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Originally Posted by silu
I don't think there are realistic levels for Afterpay. They have to grow rapidly otherwise their business model is failing. I wouldn't be surprised if this goes belly-up over the next few months.
Had no really thought it through,but now that I have,I think you are most probably right.
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Originally Posted by trader_jackson
When it gets close to NTA I would be interested, but at least it is now back to a more 'realistic' level than the ridiculously overvalued on any metric/ideology near $40 price it was just a month ago
Penny for your thoughts now TJ ?
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Originally Posted by stoploss
Penny for your thoughts now TJ ?
absolutely shell shocked to be honest! But congrats to holders none the less. I certainly wouldn't touch it as i just don't understand how the business could justify such a share price... an AFR article seems to agree nothing the BNPL stocks appear to be in a greater bubble than the tech companies in 2000... will this be an Amazon or a WorldCom? hard to say... although I did come close when the share price was sub $10... if only i had dipped my toe in!
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Originally Posted by trader_jackson
absolutely shell shocked to be honest! But congrats to holders none the less. I certainly wouldn't touch it as i just don't understand how the business could justify such a share price... an AFR article seems to agree nothing the BNPL stocks appear to be in a greater bubble than the tech companies in 2000... will this be an Amazon or a WorldCom? hard to say... although I did come close when the share price was sub $10... if only i had dipped my toe in!
I came across these guys when they were 3 something ... I had budget clients turning up with all sorts of debts .... looking at the bank statements I could see these payments going out . Never invested for this reason as thought they had a lot of bad clients , obviously got that wrong . Thinking about it , if it’s 4 payments they budget for , much better than a credit card at 25%.....
I suppose I did benefit as PIE Funds invested ....,
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Member
Not what the market is saying today, over 50% in one day. Don’t hold but wish I brought some yesterday
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Originally Posted by flyer
Not what the market is saying today, over 50% in one day. Don’t hold but wish I brought some yesterday
I'm pretty sure you don't wish anymore.
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Time to buy some AUD and be prepared to grab some of these
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Originally Posted by Ogg
I can't believe they haven't updated the market on the impact of Covid-19 on transaction volume.
An announcement on the 19th of March stated:
I have both Afterpay NZ and Afterpay Australia merchant accounts. My Afterpay NZ account has gone to zero as the country is in lock down. My Afterpay Australia account has started to drop significantly, especially in the last few days. It's likely that Australia will go into full lock down by next week. Most retail stores in Australia have already started to close and won't reopen for another 4 weeks, possibly longer.
Afterpay's main source of revenue is transaction fees from merchants. It's likely their revenue has already been significantly impacted, perhaps as much as 90% or more, yet no update has been provided to the market.
The announcement on the 19th of March stated:
This suggests that they are not going to check their "numbers" until after the March quarter, which could be another 10 days from now.
Unbelievable lack of company governance.
This is just wrong sorry.
The majority of their business comes from online which has increased in Australia, UK and United States. NZ would have completely frozen but that is a tiny part of their business. Even if countries go into lockdown they have no direct product costs so they can take a short term hit.
Of course as revenue takes a hit for retailers their growth will slow in the short term, however afterpay is in exponential growth and I actually think this presents opportunity for consolidation in the BNPL sector which as a first mover could prove beneficial to afterpay.
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https://www.stuff.co.nz/business/120...-retailer-says
Seems like APT have introduced measures that mean they don't have to pay anything out until the item has been dispatched (rather than at point of payment)... Could it be that afterpay are actually facing a cash crunch themselves? Beginning of the end of them if so... not a good look when they appear to be killing their customers (aka merchants)
Last edited by trader_jackson; 05-04-2020 at 02:29 PM.
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Big moves in APT y'day after chinese tech giant Tencent reveals its built a 5% stake in the company since started buying from March. What spectacular rise from low of $9 in late March to now at $36 as of y'day, a four increase in just over a month.
Disc-Not a holder, just wondering how many these types of buying we'll witness from Chinese under current depressed asset price levels.
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