There is also a overall market risk with any share which has not...

First 313 Last

Share
Profile

Follow
BWinter

2,619 Posts.

307

02/09/18

14:49

Post #: 35357636
Share

Originally posted by logicalrick ↑

$100 would make APT a 20 billion dollar company. To put some perspective SnapChat is currently around 14 billion and it loses hundreds of millions a year despite years and years of attempting to make money

For APT to hit a 20 billion valuation isn't that far fetched if the US/UK market growth is similar to Australia. If they can roughly double month to month in the us that could put the us operation at half a billion sales by the next report could easily see the SP heading towards $40 by the end of Feb.

But it's a risk of course, the US and/or UK might fail miserably, regulation might damper everything, competition might ramp up or some big hitters like PayPal might bribe lobby the government to make life very difficult for afterpay.

Expand

There is also a overall market risk with any share which has not achieved profitability. To be more specific, if there is a market correction, shares without earnings (among others) will be marked down. If they cannot secure finance they can disappear altogether, even if they have solid long term prospects. Recollect Amazon during the dotcom bubble. It's share price went from ~$70 US to 1/10th of that. It wasn't cashflow positive until 2001. We know that Amazon made it through and most would recognise it as a great business today but I can imagine that it would have been touch and go in mid 2000. DYOR

APT Price at posting: $18.13 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply