ASX 200 up 0.85%: A2 Milk & Zip shares hammered, Afterpay to raise $1.25bn

A2 Milk Company Ltd (ASX:A2M) and Zip Co Ltd (ASX:Z1P) shares are making a big splash on the ASX 200 on Thursday…

| 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

At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is back on form and charging higher. The benchmark index is currently up 0.85% to 6,836.4 points.

Here's what is happening on the market today:

A2 Milk share price sinks

The A2 Milk Company Ltd (ASX: A2M) share price is sinking heavily today following the release of its half year results. Although the infant formula and fresh milk company delivered a first half result in line with expectations, it doesn't expect its second half performance to be strong enough to achieve its full year guidance. As a result, it has downgraded its already downgraded full year guidance. It now expects revenue of ~NZ$1.4 billion and an EBITDA margin of 24% to 26%. Its previously downgraded guidance was for revenue of NZ$1.4 billion to NZ$1.55 billion with an EBITDA margin of 26% to 29%.

Afterpay half year results

The Afterpay Ltd (ASX: APT) share price isn't going anywhere today after requesting a trading halt. This is so the payments company can undertake a $1.25 billion notes offering to fund the buyback of equity in its Afterpay US business. In respect to its results, Afterpay reported a 106% increase in underlying sales to $9.8 billion and a 108% jump in total income to $374.2 million. However, the company didn't post a maiden profit as some had expected. Instead, it reported a loss after tax of $79.2 million.

Zip share price hammered

The Zip Co Ltd (ASX: Z1P) share price has been hammered on Thursday following the release of its half year results. For the six months ended 31 December, Zip reported a 141% increase in total transaction volume (TTV) to $2.32 billion. This underpinned a 130% jump in half year revenue to $160 million. Investors appear to have been expecting a stronger result.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Nanosonics Ltd (ASX: NAN) share price with an 8% gain. This morning analysts at Morgans upgraded its shares to an add rating with a $6.69 price target. The worst performer has been the a2 Milk share price with a 14% decline following its half year update.

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 Nanosonics Limited and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Nanosonics Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to the trading week for investors this Friday.

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

3 ASX All Ords shares smashing the benchmark this week

Investors are sending these three ASX All Ords shares rocketing 18% to more than 29% this week. But why?

Read more »

watch
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why APA, Flight Centre, Reece, and Transurban shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

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

Why Alliance Aviation, BHP, Boss Energy, and Orthocell shares are racing higher

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

Read more »

Mum playing with her baby boy holding him on her tummy as she lays down while smiling about the Bubs share price going up today
Broker Notes

Following two unfortunate incidents, what's Macquarie's price target on Monash IVF shares?

Is Monash IVF a buying opportunity?

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Macquarie tips 18% return for this ASX 200 stock

The broker thinks this blue chip's profits are going to rebound in FY 2026.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Broker Notes

Bell Potter names more of the best ASX 200 shares to buy in FY26

These shares are among the best to buy in the new financial year according to its analysts.

Read more »