Insights

Why I’m holding my Afterpay (ASX:APT) shares: expert

Shareholders have a lovely dilemma. Here’s a case for holding onto the buy now, pay later stock.
The post Why I’m holding my Afterpay (ASX:APT) shares: expert appeared first on The Motley Fool Australia. –

Ever since Afterpay Ltd (ASX: APT) announced in August that US fintech Square Inc (NYSE: SQ) would buy it out, shareholders have had a dilemma.

It’s a pretty enviable ‘problem’ though. Do you sell your Afterpay shares or hold onto them to convert into Square stock?

One of Afterpay’s biggest fans, Frazis Capital Partners portfolio manager Michael Frazis, revealed last month that his team took the money and ran.

“We sold our Afterpay shares,” Frazis said.

“We owned about 6% in Square, which is one of our largest positions… We’re going to maintain 6% or 7% in Square,… which we think is about right.”

Keeping some Afterpay shares up her sleeve

However, Tribeca Investment Partners portfolio manager Jun Bei Liu told The Motley Fool this week that she had the opposite idea.

“We took some profit but we still remain a shareholder of Afterpay,” she told Ask A Fund Manager this week. 

“I’m still not ruling out that there might be somebody else that will come in to bid for Afterpay — just simply because Afterpay is a first mover and is the market leader in this space. It’s the innovator, and also is the one with the most active user within its ecosystem.”

Ophir Asset Management co-founders Andrew Mitchell and Steven Ng took a similar view to Liu.

“We still own Afterpay in case a bidding war breaks out with potential suitors such as Apple Inc (NASDAQ: AAPL) or PayPal Holdings Inc (NASDAQ: PYPL),” said the fund managers last month.

“Further consolidation in the BNPL industry will likely follow with perhaps 2 to 3 key players left at maturity.”

Liu told The Motley Fool that her team sold down partially because Square is a broader business than Afterpay.

“Though we believe it’s a really great thing for Afterpay to move to the next level, it does reduce that buy now, pay later exposure,” she said.

“Because it’s now part of a bigger group and Square does make quite a lot of money from Bitcoin and a lot of other things. That is quite different from what we used to invest in.”

Square’s $39 billion takeover of the Australian buy now, pay later player is expected to wrap up early in the new year.

The post Why I’m holding my Afterpay (ASX:APT) shares: expert appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right 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.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

2 ASX shares ready to explode after COVID: expert

Why Afterpay, Chorus, NAB, & Omni Bridgeway shares are dropping

ASX 200 tech shares are dragging the market on Monday

Afterpay (ASX:APT) shares are up 900% since the crash. These experts still think they’re worth holding
The Selfwealth (ASX:SWF) share price could be the next Afterpay: fundie

Motley Fool contributor Tony Yoo owns shares of PayPal Holdings and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Apple, PayPal Holdings, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and PayPal Holdings. 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!