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.

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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?

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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.

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