Technology
Galliano's Financials Research
Victor Galliano questions the eye-watering multiple being paid following news that SQ plans to acquire Australian fintech company Afterpay for $29bn - as SQ enters the BNPL arena, credit risk will need to be managed very carefully, especially in a business experiencing rapid growth. Investors should also expect increased regulatory scrutiny and oversight, especially from financial regulators in the US, who may want to constrain the pace of growth in consumer instalment credit sales. The clear winners are Afterpay shareholders who Victor believes should cash in their SQ shares post exchange.
Edition: 117
- 20 August, 2021