The ASX is questioning why the Afterpay Touch Group Ltd
(ASX: APT) share price rose 13% yesterday.
Afterpay Touch is the owner of the popular “buy now, pay later” app. As of mid 2019, Afterpay had over 5.2 million registered users worldwide, making it one of Australia’s true technology success stories.
Afterpay’s ASX Price Query
Yesterday the ASX asked Afterpay if there was any information, including what was in the Interim AUSTRAC Report
, which hadn’t been included in an ASX announcement to explain why the share price moved so much.
This is important because it can create an uneven playing field if some investors know all the details and others are trading without all of the facts.
In response this morning, Afterpay said that there was nothing in the interim report that would cause the share price to react so much.
However, Afterpay did point out that media reporting could have been the cause of the share price rise, although the company was unable to confirm the change in price was specifically due to this factor.
Afterpay outlined that media reported yesterday that broker Goldman Sachs had added Afterpay Touch to its “conviction list” and upgraded its opinion of Afterpay from “neutral” to “buy” with a share price target of $42.90 – which is the price Goldman thinks the shares will be trading at in a year from now.
The buy now, pay later company went on to say that the media reported that Thorney Technologies Ltd (ASX: TEK) had put out an update which contained an “upbeat” view on Afterpay Touch.
In early trading the Afterpay Touch share price has fallen by just over 1%, with some investors likely taking a bit of profit off the table after yesterday’s impressive share price growth.
It’s hard to know if today’s price for Afterpay is good value or not. It’s achieving rapid growth and has big goals, but there’s also plenty of competition and Afterpay has a big valuation. That’s why, for a growth portfolio, I’d rather buy the shares revealed in the free report below.
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