Insights

Here’s why the Afterpay (ASX:APT) share price is up 42% in the last 3 months

The BNPL giant has had a rollercoaster last 3 months.
The post Here’s why the Afterpay (ASX:APT) share price is up 42% in the last 3 months appeared first on The Motley Fool Australia. –

The Afterpay Ltd (ASX: APT) share price has been on a rollercoaster ride over the past 3 months.

There have been several catalysts that have propelled shares in the buy-now-pay-later (BNPL) share price over this period.

Let’s take a look at what’s been moving the Afterpay share price.

What moved the Afterpay share price in the last 3 months?

In early June, shares in Afterpay started to claw their way higher after being sold off earlier in the year.

There were several catalysts pushing shares in the BNPL higher during June.

These included overall strength in the broader tech sector and Afterpay strengthening its BNPL offerings.

Arguably, the largest catalyst that moved the Afterpay share price higher in the last 3 months was in early August.

A takeover bid from US payment giant Square Inc (NYSE: SQ) for $39 billion shot shares in the BNPL behemoth higher.

Afterpay has accepted Square’s offer which will involve an all-scrip deal.

If the deal does go ahead, Afterpay shareholders will receive 0.375 shares of Square for every Afterpay share owned.

Another catalyst that moved the Afterpay share price was its FY21 results.

How did Afterpay perform in FY21?

For the 12 months ended 30 June, Afterpay delivered a stellar underlying sales growth of 90% to $21.1 billion.

Other highlight’s of the company’s full-year report included;

Total income up 78% (or 89% in constant currency) to $924.7 million
Gross loss to underlying sales ratio flat at 0.9%
Net transaction loss up 210% to $132.6 million

EBITDA down 13% to $38.7 million
Active customers increased 63% to 16.2 million
Active merchants up 77% to 98,200
Square-Afterpay transaction on track to complete in Q1 of calendar year 2022

The outlook for Afterpay

In its full-year report, Afterpay acknowledged that the acquisition by Square is expected to go ahead in the first quarter of calendar year 2022.

Regardless of the acquisition, the company continues to work on plans to expand its in-store card offering beyond Australia and the US.

Afterpay also expects to launch its Afterpay iQ platform this September.

Despite surging more than 42% in the last 3 months, shares in the BNPL giant are only 9% higher for the year.

The post Here’s why the Afterpay (ASX:APT) share price is up 42% in the last 3 months appeared first on The Motley Fool Australia.

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 August 16th 2021

More reading

Here’s why the Afterpay (ASX:APT) share price is sliding on Friday
How has the Square share price performed since announcing the Afterpay deal?

A2 Milk and Zip were among the most traded ASX shares last week

Refundid rides the Afterpay (ASX:APT) wave with $3m funding round
Afterpay (ASX:APT) ‘Touch Ventures’ eyes IPO

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 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.

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!