Afterpay has a terrible week despite Black Friday sales with stock price falling again

Afterpay suffers a GREAT week in the stock market despite Black Friday craze – here’s why the buy now, pay later party may be coming to an end

  • Afterpay’s stock price fell 5.1 percent this week – triple ASX200 five-day decline
  • This happened despite the hype about Black Friday sales after lockdowns
  • Buy Now Pay Later Giant Made $159 Million Annual Loss Before 2021 Locks










Afterpay has had a bad week despite the hype surrounding Black Friday sales and an increase in retail activity after the lockdowns ended.

The ‘Buy Now, Pay Later’ app — which turned founder Nick Molnar and Anthony Eisen into young billionaires — is losing investor support as the big banks launch their own tech alternatives to credit cards.

The share price is down 5.1 percent this week, a level more than three times the 1.6 percent drop in the ASX200 index over the past five trading days.

While Friday afternoon’s $109 share price was well above the March 2020 low of $8.80 at the start of the pandemic, it is significantly below the $158 peak reached in February 2021.

Afterpay has had a bad week despite the hype surrounding Black Friday sales and an increase in retail activity after the lockdowns ended. The ‘Buy Now, Pay Later’ app — which turned founder Nick Molnar and Anthony Eisen into young billionaires — is losing investor support as the big banks launch their own copycat tech alternatives to credit cards

The app allows consumers to pay off their goods in four equal installments without interest charges, and is popular with young consumers who don’t trust credit cards.

Like Bitcoin, it has seen a rapid rise, characterized by periods of volatility and sharp declines.

Afterpay’s stock price fell to $84.50 in May and after several months of zigzagging, it rose from $96.66 to $127.85 in one day on August 3 — after Twitter founder Jack Dorsey’s Square group announced it was closing the company would buy.

The $39 billion acquisition of the company is the largest in Australian corporate history.

Nevertheless, Afterpay’s success could be a bad thing with PayPal at Commonwealth Bank launching their own buy now, pay later apps.

Despite the hype, Afterpay has never made a profit on the Australian Securities Exchange since May 2016.

In the year ended June 30, it suffered an after-tax loss of $159.4 million, a level six times the loss of $22.9 million from the previous fiscal year 2019-20.

The stock is down 3.7 percent this week, a level more than three times the 1 percent drop in the ASX200 index over the past five trading days (pictured are buyers on George Street in Sydney in early November)

The stock is down 3.7 percent this week, a level more than three times the 1 percent drop in the ASX200 index over the past five trading days (pictured are buyers on George Street in Sydney in early November)

This happened even though Sydney didn’t go into lockdown until June 26, with Melbourne in August.

The end of the lockdowns in October did not boost Afterpay’s stock prices on Black Friday.

National retail sales rose 4.9 percent in October 2021, the Australian Bureau of Statistics announced Friday.

Sydney led the way, with New South Wales recovering 13.3 percent, just 0.2 percent below the pre-Delta era of May, although restrictions were still in place for the first 11 days of October.

The end of the lockdowns in October did not boost Afterpay's stock prices on Black Friday.  National retail sales rose 4.9 percent in October 2021, the Australian Bureau of Statistics announced Friday.  Sydney led New South Wales with a 13.3 percent recovery and just 0.2 percent below the May pre-Delta era, even though restrictions were still in place for the first 11 days of October (Pitt Street Mall pictured in Sydney on October 16)

The end of the lockdowns in October did not boost Afterpay’s stock prices on Black Friday. National retail sales rose 4.9 percent in October 2021, the Australian Bureau of Statistics announced Friday. Sydney led New South Wales with a 13.3 percent recovery and just 0.2 percent below the May pre-Delta era, even though restrictions were still in place for the first 11 days of October (Pitt Street Mall pictured in Sydney on October 16)

The national recovery marked the biggest monthly increase since Melbourne’s first major lockdown ended in November 2020.

This followed the 1.3 percent increase in September, when Sydney and Melbourne were still in lockdown, and a 1.7 percent drop in August and a 2.7 percent drop in July.

Westpac senior economist Matthew Hassan said November is likely to yield an even stronger result, based on Westpac’s own credit card spending.

“While these show a clear reopening, the weekly data had suggested the big gains in retail sales would be in November rather than October,” he said.

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