Here's why the Afterpay (ASX:APT) share price is up 42% in the last 3 months

The BNPL giant has had a rollercoaster last 3 months.

A happy woman stands outside a building looking at her phone and smiling widely

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Afterpay Ltd (ASX: APT) share price has been on a rollercoaster ride over the past 3 months.

There have been several catalysts that have propelled shares in the buy-now-pay-later (BNPL) share price over this period.

Let's take a look at what's been moving the Afterpay share price.

What moved the Afterpay share price in the last 3 months?

In early June, shares in Afterpay started to claw their way higher after being sold off earlier in the year.

There were several catalysts pushing shares in the BNPL higher during June.

These included overall strength in the broader tech sector and Afterpay strengthening its BNPL offerings.

Arguably, the largest catalyst that moved the Afterpay share price higher in the last 3 months was in early August.

A takeover bid from US payment giant Square Inc (NYSE: SQ) for $39 billion shot shares in the BNPL behemoth higher.

Afterpay has accepted Square's offer which will involve an all-scrip deal.

If the deal does go ahead, Afterpay shareholders will receive 0.375 shares of Square for every Afterpay share owned.

Another catalyst that moved the Afterpay share price was its FY21 results.

How did Afterpay perform in FY21?

For the 12 months ended 30 June, Afterpay delivered a stellar underlying sales growth of 90% to $21.1 billion.

Other highlight's of the company's full-year report included;

  • Total income up 78% (or 89% in constant currency) to $924.7 million
  • Gross loss to underlying sales ratio flat at 0.9%
  • Net transaction loss up 210% to $132.6 million
  • EBITDA down 13% to $38.7 million
  • Active customers increased 63% to 16.2 million
  • Active merchants up 77% to 98,200
  • Square-Afterpay transaction on track to complete in Q1 of calendar year 2022

The outlook for Afterpay

In its full-year report, Afterpay acknowledged that the acquisition by Square is expected to go ahead in the first quarter of calendar year 2022.

Regardless of the acquisition, the company continues to work on plans to expand its in-store card offering beyond Australia and the US.

Afterpay also expects to launch its Afterpay iQ platform this September.

Despite surging more than 42% in the last 3 months, shares in the BNPL giant are only 9% higher for the year.

Should you invest $1,000 in Arafura Resources right now?

Before you buy Arafura Resources shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Arafura Resources wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

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

More on Share Gainers

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week today.

Read more »

A person in a gorilla suit leaps really high holding a banana, nearly doing the splits.
Share Gainers

Up 1,238% in a year, why is this ASX gold stock surging again on Monday?

The ASX gold stock is now well into ten-bagger range and still rising fast today.

Read more »

A happy investor sits at his desk in front of his laptop and does the mexican wave with his arms to celebrate the returns from his ASX dividend shares
Share Gainers

Why EOS, Gorilla Gold, Lendlease, and OFX shares are charging higher today

These shares are starting the week on a positive note. But why?

Read more »

A woman in a business suit sits at her desk with gold bars in each hand while she kisses one bar with her eyes closed. Her desk has another three gold bars stacked in front of her. symbolising the rising Northern Star share price
Gold

How this ASX All Ords gold stock turned $10,000 into $78,740 in just one year

The ASX All Ords gold miner has raced higher over the year. Let’s find out how.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a happy end to the trading week this Friday.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Bank Shares

CBA shares top $170. Where to now?

Another day, another record high for CBA shares.

Read more »

Two people jump and high five above a city skyline.
Share Gainers

Why these 5 ASX 200 stocks are racing higher this week

It’s been a stellar week for these five ASX 200 stocks. But why?

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Appen, Aspen, Catalyst Metals, and Core Lithium shares are racing higher today

Let's see why these shares are roaring higher today and ending the week on a high.

Read more »