The Motley Fool

Why the Afterpay share price fell a further 10% today

The Afterpay Touch Group Ltd (ASX: APT) share price has continued its slide on Monday morning and fell as much as 10% in early trade.

This follows a 12% decline in the payment company’s share price during the last hour of trade on Friday.

What has happened?

On Friday the Afterpay Touch share price came under pressure after payments giant Visa announced the start of a pilot program that will allow participating issuers and merchants to offer their customers an instalment payment option at the checkout by using a Visa card.

This appears to have sparked fears amongst investors that Visa might cut out Afterpay as a middleman and make its business model defunct.

Due to the significant decline in its shares on Friday afternoon, the Australian stock exchange sent the company an ASX Price Query request. As the name implies, this requests an explanation for why a company’s share price has made a large move.

This morning the company responded to the Australian stock exchange’s request.

Afterpay Touch’s response.

Afterpay Touch advised that it was not aware of any information that could explain the recent trading in its securities.

The Australian stock exchange operator then asked Afterpay Touch if the decline could have been caused by reports that Visa is launching its aforementioned pilot program.

It responded: “Media reporting may have influenced the recent trading in APT securities however APT is unable to confirm that the change in price or increase in volume was specifically related to this factor. There are many factors which may influence the intraday price and trading volume of listed securities. We note that other ASX listed companies operating in this sector (including Zip Co (ASX: Z1P) and Splitit Payments (ASX: SPT)) also experienced similar movements in share price over the same period.”

After which, it ended the matter by confirming that it is in compliance with listing rules. For now, with the company giving little away, investors will have to decide for themselves whether the Visa development is a threat or not.

Looking for the next Afterpay to invest in? Then check out this hot stock.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more


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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.