Why are Afterpay shares falling?

• Afterpay (ASX: APT) share price closed 4% lower on Monday (11 October)
• The buy now, pay later (BNPL) stock has received a rating of ‘buy’ from 11 out of 18 analysts
• Shares rallied at the end of last month of the back of two new announcements
• Keen to take advantage of Afterpay’s falling share price? Open an account with us to short the stock now.

Afterpay stock price analysis: what’s the latest?

Afterpay shares fell as much as 4.33% on Monday, as stocks lowered on the back of weaker-than-expected US jobs data for the month of September.

Shares hit an intraday low of A$117.66, before closing at A$117.87 a share.

The S&P/ASX 200 was down by nearly one percentage point during the morning session, mirroring Wall Street’s softer finish last Friday.

The US Labour Department’s non-farm payrolls report showed that jobs growth slowed to its lowest in September 2021, amid worker shortages.

The BNPL stock, which is down nearly 5% in the last one month, has a majority rating of ‘buy’ from 11 out of 18 brokers, based on the latest analyst data published by Market Index.

Analysts also gave an average price target of A$118.82 on APT, which represents a slight upside potential from Monday’s closing price.

Read more: Beginner’s guide to day trading

Why did APT shares rise at the end of last month?

Last month, APT shares rose sharply after its money and lifestyle app, called Money by Afterpay (Money), launched a new feature called Afterpay Retro.

Afterpay Retro allows customers to retrospectively create a pay-in-4 from any eligible Money debit transaction.

The self-proclaimed ‘world-first’ feature can be used by customers for up to A$200 of their Afterpay overall available-to-spend amount - from any eligible retailer regardless of whether they usually accept Afterpay.

For example, customers with an Afterpay spending limit of A$1,000 can use up to A$200 for Retro purchases and the remaining A$800 for any other BNPL purchases if they choose to do so.

As part of the Money by Afterpay offering, all Retro purchases follow Afterpay’s No Payment Up Front format, meaning the first payment is due two weeks after the purchase date.

The APT counter also rallied after it announced a new partnership with US e-commerce platform, Fashion Nova. Customers of Fashion Nova now have the option to pay with Afterpay at checkout in four interest-free installments.

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