Here's why the Afterpay (ASX:APT) share price is surging higher

The Afterpay Ltd (ASX:APT) share price is on form on Friday and surging higher. Here's what you need to know…

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The Afterpay Ltd (ASX: APT) share price is back on form again on Friday and charging notably higher.

In morning trade the payments company's shares are up 5% to $114.19.

Graphic illustration of buy now pay later technology overlaid on blurred photo of businessman on tablet

Image source: Getty Images

Why is the Afterpay share price charging higher today?

Investors have been buying Afterpay's shares on Friday in response to a particularly positive night of trade on Wall Street.

Overnight the technology-focused Nasdaq index stormed over 2.5% higher to close above the 13,000 points level for the first time ever.

Investors were buying shares after Congress confirmed the election of Joe Biden as president, traders looked beyond the unrest in Washington, and the Democrats took control of the Senate.

The latter is being seen as a major positive for the US and global economy, as it should make it possible for additional stimulus measures to be pushed through in the near future.

What about other tech shares?

It isn't just Afterpay that is storming higher on Friday. A number of other tech shares are on course to end the week strongly.

The likes of Altium Limited (ASX: ALU) and Zip Co Ltd (ASX: Z1P) shares are both recording solid gains in morning trade and are helping to drive the S&P ASX All Technology Index (ASX: XTX) higher.

At the time of writing, the S&P ASX All Technology Index is up a decent 1.3%. This compares to a 0.1% gain by the benchmark S&P/ASX 200 Index (ASX: XJO).

Where next for the Afterpay share price?

The Afterpay share price may have tripled in value over the last 12 months, but some brokers believe it can still go higher.

Analysts at Bell Potter have a buy rating and $140.00 price target on its shares, whereas Credit Suisse has an outperform rating and $124.00 price target.

Bell Potter's price target implies potential upside of over 22% for its shares over the next 12 months.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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