Azzet reports on three stocks with price moving updates today.
CBA dives on underwhelming 1Q FY26 update ~
Shares in Commonwealth Bank (ASX: CBA) were sold off on Tuesday, down around 6% by 2:25 pm AEDT (3:25 am GMT) after Australia’s biggest bank’s reasonably good 1Q FY26 result failed to meet the market's expectations.
Given the CBA’s lofty valuations at a 30x price-to-earnings ratio – still one of the world’s most expensive bank stocks despite the recent pullback from the $192 high in late June – the market clearly expected more from the bank’s first quarter update today.
At first glance, the 1Q result looks like a good one, with a 3% increase in operating income driven by robust lending and deposit growth.
The uptick in both home lending and household deposits highlighted significant growth in new bank accounts and solid activity in retail transactions.
Home loans grew $9.3 billion at 1.1x system for the three months to 30 September.
Proprietary mix for CBA home loans represented 68% of new business flows for the quarter, while household deposits grew $17.8 billion in the quarter at 1.2x system.
However, it’s the narrowing of the bank’s headline net interest margin (NIM) - due to asset mix changes, unspecified cost pressures, and growth in lower-yielding assets, coupled with some sobering underlying commentary - that weighed on investor sentiment today.
Commenting on the bank's performance, CBA's CEO, Matt Comyn, told the market that cost-of-living pressures remain a challenge amid escalating geopolitical and macroeconomic uncertainty.
“We are closely watching the increased competitive intensity and implications across the financial system, and we will continue to adjust our settings as appropriate,” Comyn said.
“The Australian economy remains resilient. Economic growth is recovering and disposable income is rising for many households. We remain focused on our strategy to build a brighter future for all.”
Comyn also told the market that the Reserve Bank’s decision to hold the cash rate steady was going to place greater pressure on households.
Key numbers within today’s update:
- Loan volumes down 4% quarter-on-quarter but up 7% year-on-year.
- Unaudited cash profit of $2.6 billion, up 2% year-on-year.
- CET1 at 11.8%.
- Impaired loans stable at 0.94%.
- $220 million loan impairment expense.
- 7% rise in business transaction accounts.
- Expenses up 4% over the quarter.
- $9.3 billion in new home loans written over the quarter.
- Business lending up 10.4%.
CBA has a market cap of $279 billion; the share price is up 11% in one year and down around 5% in the last week.
The stock appears to be in a long-term uptrend, confirmed by multiple indicators.
Consensus is Strong Sell.
Life360 tumbles after issuing Sept quarter update
The unravelling in the share price of market darling Life360 (ASX: 360) – first evident early October after a sustained run-up since April - continued today, with the stock down over 6.9% after the family tracking app delivered a strong update this morning.
For the quarter ended 30 September, revenue was up 34% to US$124.5 million while net income was $9.8 million, up 27% year-on-year.
For the full year, Life360 now expects reported revenue of $474 million to $485 million, compared to prior guidance of $462 million to $482 million.
The company raised its earnings guidance to be between $84 million to $88 million for the full year, up from earlier guidance of $72 million to $82 million.
While today’s result should have given investors something to smile about, it clearly isn’t so sure about the company’s plans to buy advertising technology company U.S.-based Nativo for $120 million.
However, what may have also attracted some negative market sentiment this morning were the softer-than-expected monthly average users growth and net additions below market forecasts.
Life360 CEO Lauren Antonoff told the market today that the Nativo acquisition will advance its advertising strategy by combining its first-party family and location insights with Nativo's publisher network and advertising technology.
The strategy aims to help brands reach families "in more relevant places and with more relevant messages", both inside the Life360 app and offsite.
"Acquiring Nativo is an exciting step forward as we build a durable, mission-aligned advertising business," said Antonoff.
"This acquisition accelerates our roadmap, adding capabilities that typically take platforms years to develop.
"It allows us to scale faster and bring high-quality, contextual advertising to market sooner - all while enhancing, not disrupting, the Life360 member experience."
Key numbers announced today:
- Global monthly active users (MAU) grew 19% year on year to 91.6 million.
- U.S. users rose 15% to 48.7 million.
- International users increased 24% to 42.9 million,
- ANZ users rose 28% to 3.2 million.
- Paying circles increased by 23% to 2.7 million.
- U.S. paying circles climbed 21% to 1.9 million.
- International paying circles grew 29% to 0.8 million.
- Average revenue per paying circle climbed by 8% to $137.63.
- Total subscription revenue of $96.3 million, up 34% year on year.
- adjusted earnings up 174% to $24.5 million.
- Operating expenses as a percentage of revenue decreased by 8%.
- Operating cashflow soared 319% to $26.4 million.
- Cash balance finished the quarter at $457.2 million.
Life360 has a market cap of $7.3 billion; the share price is up 87% in one year and down 17% in the last month.
The stock appears to be in a long-term uptrend, confirmed by multiple indicators.
Consensus is Moderate Buy.
Rox Resources rallies after firing first blast at Youanmi Gold Project
Shares in Rox Resources (ASX: RXL) were up around 6.8% this afternoon on news that the junior gold explorer has officially commenced underground development of mining operations at its 100%-owned Youanmi Gold Project in WA with the successful firing of the first decline cut at the United North pit.
It’s understood that the development marks a major milestone towards production, with site works progressing for further development.
The company has received strong support from debt providers, reaffirming the project’s bankability as the Definitive Feasibility Study nears completion, indicating a promising future for Rox in the gold industry.
Commenting on today’s update, managing director Phill Wilding told the market that Rox expects final debt commitments and a final investment decision in the coming months, keeping the project on track to become one of WA’s next high-grade gold producers.
Following the successful first blast, the development team - being executed by Byrnecut Australia, is now preparing the batch plant for fibrecreting operations, which will enable continuous mining to commence within the coming week.
The commencement of underground development coincides with Australian and international banks providing updated credit-endorsed indicative commitments following their appraisal of initial due diligence packages and site visits to Youanmi.
Underscoring the bankability of Youanmi is the project’s global mineral resource of 12.1Mt at 5.6g/t for 2.2Moz of gold, positioning it among the highest-grade undeveloped gold projects in Western Australia.
Debt Financing progress includes:
- Multiple updated indicative term sheets received.
- Commitment amounts align with expected funding requirements.
- Competitive terms offered across multiple lenders.
- Final credit approvals expected following DFS release.
Today’s update follows Rox Resources’ issuance of 1,183,927 fully paid ordinary securities earlier in the week in an effort to enhance its financial flexibility and support its ongoing operational and exploration activities.
As at 30 September 2025, the company has a cash balance of $43.7 million.
Rox Resources has a market cap of $354 million; the share price is up 176% in one year and down 11% in the last month.
While the stock’s 200-day moving average is trending higher, there is significant evidence that the long-term bullish trend is near an end.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
