Afterpay Share Price Hits All-Time High (ASX:APT)
Australia’s largest buy now, pay later provider Afterpay Ltd [ASX:APT] hit an all-time high this week. At the time of writing, the APT share price moved up to $44.75
In a recent article we covered off the investment Tencent made in Afterpay, taking up 5% of the company along with the downgrades by some brokers as well. Representing two sides of the coin.
Would Afterpay move up or fall back?
In mid-April Citi along with UBS and Goldman Sachs all issued downgrades for Afterpay. With Citi noting at the time:
‘While Afterpay has not seen a material deterioration in leading credit indicators, we expect bad debts to increase going forward.’
Since then many changes have taken place. The investment from Tencent signals confidence in the company, coupled with an announcement on 21 May that Afterpay had reached five million active customers after two years in the US market.
‘At a time in which ecommerce has become the primary way people are shopping, there is a growing interest and demand among consumers to pay for things they want and need over time using their own money – instead of turning to expensive loans with interest, fees or revolving debt,’ said Nick Molnar, co-founder and CEO of Afterpay.
Where can it go from here…
From its all-time high in February, the price fell 80.53% to the March low, it has now recovered and moved up 435.46% to create a new all-time high, but can it keep up the run?
Price is currently around a price level of $43, if it were to keep moving up as it has been, the next level of $51 this may come into play.
On the downside the last two weeks of trading has been on decreasing volume, should price turn around and start to fall, levels of $37.31 and $28.07 may come into play.
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