Why did the Afterpay (ASX:APT) share price go backwards in November?

Last month was tough for the BNPL giant’s stock…

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Last month was a big one for Afterpay Ltd (ASX: APT), though, the excitement wasn’t enough to save its share price.

The soon-to-be acquired buy now, pay later (BNPL) provider’s stock tumbled 11.71% over the course of November.

As of the month’s end, its shares were swapping hands for $108.85. That’s despite finishing October trading at $123.29 apiece.

And, so far, December hasn’t proven to be any better. At the time of writing, the Afterpay share price is $95.73.

Let’s take a look at what drove the BNPL giant’s stock last month.

What moved the Afterpay share price in November?

The Afterpay share price was given a temporary boost in early November when the company announced that Square Inc (NYSE: SQ) shareholders had voted in favour of a major condition of the upcoming takeover.

The payment provider’s investors voted to issue new stock (and underlying CHESS depository interests) for the all-scrip transaction.

Afterpay’s stock gained 2.3% on the back of the news but fell 5.5% the following day.

The BNPL company also set the date on which its own shareholders were expected to vote on the merger.

Originally, investors were to go to the polls on 6 December. However, that’s been pushed back to 14 December due to a delay by the Bank of Spain.

The company also achieved several non-price sensitive milestones in November.

It launched its new app, Money by Afterpay, which operates like a bank. The offering allows users to access a debit card, digital wallet, and open up to 15 savings accounts.

The BNPL company also broke into the hospitality sector in November, partnering with Australian Venue Co to launch its service in 160 pubs, restaurants, and venues.

Finally, Afterpay’s suitor’s performance might have weighed on its own shares last month.

The share price of Square – soon to be dubbed Block – tumbled 18.14% over the course of November. It ended the month trading at US$208.33.

As the seemingly impending takeover deal is all-scrip, the Afterpay share price tends to be dictated by that of Square.

While November wasn’t a great month for the BNPL giant, it still landed among the top performing BNPL shares of the month.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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