what is bottom, page-601

First 601 Last

Share
Profile

Follow
AlgoTrades

83 Posts.

19

31/03/20

14:41

Post #: 43798616
Share
Originally posted by wistfulyak: ↑

APT to me has all the hallmarks of a bad investment.

-Low barriers to entry: Its a race to the bottom, every man and his dog is getting into the BNPL market, in what is basically a "Perfect Competition" market. Afterpay had first mover advantage, but they don't anymore. The consumer doesn't care if they buy with "Afterpay" or "Schmafterpay", they just want their goods. And the retailer doesn't care either. They just want to pay the least commission possible. 4 - 6% is a huge amount to pay in commissions, and retailers are going to get sick of paying it when there are competitors that are much cheaper. I was working in marketing for a few different retail companies and they all decided to try out Afterpay due to FOMO, but felt sick about paying the 6% commissions. As soon as the product awareness of BNPL hits mainstream enough that consumers will be happy to use other providers, I believe retailers will jump ship.
-Dumb money: Every forum I go into, from random whirlpool forums to ozbargain I hear someone who has no idea about share investing talking about "investing" in Afterpay. The media is saturated with articles on this "hot new startup".

Hallmark signs of a bubble.And this doesn't even account for the incoming recession, reduced consumer demand, bad debts etc.

Change my mind.

Expand

Here's my thoughts on AfterPay bears...
APT Price at posting: $18.47 Sentiment: Buy Disclosure: Held
11 Upvote

2 Great analysis

Reply

Top Stories

Acquisitions roundup: European Lithium, Diatreme Resources and SRJ Technologies

Drilling at Lady Ilse suggests gold-copper porphyry, grows footprint for Magmatic

HXL

Hexima shares rise 66% on proposed acquisition of AI player Real Thing Entertainment

AAI

NYSE-listed Alcoa Corp joins ASX through key JV acquisition

OPL

Opyl forms JV with UK and US consortium to bring products to the world