My take on the Klarna taking a strategic stake in Z1P debate:
If i) the rumour turns out to be true and ii) Klarna ups the ante at some stage by mounting a takeover, then this is not a positive for Afterpay.
I wouldn't view the combined forces of Klarna and Z1P as a sign of weakness, but rather as a bold attempt to ward off the threat of Afterpay in the battle to become the outright global market leader. It's a pretty standard business move, intended to gain enough market share in order to smother the competition.
Neither would I view it as an outright negative for Afterpay. If the consolidation does eventuate (or any other similar type of consolidation for that matter), it all comes down to how Afterpay responds. There's no single best way to respond, but there's a winning response and a losing response.
Afterpay will have already strategized such scenarios, so nothing to fear at this stage.
APT Price at posting:
$123.65 Sentiment: Buy Disclosure: Held
