The bad debts in a recession would increase somewhat but more concerning would be the slow down in sales volume. People who think Afterpay is recession proof are ignoring the fact that there would be systemically less money floating around for people to spend on discretionary items.
One could argue that you might gain a few users who will be pushed towards using BNPL due to job loss etc. But this positive would be heavily outweighed by the general drop in shopping.
For those of you who are holding APT due to it being recession proof, I'd encourage you to buy a gold stock, Coles and the Reject shop instead (if you think a recession is on the horizon).
APT Price at posting:
$29.90 Sentiment: Hold Disclosure: Held
