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Is it time to sell Afterpay (ASX:APT) shares?

The stock market darling of 2020 has had an up-and-down 2021. So is it time to sell and take home the profits?
The post Is it time to sell Afterpay (ASX:APT) shares? appeared first on The Motley Fool Australia. –

broker buy asx shares represented by investor throwing hands up towards icons of buy and sell broker upgrade buy

Afterpay Ltd (ASX: APT) stock owners have had a wild rollercoaster ride this year.

The ASX darling of last year started 2021 at $119 then in February smashed its 52-week high by touching $160.

Since then, the rotation away from high-growth companies hit it hard, leaving it trading at $122.75 at Monday’s close.

So if you’ve been fortunate enough to own Afterpay, what do you do? Do you sell now?

Two fund managers had vastly differing views on this question.

The case to sell Afterpay shares

Perpetual portfolio manager Anthony Aboud doesn’t have much doubt as to which way he would go.

“Look, respectfully, I think it’s a sell,” he told a Livewire video.

“I’m probably the wrong person to ask since I’ve got this wrong for a while. My problem is: for $35 billion what are you getting?”

Aboud was concerned about the immediate risks the fintech is facing that could put a massive dent in its share price.

“They’re facing regulatory risks, credit cycle risks, and even margin risk with their partners,” he said.

“But you know what? I’ve been wrong to date. I could be wrong going forward.”

The case to not sell Afterpay shares

The opposite of Aboud was Sage Capital chief investment officer Sean Fenton. 

“It is a global leader in buy now, pay later with a massive pipeline of growth ahead of it,” he said in the same video.

“It is very hard to put a valuation on it, but whilst we’re seeing that momentum and that land-grab continue, we might as well just stick with it.”

But rather than just sticking with it, he would actually go a step further and buy up more Afterpay stock.

“It’s a tough one. It’s gone up a long way, but I’ll sit with ‘buy’ at this stage.”

How do you solve a problem like Maria?

It seems other experts and investment houses are just as polarised as to what Afterpay shareholders should do.

Just last week, The Motley Fool reported Credit Suisse has a price target of $145 for the fintech. But UBS Group reckons it’ll plunge to $36.

Good night and good luck.

Meanwhile, Afterpay is exploring how it can list in the US. How current ASX shareholders will be treated when that happens is up in the air.

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Motley Fool contributor Tony Yoo owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is it time to sell Afterpay (ASX:APT) shares? appeared first on The Motley Fool Australia.

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