Afterpay share price tumbles 8% in dire day for ASX tech shares

The Afterpay share price is taking a hit today.

| More on:
A surprised and curious male investor drinks black coffee while reading the latest news on rising ASX shares in the newspaper

Image source: Getty Images

Key points

  • The Afterpay share price is falling more than 8% today
  • Block shares fell nearly 6% in the United States overnight
  • Bank of Spain approved Block’s takeover of Afterpay this week

The Afterpay Holdings Ltd (ASX: AFY) share price is slumping today amid a tough time for tech shares in the United States.

Shares in the buy now, pay later (BNPL) share company are currently trading at $69.45, down 8.47%.

Let’s take a look at what might be impacting this ASX tech share today?

What’s happening to Afterpay?

The Afterpay share price is falling sharply today despite making gains earlier in the week on the back of news on its takeover by Block Inc (NYSE: SQ).

Block received approval from the Bank of Spain to buy Afterpay on Wednesday. Afterpay’s shares may be falling today as a result of Block’s shares falling in the United States.

In Thursday trading on the New York Stock Exchange, Block fell from $145.47 to $136.95, a 5.86% drop.

Meanwhile, the NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) also fell 3.38% in the United States overnight. Investors were selling off technology shares due to inflation concerns, US News reported.

Amazon (NASDAQ: AMZN) dropped 2.42%, while Apple Inc (NASDAQ: AAPL) fell 1.90%.

Looking at Afterpay’s Australian competitors, Openpay Group Ltd (ASX: OPY) is also down 2.74% so far today while Zip Co Ltd (ASX:Z1P) is 3.33% in the red.

Afterpay shares will trade on the ASX for the last time on 19 January.

Afterpay share price snap shot

The Afterpay share price is down more than 42% in the past year and 23% in the last month.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned more than 10% to investors in the past year.

The company commands a market capitalisation of roughly $20.6 billion based on the current share price.

Should you invest $1,000 in Afterpay right now?

Before you consider Afterpay, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Afterpay wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited and Block, Inc. The Motley Fool Australia owns and has recommended Afterpay Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on BNPL shares