Why do we need to add charts or numbers to reference moat and competition? Some things cannot easily be quantified or put into a chart.
Just worth noting that I have yet to see you post any concerns about this company, nothing but blue skies for you. Dismissive of any concerns. But then again, that probably comes with the job description of "Head of APT Fanboy club".
Let me explain how I, as a balanced investor, view APT:
Pros:
- Scalable and proven business model - if done right this could be a global behemoth in BNPL
-First mover advantage and dominant player in BNPL sector
-Top class management
-1 simple product but possible multiple revenue streams (market place, marketing, trend analysis etc)
Cons/threats:
-Competition
-Regulation
-Business model is highly vulnerable to recessions
-Easily replicated product (note I use the term product, not business)
-Low barriers of entry into the BNPL sector
It's important to note that any profitable industry that doesn't have high barriers of entry will attract competition. What that looks like in the long run is yet to be seen. We could see the formation of an oligopoly of dominant players in that space or if we are lucky Afterpay will be a single dominant force (close to a monopoly) with pricing power and competitors will merely be fringe competition.
How this will play out no-one knows. All I know is that the potential huge upside of Afterpay makes it well worth for me to hold this long term but I'm not sticking my head in the sand and ignoring some of the threats that APT has to it's revenue stream.
No company is without it's risks. All in my opinion of course. Apologies for not posting a graph to support my views.
APT Price at posting:
$31.34 Sentiment: Hold Disclosure: Held
