Splitit vs Afterpay: recent share price action compared

We examine the recent price action from two of Australia’s most prominent buy now pay later (BNPL) stocks – Afterpay and Splitit.

Splitit price action examined

The Splitit (SPT) share price has come off the recent highs it recorded after the company announced it had signed a multi-year partnership with Mastercard (MA) aimed at accelerating the adoption of Splitit’s core technology.

Under the partnership, Splitit will see its payments solutions integrated with Mastercard's ‘suite of technology’ as a network partner. The companies are also set to work together on the development of new instalment and other similar products.

The partnership, as Splitit clarified following the initial announcement, is set to run for five years.

In response to that news and in the span of just one trading session – the Splitit share price more than doubled, rising 108% on the day of the partnership announcement.

While the stock spiked on the following day – trading up to an all-time high of $1.915 per share (on significantly-above average volume); the stock has since pulled back, trading down during all of the last three sessions.

Interestingly, Splitit itself conceded that due to the contingent nature of the partnership, its economic materiality could not be quantified. Even so, at the time of writing SPT still traded at $1.30 per share – over 500% off the lows it recorded in March.

The Clearpay success story

By comparison to Splitit, Afterpay (APT) – Australia’s highest profile BNPL stock – has also seen its share price rebound impressively since March, gaining ~600% in that period.

In saying that, the BNPL darling faced some volatility this week – as market participants likely mull the potential impact of a second wave coronavirus outbreak. Regardless of that, Afterpay this week announced that UK-situated Clearpay had hit 1,000,000 active customers in just one year of operations.

Commenting on the engagement levels of these users, the company said in a statement that 'Customer purchasing frequency in the U.K. is outpacing the U.S. when it was at the same stage of lifecycle, with customers transacting more than 8 times within the first year compared to the U.S. which was at 6 times during the first year.'

For reference, Afterpay acquired Clearpay in August 2018. The acquisition was funded through a $110 million equity raise.

The Afterpay share price last traded at $57.00 per share.

Afterpay VS Splitit: share price performance comparison

Company

5 day performance

3 month performance

YTD performance

Afterpay

-3.02%

+279.47%

+85.83%

Splitit

-14.97%

+410.20%

+87.97%

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