Is Block in trouble because of Afterpay?

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In this video I will talk about Blockit is ( BECAUSE -2.09% ) After paying part of the business. In its first set of results since taking over Block, Afterpay posted a huge net loss. You can find the video below, but here are some highlights.

  • At the time of purchase, Block’s projected growth was 70%, but it was reduced to between 25% and 30%. – a big drop considering the premium he paid for Afterpay.
  • In the first half of 2022, Afterpay’s poor performance included $176 million in bad debt, which was well above the $72 million a year ago.
  • Operating expenses are up nearly 287%, from $63 million to $212.3 million.
  • The best news is that Afterpay’s revenue grew 55% to $645 million.
  • Afterpay is free. You can use it through the app or directly at the checkout if this option is offered. He makes money from late fees. If you don’t pay on time, you pay a late fee of up to $8. In case of continuous late payment, the total amount of charges is capped at 25% of the order value.
  • Competing benefit To affirm does not charge late fees, but you pay interest on your purchase. This means that you know in advance exactly how much you will pay.
  • Not everyone can use Afterpay. If you’ve used it in the past and have a good track record, you should be fine. But if you have a bad one, your application will likely be denied.
  • The big concern is what will happen when these companies buy now, pay later become buy now, never pay. No one wants a repeat of the 2008 financial crisis.
  • Afterpay may perform a soft credit check, but it does not affect credit scores.

For complete information, watch the video, consider subscribing and click on the special offer link below.

*The share prices used were the closing prices of April 14, 2022. The video was posted on April 18, 2022.

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