Why Are Investors Eyeing These IT Stocks - MP1, NEA, Z1P

  • Apr 21, 2019 AEST
  • Team Kalkine
Why Are Investors Eyeing These IT Stocks - MP1, NEA, Z1P

IT stocks - MP1, NEA, Z1P commonly featured a share price movement trading close to its 52-week high. News or updates released by these companies worked in favour of the stock leading to such price reaction. Let’s explore these updates, chased by the share price movement.

Megaport Limited (ASX: MP1)

Megaport Limited (ASX: MP1) released its global update for 3Q FY19 with key performance highlights. Revenue came in at $8.96 million, recording a growth of 8% from the last quarter. Total installed data centres were 264, an increase of 19 across three regions or 8% Q-o-Q. The company’s cash position as on March 2019, stood at $73.8 million (incl. bank term deposits and excl. up to $10 million proceeds from the Share Purchase Plan, which is likely to close on 26 April 2019). Analysing the operating activities, the network operating cost cash outflows were $8.5 million against $5.3 million in the previous quarter, including a $2 million prepayment one-off item for ongoing equipment services. Advertising and marketing expenses spiked at $679K as compared to $371K in the previous quarter.

On the back of strong quarterly update announced, the stock was trading near its 52-week high. At the current market price of $5.200, the market capitalisation for the stock stands at $711.57 million as of 18 April 2019. Looking at the price performance, the stock has appreciated 49.45% in last one year, 44.65% on YTD basis, 58.19% in the last six months, and 23.23% in the last five trading sessions.

Nearmap Limited (ASX: NEA)

Nearmap Limited (ASX: NEA) in its update communicated that S&P Dow Jones Indices has removed MYOB Group Limited (ASX: MYO) from the S&P/ASX 200. MYO Group Limited will be replaced by Nearmap Limited effective after the close of trading on April 24, 2019, in the S&P/ASX 200.

The company recorded strong numbers in 1H FY19, with revenue posting 45% growth at $35.49 million. Total subscription revenue went up 44% to $35.14 million on the back of strong growth from Australia and the US markets. The company enjoys a clean balance sheet with zero debt with closing cash balance at $81.33 million as on December 2018.

At closing market price of $3.270 on 18th April 2019, the market capitalization for the stock stood at $1.52 billion. Today, the stock was trading near its new 52-week high of $3.580. However, it closed in red, down 4.106%. Analysing the price performance, the stock has proved to be a wealth creator for investors with an annual return of 274.73%. Looking at the short-term perspective, the stock has gained 22.22% in the last one month and 12.91% in the last five trading sessions.

Zip Co Limited (ASX: Z1P)

Zip Co Limited (ASX: Z1P) reported that the Share Purchase Plan (SPP) announced on 14th March 2019, is closed on 11th April 2019, with a successful oversubscription of $42.8 million (before cost), raising an additional $8.9 million. Zip Co, under the SPP, sought to raise up to maximum $5 million and reserved the right to scale back applications, if the total raised fund crosses $5 million.

The company in its earlier release updated that Westpac Banking Corporation (WBC) and its associated entities have increased its stake to 15.85% as on 02 April 2019 from 14.42% as on 26 March 2019.

The group increased customer numbers from 738,000 to over 1 million in H1 FY19, while the number of merchants accepting Zip increased from 10,500 to over 12,600. Revenue saw a significant growth of 114% to $34.2 million in H1 FY19, largely driven by an increase in transaction volume from $235.3 million to $495.2 million in H1 FY19. The company experienced a loss of $6.76 million in H1 FY19, significantly lower than the loss of $14.58 million in H1 FY18.

At closing market price of $2.390, the market capitalisation stood at $889.56 million on 18 April 2019. The stock is trading towards its 52-week high, which is $2.820. The stock has witnessed a significant gain of 200% in the last one year.


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