The Afterpay Touch Group Ltd (ASX: APT) share price rose nearly 4% today, making it one of the best performers in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
Afterpay wasn't the only ASX tech share that finished the day in the green:
The Xero Limited (ASX: XRO) share price grew by 1.7%.
The WiseTech Global Ltd (ASX: WTC) share price increased by 2.4%.
The Appen Ltd (ASX: APX) share price went up by 1.6%.
The Altium Limited (ASX: ALU) share price increased by 0.3%.
The momentum for Afterpay shares has certainly returned. The Afterpay share price is up 67% since mid-November and 36% over the past month.
There are several reasons for Afterpay's resurgence.
Firstly, the local and global share markets have recovered after their terrible December 2018 quarters. A rising tide lifts all boats after all, including Afterpay.
Secondly, the Senate Inquiry into the short-term financing sector has confirmed that Afterpay's business model is substantially different to its competitors, so it seems unlikely that Afterpay will be a loser – in-fact it could benefit if competitors are regulated.
Finally, Afterpay came out with a pleasing business development update a few weeks ago. It said that underlying sales in the first half of FY19 underlying sales grew by 140% to $2.2 billion. The US business was generating annualised underlying sales of more than $500 million. In the second quarter of FY19 Afterpay was adding 7,500 new customers per day. These are impressive numbers.
Foolish takeaway
If you were brave enough to buy Afterpay shares between November to mid-January then you'll have done well. Selling for a quick profit could be a consideration. It's very hard to say if Afterpay is a buy today or not. It has huge potential to be an integral part of customer payments in the future, but it's also priced for a lot of success.
