It’s a good day for Afterpay shareholders.
The post Finally, some good news for the Afterpay (ASX:APT) share price appeared first on The Motley Fool Australia. –
The Afterpay Ltd (ASX: APT) share price is in the green today, amid a sea of red.
Right now, shares in Afterpay are up 1.25%, trading for $104.50 a piece.
That gain is particularly impressive given the broader market’s struggles today.
Afterpay’s shareholders will be particularly relieved the company’s share price is in the green after its disastrous stint last week.
Let’s take a look at what’s been up with Afterpay lately.
On the road to recovery?
The Afterpay share price dropped 12.2% last week as news of its potentially increasing competition hit headlines.
The ASX buy now, pay later (BNPL) giant faced an incredibly grim day on Wednesday after news of BNPL services from Apple Inc (NASDAQ: AAPL) and PayPal Holdings Inc (NASDAQ: PYPL) started swirling.
First off the bat was Apple.
The technology monolith didn’t officially announce anything on Wednesday. However, reports were published in the media detailing a BNPL offering being planned by Apple.
Apple is reportedly working on a new service that would allow Apple Pay users to pay for their purchases in instalments. It’s said that Goldman Sachs (NYSE: GS) will fund the service.
PayPal announced its BNPL service won’t charge Australian users late fees.
Unlike Paypal, Afterpay charges its users $10 for missing a payment and another $7 if that payment isn’t made within a week of its due date.
The Afterpay share price fell a massive 9.7% on Wednesday. It then fell another 2% and 1.3% on Thursday and Friday respectively.
Afterpay’s biggest ASX-listed competitor Zip Co Ltd (ASX: Z1P) was also hit hard. It fell 14.1% over the course of the week.
Afterpay share price snapshot
Last week’s disruptions did a number to Afterpay.
It’s currently 11.8% lower than it was at the start of 2021. However, it’s 50.8% higher than it was this time last 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.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Motley Fool contributor Brooke Cooper 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, Apple, PayPal Holdings, and ZIPCOLTD FPO. 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.