The Afterpay Touch Group Ltd (ASX: APT) share price has rocketed 70% higher this year as one of the hottest stocks in the S&P/ASX200 Index (ASX: XJO) – so is this the limit for Afterpay or can it go even higher in 2019?
What's driven Afterpay's share price growth in 2019?
The Afterpay share price was a top performing stock in 2018 as the share price exploded to post gains of 89% as it recorded exponential sales growth and expanded into the USA.
So far this year, the Afterpay share price has rebounded as concerns over greater ASIC regulation and a structural change to its business model as a "credit provider" have subsided in recent months.
A recent Senate inquiry allayed fears of tough new regulations on Afterpay and its fellow "buy now, pay later" provider Zip Co Ltd (ASX: Z1P) while a January 2019 market update saw the company record first-half sales of $2.2 billion, up 140% from last year's figures.
Afterpay's international expansion is a case of "so far, so good" for the fintech as it has expanded its customer and retailer base in the USA with plans to expand into the United Kingdom later in 2019.
These markets are key to the future growth of Afterpay, and the ability to justify its lofty $20.50 valuation as a loss-making company, given the sheer size and opportunity set available offshore compared to Australia.
Is Afterpay in the buy zone?
I've previously invested in Afterpay myself and am a big proponent of its business model and all-round offering. I think the "buy now, pay later" model that Afterpay provides with instant verification has huge benefits as both a budgeting tool and as an easy form of consumer credit.
Afterpay's rival Zip Co has also done well in 2019 as its share price has soared 56.4% on the Senate inquiry news, but its $543.4 million market cap is still dwarfed by its larger rival's $4.9 billion valuation.
For those who think they've missed the boat on Afterpay, I'd check out these top growth shares which could be the "Afterpay of 2019".
