It has been a wild year for the Afterpay Ltd (ASX: APT) share price. From setting new all-time highs to setting 52-week lows, and everywhere in between — it has been a stomach-churning period for the buy now, pay later (BNPL) company.
Like each year that has come before, 2021’s chapter is coming to an end, but with it comes a new chapter. Shareholders will be hoping for greener pastures after a disappointing performance this year.
Being joined at the hip with the Block Inc (NYSE: SQ) (formerly Square Inc) share price, Afterpay shares have been dragged lower during the recent weakness in tech. Since the deal’s announcement, the Afterpay share price has fallen 35%.
But, what can investors expect to see in 2022 from the former market darling?
When might Afterpay shares vanish?
In most cases, hearing of your shares vanishing is the last thing you want to hear. However, for Afterpay shareholders, it is a top priority. After receiving an unequivocal 99.95% shareholder vote for Afterpay’s acquisition by Block, investors are ready for the deal to be solidified.
According to an update last week, the scheme of arrangement is now legally effective. The only hurdle left in the way is a condition of the Bank of Spain. At this stage, Afterpay anticipates the implementation will occur in Q1 of the 2022 calendar year.
For this reason, it is likely at some point next year thar Afterpay shares will cease to exist. In their place will be Block Inc shares at a 0.375 for 1 exchange rate.
What else?
In early 2022, Afterpay will be offering its flexible payment solution to the subscription economy. Announced on 24 November, the BNPL brand unveiled the expansion of its services to merchants in the United States and Australia.
In short, Afterpay customers will be able to pay for their gym memberships, entertainment subscriptions, and other subscriptions via the instalment mechanism. Plans are already in the works to extend the feature to other regions including Canada, New Zealand, the United Kingdom, and Europe.
Afterpay shares are down 30% since the beginning of the year.
The post Invested in Afterpay (ASX:APT) shares? Here’s what to watch in 2022 appeared first on The Motley Fool Australia.
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- These were the worst performers on the ASX 200 last week
- Why Afterpay, Corporate Travel, Dubber, and EML shares are falling
Motley Fool contributor Mitchell Lawler owns AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended AFTERPAY T FPO and Block, Inc. The Motley Fool Australia owns and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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