The Openpay Group Ltd (ASX: OPY) share price is having one of those 'ordinary' days today. Openpay shares are down more than 9% today to $2.25. This is despite no major news out of the company.
But that's not why we're talking about Openpay today.
Instead, let's talk about the company's recent performance. Openpay started the year going for $1.24 a share. Its pre-COVID-19 high of $1.40 came on 13 February (just in time for Valentine's Day). Then the March market crash happened and Openpay was smashed. Its shares dropping all the way down to 32 cents on 23 March (a loss of 77%).
But since 23 March things have really got juicy. On today's prices, anyone who bought into Openpay on 23 March would be sitting on a tidy 600% gain right now. That's the highest return to date for any ASX company over a $50 million market capitalisation that I know of (even beating fellow payments company Afterpay Ltd (ASX: APT) ).
It gets even better. On 4 June, the company's shares popped all the way up to $4 a share on a surge of buying activity. Anyone purchasing Openpay at 32 cents in March and selling them at $4 in June would have enjoyed a return of 1,150%. Of course, its shares didn't last long at $4. After another week, the shares were back to around the levels we see today. But hey, it's always fun dreaming of what could have been!
Still time to buy Openpay shares?
Well, that depends on your view of the future of the buy now, pay later sector. Unlike its rivals Afterpay and Zip Co Ltd (ASX: Z1P), Openpay focuses on more 'expensive' purchased — think cars, healthcare and home improvement.
I think this niche is a great area for Openpay to be focusing on, but it remains to be seen whether it can fend off other BNPL providers and really cement its dominance. This company only floated on the ASX in December of last year, but early signs are very promising. In May, for instance, Openpay reported that it's customer numbers had increased by more than 130% year on year in the month of May. With its current market capitalisation of ~$244 million, there is definitely room for growth here.
Foolish takeaway
Whilst I did get some FOMO (fear of missing out) looking at Openpay's recent performance, I don't think I'll be jumping on this share in the near future.
It's still very early days for this company, and I think it will need to pull off a herculean task in carving out a successful presence in the buy now, pay later space. A space which seems to be getting more crowded every week. As such, I'll be sitting on the sidelines on this one.
