What’s been happening with the Aussie BNPL player?
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The Afterpay Ltd (ASX: APT) share price is off to a positive start this week. As the buy now, pay later provider nears its FY21 full-year results release on Wednesday, investors are paying extra attention to this company.
At the time of writing, shares in Afterpay have strengthened 2.54% to $132.80. This upwards move is closely aligned with potential acquirer, Square Inc (NYSE: SQ), and its 2.2% share price gain during Friday trade in the United States.
Before results drop, let’s run through the latest at Afterpay.
Afterpay Day and a speedy ambassador
While Afterpay released its FY21 trading update 3 weeks ago, there’s one big event that could have investors excited – Afterpay Day.
The biannual discounted shopping event entails a shopping frenzy across a range of retailers through the Afterpay payment platform. This 4-day sale event concluded at midnight last night after commencing on 19 August.
In the past, Afterpay day has been a major driver of sales and new active customers. For example, the event held earlier in the year delivered an increase of 117% in underlying sales compared to the same period a year ago. On top of that, the March sale resulted in a 40% increase in new active customers globally.
Although it’s not confirmed, investors might be treated to some details on the August sale event in Wednesday’s full-year results.
Adding to the excitement, Afterpay co-founder Nick Molnar revealed the company’s latest local ambassador addition. Suitably, Afterpay paired up with someone that moves fast – just like the Afterpay share price in recent years. The new addition is none other than Aussie Formula One racing champion Daniel Ricciardo.
The partnership kicked off Afterpay Day with Ricciardo selling his own limited edition signature 2021 mini helmet on the platform.
Commenting on becoming an ambassador for Afterpay, Ricciardo said:
Seeing another Australian brand with similar values and goals as mine, succeeding in such a competitive field, really does put a smile on my face. Beyond that, I’m pumped to help educate a new audience on what Afterpay is, the in-built controls they have, all focused on helping customers achieve financial freedom.
What else could weigh on the Afterpay share price?
Investors and analysts alike will hope to get any more details around the proposed Afterpay–Square transaction. Since the original announcement of the nearly $40 billion deal, things have been fairly quiet.
The scheme of arrangement transaction had been agreed to, though there was speculation over whether a counter offer from another big US-based payments company would eventuate. At this stage, there have been no other proposals for the Aussie BNPL provider.
At the minimum, the market will be looking for an update to see how the Square deal is progressing. Currently, the transaction is likely to close in Q1 of the 2022 calendar year.
Should you invest $1,000 in Afterpay right now?
Before you consider Afterpay, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Afterpay wasn’t one of them.
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*Returns as of August 16th 2021
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Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.