Why has the Openpay share price fallen off a cliff this week?
The post The Openpay share price has cratered 40% in 3 days. What’s going on? appeared first on The Motley Fool Australia. –
After spending most of the trading day deep in red territory, the All Ordinaries Index (ASX: XAO) closed 0.05% higher on Tuesday. However, it was not such a happy ending for the Openpay Group Ltd (ASX: OPY) share price.
Openpay shares also spent much of the day in the red, finishing 3.13% lower at 31 cents a share. The ASX buy now, pay later (BNPL) share dropped as low as 28 cents a share earlier in the day. All up, it means Openpay shares have now lost a painful 40% since hitting 52 cents a share last Friday.
But rather perplexingly, the Openpay share price still remains up by close to 24% over the past five trading days. That’s even after the big falls we have seen since Friday.
This is largely thanks to the massive near-50% move we saw last Thursday. Indeed, between Monday and Thursday last week, the Openpay share price more than doubled from 24 cents to 50 cents.
The jaw-dropping share price move we saw on Thursday seemed to have been sparked by the release of Openpay’s quarterly update. This covered the three months to 30 June 2022.
As we covered at the time, the BNPL company reported a pleasing 50% increase in the number of active plans to 1.8 million for the quarter over the prior corresponding period. Active customers also rose by 21% to 321,000.
Total value transaction was also up significantly, rising by 54% to $97.6 million. Revenues also came in strong, with Openpay recording a record $8.5 million, up 80% over the prior period.
Why has the Openpay share price tanked 40% in three days?
So obviously investors were driven into a frenzy with these numbers. But it seems that many have since had a rethink. Openpay has not given any additional news or updates to investors since this report. So ‘cold feet’ is the most likely explanation for Openpay’s more recent share price woes.
Despite the massive share price movements we saw last week, Openpay shares remain down by almost 60% in 2022 thus far. At its current share price, this ASX BNPL share has a market capitalisation of just over $48 million.
The post The Openpay share price has cratered 40% in 3 days. What’s going on? appeared first on The Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
