Insights

Is the Afterpay (ASX: APT) share price a buy? 

The Afterpay share price has been resilient amidst a volatile market. Could now be the time to buy? We take a look at Afterpay’s outlook.
The post Is the Afterpay (ASX: APT) share price a buy?  appeared first on Motley Fool Australia. –

man surrounded by illustrations of question marks and looking pensive as if trying to decide whether to buy asx shares

The Afterpay Ltd (ASX: APT) share price has been the most resilient among its buy now, pay later (BNPL) peers. Could the recent strength in the Afterpay share price make it a buy at today’s price? 

Afterpay share price finding its footing 

The Afterpay share price has found its footing around the $75 mark despite this month’s highly volatile trading sessions. The broad tech sell off in the United States market clawed back its losses on Monday and could be the start of a much needed reversal. I believe Afterpay’s tenacity is a good sign for its shares moving forward. 

Are the banks or Paypal a threat? 

The Australian Financial Review outlined the concerns that Paypal could slow Afterpay’s growth in the US. Paypal charges merchants significantly less for sales with a product that is very similar to Afterpay. 

The Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) both launched no interest credit cards to combat BNPL products. CommBank Neo and NAB’s StraightUp card provide customers with up to $3,000 of credit with no interest payments, no late payments and no foreign currency fees but with a fixed, monthly fee. These products are nothing new and, from a cost perspective, much more expensive than BNPL products. 

COVID-19 tailwinds 

COVID-19 has accelerated structural shifts in consumer behaviour and preferences that align with Afterpay’s business model. The increase in e-commerce and online sales is not only good for its business model, but also helps position the company as a platform for retailers, rather than a standalone form of credit.  

Global expansion 

The path to global dominance continues for Afterpay as it announced plans to launch in Canada in August 2020. Furthermore, Afterpay has made an agreement to acquire ‘Pagantis’ to launch in Spain, France and Italy with regulatory approval to also operate in Portugal. These four countries have an addressable e-commerce market worth more than $247 billion. The acquisition will hit the ground running with a fully staffed and experienced team, existing multi-lingual technology stack and IP and a pathway to access other EU member states. 

Afterpay also intends on leveraging its Tencent Holdings relationship to explore opportunities in Asia. It has currently made a small acquisition of a Singapore-based company operating in Indonesia. 

Foolish takeaway

It’s good to see the Afterpay share price settle and ignore the noise of the broader market. There could be good news coming out of the company in the near term to confirm its expansions and acquisitions, which could give the share price a much needed push. With that said, the general market is still looking very weak and more volatility is to be expected following soaring COVID-19 cases in Europe as well as the impending US election. 

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks 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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Afterpay (ASX: APT) share price a buy?  appeared first on Motley Fool Australia.

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!