdings Ltd 

Bernd Struben: Marley Spoon AG`s (ASX: MMM)

My top pick for August is meal kit maker and global grocery provider, Marley Spoon.

Marley Spoon has operations across Australia, the United States and Europe. With the onset of the global pandemic, demand for its meal kit business soared. And once these trends take hold, they often stick for the long-term.

Now, this may be a bit like catching a falling knife. The Marley Spoon share price fell some 22% on Friday following the release of the company's second quarter results. However, Marley Spoon confirmed its FY21 net revenue guidance, expecting revenue growth of 30–35% year-on-year.

With last week's sharp selloff, August could see a healthy rebound.

Motley Fool contributor Bernd Struben does not own shares in Marley Spoon.

Mitchell Lawler: Super Retail Group Ltd (ASX: SUL)

The ASX share making its way into my top pick for August is auto, outdoor, and sports retailer – Super Retail Group. Many would know the company from its more than 670 stores under the banners Supercheap Auto, Rebel, BCF, and Macpac.

Super Retail Group revealed like-for-like (LFL) sales growth of 28% for the first 44 weeks of FY21 in a trading update provided in May.

The company is slated to report earnings on 18 August 2021. If the recent boom in used car sales is anything to go by, its FY21 results could be impressive.

Motley Fool contributor Mitchell Lawler does not own shares of Super Retail Group.

James Mickleboro: Hipages Group Holdings Ltd (ASX: HPG)

Hipages is Australia's largest online tradie marketplace and Software-as-a-Service provider, connecting tradies with residential and commercial consumers.

Last week it released its fourth quarter update and revealed strong growth across all key metrics. This led to Hipages exceeding its upgraded full year revenue guidance with a 22% year on year jump to $55.8 million.

Goldman Sachs was impressed with its performance and put a buy rating and $4.10 price target on its shares. This compares to the current Hipages share price of $3.20. The broker is forecasting ~20% revenue growth per annum and even quicker operating earnings growth over the next three years.

Motley Fool contributor James Mickleboro does not own shares of Hipages.

Sebastian Bowen: Telstra Corporation Ltd (ASX: TLS)

My August top stock pick is ASX 200 telco Telstra. Telstra has had a very impressive run in 2021 so far, up more than 25% year to date.

However, Telstra's dividends are still looking pretty good against many ASX 200 shares as of this week. Its annual 16 cents per share dividend amounts to a raw yield of 4.23% on recent pricing, or 6.05% grossed-up with Telstra's full franking.

What's more, there could still be plenty of gas left in the tank. Broker Goldman Sachs currently has a buy recommendation on Telstra shares, with a 12-month share price target of $4.20 a share, a potential upside of 11% from here.

Motley Fool contributor Sebastian Bowen owns shares of Telstra.

The post Top ASX shares to buy in August 2021 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 tumbling lower:

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price is down 4.5% to $5.86. The weakness in this infant formula company's shares appears to have been driven by another soft quarterly update by smaller rival Bubs Australia Ltd (ASX: BUB). That update revealed that its fourth quarter revenue was down 4% on the prior corresponding period. This led to full year revenue falling 24% year on year.

Marley Spoon AG (ASX: MMM)

The Marley Spoon share price has crashed 22.5% to $2.16 following the release of its second quarter update. Investors have been selling the meal kit delivery company's shares after its update revealed a sharp slowdown in its sales growth. Management advised that this reflects a normalisation in consumer behaviour.

Origin Energy Ltd (ASX: ORG)

The Origin share price has sunk 8% to $4.11. The catalyst for this was the announcement of a $2.2 billion impairment charge. This comprises $1,578 million of post-tax charges relating to Energy Markets goodwill and generation assets, and a tax expense of $669 million relating to a deferred tax liability. Management also warned that its Energy Markets earnings would drop materially in FY 2022.

Sezzle Inc (ASX: SZL)

The Sezzle share price has crashed 11% lower to $7.16. This is despite the release of the buy now pay later provider's strong second quarter update. That update revealed a 118.7% increase in underlying merchant sales and a 122.6% jump in income. This was driven by the almost doubling of its customer numbers over the last 12 months. Today's decline may be due to Amazon's weaker than expected quarterly update.

The post Why A2 Milk, Marley Spoon, Origin, & Sezzle shares are tumbling lower appeared first on The Motley Fool Australia.

Shares in the food company have been on the receiving end of some brutal selling.

The bearish price action follows Marley Spoon's recent trading update.

Let's take a look at what Marley Spoon announced and why investors are jumping ship.  

Marley Spoon reports mixed quarterly update.

Marley Spoon released its update for the second quarter of FY21 following the market's close yesterday.

Judging by today's price action, the company's performance was below market consensus.

Overall, for the quarter ending 30th June 2021, Marley Spoon reported further growth, albeit at a slower rate.

The company's report was highlighted by revenue of EUR80.6 million, a 10% improvement on the prior corresponding period.

Marley Spoon's management noted that revenue growth was driven by all regions, in particular Europe.

Overall, Marley Spoon reported a first half revenue growth of 36% year on year.

The company also cited a 37% year on year increase in active users. Marley Spoon reported revenue from customers ordering 6 or more times increased to 71% for the first half.

What is weighing down the Marley Spoon share price?

As noted in a colleague's previous article, Marley Spoon's operating result could be weighing down the Marley Spoon share price.

In its update, the company cited an operating loss of EUR9 million. For the first half, Marley Spoon reported an operating loss of EUR15 million.

However, Marley Spoon has re-affirmed its 2021 net revenue guidance. The company expects net revenue growth between 30% to 35% year on year for 2021.

Marley Spoon also noted operational headwinds in the first half of 2021. As a result, the company revised its Contribution Margin (CM) to be approximately 29% in 2021, in line with CY 2020.

Snapshot of the Marley Spoon share price

Marley Spoon is the second largest subscription-based meal-kit provider in Australia. The company delivers fresh ingredients to customers in Australia, the United States and Europe.

Thanks to today's brutal selling, the Marley Spoon share price is more than 18% lower since the start of 2021.  

At the time of writing, shares in Marley Spoon are down 22%, trading at $2.17.

The post Why the Marley Spoon (ASX:MMM) share price is sinking 22% today appeared first on The Motley Fool Australia.

This follows the release of the meal kit delivery company's second quarter update.

How did Marley Spoon perform in the second quarter?

Marley Spoon continued its growth during the second quarter of FY 2021, albeit at a slower rate than recent quarters following a normalisation in customer behaviour.

According to the release, the company reported second quarter revenue of EUR80.6 million, which was up 10% on the prior corresponding period. Management advised that this was driven by all regions, with Europe leading at 43% growth compared to the prior corresponding period.

This ultimately led to its first half revenue growing 36% year on year.

What about earnings?

Potentially weighing on the Marley Spoon share price tomorrow could be its operating result.

The update reveals that the company recorded an operating loss of EUR9 million during the period. This led to a half year operating loss of EUR15 million. Management advised that this was driven by its investment in growth and talent.

In addition, the company reported a Contribution Margin of 27% for the second quarter, down nearly 4 percentage points versus the same period last year. Management blamed this on an adverse operating environment in the US.

Outlook

One positive that may lend some support to the Marley Spoon share price on Friday was management reaffirming its revenue guidance for FY 2021.

Despite the slowdown in the second quarter, it expects to deliver year on year growth of 30% to 35%.

Though, this positive may be offset by a downgrade to its Contribution Margin guidance to 27%. This is down from its prior guidance of 28% and in line with FY 2020's Contribution Margin.

Management commentary

Marley Spoon's CEO, Fabian Siegel, commented: "We are pleased to report continued post-COVID growth for the past quarter. Net revenue grew 12% on a constant currency basis. More importantly, our Active Subscriber base, a leading indicator of true underlying growth, grew 37% year over year."

"User behaviour across the regions has mostly normalized to its pre-COVID state with the 2021 holiday season being more pronounced than in pre-COVID years. Our business continues to show strong growth enabling us to re-affirm full year 2021 net revenue guidance."

Mr Siegel then provided more colour on the aforementioned adverse operating conditions in the US.

He explained: "However, in Q2 our team continued to face operational headwinds, especially in our US business. These included unprecedented weather disruptions in Q1, which led to the temporary closure of our Texas site, and acute nationwide labour shortages which not only impacted our facilities directly, but also affected our inbound food supply and logistics partners. We are implementing a series of measures across the organisation and supply chain to improve productivity and quality. These improvements are mitigating the impact on our margins and customer satisfaction. Given the aforementioned we are revising our CM guidance for the year to be consistent with the 2020 margin."

Nevertheless, the CEO remains positive on the future and expects strong revenue growth over the coming years.

He concluded: "Our investment in growth and strengthening our operational bench, paired with the lower than expected margin in H1 led to a negative Operating EBITDA margin of (9%) for the half year. At the same time, we controlled investments to deliver near to break-even cash from operating activities. We are also pleased to have secured additional funding in Q2 to further support our 2021/2022 growth investments and mid-term ambition of becoming a 1 billion Euro revenue business by 2025."

The post Marley Spoon (ASX:MMM) share price on watch after mixed Q2 update appeared first on The Motley Fool Australia.