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$66.47 afterpay limited

Afterpay is immeasurably more than a payments platform. Zip...

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Andredamus1

2,137 Posts.

523

16/12/20

14:03

Post #: 49622165
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Originally posted by StefanF: ↑

Well the big difference is that Afterpay may be in a unique position where they can use their momentum to become a global accepted payment platform without having to compromise margins. In contrast, pay-anywhere products as per tap&zip, quad pay chrome extension and Klarna ghost cards are very low margin products (around 0.7% by my estimates which would be covered by the likes of VISA, not merchants), but good at growing customer base.

But if a business like APT can use that momentum and grow massively with all transaction raking in 4-6% margins then thats a HUGE competitive advantage and is one of the reasons why this would warrant a huge premium compared to competitors.

Having said that, I do feel Z1P is good value in the low 5s and in my view this would all be priced in at those prices.

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Afterpay is immeasurably more than a payments platform.

Zip wasn't making any money prior to adding on these loss leading gimmicks - I will be very interested in seeing their half year accounts in February.

APT Price at posting: $115.34 Sentiment: Hold Disclosure: Held
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