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% |
Want to trade BNPL stocks: long or short?
Create an IG trading account or log in to your existing account to get started now.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
