The Afterpay Touch Group Ltd (ASX: APT) share price went briefly above $40 this morning in a remarkable performance by the buy now, pay later company so far in 2020.
Over the past month the Afterpay share price has gone from $30 to $40, an impressive rise of 33% despite the ongoing worries about the coronavirus which saw many other share values fall a little.
Whilst the $40 share price was short-lived, it's back to around $39.50, I think it shows that Afterpay is ready to surge beyond $40 on the next piece of good news. Indeed, some analysts that Afterpay could be one of the shares to outperform against expectations this reporting season.
The FY20 half-year result is due to be released on Thursday, 27 February 2020.
There will be plenty of things to look at in the result. Investors should look to see if the growth in the US has continued (or even accelerated). Has the net transaction loss and net transaction margin been maintained despite this strong growth phase across the company?
Has there been much progress with the agreement with Mastercard in Australia and New Zealand?
There are a lot of interesting questions for Afterpay's growth, but it has continued to impress the market every six months with its half-year and annual reports.
Foolish takeaway
With a share price of around $40 it has plenty of growth priced in, but its continued growth today has justified the lower share prices' of the past which had growth expectations. It wouldn't surprise me to see Afterpay continue to rise, but until Afterpay starts generating profit it's not something I can see in my own portfolio.
