The Afterpay Ltd (ASX: APT) share price is down again this morning as ASX shares follow US shares drop overnight.
Afterpay has fallen over the past few weeks just like almost any other share. Since 19 February 2020 the Afterpay share price has dropped 16%.
Does that mean it's 16% better value? Perhaps. The price is definitely lower, so for the long-term it's more attractive. But the question is whether Afterpay's current operations and fundamentals have been reduced by 16% in value.
Some investors may argue that the Afterpay share price shouldn't have been as high as $40 in the first place at this stage of its growth journey as it's still reporting losses. Plus there's a lot of regulatory uncertainties at the moment.
Afterpay's FY20 half-year result was pretty good.
Afterpay reported that its underlying sales rose by 109% to $4.8 billion. Its active customer numbers rose by 134% to 7.3 million and its active merchants increased by 86% to 43,200.
It now has a run rate of over $11 billion per annum, based on the trading in the second quarter. The current US and UK underlying sales run rate is now over $4.3 billion per year. The addressable online opportunity from its contracted or currently integrated merchants in the US and UK is around $30 billion, which is similar to the total addressable retail online opportunity in Australia.
The business has so much momentum behind it and it's at least keeping the competitors behind it by some distance, if not widening the gap.
Canada is the next target for Afterpay, which has a population of over 37 million and therefore could end up being another sizeable market for Australia. Canadians are quite similar to Aussies in terms of wealth and other factors, so it's likely to be a success there.
The company is still focusing on exceeding its sales target of over $20 billion by FY22 and it's aiming to reach 9.5 million active customers by the end of FY20.
Foolish takeaway
The Afterpay share price is only back to where it was in January 2020, so it really hasn't dropped very far. If you've been wanting to buy Afterpay shares then this period could be an opportunity, but I don't think it's going to be the only time that we can buy Afterpay shares at a cheaper price during this coronavirus period. I'm not a buyer today.
