Yep, this exactly. A lot of buyers of Afterpay stock are actually the millenials that use it the product. Their train of thought: "Oh After pay is big, I use Afterpay, my friend use Afterpay, I buy Afterpay stock".
The issue is they don't understand the financial predicament the business is in. It is simply not profitable (and shows no signs of being able to turn a profit), and is only staying afloat due to capital raises which won't last forever. The fact that it even got valued anywhere near $30B is just absolutely mind boggling. Even right now at $20B it is in my opinion astronomically overpriced to the point where the valuation ratios of most blue chip profitable growth stocks dont come close to. Some of these eye-watering ratios below, based on the latest traded share price.
ROE: -13.9% Free cash flow margin: -70.9% LTM to EBITDA: -486x LTM price to Diluted EPS: - 125.51x LTM Price to NTA: 18.57x
The only saving grace is that the SP is largely tethered Block SP. Now I don't know much about Block's financials, so I can't comment there, but IMO you'd be brave to hold this one.