The growth is phenomenal, I personally have never had the fortune to invest at such an early stage in anything growing this fast. Ive been investing for 19 years and I’ve never seen an Australian company look anything like this: global potential, mass consumer appeal, true crazy fans. The opportunity is 50m+ customers with a proven concept, a true Zero to One (Peter Thiel), open market - it truly is a phenom. Xero for example had to go up against an incumbent in the US- much harder.
Even if competition comes (and I fully expect it) it’s fine. In my opinion, they need to reach that escape velocity that Afterpay is at to compete with them. It won’t be easy.
In terms of valuation, if you look at something like Square, they are valued at just over $30bn USD. Some very smart people, including the initial VC investors in Square, believe that at least half of the current valuation is attributed to their consumer facing product - Square Cash. That just passed Venmo (PayPal) in users at 7 million customers. (USA only). Cash allows users to transfer money between eachother with little friction but makes no money or revenue. So $15bn purely on potential of the “platform” later.
Afterpay has the platform, making money, 1million users in the US already, a monopoly in Australia and 3 million customers, UK, Canada to come etc. so what is this thing worth at 20, 30, 50 million customers?
APT Price at posting:
$18.92 Sentiment: Buy Disclosure: Held
