On Friday, the United States' 16th largest bank, Silicon Valley Bank (SVB), collapsed following a bank run.

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.

Two ASX tech shares are making big moves today.

Albeit in opposite directions.

The S&P/ASX All Technology Index (ASX: XTX) is down 1.4% following sharp losses posted by tech stocks on the NASDAQ Composite Index on Friday.

But that hasn't deterred investors from bidding up fintech stock Praemium Ltd (ASX: PPS), which was up 11% in earlier trading and remains up 7.12% at the time of writing.

Bigtincan Holdings Ltd (ASX: BTH) isn't receiving the same love today. Shares in the company, which provides an AI-powered, online sales enablement platform, are down 3.77%, having earlier posted losses of more than 8%.

Both ASX tech shares are making these big moves after releasing their half-year results for the six months ending 31 December.

Here's what investors are mulling over.

ASX tech share sinks as losses mount

Kicking off with the earnings results for Bigtincan Holdings, the ASX tech share reported some mixed results for H1 FY23.

On the plus side, revenue from ordinary activities increased 31% from H1 FY22 to $60.2 million.

And annual recurring revenue (ARR) of $130 million represented a record result.

This helped drive a 74% lift in adjusted earnings before income, taxes, depreciation and amortisation (EBITDA) to $2.1 million.

But investors look to be selling off the ASX tech share amid rising costs.

Operating expenses for the half year came in at $70.1 million, up 38% year on year. This saw the company book a loss after income tax of $18.2 million, compared to a loss of $10.5 million in H1 FY22.

That was reflected in a big fall in diluted earnings per share (EPS). That came in at negative 3.97 cents per share, down from negative 2.46 cents per share in the prior corresponding period.

Commenting on the results pressuring the ASX tech share today, Bigtincan CEO David Keane focused on the company's boost in recurring revenues:

We are pleased to deliver another record ARR result in 1H FY23, with the Company continuing to deliver market leading products, win important customer deals, and progressing our commitment to materially improved adjusted EBITDA…

1H FY23 our Multi-Hub strategy continued to benefit the business with Multi-Hub ARR growing from 17% in the previous corresponding period, to 29% of total ARR at the end of 1H FY23.

The company reconfirmed its full-year guidance.

Which brings us to…

Praemium share price lifts on profit growth

The Praemium share price is charging higher post its half-year results.

The ASX tech share reported the divestment of its international operations was completed on 30 June. Its Australian segment is now the company's sole focus.

Investor interest looks to be piqued today by a big lift in statutory net profit after tax (NPAT) to $9.1 million. Revenue of $35.4 million was up 17% year on year.

Praemium also reported record half-year EBITDA of $11.4 million, up 52% from H1 FY22.

Also during the six-month period, the company paid a 5 cents per share, fully franked special dividend on 10 August. And it kicked off a $25 million share buyback, with $6.6 million deployed as at 31 December.

Funds under management on the investment platform grew 6% from 30 June to reach $42.7 billion.

Commenting on the results boosting the ASX tech share today, CEO Anthony Wamsteker said:

The 2023 financial half-year has seen key strategic decisions pay off with increased profitability and enhanced shareholder returns. This result, derived from strong net funds flow, margin expansion and discipline on costs, has delivered a step change improvement in operating leverage.

The post 2 ASX tech shares making massive moves right now on earnings updates appeared first on The Motley Fool Australia.

ASX artificial intelligence (AI) stocks haven't had a great run over the past 12 months.

To say the least.

Atop some company-specific issues, AI companies came under selling pressure as global interest rates shot up from historic lows to combat fast-rising inflation.

That's because ASX AI stocks, like the three we look at below, are priced with future earnings growth in mind. And as interest rates ratchet up, so too does the present cost of investing in those future earnings.

So, after a rough 2022, could 2023 be the year these ASX AI stocks come roaring back?

Tailwinds ahead?

As well as potentially seeing their share prices gain from increasing revenue, stronger forward guidance, or technology improvements within their business models, ASX AI stocks could receive some helpful tailwinds on several fronts.

First, as mentioned, interest rates.

Should inflation in Australia and the developed world cool down, we could see the RBA and other global central banks pause their current tightening cycle and even begin to lower rates. That would offer a welcome boost to growth shares, like ASX AI stocks.

Second, we have ChatGPT and Bard.

You've probably been reading about ChatGPT, or are even making use of it.

ChatGPT is a product of OpenAI, which is largely backed by global tech powerhouse Microsoft Corporation (NASDAQ: MSFT). And it can write essays and text on a wide range of subjects, spurring a huge amount of media attention.

Then there's Bard, a chatbot with similar goals developed by Alphabet (NASDAQ: GOOG), or Google to you and me.

Like ChatGPT, Bard is designed to learn and improve its functionality without intervention from its human creators.

Both systems, backed by trillion-dollar companies, already have impressive capabilities. And as the rivalry between Google and Microsoft in this space heats up, funding and research into ramping up those capabilities is likely to soar.

That, alongside the buzz this is likely to create among investors, could well help ASX AI shares turn their fortunes around in 2023.

How have these three ASX AI stocks been performing?

Among the ASX AI stocks investors can consider is Bigtincan Holdings Ltd (ASX: BTH). The company provides an AI-powered, online sales enablement platform.

The Bigtincan share price, as you can see below, has been on a bit of a rollercoaster over the past 12 months, a ride that's left shares down 38%.

2023 has been tracking somewhat better for the stock, with shares flat in the new year.

The next ASX AI stock in our crosshairs is AI data services company Appen Ltd (ASX: APX).

The Appen share price was a strong performer in 2023. At last close on Friday, shares were up 33% year to date.

A big part of those gains were delivered over the last four trading days of the week just past. That surge looks like it may have been driven by investor exuberance surrounding ChatGPT.

But after the company reported this morning that it expects to recognise a non-cash, pre-tax impairment charge of $204 million, investors are hitting the sell button, sending shares down 13.55% in intraday trading so far.

As you can see in the graph below, the Appen share price is down 66% over 12 months, but still remains up a healthy 15% in 2023.

Which brings us to our third ASX AI share, BrainChip Holdings Ltd (ASX: BRN).

BrainChip is involved in developing neuromorphic computing, a branch of AI that simulates the function of the human neuron.

And like the other two tech stocks above, the BrainChip share price, pictured below, has gotten hammered over the past 12 months, down 58%,

So far, 2023 hasn't been much kinder to shareholders, with the ASX AI share down 18% year to date.

The post Could 2023 be the year these ASX AI stocks come roaring back? appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) is back in the green on Monday, helped along by shares in these four companies.

They're each starting the week off on the right foot, soaring more than 10% today.

Meanwhile, the All Ordinaries Index is up 0.77%, trading at 7,598.3 points.

So, what's driving the All Ords stocks higher today? Let's take a look.

4 ASX All Ordinaries shares leaping more than 10% today

Leading the All Ordinaries today is lithium share Ioneer Ltd (ASX: INR). It's launching 20.22% right now to trade at 54.7 cents a share.

The stock's gains come amid news the company has been offered a US$700 million loan from the United States Department of Energy to help fund the development of its Rhyolite Ridge lithium-boron project in the US state of Nevada.

The project is expected to strengthen the United States' critical mineral supply chain.

Joining the All Ordinaries lithium share in the green today is stock in Kogan.com Ltd (ASX: KGN). Shares in Kogan are up 12.9% right now, swapping hands for $4.55 apiece.

That's despite no news having been released by the online retailer. In fact, there's been no word from the company since CEO Ruslan Kogan said it's on track to return to its "historic growth trajectory and profitability" in November.

The Bigtincan Holdings Ltd (ASX: BTH) share price is also bolstering the All Ordinaries Index today. It's rising 13.59% to trade at 58.5 cents a share.

The artificial intelligence-powered software provider revealed its annual recurring revenue (ARR) surpassed $130 million in the first half of financial year 2023.

And with that, the tech stock remains on track to reach its full-year guidance of $137 million to $143 million of ARR, between $123 million and $128 million of revenue, and positive cash flow and adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA).

The final All Ordinaries share soaring more than 10% today is former market favourite Zip Co Ltd (ASX: ZIP). Shares in the buy now, pay later (BNPL) provider are gaining 10.25% right now to trade at 67.25 cents apiece.

Like Kogan before it, there's been no word from the company to explain today's gains. Though, it's been on a roll so far this year. The stock has jumped 33% since the final close of 2022.

The post 4 ASX All Ordinaries shares surging over 10% on Monday appeared first on The Motley Fool Australia.

While a good number of ASX All Ordinaries shares are pushing higher today, three have been standout performers with particularly strong gains. Here's why these All Ords shares are on fire today:

Australian Ethical Investment Ltd (ASX: AEF)

The Australian Ethical share price is up 8.5% to $4.61. This is despite there being no news out of the ethical fund manager.

Though, with its shares down by two-thirds this year amid weakness in the fund manager industry and increasing competition in ethical investing, some investors may believe they have been oversold and are snapping them up today.

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is bouncing back after being sold off in recent sessions. At the time of writing, the sales enablement platform provider's shares are up 7.5% to 57.5 cents.

Investors have been selling down the Bigtincan share price in recent sessions after the company decided to raise capital while still the subject of a takeover approach. The selling had been so strong that even after today's sizeable gain, the company's shares are still trading below the capital raising offer price of 60 cents per new share, which was a 16.7% discount to its share price at the time.

As things stand, its suitor, SQN, hasn't withdrawn its 80 cents per share takeover proposal. Though, it was very unhappy with management's decision to raise capital.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price has rebounded from a selloff on Monday and is up 15% to $1.38. Investors were selling off this payments company's shares yesterday after takeover talks with Potentia and Westpac Banking Corp (ASX: WBC) ended.

And while there are rumours circling that Tyro may need to raise capital soon, that hasn't stopped investors from piling in today. They may believe that there's still hope that an improved takeover proposal could be tabled in future.

The post 3 ASX All Ordinaries shares going gangbusters on Tuesday 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 sinking:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is down a further 6% to 53 cents. This sales enablement platform provider's shares have been smashed in recent sessions after the company's strange decision to raise capital while it is the subject of a takeover approach. Bigtincan raised $30 million at 60 cents per share despite having received an 80 cents per share takeover offer.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 13% to $4.22. This is despite there being no news out of the heavily shorted infection prevention company. Though, it is worth noting that a major shareholder revealed that it has been selling down its stake. State Street sold over 3.5 million shares last week.

Origin Energy Ltd (ASX: ORG)

The Origin share price is down almost 8% to $7.20. Investors have been selling Origin and other utilities shares in response to news that Prime Minister Anthony Albanese is planning a price cap on domestic coal and gas sales. Energy Minister Chris Bowen said: "It's Australian gas, under Australian soil and Australians should not be paying elevated war prices for that gas."

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is down over 17% to $1.23. This morning Tyro concluded takeover talks with Potentia and Westpac Banking Corp (ASX: WBC) after failing to receive an acceptable offer from either party. Potentia had increased its offer to $1.60 per share, but this was swiftly rejected. Westpac never actually tabled an offer, potentially after realising that its idea of fair value was well short of what Tyro expected.

The post Why Bigtincan, Nanosonics, Origin, and Tyro shares are sinking today 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:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is down 18% to 59 cents. This follows the company's strange decision to raise capital while it is the subject of a takeover approach. Bigtincan has raised $30 million from institutional investors at 60 cents per new share. SQN, which is aiming to acquire Bigtincan for 80 cents per share, described the decision as "value-destructive" for shareholders. Investors appear concerned it could now withdraw its offer.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 2.5% to $1.15. Investors have been selling this lithium developer's shares this week after it was the subject of a bearish note out of Goldman Sachs. The broker initiated coverage on Core Lithium with a sell rating and $1.00 price target. Goldman is expecting lithium prices to tumble materially from the second half of next year.

Pinnacle Investment Management Group Ltd (ASX: PNI)

The Pinnacle share price is down 4.5% to $8.38. This morning, this investment management company released an update on its performance fees. According to the release, for the 12 months ended 31 December, Pinnacle expects its net share of performance fees from affiliates to be potentially less than $1 million. This compares with $6.4 million for the corresponding period.

Warrego Energy Ltd (ASX: WGO)

The Warrego Energy share price is down 2.5% to 29.75 cents. Investors have been selling this energy explorer's shares after Beach Energy Ltd (ASX: BPT) withdrew from the race to acquire the company. This leaves Hancock Energy in pole position to complete the deal.

The post Why Bigtincan, Core Lithium, Pinnacle, and Warrego shares are dropping today appeared first on The Motley Fool Australia.

In afternoon trade, the sales enablement automation platform provider's shares are down 20% to 57 cents.

Why is this tech share crashing?

Investors have been hitting the sell button today for a couple of reasons.

The first is that this morning the tech share revealed that it has completed a $30 million institutional placement at a 16.7% discount of 60 cents per new share. Bigtincan will also seek to raise a further $5 million from retail investors through a non-underwritten share purchase plan at the same price.

Management advised that the proceeds will be used to execute on identified strategic mergers and acquisitions, future inorganic and organic growth initiatives, and working capital and offer costs.

Takeover in danger of collapsing?

Bizarrely, this capital raising has come despite the company being the subject of a takeover approach from SQN Investors. Last week, SQN tabled an 80 cents cash per share offer, which is still under consideration.

As you might expect, SQN didn't respond positively to the news of the capital raising and believes shareholders are being short-changed. This appears to have sparked fears that it could withdraw its offer if the capital raising goes ahead, which is weighing on the tech share today.

In an open letter, SQN commented:

BTH's decision to pursue this would seem hasty and value-destructive following your receipt of our bona fide acquisition proposal that would offer the Company and its shareholders a significant all-cash premium. We strongly object to this proposed transaction and obviously will not participate in it if it materializes.

To be clear, the Company is on record with its CEO, David Keane, stating on July 27, 2022 that "the company is well funded with its cash balance. Given the cash flow discussion we've had today, the company is not looking to make any new capital raising activities, and there are no acquisitions currently planned." This disclosure is one that we and likely other shareholders have relied upon when making investment decisions.

And then suddenly you would choose to embark on this potentially dilutive and speculative capital raise? We would urge you to instead honor your fiduciary obligations and engage with the various parties that have approached you about a control transaction, including SQN Investors.

The post Why is ASX tech share Bigtincan crashing 20% on Friday? appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are charging higher:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is up 12% to 76.5 cents. Investors have been buying this sales enablement automation platform provider's shares after it received a takeover approach. Bigtincan has received an unsolicited, indicative, conditional and non-binding proposal from SQN Investors to acquire it for $0.80 cash per share. This represents a 17.6% premium to the where the tech share ended yesterday's session.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 3% to 32 cents. This is despite the infant formula company's shares copping a downgrade from Citi this morning. The broker has downgraded Bubs' shares to a hold rating and slashed their price target by over 50% to 32 cents. Citi suspects that the company's US sales are softer than expected.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is up almost 11% to 69.2 cents. This follows a strong rise by the gold price last night. Investors appear to be betting that interest rates won't rise as much as feared, which would be good news for gold. St Barbara isn't the only gold miner rising today. The S&P/ASX All Ordinaries Gold index is up 2.3% this afternoon.

Warrego Energy Ltd (ASX: WGO)

The Warrego Energy share price is up almost 10% to 28.5 cents. Investors have been buying this energy explorer's shares this week after a bidding war broke out for it. Beach Energy Ltd (ASX: BPT) has outbid Hancock Energy's 23 cents per share offer with a bid of 25 cents per share plus any net proceeds received from the sale of Warrego's Spanish assets.

The post Why Bigtincan, Bubs, St Barbara, and Warrego shares are charging higher appeared first on The Motley Fool Australia.

It's no secret the ASX loves a takeover target, and these three shares have proven to be just that. They've each been hurled acquisition bids on Friday and they're gaining as much as 26% on their suitors' attention.

Meanwhile, the broader market is in the red today. The All Ordinaries Index (ASX: XAO) is down 0.6% at the time of writing while the S&P/ASX 200 Index (ASX: XJO) has slumped 0.66%.

So, without further ado, let's take a look at the ASX shares soaring on merger and acquisition activity on Friday.

3 ASX shares taking off on takeover attention

First off the bat, the Bigtincan Holdings Ltd (ASX: BTH) share price is soaring 12.5% to 76.5 cents right now after the company announced it's received a takeover bid.

SQN Investors has offered 80 cents per share to snap up the AI-powered sales enablement automation platform provider. So far, the company hasn't accepted the proposal. It also noted SQN Investors isn't the only suitor to have shown its acquisition interest recently.

Joining Bigtincan in the takeover frenzy is Mayfield Childcare Ltd (ASX: MFD). The ASX education share is surging 25.9% to $1.215 on the back of its own takeover offer.

Its largest shareholder Genius Education Holdings has put forward a $1.28 per share bid.

Like Bigtincan, Mayfield Childcare will consider Genius Education's bid against other, albeit lower and more conditional, proposals to maximise shareholder value. In the meantime, however, it has granted its major shareholder exclusive due diligence.

Finally, today brought more news of the ongoing battle for control of Warrego Energy Ltd (ASX: WGO). Shares in the ASX gas explorer are to lifting 9.6% to trade at 28.5 cents right now.

Today, ASX 200 oil giant Beach Energy Ltd (ASX: BPT) upped its previous 20-cent per share bid for the company to 25 cents per share, plus any proceeds from the sale of Warrego's Spanish assets.

Its improved offer comes after it was outbid by Gina Rinehart's Hancock Prospecting. Hancock offered Warrego investors 23 cents per share earlier this week.

No doubt, all eyes will be on the ASX takeover targets and their share prices in the coming weeks to see how the three acquisition offers progress.

The post 3 ASX shares soaring on takeover bids today appeared first on The Motley Fool Australia.

In morning trade, the sales enablement automation platform provider's shares are up 15% to 78 cents.

Why is this tech share flying high?

Investors have been scrambling to buy Bigtincan shares today after the company received a takeover approach.

According to the release, the company has received an unsolicited, indicative, conditional and non-binding proposal from SQN Investors to acquire all of the shares in Bigtincan for $0.80 cash per share by way of scheme of arrangement.

This represents a 17.6% premium to the where the tech share ended yesterday's session.

SQN is already a substantial holder of Bigtincan and has a relevant interest in 74,940,121 shares or approximately 13.6% of its issued share capital. Farouk Hussein, a partner of SQN, has been a director of Bigtincan since October 2021.

The investment company revealed that it aims to fund the proposal by a combination of equity and possibly debt financing. However, it does not currently have binding commitments in that regard.

Will it be accepted?

As things stand, SQN has not been provided due diligence access.

However, the Bigtincan board has established an Independent Board Committee (IBC), comprising its current independent non-executive directors and its CEO and executive director, David Keane, to evaluate and respond to the proposal.

It is also worth noting that the SQN bid may not be the only one to consider. Bigtincan also explained that it has had preliminary discussions with other interested parties who have approached the company with indications of interest in respect of a potential control transaction.

The IBC will consider the proposals in an orderly manner with its advisers and in the best interests of all Bigtincan shareholders.

The post Guess which ASX All Ords tech share is soaring 12% on takeover news appeared first on The Motley Fool Australia.

While this is positive, some All Ords shares are performing significantly better and are crushing the index today. Here are three that are on fire:

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is up 8.5% to 57.5 cents. This morning this sales enablement software company released its first quarter update and revealed very strong growth. Bigtincan reported a 162% increase in customer cash receipts over the prior corresponding period to $37.7 million. This was also a 20% increase over its fourth quarter numbers. In light of this, management believes it is on track to achieve its FY 2023 guidance of annual recurring revenue in the range of $137 million to $143 million and revenue in the range of $123 million to $128 million.

Nitro Software Ltd (ASX: NTO)

The Nitro share price is up 10% to $1.77. This follows the release of the document productivity software company's third quarter update and takeover speculation. In respect to the former, Nitro reported a 51% increase in annual recurring revenue to US$55.2 million. This puts the company on course to achieve its FY 2022 guidance. As for the takeover speculation, Nitro confirmed that the company has received expressions of interest from a number of qualified third parties.

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price has jumped 20% to $2.82. This morning this semiconductor company revealed that it has successfully completed the full technology qualification of its Resistive Random-Access Memory (ReRAM) module manufactured by its research and development partner CEA-Leti. The qualification, using Weebit's demo chips incorporating its ReRAM module, confirmed the suitability of Weebit's embedded technology for volume production.

The post 3 ASX tech shares totally crushing the All Ords following big announcements appeared first on The Motley Fool Australia.

But thankfully for its shareholders, there's reason to smile at long last on Tuesday.

In morning trade, the intranet and workplace technology software provider's shares are up 22% to 6.6 cents.

Why is the LiveTiles share price rocketing higher?

Investors have been bidding the LiveTiles share price higher today after it was confirmed that the company has received a takeover proposal.

According to the release, sales enablement platform provider Bigtincan Holdings Ltd (ASX: BTH) has tabled a confidential, non-binding, indicative proposal to acquire LiveTiles by way of scheme of arrangement.

Under the indicative proposal, LiveTiles shareholders would be entitled to receive 7 cents per share, less any dividends, or distributions paid to shareholders from this day onwards. And while Bigtincan is offering cash to acquire the company, shareholders will be given the option to receive part of the consideration in the form of Bigtincan shares.

Based on LiveTiles' shares outstanding of 923,221,306, this implies a takeover price of approximately $65 million.

However, it is worth noting that discussions between the two parties are preliminary in nature and no agreement has been reached. Bigtincan also warned that there is no certainty that any transaction will eventuate.

LiveTiles has also responded to the news this morning and echoed Bigtincan's warnings. It commented:

The Board of LiveTiles will carefully consider the Proposal and advise shareholders of its views once the Proposal has been assessed. In the meantime, shareholders should not take any action in response to the Proposal. There is no certainty that the Proposal will lead to a definitive transaction or offer being made for LiveTiles.

The post LiveTiles share price soars 22% on Bigtincan takeover news 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 dropping:

Accent Group Ltd (ASX: AX1)

The Accent share price is down 5% to $1.27. This is despite there being no news out of the footwear focused retailer on Tuesday. This latest decline means the Accent share price is now down by a disappointing 49% since the start of the year. Investors appear concerned what impact a recession could have on its sales.

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is down over 4% to 55.5 cents. Investors have been selling this sales enablement software platform provider's shares despite the release of a positive business update. That update reveals that Bigtincan has successfully locked in 43% of FY 2022's annual recurring revenue (ARR) of $120.1 million through to the end of FY 2023. This compares to 31% at a similar stage a year earlier.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price has continued its slide and is down 3% to $19.37. Investors have been selling this biopharmaceutical company's shares this week after they were dumped out of the ASX 200 index at the quarterly rebalance. The release of its latest strategy update has also failed to get investors excited.

IVE Group Ltd (ASX: IGL)

The IVE share price is down 4% to $2.29. This morning this printing company announced the completion of an institutional placement. IVE has raised $18 million via the issue of 8 million shares at $2.25 per new share. The capital raising will preserve significant balance sheet capacity for IVE following a recent acquisition. This balance sheet strength will be used to pursue previously announced growth initiatives including further organic initiatives or acquisitions.

The post Why Accent, Bigtincan, Clinuvel, and IVE shares are dropping today appeared first on The Motley Fool Australia.

Here's why these are highly rated by analysts right now:

Audinate Group Limited (ASX: AD8)

The first small cap ASX share for investors to look at this week is Audinate.

It is the leading digital audio-visual networking technologies provider behind the Dante audio over IP networking solution.

The company highlights that this solution is the worldwide leader and used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries. Dante can replace traditional analogue cables by transmitting perfectly synchronised AV signals across large distances to multiple locations at once, using just an ethernet cable.

UBS is a big fan of the company. Last month, the broker put a buy rating and $10.20 price target on Audinate's shares. This implies potential upside of over 20% for investors from current levels.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap ASX share for investors to look at this weekend is Bigtincan.

It is a growing provider of enterprise mobility software to sales and service organisations. This AI-powered sales enablement automation platform is designed to allow sales representatives to more effectively engage with customers.

It appears to work well judging by its growing customer base, which includes the likes of Nike, Guess, Prudential, and Starwood Hotels, and strong annual recurring revenue growth. The latter grew 126% to $120.1 million in FY 2022.

Morgan Stanley remains very positive on the company's outlook and is expect further strong growth in FY 2023. So much so, it currently has an overweight rating and $1.15 price target on its shares. This is more than double its current share price.

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Takeover talk has hit tech town, with investment firm Potentia Capital Management having lobbed bids for two ASX shares – Nitro Software Ltd (ASX: NTO) and Tyro Payments Ltd (ASX: TYR).

Each of the offers ­– together worth more than $1 billion – was quickly rejected. Both companies said the firm's bid undervalued their business.

So, with Potentia seemingly on the hunt for a takeover and having had no luck so far, could other ASX tech shares be in its sights?

Let's take a closer look at the firm's apparent wish list and whether other stocks might fit the bill.

Potentia's $1 billion bidding spree

Nitro and Tyro have both knocked back takeover offers from consortiums led by Potentia recently. The former rejected a $1.58 per share bid late last month and the latter refused a $1.27 per share bid yesterday.

And while they work in entirely different spaces, it's not difficult to draw parallels between the pair.

Shares in the respective ASX tech titans have fallen 30% and 57% year-to-date.

Interestingly, both companies dubbed Potentia's respective bids "highly opportunistic".

Nitro's chair said the firm's bid for the company was lobbed in a period of volatility among tech shares on the ASX and around the globe.

With that in mind, let's look at the pair's most recent results.

Tyro posted $318.8 million of payments revenue for financial year 2022 (FY22) – a 39% year-on-year increase. Meanwhile, Nitro boasted U$32.7 million of total revenue for the first half of the year – a 36% improvement on that of the prior corresponding period.

It appears Potentia might have a type. Both payment services provider Tyro and document productivity company Nitro boast thriving revenue, zero debt, and a sold-off share price.

And it's not hard to find other ASX tech shares that fit the bill.

Could these ASX tech shares be in Potentia's sights?

It's been a rough year so far for ASX tech shares, in which many have suffered major sell-offs.

For instance, the Pointsbet Holdings Ltd (ASX: PBH) share price has plunged 67% year to date. The company – which grew its revenue by 52% in FY22 and holds no debt – will be dumped from the S&P/ASX 200 Index (ASX: XJO) later this month following its sell-off.

Stock in BetMakers Technology Group Ltd (ASX: BET) has also tumbled 49% so far this year despite the debt-free company recently posting a whopping 371.1% increase in revenue.

Other ASX tech shares that fit the bill include Whispir Ltd (ASX: WSP) and Bigtincan Holdings Ltd (ASX: BTH).

The former posted record FY22 revenue while the latter's revenue simultaneously lifted 143%. Their stock has fallen 62% and 41%, respectively, so far this year.

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A famous Warren Buffett saying goes "The stock market is a device for transferring money from the impatient to the patient".

But it's fair to say 2022 has tested the nerves of investors in technology stocks.

The S&P/ASX All Technology Index (ASX: XTX) has now lost almost 35% over the past 12 months, and there is not much relief in sight with the Reserve Bank continuing to increase interest rates.

"With the benefit of hindsight, high-growth tech businesses proved to be the proverbial canary in the coalmine," said Forager Funds portfolio manager Alex Shevelev and senior analyst Gaston Amoros.

"The canary went very quiet during most of 2021 and then suffered a catastrophic heart attack in 2022."

Rock-bottom share prices don't match the fundamentals

If you're willing to be patient, though, there are some bargains to be snapped up right now.

"For some of these companies… the low share prices belie the trajectory of the fundamentals."

Shevelev and Amoros took PDF and e-signature tools provider Nitro Software Ltd (ASX: NTO) as a prime example.

"After raising capital at $3.43 a share in late 2021 to fund a European acquisition, [it] saw its share price trade down to almost $1 and has now received a takeover offer from private equity funds at $1.58 a share," they said.

"The company was quick in rejecting the offer as opportunistic and significantly undervaluing the business. We tend to agree with them."

Many tech companies have reined in their spending

The Forager team noted that the new environment of higher interest rates and scrutiny on growth shares has led to many tech companies to change their ways. 

"Software vendors, in particular, keep growing fast and are now displaying a newfound zeal in cost cutting that has pulled cash flow forecasts forward," they said. 

"It is not a coincidence that we are getting opportunistic take-private bids in this space."

Nitro's shares are up almost 50% since the rejected takeover offer, although they are still about a third down since the start of this year.

According to Shevelev and Amoros, Nitro is not the only one tightening its belt and looking ripe for investors willing to ride for the long term.

"There are other good software businesses out there that offer a similar risk-reward profile to the patient investor," they said.

"In our portfolio, we are very happy with our holdings in software vendors Whispir Ltd (ASX: WSP), Bigtincan Holdings Ltd (ASX: BTH), and RPMGlobal Holdings Ltd (ASX: RUL)."

The Whispir share price is down 60.5% for the year so far, while Bigtincan is 42.4% lower and RPM Global has lost 29.1%.

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The Bigtincan Holdings Ltd (ASX: BTH) share price is finding some momentum today.

Heading into lunch, shares in the sales enablement software provider are 3.7% in the green. The positive move puts the company's share price at 70 cents. Meanwhile, the tech sector is experiencing a more subdued performance on Tuesday, with the S&P/ASX All Technology Index (ASX: XTX) up 0.91%.

This pleasing showing from Bigtincan follows the release of the company's full-year FY22 results. Here are the highlights:

Big growth bolsters Bigtincan share price

• Annualised recurring revenue (ARR) up 126% year on year to $120.1 million
• Revenue up 143% to $108.6 million
• Gross margins improved by 3% to 88%
• Adjusted EBITDA of $4.1 million, up from $6.1 million loss
• Lifetime value (LTV) up 107% to $812 million
• LTV over customer acquisition cost (CAC) improved 13% to 4.0
• Cash at the bank of $38.9 million as at 30 June 2022

What else happened in FY22?

For a company still focused on scaling up, the full-year result for Bigtincan ticks a lot of boxes.

Most importantly, top-line growth continued its accelerating trend during the 12-month period. As noted above, revenue increased by 143% in FY22. This was fuelled by a mix of organic growth and acquisitions, split at 53% and 47% respectively. For comparison, revenue was dialled up by a smaller 41.5% in FY21.

It is worth noting that this growth did come at a cost. Operating expenses jumped 142% to $127 million in FY22 due to acquisition costs, new technology investments, network infrastructure, and engineering resources.

However, the software provider now attests to having 20% of the top 500 companies globally as Bigtincan customers. This considerable foothold in the market could be giving the Bigtincan share price a boost today.

What did management say?

In light of the record result, Bigtincan co-founder and CEO David Keane fleshed out the company's achievements, stating:

In FY22, Bigtincan continued its strong trajectory of organic growth while adding scale through the transformative acquisition of Brainshark. We are happy with the quality of people, customers and technology that came with Brainshark and I'm very much looking forward to discussing Bigtincan's newly integrated product offerings with our enterprise customers this year.

What's next?

Management was confident enough in the stability of the business to provide guidance for FY23. It sure helps when the company's revenue is 94.4% recurring in nature.

For FY23, Bigtincan management is expecting between $137 million and $143 million in ARR. Meanwhile, revenue is forecast to be in the range of $123 million to $128 million. At the midpoints, these figures would suggest improvements of 15.7% and 15.6% respectively.

Additionally, the team believes cash flow breakeven will be achieved in FY23.

Bigtincan share price snapshot

Unfortunately, the Bigtincan share price has not been an exception to the dismal performance of tech shares in 2022. So far this year, the ASX-listed sales enablement business has tumbled 35%.

As a result, the company now trades on a price-to-sales (P/S) ratio slightly below the Australian software industry average of 4.3 times. Based on the current Bigtincan share price, its P/S ratio is sitting around 3.5 times.

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Firstly, it could be important to remember that investing is a long-term endeavour. What happens this month or even this year may be long forgotten in a few years from now. For example, the GFC saw huge declines for some share prices. But then there was a recovery for many businesses in the subsequent years.

But, during the time of a bear market, how are investors meant to invest and make returns?

Well, it may not necessarily be with something going up when everything else is going down. It may be finding a share, or shares, that has been hurt heavily but then goes on to recover strongly.

One of the fund management outfits that is typically effective at finding good opportunities during periods of volatility is Forager, which operates the Forager Australian Shares Fund (ASX: FOR).

Forager's advice

The Forager chief investment officer, Steve Johnson, had some wise words to say about the current investment environment for ASX shares. He said:

You need to identify businesses with characteristics that you like. Those characteristics might be the consensus view at the time that you find it, but you agree with it and you like it. You need to do your research and value the business and then you need to wait for the right environment.

What does that environment look and feel like? Well, you want to see a lot of selling. You want to see market panic and you want to see sector and business disdain. You yourself are probably going to be feeling very nervous and very uncertain. If you're not feeling that emotion then it's not a dysfunctional market.

What about the wider market? What sort of factors will we be able to see in the described scenario?

You're going to be reading bearish headlines in the paper or online and you're going to be seeing brokers downgrading their estimates for businesses. Really importantly, there's probably no obvious reasons for things to change in the short term. If it was obvious the share prices wouldn't be where they are.

That's what a dysfunctional environment feels like. And that's what we're seeing in the small cap end of the market at the moment.

What kind of ASX shares does Forager currently own?

In the latest Forager fund update, the company outlined a couple of quarterly updates from businesses in its portfolio.

Whispir Ltd (ASX: WSP) – Forager described Whispir as a communications technology business. The fund manager noted that the ASX share "burned through" $5.2 million of cash in the three months to 30 June 2022. It ended the quarter with $26.1 million in the bank account.

But, Forager said the cash flow figures don't give a true representation of the progress that the business has been making. The fund manager noted that commentary in the cash flow summary suggested revenue will exceed prior guidance of 42% growth and that costs are well controlled.

The fund manager thinks that the next financial year should already see free cash flow generation.

Bigtincan Holdings Ltd (ASX: BTH) — this business is described as a sales and training software provider. It finished the quarter with $39 million cash after utilising $4.9 million over the three months to June 2022.

Forager said that growing revenue and a declining cost base "should result in free cash flow" this financial year. The fund manager noted that the annual revenue run-rate rose a "healthy" 25% organically to $120 million. This was slightly above prior guidance and "sets the business up well for future years".

The post How and where can an ASX investor make money in a dysfunctional share market? appeared first on The Motley Fool Australia.

It's no secret that ASX technology shares have struggled this year.

The trouble is not with the sector per se, but it's that tech is an industry full of growth stocks.

Most tech firms are offering something innovative to the market rather than trying to compete in an existing category. This means they're focused on growing the customer base. 

A growth stock relies on future earnings to justify its valuation. But now that interest rates are 175 basis points higher than three months ago, the cost of future performance is considerably higher.

This is why ASX growth and tech shares have suffered so much in 2022.

Multiple experts have told The Motley Fool that now the name of the game is to be profitable, or at least operate on positive cash flow.

The idea is that if you're generating your own cash then you need not borrow to keep the business going. Not borrowing means your fortunes are not dependent on low interest rates.

With this in mind, the team at Forager Funds this week named two ASX tech shares it holds that are heading in the right direction:

'Costs are well controlled'

Communications tech provider Whispir Ltd (ASX: WSP) burned through $5.2 million of cash for the quarter ending June.

According to Forager, it now has $26.1 million in its bank account.

"But the pure cash-flow numbers belie the progress the business has been making," Forager analysts stated in a memo to clients. 

"While the full results won't be released for a couple of weeks, commentary in the cash-flow summary suggested revenue will exceed prior guidance of 42% growth and that costs are well controlled."

While cash flow is negative at the moment, the Forager team reckons this will turn around fairly soon.

"Next financial year should already see free cash-flow generation."

Whispir shares have lost about half their value this year. The company will report its financials on 24 August.

Cyan Investment Management portfolio manager Dean Fergie told The Motley Fool last month that if Whispir can rein in its costs, it "could actually be quite a good business".

"This is one of these businesses that has got a really, really strong corporate client base, which is positive, [and] really, really strong growth in revenues."

'Free cash flow this financial year'

Corporate software maker Bigtincan Holdings Ltd (ASX: BTH) is in a similar spot, burning through $4.9 million last quarter, leaving $39 million in the bank.

The Forager team expects positive cash flow for this ASX tech share even sooner than Whispir though.

"Growing revenue and a falling cost base should result in free cash flow this financial year," the memo read.

"The annual revenue run-rate rose a healthy 25% organically to $120 million, slightly above prior guidance and setting the business up well for future years."

Bigtincan shares are down about 30% year-to-date. The company will reveal its results on 25 August.

While coverage is sparse on the $400 million tech company, both analysts surveyed on CMC Markets currently rate the stock as a strong buy.

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