Buy now, pay later (BNPL) shares were the kings of the ASX over much of 2020 and 2021.

However, they appeared to fall out of favour as inflation reared its ugly head last year, spurring central banks to hike interest rates, thereby dinting consumers' pockets. Add in the market's distaste for unprofitable companies, and most BNPL stocks crumbled.

Now, the ASX looks like it could soon be down a BNPL share.

Laybuy Holdings Ltd (ASX: LBY) shares are in a trading halt this morning. Meanwhile, the company appears to be preparing to announce its removal from the Aussie bourse.

Let's take a closer look at what's been going on with the tiny BNPL outfit lately.

Are Laybuy shares about to be stripped from the ASX?

The Laybuy share price is in the freezer on Monday as the company prepares to release news on an application to be removed from the ASX.

It follows a dire period for the stock and its BNPL peers. The Laybuy share price has tumbled 69% over the last 12 months to trade at 6 cents at Friday's close.

Longer-term investors have had a worse time, however.

The company – which says it boasts a market-leading position in New Zealand and the United Kingdom, as well as a presence in Australia – offered shares for $1.41 apiece in its $80 million initial public offering (IPO), undergone in 2020.

Sadly, while its future seemingly appears brighter, the market might not see the company's maiden profit. Commenting on its outlook in November, managing director Gary Rohlof said:

We anticipate strengthening results and are on track to achieve [earnings before interest, tax, depreciation, and amortisation (EBITDA)] profitability in March 2023, making Laybuy one of the first pure play publicly-listed BNPL providers to achieve profitability.

ASX BNPL shares have suffered in recent years

Fortunately or unfortunately, Laybuy shares have been far from alone in their recent suffering.

Iconic ASX BNPL stock Zip Co Ltd (ASX: ZIP) rocketed to a record high of $14.53 in 2021. It's since fallen 95% to trade at 75 cents today.

Meanwhile, shares in recently-profitable BNPL stock Sezzle Inc (ASX: SZL) peaked at around $11.34 in mid-2020. The stock is currently swapping hands for 65 cents after the company revealed a second consecutive month of profitability this morning.

Even former-market darling Afterpay saw its share price tumble 30% over the course of 2021. It was snapped up by Block Inc (ASX: SQ2) in January 2022.

The post One less fish in the sea: ASX BNPL share prepares to jump ship appeared first on The Motley Fool Australia.

Laybuy shares have rocketed an astonishing 55.84% so far today. The buy now, pay later (BNPL) share closed at 7.7 cents a share yesterday, but is now going for 12 cents at the time of writing after opening at 9.1 cents this morning. What's more, this company went as high as 15 cents earlier in today's trading session, which was worth a rise of almost 95% at the time.

The strange thing is that this stratospheric share price gain seems to have come out of the blue. There has been no news or announcements out of Laybuy itself today. Or indeed since 30 June.

But this isn't the first time Laybuy shares have given investors a day to remember. Just yesterday, the company rose from 4 cents a share to 7.7 cents, a one-day increase of almost 100%. Today's pricing means that Laybuy is now up 200% since Tuesday afternoon.

Laybuy shares get an ASX speeding ticket

These incredible gains have not gone unnoticed by the higher powers of the ASX. Just before market open this morning, Laybuy revealed that it had received a 'speeding ticket' from the ASX for yesterday's rocketing gains.

When asked if the company can explain yesterday's gains, Laybuy responded that it knew of nothing that could explain these share price moves. However, it did point the finger at some other factors that could have been in play.

Here's some of what the company said:

Laybuy notes the very material share price increases of other companies in the Buy Now Pay Later sector during the course of 27 July 2022, in particular Sezzle, Zip and Openpay. Laybuy believes that the recent trading in its securities may have been driven by the same factors that influenced the trading in some or all of those other securities.

ASX BNPL shares jump on a rocket

Indeed, it's not just Laybuy shares that have been throwing off impressive gains of late. The Zip Co Ltd (ASX: ZIP) share price rose more than 21% yesterday and is up another 14% today so far at $1.42 a share.

Openpay Ltd (ASX: OPY) shares rose 30% yesterday and are up another 32.84% so far today at 44 cents a share.

And Sezzle Inc (ASX: SZL) shares rose more than 97% yesterday and a further 17.7% so far today to 83 cents a share.

Zip and Openpay have not yet been pinged by the ASX for these massive increases in valuation (at the time of writing). However, Sezzle shares were halted from trading yesterday afternoon after the company received a speeding ticket of its own. The shares have obviously returned to trading today.

So all in all, no one knows why Laybuy and these ASX BNPL shares have jumped on a rocket this week. It just seems to be the result of some very potent buying pressure at this stage. But no doubt there are many ASX BNPL share investors out there today who are in a very jubilant mood.

The post Why did ASX buy now, pay later share Laybuy just rocket 95%? appeared first on The Motley Fool Australia.

ASX BNPL shares had a shocker run last financial year with the sector incurring heavy losses. That downward momentum has continued in FY23, with the BNPL segment continuing to face multiple headwinds.

The latest news to shake the sector is the breakdown of the Zip Co Ltd (ASX: ZIP) and Sezzle Inc (ASX: SZL) merger, announced yesterday.

So what's ahead for this troubled sector? Let's check the outlook for FY23.

BNPL shares to face pressure this financial year

It certainly hasn't been a good start to the new financial year. Speaking to the Responsible Lending and Borrowing Summit in Sydney this week, federal Financial Services Minister Stephen Jones said the government was cracking down on the BNPL industry.

Jones said he would soon be consulting with industry stakeholders and regulators on how to improve credit regulation in Australia.

He also dismissed arguments that BNPL players aren't extending credit:

[L]et's have an end to the silly argument about whether BNPL is credit and get on with the next stage of growth for this emerging industry.

If it walks like a duck and quacks like a duck, it's a duck.

Meanwhile, Grant Halverson of banking and payments consultancy McLean Roche said Australia has "an enormous bubble" in its BNPL sector. That's certainly not bullish language.

Halverson told The Australian:

It's absolutely bizarre that the ASX has 12 listed BNPL stocks … and it is all built on this notion that you can borrow money forever and not pay for it.

I think in 12 months' time, you'll have two or three surviving; the rest will all be gone. They'll either go broke or they'll be bought very cheaply.

Indeed, on the back of Zip and Sezzle's failed merger, the Sezzle share price has plummeted, closing the day 21.57% lower at 20 cents a share.

While the Zip share price has fared better since the deal was called off, the ASX BNPL share is now set to face additional headwinds.

In a note to clients, UBS analyst Tom Beadle reiterated this point and said the move would "potentially crimp [Zip's] ability to turn a profit".

He said the UBS team was surprised by the announcement and that macroeconomic headwinds are also plaguing the BNPL sector's outlook.

Certainly, it appears the future is murky for BNPL shares such as Zip and Sezzle, but other players are on the slab too.

Whilst Zip has crashed 93.5% into oblivion, names such as Laybuy Group Holdings Ltd (ASX: LBY) and EML Payments Ltd (ASX: EML) are also down more than 91% and 71% in the past 12 months respectively.

The post What's the outlook for ASX BNPL shares in FY23? appeared first on The Motley Fool Australia.

ASX 200 buy now, pay later (BNPL) services are outgrowing the growth in credit cards for young consumers, a new report has found.

The report, published by the Australia Institute, also claims large tech and payment platforms have a strong influence on the Australian market and that BNPL provides a healthy level of competition.

It's worth noting the report was commissioned by BNPL provider Afterpay. Let's take a closer look.

BNPL shares crucial for competition

According to the discussion paper, "…innovation in the BNPL market is…disrupting the competitive dynamics in the consumer transaction [and customer acquisition] market".

Economist Richard Denniss, who wrote the paper alongside Matt Saunders, argues that competition between BNPL providers means their products are all slightly different.

The paper demonstrates that the BNPL business model differs from that of credit card companies – a comparable industry.

It notes that the BNPL sector sources its revenue from merchant fees – approximately 4% on each sale – versus interest rates and late fees "that underpin the profitability of credit cards".

According to the discussion paper, "[Block Inc (ASX: SQ2)], for example, receives just under 4% of the sales revenues from merchants who source their customers from their platform".

It continues:

Credit card providers offer a cross subsidy between the large number of customers who carry debt on their high interest credit cards and the small proportion of customers who pay off their entire balance each month to avail themselves of the 'interest free' periods offered on some cards.

Contrastingly, BNPL providers typically rely on merchants' willingness to pay for a low cost customer acquisition service that gives them improved access to a growing cohort of consumers who prefer zero or low cost transaction and instalment services to credit cards.

Customer acquisition will benefit too

This underlines the second part of the paper's thesis: customer acquisition.

ASX 200 BNPL companies are similar to companies like Google and Facebook, the paper argues, in that they help merchants to find potential customers.

As a result, BNPL companies such as Block, Zip Co Ltd (ASX: ZIP), and Laybuy Group Holdings Ltd (ASX: LBY) are in direct competition with the large tech platforms like Google and Facebook, as well as large payments providers like Visa and Mastercard.

The discussion paper found:

Google and Facebook receive over 80% of online advertising revenue in Australia and Visa and Mastercard are responsible for 90% of the value of all credit card transactions in Australia.

A highly competitive customer acquisition market offering a diverse range of services and pricing structures will help to enhance competition in retail markets more generally.

This could have benefits to pricing and product selection, the paper also suggested.

Nevertheless, for investors, the ASX 200 BNPL sector has some way to go before reclaiming its losses of 2022. LayBuy Group, for example, is down more than 92% in the last 12 months, while Zip is down almost 94% in that time.

The post Why this economist believes ASX 200 BNPL shares are key to keeping the market competitive appeared first on The Motley Fool Australia.

With some ASX shares almost doubling while other fell by more than half, the All Ordinaries Index (ASX: XAO) finished the quarter almost flat, gaining a slender 0.1%.

So, which were the top two performers and which came in last?

We'll start with the runners-up.

The second best and second worst performers

The second worst ASX share to have held during the quarter just past was Laybuy Group Holdings Ltd (ASX: LBY).

The Laybuy share price was 24 cents when the closing bell rang on 31 December. By the time the ASX closed on 31 March, shares were worth 8 cents, down 67% for the quarter.

Laybuy operates in the buy now, pay later (BNPL) space. And as with other ASX BNPL shares, Laybuy has been hit by expectations of significant interest rate rises, which will impact its business model.

On the flip side of the performance coin, the second-best ASX share to have held during the March quarter was Yancoal Australia Ltd (ASX: YAL).

Yancoal shares kicked off the quarter trading for $2.60 and finished at $4.44, a gain of 71%.

Yancoal shares surged amid rocketing thermal and metallurgical coal prices. The company is Australia's largest pure-play coal producer, operating and managing a portfolio of coal mines across New South Wales, Queensland, and Western Australia.

The coal producer also released some very strong results for the full 2021 financial year back in February, sending the ASX share leaping higher on the day.

Yancoal also reinstated its dividend, with the company paying an unfranked 10.3% trailing dividend yield at current share prices.

Moving on…

These were the best and worst ASX shares in the March quarter

The worst All Ords ASX share to have held during the March quarter was Cettire Ltd (ASX: CTT).

The online luxury goods retailer closed the last quarter at $3.56 and by 31 March was trading for $1.14, down a painful 68% over the three months.

Cettire had been receiving some healthy tailwinds during the COVID lockdowns, which saw many consumers turn to online retail purchases.

Luxury goods are also more prone to be hit by rising interest rates. And with rates likely to increase significantly from their historic lows, investors may have been selling down the Cettire share price.

Cettire shares also suffered another day of big losses on 23 March after it was revealed the company's founder, Dean Mintz, was selling 35 million shares.

Which brings us to…

The best ASX share within the All Ords to have held onto during the March quarter was Stanmore Resources Ltd (ASX: SMR).

Stanmore shares were trading for 95 cents when markets closed on 31 December. By the time the ASX closed on 31 March, shares were worth $1.74, up a very impressive 83% for the quarter.

Like the No. 2 best performer, Stanmore Resources is also involved in digging up and selling coal. In fact, until a name change in April 2021, the company was called Stanmore Coal.

Amid record coal prices, Stanmore's FY21 results were strong, likely helping boost its share price further. Among the highlights, the coal miner's earnings before interest, taxes, depreciation, and amortisation (EBITDA) leapt 125% year-on-year, hitting $54 million.

The post Guess which 2 ASX shares were the best and worst All Ordinaries performers of the quarter appeared first on The Motley Fool Australia.

That came after a very strong 2021, which saw the All Ords gain 14% over the year.

While some companies enjoyed a very good quarter (click here to see the best ASX performers), others struggled amid the spectre of rising interest rates and geopolitical uncertainty, atop their own company specific woes.

Below we look at the three worst ASX All Ordinaries shares to have held during the March quarter.

You'll note it was a very tight race to the bottom.

The third worst ASX All Ordinaries performer of the quarter

Coming in at number three is Zip Co Ltd (ASX: Z1P), which finished the March quarter down 66%.

The ASX All Ordinaries share operates in the buy now, pay later (BNPL) space. It was a market darling during the 11 months following the post pandemic fire sale lows, gaining 872% from 20 March 2020 through to 19 February 2021.

Unfortunately for Zip shareholders, it's been largely downhill since. With the losses from the March quarter and the past week factored in, the Zip share price is now only 11% above the 20 March 2020 low.

The All Ordinaries share has come under pressure alongside others in the BNPL space as fast rising inflation figures point to some significant interest rate hikes ahead. High rates may be good news for the banks, but they appear to be a significant headwind for BNPL shares.

Zip's shares continued to decline in March following a capital raising carried out to acquire fellow ASX BNPL share, Sezzle Inc (ASX: SZL).

The second worst performer during the quarter

The second worst ASX All Ordinaries share to have held during the quarter just past is Laybuy Group Holdings Ltd (ASX: LBY) 67%.

Laybuy's BNPL payment platform allows customers to split paying for their purchases across six, weekly, interest free instalments.

But as with Zip and other BNPL shares, Laybuy doesn't make a profit, it doesn't pay any dividends, and with interest rates across the globe set to rise, its business model will face additional headwinds.

Zip shares hit all-time highs of $12.25 on 19 February 2021. Since then, the ASX All Ordinaries share is down 89%.

And that brings us to…

The worst ASX All Ordinaries share to have held during the March quarter

While it was a tight race, Cettire Ltd (ASX: CTT) takes the inglorious honour, with shares down 68% over the three months.

The online luxury goods retailer was a beneficiary of COVID lockdowns, which drove a surge in online retail purchases across the board.

Luxury goods are also more prone to catch the headwinds of rising interest rates. This saw the ASX All Ordinaries share come under increasing pressure over the quarter, as investors mull a world where rates no longer hover near zero.

The Cettire share price dropped again sharply on 23 March on news that the company's founder, Dean Mintz was selling 35 million shares.

Cettire was trading at a record closing high of $4.75 per share on 16 November last year. Since then, the ASX All Ordinaries share has lost a painful 79%.

The post These were the worst 3 ASX All Ordinaries shares to hold during the March quarter appeared first on The Motley Fool Australia.

It's a rough week for ASX buy now, pay later (BNPL) shares amid news from the United Kingdom.

The nation's financial watchdog asked Openpay Group Ltd (ASX: OPY) and Laybuy Holdings Ltd (ASX: LBY) to change "potentially unfair and unclear" terms in their contracts on Monday.

Let's take a closer look at what might have weighed on some ASX BNPL shares this week.

Has this UK watchdog impacted ASX BNPL shares this week?

4 BNPL companies operating in the United Kingdom – 2 of which are listed on the ASX – were addressed by the nation's Financial Conduct Authority (FCA) over concerns regarding their terms and conditions.

Laybuy, Openpay, and Clearpay all voluntarily changed their contracts and refunded customers impacted by the 'unfair' terms this week.

Non-listed BNPL company Klarna was also caught up in the regulator's sweep. Though, as it doesn't charge late fees, it had no need to issue refunds.

FCA executive director of consumers and competition, Sheldon Mills said the body can't regulate BNPL firms yet, but it can hold them to other standards.  

"The 4 BNPL firms we have worked with have all voluntarily agreed to change their approach," Mills said. "We welcome this and hope that the rest of the industry will now follow."

One issue flagged by the watchdog was how the BNPL companies dealt with returned purchases.

It stated some customers had been forced to continue payments or charged late fees if a retailer took their time when reporting a return to a BNPL provider.

Additionally, the FCA found that the BNPL providers' terms and conditions allowed too much leeway when cancelling or suspending accounts and didn't let customers deduct money owed by the provider from their debts.

Finally, it was worried the contracts didn't clearly state how customers can cancel a provider's ability to take money from their debit or credit cards.

According to reporting by the Guardian, an Openpay spokesperson said the company welcomed the FCA's insights and would welcome "fair and appropriate regulation" in the United Kingdom.

The publication also stated Laybuy has flagged its preference for direct regulation from the FCA.

Alex Marsh, head of Klarna UK, commented on the regulator's action, saying the company welcomed the FCA's oversight and implemented the proposed changes to their terms and conditions in September 2021.

"We continuously review our Ts&Cs including working with Fairer Finance, to ensure that we are communicating in the most clear, fair, and transparent way," said Marsh.

"We have never received a customer complaint specifically related to these Ts&Cs but are always open to ways in which they can be improved."

What else might have weighed on the BNPL sector?

Other news that could have dragged on ASX BNPL shares this week include interest rate fears and the technology sector's performance.

As The Motley Fool Australia chief investment officer Scott Phillips told Nine's Late News on Sunday, markets have been concerned about rising inflation, which could drive up interest rates.

As previously reported by The Motley Fool Australia's Zach Bristow, rising interest rates are generally bad news for the tech sector, within which BNPL shares are often grouped.

Additionally, the tech-heavy Nasdaq Index has slumped 3% over the last 5 sessions.

The S&P/ASX 200 Info Tech Index (ASX: XIJ) has also slumped 1% this week while the S&P/ASX All Technology Index (ASX: XTX) has fallen 1.4%.

For comparison's sake, the S&P/ASX 200 Index (ASX: XJO) has gained 0.3% in the same time frame.

How have BNPL stocks performed this week?

While the news from the northern hemisphere may not have impacted the share price of both Openpay and Laybuy, they've both ended this week in the red.

The share price of Openpay has tumbled 4% since Monday, while that of Laybuy has plummeted 25%.

And while neither Zip Co Ltd (ASX: Z1P) nor Sezzle Inc (ASX: SZL) were involved in the FCA's findings, their share prices have fallen 8% and 11% respectively this week.

The Block Inc CDI (ASX: SQ2) share price has suffered the least. The owner of Afterpay has seen its ASX-listed stock slide just 1%.

Looking to the United States' markets, the Affirm Holdings Inc (NASDAQ: AFRM) share price has slipped 29% over the last 5 sessions.

Meanwhile, that of Paypal Holdings Inc (NASDAQ: PYPL) has tumbled 12%.

The post What's going so wrong for ASX BNPL shares this week? appeared first on The Motley Fool Australia.

Key points

• The buy now, pay later (BNPL) sector could be in for a tough time in 2022 according to one expert
• 2022 has already seen a big decline for many of the players, including the Zip share price which is down 30% this year
• Brad Kelly points out that almost none of the BNPL ASX shares are making a profit, which will make it harder to raise capital

The buy now, buy later (BNPL) ASX shares could be in for a "tough time" according to one of the experts of the payments industry.

There are plenty of BNPL businesses on the ASX like Zip Co Ltd (ASX: Z1P), Block Inc (ASX: SQ2), Sezzle Inc (ASX: SZL), Splitit Ltd (ASX: SPT), Laybuy Holdings Ltd (ASX: LBY), Openpay Group Ltd (ASX: OPY) and Ioupay Ltd (ASX: IOU).

Big declines

Investors have already seen major declines of the share prices of plenty of the buy now, pay later players.

In 2022, the Zip share price has fallen 30% so far. Over the past six months it has slumped 60%.

Since listing on the ASX a couple of weeks ago, the Block share price has fallen 17%. Block is the American company that recently acquired Afterpay.

In the calendar year to date, the Sezzle share price has fallen 27%. The past half-year has seen a 71% capitulation of Sezzle shares.

And so on. There has been a huge deterioration since the last reporting season.

'Tough time' coming

According to reporting by News.com.au, an expert of the payments sector called Brad Kelly has some negative expectations for the industry.

Mr Kelly, the managing director of Payment Services, said:

They are very good at marketing spin and PR, good at using the services of highly paid consultants to get around the Consumer Credit Act and are able to offer credit without it appearing as credit.

The reality is the BNPL provider's bad debts are astronomical, none of them have made a profit, none of them have paid a dividend and share prices are down 70% to 80% to even 90% in some cases.

Mr Kelly points out that nearly all of the companies in the buy now, pay later sector are reporting annual accounting losses.

Another, expert, Grant Halverson, the founder and chief executive of payments consultancy McLean Roche, thinks there is a danger that the buy now, pay later sector could see rising bad debts and the ASX shares could end up with a 'junk' rating regarding their debt.

Mr Halverson warned that the BNPL sector could suffer from rising interest rates, which would make it trickier to make a profit and raise money. Speaking to the Australian Financial Review, he said:

They're going to have to try to raise a lot of money.

It partly depends on how quickly interest rates go up, because if they go up quickly there could be carnage. If there's a slower uptick then obviously the carnage will be slower in my view.

What are some of the issues?

The experts point out that several large financial players have entered the BNPL space including Commonwealth Bank of Australia (ASX: CBA), Suncorp Group Ltd (ASX: SUN) and Citibank. PayPal is another player that now offers a buy, pay later option.

News.com.au reported that Mr Kelly believes that with no profit and none being sustainably profitable yet, it's likely that there will be consolidation in the sector.

There is also the longer-term risk of regulation and interest rate rises, which could impact growth too.

The post BNPL ASX shares in for a 'tough time': expert appeared first on The Motley Fool Australia.

The Laybuy Group Holdings Ltd (ASX: LBY) share price continued its steep descent into negative territory today.

The buy now, pay later (BNPL) services provider closed the day down 5.13% with its shares trading at 18.5 cents each.

It seems weakness across tech-weighted indices and high-beta names in the S&P/ASX 200 Small Ordinaries index (ASX: XSO) have impacted Laybuy's share price these last few months.

The drawdown hasn't gone unnoticed either. In a note to clients today, analysts from Australian brokerage Bell Potter have slashed their recommendation on the company to hold from buy.

Let's take a closer look.

Bell Potter tips Laybuy share price to plunge 72%

Following Laybuy's third-quarter trading update last week, Bell Potter analyst James Filius has made some updates to the broker's modelling for the company.

Laybuy didn't provide any specific guidance in its quarterly update, only that it has optimistic expectations of landing in the "top 3 BNPL providers in the large UK retail market".

Despite this, Filius cut customer growth estimates on Laybuy from FY22 onwards, restructuring earnings forecasts in the process.

For instance, the BNPL player recognised just 5% customer growth for this recent quarter, well short of the broker's internal estimates.

This prompted Bell Potter to reduce its forecasts on customer growth by 20% for FY22. In turn, this has resulted in a corresponding 6% haircut to revenue growth expectations.

As it goes in financial modelling, the downstep in sales and customer growth estimates has flow-on effects. Bell Potter has also lowered its earnings per share (EPS) estimates for the coming 3 years.

It's lowered FY22, FY23 and FY24 EPS estimates for Laybuy by 23%, 10% and 2% respectively.

Perhaps the most scathing outcome from Bell Potter's ratings downgrade today was the adjustment to its valuation on the company.

The broker now values Laybuy at just 24 cents a share after slashing its price target by 72%. That drop is parallel to losses seen by the company, and also the wider industry, over the last 12 months.

From another perspective, Canadian broker Canaccord Genuity rates Laybuy as a 'speculative buy' at an 85 cent valuation. However, it should be noted this rating was provided on 1 December 2021, well before the company's Q3 FY22 trading update last week.

Laybuy share price snapshot

In the last 12 months, the Laybuy share price has collapsed almost 87% and trails the benchmark index substantially over that time.

This year, things aren't any better with the company's shares down 21% since January 1.

That gives Laybuy a market capitalisation of $47 million.

The post BNPL? Try sell now, buy later! Laybuy (ASX:LBY) share price tipped to crash 70% appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) finished the year up 13%. The All Ordinaries Index (ASX: XAO) closed even higher, gaining 13.6% year-on-year.

But that's all water under the bridge now.

Looking ahead to 2022, The Motley Fool asked Brendan Doggett, country manager at investing platform Sharesies AU, which sectors look strong for ASX shares and which ones may wobble.

Volatility and inflation

Doggett told The Motley Fool that he'd witnessed "a huge influx of new retail investors in the aftermath of the COVID-19 market crash of early 2020".

Since then, investors have enjoyed 2 years of outsized growth, with the ASX 200 now up 55% from its 20 March 2020 closing low.

However, Doggett cautions that 2022 could look quite different for ASX shares. "This growth isn't necessarily stable over the long-term. So, we can expect to see more market volatility heading in 2022. This is why the education piece is so important for us at Sharesies."

One of the tangential impacts of the pandemic has been the extraordinary measures that governments and central banks have taken to keep their economies humming along. From near zero interest rates to record levels of quantitative easing (QE), all the monetary and fiscal levers have been pulled hard.

This, Doggett told us "combined with global supply chain constraints, created a perfect storm for inflation. Too much money, chasing too few goods and services".

"Several asset classes are known to perform well in inflationary environments," he added. "Tangible assets, like real estate and commodities, have historically been seen as inflation hedges."

In line with ASX shares involved in the commodities space, Doggett said that with the worst of the pandemic hopefully behind us, the climate crisis is back on retail investors' agendas:

Investors on the Sharesies platform continue to back companies building a future that they believe in, in growing numbers. Renewable energy and electric vehicles have been the main beneficiaries of this investor interest in past years, a trend that we expect to continue into 2022.

While investors will struggle to find any ASX shares directly working on EVs, there are plenty of listed companies that provide the base materials to power the renewable energy shift.

Novonix Ltd (ASX: NVX), for example, is involved in graphite exploration and mining, battery technology, and battery materials to supply the booming lithium-ion battery industry. Novonix also happens to be the best performing of the ASX shares in 2021, gaining 660% last year.

Fortescue Metals Group Limited (ASX: FMG), as another example, isn't solely an iron ore miner. The company is also developing green hydrogen production through its subsidiary green energy company, Fortescue Future Industries (FFI).

ASX shares in the BNPL space to remain popular

The once soaring buy now, pay later (BNPL) sector came under serious pressure in 2021.

Shares in industry heavyweight, Afterpay Ltd (ASX: APT), dropped by 30% over the course of the year.

BNPL newcomer, Laybuy Holdings Ltd (ASX: LBY), fared even worse. With the share price losing 82% last year, Laybuy Holdings was the worst performing of the ASX shares listed on the All Ords.

Despite those struggles, Doggett said BNPL stocks look to remain popular with retail investors in 2022.

"After falling in and out of the top 10 most bought stocks at the close of 2021, we see this up and down ride continuing into 2022," he told us.

Doggett added:

Whether you see these [BNPL] companies as overvalued and due for a correction or as growth machines with more to give, we expect these companies to remain a popular buy for investors in the year ahead as the companies continue to expand and secure partnerships in Australia and abroad with established players in the financial and retail sectors.

What about the great reopening?

As for ASX shares involved in the travel industry, like Flight Centre Travel Group Ltd (ASX: FLT) and Qantas Airways Limited (ASX: QAN), Doggett has a more pessimistic outlook for the year ahead.

"Beaten-down travel stocks have been a retail favourite with many purchasing shares in their favourite companies with a 'pandemic discount'," he said.

However, according to Doggett:

Travel stocks have not been quick to recover to pre-pandemic stock prices as new variants and uncertain future lockdowns weigh down investor confidence. As we head into a third year of airlines and other travel companies facing significant disruptions and ongoing loss of revenue, this is one sector which may have passed its window for a quick and strong bounce back to financial health.

Taking the All Ords as our benchmark, ASX shares have gained a combined 7.5% since 21 February 2020, just before the pandemic selloff commenced.

By comparison, the Qantas share price remains down 23% over that same period while the Flight Centre share price is still down 50%.

The post Buying ASX shares in 2022? Here's what you need to know: expert appeared first on The Motley Fool Australia.

Of course, not all shares are created equal. Some gained far more than the benchmark and some finished 2021 deep in the red.

Below we look at the 2 best and 2 worst performers on the All Ordinaries in the year just past.

2021's worst 2 performing All Ordinaries shares

The unwelcome prize for the worst performing All Ordinaries share in 2021 goes to buy now, pay later (BNPL) company Laybuy Holdings Ltd (ASX: LBY).

Investors broadly sold off BNPL shares in the latter half of the year, and the selling for Laybuy began in earnest back in February. Laybuy commenced trading in 2021 at $1.30 per share. By the closing bell on 31 December it was trading at 24 cents, down 82%. At the current share price, Laybuy has a market cap of $57 million.

Coming in a close second in the unwanted worst performing All Ordinaries category is fellow BNPL player, Splitit Ltd (ASX: SPT).

Splitit also fell prey to the shifting sentiments hitting the pay by instalment sector. The company kicked off the year just past trading at $1.30 and finished at 25 cents, down a painful 81%.

Investors likely also had an eye on the company's bottom line, which revealed FY21 losses of US$35.2 million, up from US$26.6 million in losses posted in FY20. At the current share price, Splitit has a market cap of $127 million.

Moving on to the biggest gainers on the All Ordinaries…

2021's top 2 performing ASX shares

Turning to the positive, the second best All Ordinaries share you could have held in 2021 was Cettire Ltd (ASX: CTT).

Which brings us to the best performing All Ordinaries share of 2021, Novonix Ltd (ASX: NVX).

Involved in graphite exploration and mining, battery technology, and battery materials, the company was a clear winner in the booming growth witnessed in the lithium-ion battery industry.

Novonix kicked off 2021 trading for $1.21 per share and finished the year at $9.19 per share for an eye-popping gain of 660%. At the current share price, the best All Ordinaries performer of 2021 has a market cap of $4.8 billion.

The post Can you guess the best and worst All Ordinaries performers of 2021? appeared first on The Motley Fool Australia.

It was a prosperous year for Australian equities in 2021. Most of the ASX shares in the top 200 shook off concerns of new COVID-19 strains and tightening monetary policy by central banks. However, some companies weren't as fortunate throughout the year.

We've put the constituents of the All Ordinaries Index (ASX: XAO) under the microscope to uncover the shares that were least favoured by investors in the last year.

Count yourself lucky if none of these companies were in your portfolio in 2021. The following five ASX shares were bullets worth dodging.

5 worst performing ASX All Ords shares of 2021

Laybuy Holdings Ltd (ASX: LBY)

Illustrating the destruction across buy now, pay later (BNPL) shares in 2021, instalment payment provider Laybuy takes the crown for the worst performing ASX share of the year.

The company made its entrance into the year at a price of $1.30. By the time the curtains drew close on 2021, Laybuy shares were fetching 24 cents apiece — representing a stomach-churning 82% fall over the course of the year.

While Laybuy managed to achieve a record year in terms of revenue and gross merchandise value, investors punished the share price as sentiment waned across the BNPL sector.

Splitit Ltd (ASX: SPT)

Continuing the trend, the next poorest performing ASX share making the list is another instalment payment provider.

Splitit couldn't escape the shift in how bullish investors were on BNPL companies. In turn, Splitit shares plummeted 81% by the end of the year. A steep increase in bottom-line losses likely didn't help with the company's appeal in 2021. Losses ballooned to US$35.2 million in FY21 compared to US$26.6 million in FY20.

Currently, Splitit shares are trading at 26 cents per share, down a further 10% on Thursday.

Ora Banda Mining Ltd (ASX: OBM)

2021 wasn't kind to ASX-listed gold mining shares. Even the giants of the game suffered throughout the year. Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST), and Evolution Mining Ltd (ASX: EVN) all witnessed a fall of 10% to 30%.

Though, it was the more speculative segment of the gold mining market that was smashed. Perth-based Ora Banda Mining sank 78% last year. Shares in the company continued to move lower after Ora Banda raised $21 million to fund the development of its Davyhurst Gold Project.

Damstra Holdings Ltd (ASX: DTC)

Turning towards the tech-end of the town, workplace management solutions provider Damstra was a drag on investors' portfolios in 2021.

The Damstra share price waltzed into last year at $1.53 after having gained ~32% in the previous year. However, shares gradually declined as the company experienced challenges. These included a contractual dispute with a client and a reduction of service to another client.

As a result, FY22 guidance was cut to between $30 billion to $34 million, down from $35.9 million to $38.9 million. The mounting disappointments were reflected in the 78% fall in Damstra shares in 2021.

Cleanspace Holdings Ltd (ASX: CSX)

Rounding out the top five worst-performing ASX shares of 2021 is respiratory protection equipment manufacturer, Cleanspace.

The company enjoyed a record-setting year in 2020 as demand for respirators skyrocketed in the face of COVID-19. Opportunistically, shares in Cleanspace debuted on the ASX in October 2020.

Unfortunately for investors, a sudden dropoff in sales in the second half of FY21 led to a 50% crash in Cleanspace shares. The Cleanspace share price continued to face challenges throughout the remainder of 2021 to finish the year 78% lower.

The post These are the 5 worst performing ASX shares of 2021 appeared first on The Motley Fool Australia.

Despite the threat of persistent inflation and rising interest rates hanging over the sector's head, the S&P/ASX All Technology Index (ASX: XTX) managed to eke out a 3.72% return out of 2021.

But of course, some of those ASX shares fared better than others.

We've already taken a look at the 5 best-performing ASX tech shares from last year. 

Now it's time for the dreaded worst performing stocks from 2021.

Whether it's due to governance scandals, financial downgrades, industry consolidation, or COVID-19 impacts, these businesses have copped the proverbial cold shoulder from investors as the year wore on.

Here are the 5 worst tech shares from 2021 from the ASX All Tech index:

Foreign BNPL businesses bleeding badly on the ASX

Buy now, pay later (BNPL) started 2021 as the hot sector with limitless potential.

While that might still be the case for the concept, investors have cooled on BNPL shares since the revelation in August that US giant Block Inc (NYSE: SQ) would wholly acquire market leader Afterpay Ltd (ASX: APT).

That's been the turbulent background for New Zealand's Laybuy Holdings Ltd's (ASX: LBY) listed life since floating on the ASX in September 2020.

This ASX tech share landed on the bourse with high hopes and an initial public offer price of $1.41 per share.

But after a shocking 82% fall over last year, Laybuy stocks closed 2021 at 24 cents.

At the time of listing, founder and managing director Gary Rohloff told The Motley Fool his company's payment cycle would be its competitive edge.

"We're the only buy now, pay later provider in the market that offers a weekly payment option," he said.

"We're very simply weekly pay in 6 [payments]. We own that weekly space in New Zealand, I'd argue we own it in Australia, and we definitely own it in the UK."

Another BNPL provider, New York's Splitit Ltd (ASX: SPT), was not far behind Laybuy as the worst ASX tech share of 2021.

The stock price had plunged an eye-watering 81% over the year, leaving it with a market capitalisation of just $117.34 million.

Coverage is scarce on the business. But according to CMC Markets, at least Canaccord Genuity analysts currently rate it as a "strong buy" based on its bargain share price of 25 cents.

'The market appears to have lost short-term confidence'

Microcap Bill Identity Ltd (ASX: BID) saw its share price fall more than 79% over 2021, leaving it to say goodbye to the year at 24 cents.

The Melbourne business automates bill payment processes through its cloud software.

Rounding out the worst 5 honour roll are Damstra Holdings Ltd (ASX: DTC) and Nuix Ltd (ASX: NXL), which saw their shares shrink 78% and 73% respectively.

At its annual general meeting in November, Damstra's language was far from positive.

The workplace management software company stated "the market appears to have lost short-term confidence" in the business and that it is sharing "the disappointment in [its] share price performance with other investors".

Yikes.

Nuix's problems have been all over the front page of not just financial publications like The Motley Fool, but also mainstream newspapers.

After a much-hyped listing in December 2020, the shares peaked at $11.86 in late January.

It's all been downhill since for this ASX tech share, with a series of governance scandals, alleged insider trading, and financial underperformance. In November, Nuix's own shareholders started suing it.

The stock farewelled the forgettable year at $2.20.

The post 5 worst ASX 200 tech shares of 2021 appeared first on The Motley Fool Australia.

2021 followed a stellar year for the ASX buy now, pay later (BNPL) sector. Unfortunately, it didn't bring the same glory for most of the sector's participants.

In fact, these 5 ASX BNPL companies all saw their share price more than halve over the course of last year.

Let's take a look at which BNPL stocks suffered most in 2021.

A quick note before we start: This list only contains companies with market capitalisations of more than $30 million.

The worst performing ASX BNPL stocks of 2021

Laybuy Holdings Ltd (ASX: LBY) – down 82%

Unfortunately for Laybuy Holdings investors, the company has taken out the undesirable cake. It's crowned the worst performing ASX BNPL share for 2021.

The company's stock started the year trading at $1.31 and hit a 52-week high of $1.50. Over the course of the year, however, it tumbled to just 23.5 cents.

Splitit Ltd (ASX: SPT) – down 81%

2021 was also a particularly bad year for the Splitit share price.

It gradually dropped 81% of its value over the 12-month period.

At the start of the year, Splitit's shares were trading for $1.30. However, come the final close of the year it was going for 25 cents.

Openpay Group Ltd (ASX: OPY) – down 68%

Despite starting the year out strong, the Openpay share price ended last year 68% lower than it started it.

It tumbled from its starting price of $2.37 to end the year at 72.5 cents, hitting a 52-week high of $3.57 along the way.

Douugh Ltd (ASX:DOU) – down 59%

This ASX BNPL stock started the year out as the new face on the block.

Douugh floated in October 2020. It launched its first BNPL offering shortly after.

The company's stock started 2021 trading at 17 cents and quickly surged to its 52-week high of 37.5 cents. Though, its glory didn't last.

As of Friday's close, the Douugh share price is 6.9 cents.

Sezzle Inc (ASX: SZL) – down 51%

Popular ASX BNPL stock, Sezzle just snuck onto this list after falling 51% over 2021.

That's despite the company trading relatively flat for the first 8 months of the year – albeit, with plenty of peaks and troughs.

The company's half year report seemed to be the cataylst for its troubles. Its share price fell nearly 15% on the day of its release and hasn't managed to regain its feet since.

After beginning 2021 trading at $6.27, the Sezzle share price finished the year at $3.02.

The post These were the 5 worst performing ASX BNPL shares of 2021 appeared first on The Motley Fool Australia.

But one ASX share is leaving this index in the dust today. That would be the Laybuy Holdings Ltd (ASX: LBY) share price.

Laybuy shares are currently up an extraordinary 41.94% at 22 cents a share after closing at 16 cents a share yesterday and opening at the same price this morning. So what could be causing such an enthusiastic investor pile-on into Laybuy shares today?

Well, sadly, it's not entirely clear what has sparked this dramatic jump in pricing. There are no major pieces of news or announcements out of Laybuy today. Or for a few days in fact.

The last major development we got from Laybuy was the news that it is set to be kicked out of the S&P/ASX All Technology Index (ASX: XTX) on 20 December. But that was a week ago.

Why is the Laybuy share price rocketing today?

There has been some recent news surrounding the entire buy now, pay later (BNPL) space that Laybuy is a part of though. As my Fool colleague Brooke covered earlier this week, Financial Counselling Australia made some waves when it found BNPL was being misused due to its exclusion from credit provision laws. It also found that BNPL companies were failing to support customers in hardship.

We also covered potential new laws that the government is considering that would bring BNPL regulation into line with other payments earlier this week as well.

If you're wondering why these developments might be causing the Laybuy share price to jump so violently today, consider this. Before this morning's open, Laybuy shares had lost more than 25% of their value since the start of the week. Even after today's massive jump, the Laybuy share price is still down by close to 3% over the past 5 trading days.

It appears all of this talk of increased BNPL regulation has caused some significant volatility in the Laybuy share price. Today's jump could just be some investors who wanted to buy up big after the steep falls earlier in the week.

Whatever the cause of today's moves, it will no doubt come as a relief for shareholders.

At the current Laybuy Holdings share price, this BNPL company has a market capitalisation of $39.44 million.

The post Why is the Laybuy (ASX:LBY) share price rocketing 42% today? appeared first on The Motley Fool Australia.

The Laybuy Holdings Ltd (ASX: LBY) share price is lifting this afternoon. It is currently up 2.04% to 50 cents, having leapt to 52 cents soon after market open.

Laybuy's share price is gaining ground after the company released its quarterly activities and earnings report this morning.

Here we dissect the highlights from the buy now, pay later (BNPL) services provider's second quarter for FY22.

Laybuy share price gains on record Q2 revenue and income

• Laybuy remains on track to reach the NZ$1 billion gross merchandise value (GMV) target for FY22.
• GMV reached a record NZ$206 million for Q2, a 62% year-on-year (YoY) increase when annualised.
• United Kingdom GMV almost doubled YoY in Q2, representing an annualised 93% increase from the year prior.
• Record income for the quarter of NZ$10.8 million, a 49% YoY increase.
• Net transaction margin (NTM) reached 1.9%, down from 2.3% last quarter but up from 1.8% YoY annualised.
• Active customers reached 889,000, up 57% YoY.
• Active merchants reached 11,700, up 86% YoY.

What happened in Q2 for Laybuy?

It was a record quarter for the BNPL provider on several fronts, which looks to have boosted the Laybuy share price today.

GMV came in at an all-time high of NZ$206 million, which annualises to NZ$825 million.

This growth was underscored by contributions from the company's UK operations, where it recorded a 332% increase in active merchants and 90% increase in active customers from the last quarter.

Perhaps some of this momentum can be attributed to the release of its Laybuy App Exclusives in the the UK in August. Already, it has 80,000 transactions running through the platform.

Laybuy also launched its "Tap to Pay in-store solution" in the UK, adding 900-plus stores as launch partners.

As such, the group's overall active customers grew by 321,000, or 57%, YoY to reach approximately 890,000 this quarter.

This was well supported by active merchants on Laybuy's books growing by 86% over the year. In fact, Laybuy added almost 2,000 additional merchants in Q2, including the likes of Amazon, eBay, The Fragrance Shop and InMotion.

From these impressive growth numbers, Laybuy exceeded 900,000 active customers and 12,000 active merchants in Q2. More than 3,000 of these were in the UK alone.

It also beefed up its liquidity and working capital by opening a new debt facility of 30 million British pounds.

In Australia and New Zealand, the company also extended its debt facility limit to NZ$30 million to "support ANZ loan book growth to 80% (previously 75%)".

All of this momentum carried over to Laybuy's profit and loss, where it recognised record income of NZ$10.8 million.

Again this growth was underlined by the company's UK operations, however Australian income was also up 30%.

What did management say?

Speaking on the update likely driving the Laybuy share price today, managing director Gary Rohloff said:

Laybuy is delivering exceptionally strong growth as we continue to successfully implement our business strategy. We are continuing to experience robust GMV growth, up nearly 62% across all markets. In particular, we are seeing good growth in the UK, where our quarterly GMV has nearly doubled when compared to the same quarter last year.

We expect to see continued growth in the UK following the rollout of Laybuy App Exclusives (the Affiliate Marketing Network) last month. Initially launching with 160 brands, the Laybuy App Exclusives can enable payment by Laybuy at more than 5,000 of the UK's largest brands.

What's next for Laybuy?

The company is adamant that given its recent performance, it remains "on track to achieve $1 billion GMV in FY22".

The release also notes the UK continues to be Laybuy's "key growth market, with a large retail market estimated at 403 billion British pounds in 2020".

That's 2.2 times that of Australia, it notes, with BNPL still in its infancy. Laybuy also reckons the UK market has the "highest penetration of online sales, with 28% of retail spending being online in 2020".

The company also continues to work alongside HM Treasury in the UK to establish am appropriate BNPL framework to govern the sector.

Annualising its Q2 revenue, the company stated this equates to NZ$285 million in GMV. This would be a 62% YoY increase if it continues along the same trajectory.

Laybuy share price snapshot

The Laybuy share price has been hit hard by the pandemic, having lost 67% in the past 12 months and 62% this year to date. It is also down by almost 10% over the last week.

The post Laybuy (ASX:LBY) share price gains after record quarter appeared first on The Motley Fool Australia.

The Laybuy Holdings Ltd (ASX: LBY) share price is charging upwards today. This follows the release of a quarterly trading update from the buy now, pay later (BNPL) services provider.

At the time of writing, shares in Laybuy are fetching 56 cents per share, up 14.4%. Despite this, the small-cap is still a distance from its 52-week high of $1.81 set back in October 2020.

Let's take a closer inspection of today's freshly released details.

What's moving the Laybuy share price today?

In this morning's update, the instalment payment company shared details of its existing and new debt facilities as well as an update on trading for the quarter ended 30 September 2021.

The market appears to be welcoming the information contained in the price-sensitive announcement. For those short on time, here's a quick summary of the highlights:

• New debt facility secured for £30 million to support UK loan book growth
• Kiwibank loan facility limit increased to NZ$30 million
• Achieved a record Gross merchanise value (GMV) of NZ$206 million in Q2
• September GMV reached a record NZ$78.5 million
• Active customers up 57% to 889,000
• Active merchants up 86% to 11,700

What happened during the quarter?

For Laybuy, it was a quarter of positioning for further growth and flexibility in Q2 FY22. Namely, the company's changes to its loan facilities.

In Q2, a new debt facility was signed with US-based lending provider, Partners for Growth (PFG). This £30 million facility will be used to extend and accelerate Laybuy's growth in its fast-growing United Kingdom operations.

In addition, the BNPL player was able to increase its facility with Kiwibank from NZ$20 million to NZ$30 million. Along with the increase in value, the Kiwibank facility has been extended to 30 June 2023. As a result of these loan changes, Laybuy states it now has funding to support GMV of up to NZ$2 billion.

Speaking of GMV, the latest quarter has been a record period for the company in terms of GMV on an annualised basis. In Q2, Laybuy's GMV reached a record NZ$206 million, which when annualised comes to NZ$825 million. This represents an increase of 62% year-over-year. These record achievements bode well for the Laybuy share price.

Meanwhile, gross merchandise value experienced a substantial surge in the UK, increasing 93% year over year on an annualised basis to NZ$446 million.

Commenting on this, Laybuy managing director Gary Rohloff said:

We continue to deliver against our strategy and have again seen strong growth in GMV in quarter two of FY22.

Since September 2020, we have added more than 5,400 active merchants and have added 321,000 new active customers, which is helping drive impressive growth across all regions, particularly in our growth market of the UK. This is particularly pleasing as the company heads towards the busy Christmas season.

Since then

A positive for the Laybuy share price, the company has since experienced additional growth in October. According to the release, active customers have now surpassed 900,000. Concurrently, active merchants and active UK merchants exceeded 12,000 and 3,000 respectively.

The company reiterated that it remains on track to reach its $1 billion GMV target for FY22.

The post Laybuy (ASX:LBY) share price surges 14% on record quarterly appeared first on The Motley Fool Australia.

How did Afterpay and Zip shares perform during September?

Well, let's start off with a bang and check out the BNPL pioneer most of us know the best, Afterpay Ltd (ASX: APT). So Afterpay began September at roughly $134.59 a share. Last Thursday, it finished up at $120.55 a share. That's a month-on-month fall of 10.4%.

Keep in mind that since Afterpay announced that it is to be acquired by the US payments giant Square Inc (NYSE: SQ) in an all-scrip deal, the Afterpay share price has been married to that of its suitor.

What about Zip Co Ltd (ASX: Z1P), Afterpay's closest ASX rival by market capitalisation? Zip shares started September at $6.83 each. Last week, they finished up on Thursday at $7.02. That puts Zip in the green for September, with a rise of 2.78%.

What about the other ASX BNPL shares?

Another BNPL share on the ASX boards is Openpay Group Ltd (ASX: OPY) Openpay had a month more similar to Afterpay's than Zip's. It began the month at $1.34 a share and finished up at $1.33. That's a fall of 0.75%.

Another BNPL share that fared a little worse than that was Humm Group Ltd (ASX: HUM). Humm shares were trading at 96 cents apiece at the start of last month. However, this company concluded September at a price of 84 cents a share. That's a drop of 12.5%.

Laybuy Holdings Ltd (ASX: LBY) is one of the ASX's newer payments shares. But alas, shareholders didn't get much of a better story with this company either. Laybuy went from 55 cents a share to 52 cents over September, a drop of 5.45%.

Faring similarly was Spilitit Ltd (ASX: SPT). Splitit fell from its start-of-September price of 45 cents a share to end the month at 42 cents. That's also a fall of 5.45%.

And our final ASX BNPL share to examine today is the US-domiciled Sezzle Inc (ASX: SZL). Unfortunately for Sezzle investors, this company has seemingly performed the worst out of all BNPL shares over September. It started the month at a price of $6.60 a share, but ended up at $5.77 by the end of Thursday's trading day last week. That's a fall of 12.57%.

So it seems Zip was the best performing ASX BNPL share over September, with Sezzle bringing up the rear. With this infamously volatile sector, who knows what October will bring!

The post These were the best performing ASX BNPL shares in September appeared first on The Motley Fool Australia.

It's a good day to be an ASX investor, and an even better one to be an ASX-listed technology company.

The tech sector is leading the market's gains today, as buy now, pay later (BNPL) favourites such as Afterpay Ltd (ASX: APT) are among those leading the charge.

The S&P/ASX All Technology Index (ASX: XTX) is soaring today, gaining 2.72%, or 85.3 points.

The sector's day in the sun is helping to push the broader market higher. Right now, the S&P/ASX 200 Index (ASX: XJO) is 1.07%, or 78.3 points, higher than it finished yesterday's session.

Additionally, the All Ordinaries Index (ASX: XAO) is gaining 1.14% or 86.6 points.

Today's increases follow the 1.02% gain that tech heavy Nasdaq index managed to chalk up overnight.

Let's take a closer look at how some ASX tech favourites are performing today.

ASX tech shares are out in front

The ASX tech sector is leading the market today, helping to boost the ASX 200 more than 1% higher.

The sector is being boosted by big name share prices such as that of Afterpay, which has gained 4.5% today on the back of the Square Inc (NYSE: SQ) share price's similarly exuberant overnight gain.

Other BNPL stocks are also soaring. Leading the index's charge is the Splitit Ltd (ASX: SPT) share price, which has gained a whopping 10.8% today to trade at 46 cents.

Splitit's stock is soaring on news its chair, Dawn Robertson, bought 100,000 shares in the company, paying between 34.5 cents and 35.5 cents apiece.

The share price's of Ioupay Ltd (ASX: IOU), Sezzle Inc (ASX: SZL), and Laybuy Holdings Ltd (ASX: LBY) are all also in the green.

Bringing up the rear of the sector, is the Netlinkz Ltd (ASX: NET) share price. It has plummeted 4.5% despite only silence from the company.

The post ASX tech shares are leading the market's gains on Thursday appeared first on The Motley Fool Australia.

The Laybuy Holdings Ltd (ASX: LBY) share price is flying higher today, reversing the losses of the past 5 days. This is on the back of the buy now, pay later (BNPL) provider releasing an update on its operations in the United Kingdom.

At midday, Laybuy shares are fetching 51.5 cents a share, up 7.3%.

What's the latest at Laybuy?

Laybuy investors have been injected with a dose of excitement today following its latest announcement. So much so that the company's daily traded volume on Tuesday has exceeded its average monthly volume.

According to the release, the company launched its affiliate marketing network ahead of schedule in the United Kingdom at the end of August. Since then, the response has surpassed the BNPL player's expectations.

Specifically, orders processed and gross merchandise volume are more than 5 times greater than the company's internal month one forecast.

The affiliate network launched in the UK has given shoppers access to hundreds of new retailers. Some of these retailers include Amazon, ASOS, eBay, and Levi's.

Hailed as the company's latest product innovation, Laybuy's affiliate marketing network is geared towards creating a seamless shopping experience. The offering enables an easy 3-step process for shoppers — shop, checkout, and 'Pay in 6'.

Additionally, shareholders were treated to an impressive growth statistic, boding well for the Laybuy share price. According to the release, the value of goods purchased using Laybuy has increased by more than 500% year on year. From here, the company suspects this growth will accelerate with its launch of the affiliate marketing network.

Management commentary

Commenting on the successful launch, Laybuy UK and Europe General Manager, John Gillan said:

Since launching in the UK in 2019, we have been leading a revolution in how consumers shop and pay, helping shoppers spread the cost of their purchases and free themselves from paying interest.

However, we also know that having Laybuy as a payment option can help merchants increase their sales because it allows consumers to spread their payments and fit more into their budget. We are excited that those on our new platform can now enjoy the benefits of Laybuy.

Laybuy share price snapshot

The Laybuy share price has endured a difficult past year on the ASX. Over the 1-year timeframe, shares in the BNPL company have slumped 65.9%.

It appears investors haven't been too fond of the widening losses on the bottom line. However, Laybuy's trailing revenue for the past 12 months has roughly doubled to NZ$32.674 million.

The post Laybuy (ASX:LBY) share price leaps 7% on UK marketing update appeared first on The Motley Fool Australia.