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

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

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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

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

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

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

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

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

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Avita Medical, GenusPlus, Mesoblast, and Polynovo shares are storming higher

These shares are having a better day than most today. But why?

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why EOS, News Corp, Polynovo, and Pro Medicus shares are roaring higher today

These shares are starting the week positively. But why?

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Share Gainers

5 ASX 200 stocks marching higher this week even as the market sinks

These five ASX 200 companies are shrugging off the broader selling to march higher this week.

Read more »

Rising share price chart.
Share Gainers

Why Novonix, HMC, Karoon Energy, and Ventia shares are pushing higher

These shares are ending the week on a positive note. But why?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

3 top ASX 200 stocks I wish I'd owned in 2024

These three top ASX 200 stocks are racing higher in 2024.

Read more »

Man pointing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Champion Iron, EBR Systems, Mesoblast, and Patriot Battery Metals shares are surging today

These shares are avoiding the market selloff on Thursday. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors ended up snatching defeat from the jaws of victory today.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Clarity, Omni Bridgeway, Santana Minerals, and Vulcan shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »