The Selfwealth (ASX:SWF) share price could be the next Afterpay: fundie

This fund manager thinks SelfWealth could be a big winner in the medium-to-long term.

| More on:
surprised shopper, unexpected news, person at computer with payment card,

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 SelfWealth Ltd (ASX: SWF) share price is up 22% in September to a 1-month high of 38.5 cents but still down 30% year-to-date.

Shares in the investing and trading platform have been hammered by recent announcements including the company's FY21 full-year results and $10 million capital raising.

Despite its recent underperformance, the founder of Datt Capital, Emanuel Datt, told the Australian Financial Review (AFR) that SelfWealth might have what it takes to become the next Afterpay Ltd (ASX: APT).

Could the SelfWealth share price become the next Afterpay?

Datt pointed to SelfWealth when asked about any hidden nuggets in the small-cap space with the potential to be the next Afterpay.

"We believe that SelfWealth possesses a lot of the ingredients that made Afterpay so successful, and could prove to be an enormous success looking out over a three-year time horizon," Datt said.

"The company is currently focused solely on the online broking space but has large potential to expand towards offering a suite of financial services across its platform."

"The opportunity is there for the taking and the new management team are executing very well so far."

Datt Capital is also the largest shareholder in the SelfWealth share price.

What's next for SelfWealth?

SelfWealth has laid out a detailed product roadmap that continues to focus on expanding its capabilities in terms of online broking.

In the near term, the company said that it's working on the ability for members to fund their ASX accounts in real-time, a live pricing feature and continuously working to improve the user experience on its app.

Perhaps an exciting short-to-medium term catalyst for the SelfWealth share price is its plans to launch cryptocurrency trading.

The company said that "we will be partnering with an established and secure cryptocurrency exchange to provide access to cryptocurrencies".

"This is off the back of research we've done, including answers from many of you. You want to access crypto, but you want it done in a safe and secure manner. You will be able to trade cryptocurrencies that have been vetted by us first. We will factor in popularity, liquidity and security."

Motley Fool contributor Kerry Sun 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. 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 Technology Shares

drone technology, drone defence, woman operating drone
Technology Shares

DroneShield shares rocket 11% to record high on big news

Let's see what this high-flying stock has announced this morning.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Technology Shares

Here are 2 exciting ASX shares rated as buys

These shares are highly rated by brokers. Let's find out why.

Read more »

Two IT professionals walk along a wall of mainframes in a data centre discussing various things
Technology Shares

Is this the decade of the data centre? One ASX 200 stock that could benefit

Let's see why one leading broker thinks this stock could be destined for big things.

Read more »

A human-like robot checks out market performance on a laptop, indicating the rise of AI shares.
Technology Shares

3 top performing ASX AI shares for your watchlist

Have you positioned your portfolio to capitalise on the next tech revolution?

Read more »

A man with a wide, eager smile on his face holds up three fingers.
AI Stocks

3 reasons to buy NextDC shares today

A leading expert forecasts more growth to come for NextDC's rebounding shares.

Read more »

A share market analyst looks at his computer screen in front of him showing ASX share price movements
Technology Shares

Why this $3.9 billion acquisition makes Xero shares a buy today

A leading expert forecasts that Xero’s $3.9 billion investment is about to pay off.

Read more »

Three young people in business attire sit around a desk and discuss.
Small Cap Shares

Tiny tech: 3 ASX small-cap shares with new ratings

Toby Grimm of Baker Young and Peter Day of Sequoia Wealth Management share their new ratings.

Read more »

Smiling young parents with their daughter dream of success.
Technology Shares

Could Life360 shares rise to $37.50?

Bell Potter has given its verdict on this tech stock.

Read more »