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MarketScreener Homepage  >  Equities  >  Australian Stock Exchange  >  Afterpay Limited    APT   AU000000APT1

AFTERPAY LIMITED

(APT)
  Report
End-of-day quote. End-of-day quote Australian Stock Exchange - 10/21
101.32 AUD   -0.61%
10/20AFTERPAY : to Offer Savings Accounts and Cash Flow Tools to AU Customers
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10/19Australia shares track global markets lower; tech stocks shine
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10/19Afterpay, Westpac link up for Australia savings accounts
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PayPal entry punishes Australia's pricey buy now, pay later stocks

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09/02/2020 | 01:56am EDT
FILE PHOTO: The PayPal logo is seen at an office building in Berlin

Shares in Australia's Afterpay Ltd and its smaller consumer lender rivals tumbled for a second day on Wednesday, as the entry of U.S. giant PayPal into the buy-now-pay-later (BNPL) sector sent investors scrambling to re-price its frothy stocks.

Afterpay fell as much as 12.4%, before paring losses, and has shed about A$2.5 billion ($1.84 billion) in market value in the two trading sessions since PayPal Holdings Inc said it would offer small, short-term interest-free loans to U.S. customers.

Rivals also tumbled, with Zip Co Ltd dropping as much as 17.8% and Sezzle Inc 15.5% before both trimmed losses. They have each shed roughly 20% in two days. Openpay Group Ltd slid 10% and Splitit Ltd fell 4.6%.

The broader market ended 1.8% higher.

"Having such a large customer base already in the U.S., PayPal certainly throws a spanner in the works for their expansion plans," said James Tao, a market analyst at CommSec in Sydney.

These alternative credit firms, which offer small instalment loans to shoppers and make money by charging merchants a commission, are riding an online shopping boom sparked by the coronavirus pandemic.

A near 10-fold rally in Afterpay's share price since March has catapulted the company into Australia's top 20 largest listed firms, even though it has never turned a profit.

The United States is seen as the sector's largest growth market and is a key focus for most of the Australia-listed companies.

PayPal's offering is for purchases between $30 and $600, repayable in four instalments over six weeks and is broadly similar to Afterpay's product.

The companies have sought to reassure investors and downplayed the potential impact of PayPal on their prospects.

Afterpay co-founder Anthony Eisen said in a statement that competition "from traditional and newer players" would not change the company's strategy "or diminish our global opportunity".

The chief executives of Zip Co, Sezzle and Splitit, in separate statements, said they were broadly prepared for competition in the sector and that PayPal's entry underscored its relevance and potential.

Openpay's CEO Michael Eidel said "happy is maybe not exactly the right term but we welcome it," adding that the entry will help grow the sector "into people's minds and into people's wallets and that's good news for us."

Michael Smith, director of Kauri Asset Management in Sydney, which owns Afterpay stock, said the sector had already survived last year's entry of Visa Inc and was well placed.

Kauri has a small allocation in next week's listing of yet another BNPL company, Laybuy Group Holdings Ltd.

"It's still the hottest sector of our market at the moment and that's probably not going to change any time soon."

($1 = 1.3605 Australian dollars)

(Reporting by Tom Westbrook in Singapore and Nikhil Kurian Nainan in Bengaluru; Editing by Muralikumar Anantharaman & Shri Navaratnam)

By Tom Westbrook


Stocks mentioned in the article
ChangeLast1st jan.
AFTERPAY LIMITED -0.61% 101.32 End-of-day quote.246.04%
OPENPAY GROUP LTD -4.21% 2.96 End-of-day quote.136.80%
PAYPAL HOLDINGS, INC. 5.50% 213.07 Delayed Quote.96.98%
SEZZLE INC. -1.52% 7.76 End-of-day quote.271.29%
SPLITIT PAYMENTS LTD -1.33% 1.48 End-of-day quote.124.24%
VISA INC. 0.37% 198.43 Delayed Quote.5.60%
ZEBRA TECHNOLOGIES CORPORATION -1.01% 291.86 Delayed Quote.14.26%
ZIP CO LIMITED 0.14% 7.08 End-of-day quote.100.00%
ZOGENIX, INC. 1.54% 20.5 Delayed Quote.-61.27%
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Financials
Sales 2021 918 M 652 M 652 M
Net income 2021 6,72 M 4,77 M 4,77 M
Net cash 2021 293 M 208 M 208 M
P/E ratio 2021 2 543x
Yield 2021 -
Capitalization 28 821 M 20 514 M 20 477 M
EV / Sales 2021 31,1x
EV / Sales 2022 20,0x
Nbr of Employees 665
Free-Float 68,4%
Chart AFTERPAY LIMITED
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Afterpay Limited Technical Analysis Chart | MarketScreener
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Technical analysis trends AFTERPAY LIMITED
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 13
Average target price 88,72 AUD
Last Close Price 101,32 AUD
Spread / Highest target 19,4%
Spread / Average Target -12,4%
Spread / Lowest Target -72,1%
EPS Revisions
Managers
NameTitle
Anthony Mathew Eisen Chief Executive Officer, Executive Director & MD
Elana Rubin Independent Chairman
Frerk-Malte Feller Global Chief Operating Officer
Rebecca Lowde Chief Financial Officer
Nicholas David Molnar Executive Director & Global Chief Revenue Officer
Sector and Competitors
1st jan.Capitalization (M$)
AFTERPAY LIMITED246.04%20 449
SQUARE, INC.196.90%82 382
FISERV, INC.-13.92%66 650
GLOBAL PAYMENTS INC.-4.52%52 158
FLEETCOR TECHNOLOGIES, INC.-15.60%20 410
PAGSEGURO DIGITAL LTD.14.84%12 865