Future Risks

I think in the near term this stock will continue to rocket. But...

APT provides credit to the lower echelon of earners usually aged 18-30. They generally have low/no skill jobs which are fickle in nature and exposed to economic downturns. This is at a time when Australia's (and US) unemployment is historically and stubbornly low.

Retailers are desperate for sales and have no drawback for integrating Afterpay into their businesses. APT on the other hand are taking all the risk. It might work for now, but if things go pear shaped its margins are tiny and it does not have credit interest to soften the shock.

Also, as a manager of a failed Vic bank once told me: money is easy to give, but hard to get back. As APT is not a credit facility, what's to stop people from buying things and not paying for them ever? What recourse does APT have if some 18 yo kid bought a pair of air jordans and has no intention of paying?

Lastly, on top of this all if APT is the Uber of consumer loopholes and continues to do well you can bet a bank is gonna step in and use its position to muscle out the competition.

in b4 $300 in 2 years time