市场见解

Afterpay (ASX:APT) share price slumps after PayPal’s latest acquisition

Shares in the buy now, pay later company are sliding on Thursday. Here’s why.
The post Afterpay (ASX:APT) share price slumps after PayPal’s latest acquisition appeared first on The Motley Fool Australia. –

The Afterpay Ltd (ASX: APT) share price has slipped to a 1-month low on Thursday, down 2.73% to $127.04.

This comes after rival PayPal Holdings (NASDAQ: PYPL) announced the acquisition of a Japanese company.

Buy now, pay later M&A continues to intensify

PayPal has once again headlined the buy now, pay later (BNPL) industry following its US$2.7 billion Japan acquisition.

According to CNBC, PayPal said it would acquire Japanese BNPL firm Paidy. The transaction is expected to close in the fourth quarter of 2021, paid mostly in cash.

“The acquisition will expand PayPal’s capabilities, distribution, and relevance in the domestic payments market in Japan, the third-largest e-commerce market in the world, complementing the company’s existing cross-border e-commerce business in the country,” said PayPal.

What else is dragging the Afterpay share price?

Square slides on Wednesday night

The Afterpay share price has largely tracked the performance of Square Inc (NASDAQ: SQ) following the takeover offer on 2 August.

Under the terms of the takeover, Square plans to acquire Afterpay for approximately US$29 billion worth of stock.

Afterpay shareholders will receive a fixed exchange ratio of 0.375 shares in Square Class A common stock for each Afterpay share they hold on the record date.

On Wednesday night, the Square share price tumbled 4.18% to US$254.72. At the fixed exchange ratio, this equates to US$95.52 (A$129.88).

Broader market weakness

The Afterpay share price might also be pressured by the broad-based selling taking place across the market on Thursday.

The S&P/ASX 200 Index (ASX: XJO) has tumbled 1% to 7,436, headlined by losses across resources, information technology, industrials, and communication services.

To add further insult to injury, the S&P/ASX Information Technology (INDEXASX: XIJ) index is one of the worst-performing sectors today, down 1.54%.

Major ASX-listed BNPL shares Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL) are both in negative territory, down 0.29% and 0.76% respectively.

Afterpay share price snapshot

The Afterpay share price has had a relatively flat year-to-date performance, up around 7%. It has also gained more than 70% over the past 12 months.

The post Afterpay (ASX:APT) share price slumps after PayPal’s latest acquisition appeared first on The Motley Fool Australia.

Should you invest $1,000 in Afterpay right now?

Before you consider Afterpay, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Afterpay wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 (ASX:XJO) midday update: Tech shares fall, Fortescue upgraded

Here are the 3 hottest ASX shares to buy right now: expert

What comes after Afterpay?

How have ASX technology shares performed during the August 2021 earnings season?

Here’s why Afterpay (ASX:APT) is making news again

Motley Fool contributor Kerry Sun 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, 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. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!