The buy now, pay later tech sector of the ASX share market has been a hot favourite for traders recently with businesses like Afterpay Touch Group Ltd (ASX: APT), Sezzle Inc. (ASX: SZL) and ZIP Co. Ltd (ASX: Z1p) regularly rising in price over FY 2019.
However, they've not escaped a huge sell off on the S&P/ ASX200 (ASX: XJO) this week on the back of fears an escalating trade war between China and the US could send the world into recession.
This week the Afterpay share price is down 10% from $25.49 to $22.20. The ZIP share price is down more than 10% from $3.33 to $2.89 and the Sezzle share price is down more than 10% from $2.50 to $2.12.
Given the gangbusters growth of the buy now, pay later sector in large retail markets like Australia, the US, and UK investors might ask themselves if these shares are now bargains.
Afterpay is the market leader in the space and offers exposure to the large UK and US markets, with Sezzle also US focused but yet to really prove itself. While Z1P is growing strongly in Australia and still has a market value around one fifth that of Afterpay.
