Afterpay shares are off to a positive start this week, despite a sharp selloff for the broader market.
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The negative news saw a sharp 13.45% selloff in Afterpay shares last week to $103.79.
But Afterpay managed to withstand the broad selloff yesterday, where the S&P/ASX 200 Index (ASX: XJO) tumbled 0.85%.
Similarly, the Afterpay share price has added another 1.55% on Tuesday to $106.53, despite the ASX 200 sliding another 0.37% at the time of writing.
Afterpay rallies despite sharp selloff overnight
The US market tumbled in an aggressive fashion overnight with the Dow Jones Industrial Average Index (DJX: .DJI) tumbling 2.09%, the S&P 500 Index (SP: .INX) falling1.59% and the Nasdaq Composite (NASDAQ: .IXIC) down 1.06%.
COVID-19 cases in the United States have slowly crept up to a seven-day average of 31,745 as of 18 July compared to 11,623 a month ago.
Morgan Stanley chief US equity strategist Mike Wilson told CNBC, “The market appears ready to take on a more defensive character as we experience a meaningful deceleration in earnings and economic growth.”
The Afterpay share price is making a turnaround despite a weak overnight performance from its US-listed rival, Affirm.
Affirm shares were off to a grim start on Monday night, sliding as much as 6.34% to US$54.06.
Encouragingly, the Affirm share price managed to bounce off lows, finishing the session 2.85% lower to US$55.86.
Affirm has struggled in light of a potential Apple BNPL service, with its shares tumbling 14.17% last week.
What else might be driving the Afterpay share price?
This morning, Afterpay revealed that it will begin rolling out its new money and lifestyle app, Money by Afterpay.
The new service will begin with a staff pilot at the end of July and plans to launch to market in October.
The new service will offer classic banking features including multiple savings accounts with an interest rate of 1% per annum, a physical debit card and instant payments.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Affirm Holdings, Inc., Apple, and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.