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Will the Afterpay (ASX:APT) share price hit new highs?

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Like the Energizer Bunny, the Afterpay Ltd (ASX: APT) share price just keeps going and going… higher and higher.

The company’s shares hit an all-time closing high of $104.53 per share on 9 November. Since then, the Afterpay share price has slipped 6.75% to $97.47 at the time of writing. Still, that represents a phenomenal 218% gain year to date.

By comparison the broader S&P/ASX 200 Index (ASX: XJO) is down 0.98% so far in 2020.

With such a stellar performance already in hand for the year, can the Afterpay share price keep going and going?

Based on the company’s latest announcement, it certainly seems possible. The update, released after the market closed yesterday, revealed a new sales milestone for the month of November.

What did Afterpay announce?

Afterpay revealed in a market update last night that its global underlying sales in November reached $2.1 billion. That’s up 112% from the $1 billion reported in November 2019.

Buy now, pay later (BNPL) sales were buoyed by big spending across the Black Friday and Cyber Monday weekend.

The company reported that its United States market reached the highest level of monthly underlying sales ever across all the regions it covers. US consumers purchased $1 billion of goods and services on the company’s BNPL platform.

With sales in the US growing 186% year on year, November marked the first month that underlying sales in the US were more than the ANZ region. ANZ spending came in at $900 million, up 54% from November 2019, and also setting a new record for the region.

In fact, Afterpay reported that every region it operates in recorded new monthly underlying sales records in November.

The company’s United Kingdom market saw the fastest growth, with November’s $200 million in underlying sales 315% higher year on year. The number of UK merchants on its platform also leapt 800% over the year.

What does Afterpay do?

Afterpay is a leader in the BNPL space. The company’s payment platform allows people to buy and receive goods and spread the cost of their purchase out over equal payments, without any interest fees.

The company was founded in 2015. The Afterpay share price first began trading on the ASX in June 2017. The company now operates in Australia, the US and the UK, with current expansion plans into the wider European market.

With November’s strong sales growth figures in mind, it will be interesting to see how the Afterpay share price performs moving forward.

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Returns as of 6th October 2020

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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.

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