Interesting digging deeper in to the results.At the time of the...

Interesting digging deeper in to the results.

At the time of the merger, APT was doing $19.6bil (AUD) of GMV for $601mil (AUD) of Gross profit.

This quarter, APT did $9.7 Bil of GMV for $126mil of Gross profit.

So annualising $38.8bil AUD GMV for $504mil of Gross profit.

Loss rates have stayed around the 1% mark.

The GMV has doubled but gross profit has declined. The only logical explanation is that Afterpay have probably had to give up at least half of their fee from merchants to retain them. And when you dig deeper this does look to be the case. Pre the merger afterpay's margin was 3.0% gross profit on GMV. However, after deducting the risk loss it was 1.9%. Today that margin appears to be 1.3%. Minus off the loss rate at 1.04% and you get a 0.26% Margin. Afterpay does in fact appear to be a complete financial burden to block.

It looks like Afterpay is a money pit for Block. Understand there could be some synergies that make the Block ecosystem more valuable for it's network of sellers and buyer, but that number is unlikely to be even close to $30bil. It's probably not even a billion.

This must be why analysts are calling afterpay a write-off.

Please correct the above if I've made any errors in my anaysis.

What an incredible turn of events.