The Afterpay Touch Group Ltd (ASX: APT) share price has proven to be one of the success stories on the ASX in 2019, climbing 196.0% higher so far this year to $35.52 per share.
The crazy thing? Many think that the Afterpay share price gains aren't over yet.
Why the Afterpay share price has surged in 2019?
Starting at $12.00 per share, the Afterpay share price had already proven to be a top performer in 2018 as it surged 306.77% higher from its June 2017 IPO price of $2.95 per share.
The Afterpay share price growth so far this year has been helped by the company's strong expansion into the lucrative United States market and expanded its retail merchant network even further.
All eyes were on the "buy now, pay later" provider's ambitious expansion plans particularly as it moved from competition with the likes of Zip Co Ltd (ASX: Z1P) into international competition with Visa Inc. and Klarna.
The Afterpay share price has continued to hit record-high after record-high this year and this has been reflected in solid financial results so far in 2019.
For the year ended 30 June 2019, Afterpay reported a 140% lift in underlying sales to $5.2 billion as total income increased by 86% to $264.1 million.
These numbers were underpinned by a 130% increase in active customer numbers to 4.6 million as Afterpay's net transaction margin surged 93% year-on-year to $136.5 million.
Will the Afterpay share price maintain its gains?
While the Afterpay share price has surged a whopping 196% higher so far this year, it remains to be seen whether or not the Aussie company can maintain its strong share price gains into 2020.
With the company's United Kingdom expansion starting strongly, I think all signs are looking positive for Afterpay in the months ahead particularly given a solid update on the AUSTRAC inquiry provided on Wednesday.
However, the sky-high price-to-earnings (P/E) ratio that Afterpay shares trade at, given it is still technically a loss-making company, means you'd want to see continued growth in 2020 to justify buying at the moment.
