Afterpay (ASX:APT) jumps on successful US push
Stock
Afterpay Touch (APT) $14.72 as at 08/11/2018
Event
Afterpay has ripped higher today thanks to success in the initial push into the US. In a business development announcement to the market this morning, APT noted over 300,000 customers and 900 retailers have used Afterpay’s product in the first 6 months of launching with a total of $A115m of transactions to the end of October. The move into the US now seems to be Afterpay’s priority with a clear addressable market, however competition is rife in the world’s biggest retail market place. Square (New York listed under SQ) and Affirm are just two names that will be tussling with APT in point of sale credit market, both also had the jump on Afterpay, although each product does have its differences.
Today’s announcement will give Afterpay a strong short term boost, but it will be some time before the US push can be fully assessed – although these are impressive numbers for 6 months, Afterpay could just be picking the low hanging fruit of the US credit market.
Today’s +10% spike sends the APT share price back to levels before the Senate inquiry fears spooked investors, but still languishing over 30% below all time highs in August.
Afterpay (APT) Chart
Market Matters Take/Outlook
