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The early backers of Afterpay say Square’s blockbuster $39 billion offer makes strategic sense for both companies but warn integration risk will be a key factor to watch as the two payments systems are brought together.
The local market reacted positively to a Square earnings call and briefing on the Afterpay acquisition on Monday night, sending Afterpay up another 12 per cent on the ASX on Tuesday on the back of strong gains by Square in New York.
Afterpay’s Nick Molnar at Thread Togeather’s factory opening. Banksmeadow in February.
The surge in Square’s share price came after the company’s founder and chief executive, Jack Dorsey, told US investors the merger of Square and Afterpay would drive more e-commerce activity across both services, and in spite of criticism of the deal by popular CNBC cable business news pundit Jim Cramer.
2 exciting small cap ASX shares to buy
Tristan Harrison | January 16, 2021 11:45am |
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Some small cap ASX shares may be able to make good returns over the longer-term.
There are smaller businesses that have interesting characteristics, which may be of interest to some investors:
Volpara is a medical technology business. Its main service is providing software to help detect breast cancer early on by increasing the quality of screening using AI.
The small cap ASX share reported its FY21 half-year result a couple of months ago. Subscription revenue went up 71% to NZ$8.8 million, though total revenue only grew by 38% to NZ$9.5 million. Annual recurring revenue (ARR) went up from NZ$18 million to NZ$19.9 million.
3 small cap ASX shares to buy for 2021
Tristan Harrison | December 31, 2020 4:19pm |
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There are some small cap ASX shares that may be able to generate good returns in 2021.
Identifying a business that’s earlier on in its growth journey may mean it’s possible to capture more capital growth.
Here are three smaller businesses with growth potential:
City Chic is a retail ASX share that sells plus-size clothing, footwear and accessories to women.
It adapted to COVID-19 conditions by ramping up its online sales, which grew 113.5% in FY20 and represented 65% of total sales. Fund manager Chris Prunty from QVG Capital thinks that the e-commerce theme will continue to grow after COVID-19 has passed. For a business like City Chic, the small cap ASX share’s ability to sell products online underlines its ability to build a market-leading position for itself.