Afterpay Valuation, page-4790

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KirbyMuxloe

654 Posts.

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16/02/21

14:34

Post #: 51037374
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Originally posted by bedger: ↑

With the Fed continuing to pump money faster than a Dutch water pump one can only wonder. But eventually common sense will prevail, as I explained to a mate:

"So Afterpay is bigger than Telstra now, should I buy some?"
"Well, kind of bigger, worth more on the share market, but Telstra makes about $31.5 billion in revenue, vs Afterypay's $0.5 million"
"What!?? So how come its trading so high?"
"Look its a good company and has had huge growth, its just investors have got carried away on its future. It might make say $500 million in profits in 2023 if all the stars align and regulators continue to give it free reign, whereas Telstra guided for $8 billion underlying profit"
"But hang on, it made $500 million revenues this year but is going to make $500 million in profit in 2023?"
"Well analysts think so"
"But Telstra is going to make $8 billion in the same year?"
"Welcome to the share market"
"Should I short?"
"No I wouldn't recommend that either"
"But it has to fall?"
"Eventually, but it may go higher yet".

Pretty much sums up APT and more generally the BNPL sector.

Couldn't resist posting. APT is going to go from $500 million revenue in 2020 to hopefully $500 million profits in 2023. Telstra which had $31.5 million revenues in 2020 just guided $8 billion underlying profit for 2023. Yet APT trades higher than TLS. Absurd.

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"...in revenue, vs Afterypay's $0.5 million" Lol - you so nailed it mate.

You deserve medal.

APT Price at posting: $151.96 Sentiment: Hold Disclosure: Held
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