The Afterpay Ltd (ASX: APT) share price has rocketed 93% higher since the start of the year to $56.52.

That would be impressive growth at the best of times, let alone after a steep bear market. Afterpay shares slumped as low as $8.01 before rocketing more than 600% higher in the last three months.

It’s been a wild ride for long-term Afterpay shareholders in recent years. In fact, the Afterpay share price was trading at just $2.95 in June 2017.

But could Afterpay repeat the trick and double again in 2020?

Why the Afterpay share price could surge higher

It’s fair to say investors panicked as coronavirus restrictions took hold in February. Shares in the buy now, pay later company plummeted lower before rocketing even higher than where they started.

Afterpay has a $15.1 billion market capitalisation right now. This means the Aussie payments company could leapfrog into the ASX 50 by the end of the year.

$100 per share seems like a long way from the current Afterpay share price of $56.52. However, Afterpay has proven time and again that it can deliver strong growth to shareholders.

The group’s retail merchant networks continue to grow and bad debts are staying low. Successful expansions into the United States and the United Kingdom have also been strong growth factors.

But there’s no such thing as a sure thing in ASX shares, particularly in this market. I’m expecting there to be more volatility on the way, especially as government stimulus measures are wound back.

If we see another strong earnings result, then the Afterpay share price could surge towards $100 per share. However, any slight wobble could send the company’s shares into another slump.

Foolish takeaway

The Afterpay share price has already delivered strong returns for long-term shareholders. But now it’s always a question of, ‘is it too late to buy?’.

I think there’s still strong growth potential for Afterpay despite increasing competition at home and abroad.

I wouldn’t say $56.52 per share is a cheap buy, but if earnings continue to grow then who knows how high it could go.

More reading

• Why Afterpay and these ASX shares just stormed to new highs
• ASX 200 jumps almost 4%, Webjet share price soars
• ASX tech shares are soaring – these are my top 3 today
• The Zip Co share price is up 500%. Too late to invest?
• Why Afterpay, Super Retail, Uniti, & Viva Energy are charging higher

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Will the Afterpay share price hit $100 in 2020? appeared first on Motley Fool Australia.

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The All Ordinaries (ASX: XAO) returned to form on Tuesday and raced notably higher.

While the majority of shares on the index pushed higher, some climbed more than most.

Three ASX shares that climbed so strongly they reached new highs are listed below. Here’s why they are flying high right now:

Afterpay Ltd (ASX: APT)

The Afterpay share price hit a new record high of $57.07 on Tuesday. Investors have continued to pile into the buy now pay later sector on the belief that the pandemic has accelerated the adoption of the payment method. In addition to this, strong sales and customer growth in the United States and the prospect of an expansion into the Asia market in the future has got investors excited. The latter follows recent news that WeChat owner Tencent Holdings has become a substantial shareholder.

Macquarie Telecom Group Ltd (ASX: MAQ)

The Macquarie Telecom share price reached an all-time high of $35.00 yesterday. Investors were buying the data centre and telecom company’s shares on Tuesday after it revealed plans to build a new data centre. Macquarie Telecom will start building the Intellicentre 5 Bunker (IC5 Bunker) at its Canberra campus in July. This is in response to increased demand for cloud and cyber security services in its government segment. Stage one is expected to complete in December.

Ramelius Resources Limited (ASX: RMS)

The Ramelius share price stormed to new high of $1.86 on Tuesday. When the gold miner’s shares reached that level, it meant they were up 130% since this time last year. Investors have been buying Ramelius’ shares after the gold price charged higher in 2020 due to the pandemic and interest rate cuts. The company’s shares were also given a boost last week when S&P Dow Jones indices announced its inclusion in the S&P/ASX All Australian 200 Index from 22 June 2020.

More reading

• ASX 200 jumps almost 4%, Webjet share price soars
• Why I would buy CSL and these ASX blue chip shares
• ASX tech shares are soaring – these are my top 3 today
• The Zip Co share price is up 500%. Too late to invest?
• Why Afterpay, Super Retail, Uniti, & Viva Energy are charging higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Afterpay and these ASX shares just stormed to new highs appeared first on Motley Fool Australia.

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