It's been a mixed earnings season for ASX growth shares.
Some companies have been rewarded with double-digit gains on the back of impressive growth numbers – think Altium Ltd (ASX: ALU).
Others have reported big share price falls after delivering growth that was good but not good enough – Appen Ltd (ASX: APX) comes to mind.
And some unlucky companies might be giving up the title of 'growth stock' altogether after failing to fire – I'm looking at Bellamy's Australia Ltd (ASX: BAL) here.
So here are 2 ASX growth stocks that I've got my eye on this week after some nice numbers being reported.
Afterpay Touch Group Ltd (ASX: APT)
Afterpay continues to confound its critics and delight its shareholders. The company's 2019 earnings showed a 140% rise in underlying sales (which came in above already lofty expectations). Afterpay's US business is now handling more than $1 billion of sales and its branding and network effects appear to be snowballing these sales. The company's recent UK launch also appears to be taking off, with customer adoption rates exceeding what the US market first gave Afterpay at launch.
Afterpay shares have reached a new all-time high of $31.46 just today, so investors are clearly loving this news as well. With the US market looking wrapped up and a promising start to the UK market, it looks as though the world is Afterpay's oyster.
Bubs Australia Ltd (ASX: BUB)
Bubs actually only reported its earnings for FY19 this morning – posting increased revenue of 154% to $46.8 million and a gross profit bump of 300% to $9.2 million. Despite these impressive numbers, Bubs' shares have dropped more than 3% after open to $1.20 at the time of writing, so clearly the market was expecting something more from this company.
Still, Bubs' 52-week high is sitting at $1.62, so today's pricing might represent a nice buying opportunity. China is continuing to show an almost insatiable demand for high-quality infant formula and other Australian dairy products, and Bubs is well poised to continue to capitalise on this demand.
Foolish takeaway
Both of these companies show traits that indicate bright futures ahead and I'll be watching their respective share prices very closely this week. Big jumps in revenue and sales, together with broad tailwinds leave little to ask for (except maybe cheaper share prices). I like Afterpay a little better in terms of a growth runway, but Bubs' shares are certainly looking more attractive for a buy today.
