Afterpay (ASX:APT) share price tumbles nearly 7%

It hasn’t been a good morning for the BNPL giant
The post Afterpay (ASX:APT) share price tumbles nearly 7% appeared first on The Motley Fool Australia. –

The Afterpay Ltd (ASX: APT) share price has taken a tumble in early trade.

Shares in the buy-now-pay-later behemoth are trading nearly 7% lower in the morning session. At the time of writing the Afterpay share price has recovered slightly, currently trading at around $120.90.

Read on to find out why the Afterpay share price is taking a dive today.  

Why is the Afterpay share price falling?

Afterpay has not released any price-sensitive news to explain the bearish price action. As a result, the company’s falling share price could be investors taking profits. Shares in Afterpay have surged more than 24% in the past 2 weeks, which could be prompting investors to cash in.

In addition, Afterpay has also been on the receiving end of negative broker coverage. Last week analysts from UBS slapped a ‘sell’ rating on the Afterpay share price. Analysts cited concerns over the company’s expansion and its existing merchant partners. As a result, analysts retained a price target of $37 for Afterpay shares.

Snapshot of the Afterpay share price

As noted previously, the Afterpay share price has surged in the past 2 weeks, hitting 4-month highs.  

The initial catalyst could be traced back to strength in the global tech sector. In addition, a bullish note from broker Morgan Stanley 2 weeks ago could have also prompted the rise in Afterpay’s share price.

Recently, shares in Afterpay received an extra boost after the company expanded its ‘one-time card’ for US customers. As a result, customers will be able to shop at retailers such as, Inc. (NASDAQ: AMZN), Nike Inc (NYSE: NKE), Target Corporation (NYSE: TGT).

According to Afterpay, these notable merchants account for almost half of all e-commerce volume in the United States. The company’s ‘one-time’ card offers users the same split payment service and is generated through the Afterpay app, allowing customers to use it at checkout.

The post Afterpay (ASX:APT) share price tumbles nearly 7% appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

ASX 200 down 0.1%: Metcash results, Costa returns, travel shares sink

ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

Top brokers name 3 ASX shares to sell next week

These were the best-performing ASX 200 shares last week

The Sezzle (ASX:SZL) share price has lifted 15% this week

Motley Fool contributor Nikhil Gangaram 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. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!