Afterpay didn’t actually announce any news today, however its main competitor in Australia – Zip Co Ltd (ASX: Z1P) – did give a trading update.
Zip announced its quarterly numbers to December 2019. Compared to the first quarter of FY20, it achieved quarterly revenue growth of 24% to $38.5 million. Receivables rose by 33% to $1.04 billion over the three months.
Zip said that it achieved record quarterly transaction volume of $562.6 million, which was up 40% on the first quarter and it’s up 85% year on year. Zip’s customer numbers increased by 24% to 1.8 million over the quarter and Zip’s merchant numbers grew by 17% to 20,875 over the quarter.
Whilst Zip is a different business to Afterpay, the two have been on similar growth trajectories so it’s quite easy to assume that Afterpay is going reveal impressive growth for the December 2019 quarter too. When you take Afterpay’s impressive November growth numbers and look at the December quarter growth revealed by Zip and the ABS’ stats, things are looking good in the near-term for Afterpay.
Afterpay has been one of the hottest shares on the ASX for a few years now. Threats of regulation and competition has not been enough to dampen sentiment or the growth. I don’t know what the right price to pay for Afterpay is, there are a lot of variables when it comes to potential outcomes at this share price. I can think of easier growth shares to focus on.
Like these exciting growth shares that are already making profit and paying dividends to investors.
Our Motley Fool experts have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
- December 2019 quarter update sends Zip share price up 3%
- ALL ORDINARIES finishes lower Monday: 8 ASX shares you missed
- Why Clinuvel, Praemium, Resolute, & Zip Co are racing higher
- Why the Zip Co share price has popped 5% this morning
- Why the IOOF share price is under pressure to start the year
Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.