Insights

How did the Zip (ASX:Z1P) share price perform last quarter?

Zip had a so-so first quarter to the new financial year.
The post How did the Zip (ASX:Z1P) share price perform last quarter? appeared first on The Motley Fool Australia. –

The Zip Co Ltd (ASX: Z1P) share price had a bumpy first quarter for FY22.

Kicking off the new year at $7.57, shares in the Buy Now, Pay Later (BNPL) company accelerated to nearly $9 by mid-July. By the end of the quarter, Zip shares fell by 6.87% to $7.06 apiece. For context, the S&P/ASX 200 Index (ASX: XJO) actually ended the quarter 0.26% higher.

There’s been a few stories that have had a material impact on Australia’s second-largest BNPL provider during that time.

Let’s take a closer look.

Zip’s FY21 full year results

The Zip share price crashed in late August when the company released its full-year results for FY21. That’s despite the company posting the following, positive numbers:

Revenue of $403.2 million, up 150% year on year (FY20 $161 million)
Transaction volumes of $5,8 billion, up 178.5% (FY20 $2.1 billion)
Transaction numbers of 41.3 million, up 293% (FY20 10.5 million)
Active customers at 7.3 million, up 247.5% (FY20 2.1 million)
Active merchants at 51,300, up 109.4% (FY20 24,500)
Cash gross profit of $198 million, up 147% (FY20 $80.1 million)

Looking forward, Zip management said it did expect FY22 to be a “bumper year” for the company. The company noted that global market entries and investments are contributing meaningful total transaction volumes (TTV) in the new financial year.

What else has affected the Zip share price?

Other big moves by the BNPL provider include its strategic entering into the Indian market and its partnership with technology giant Microsoft Corporation (NASDAQ: MSFT).

On the former, Zip said in a media release it had agreed to make a “strategic” US $50 million investment in India-based BNPL operator ZestMoney.

ZestMoney currently has 11 million registered users, over 10,000 online merchants on the platform, and a point of presence in over 75,000 physical stores.

Management advised that this investment is consistent with its strategy to build a truly global BNPL business. And one that supports regional and global partners in multiple markets, providing everyone, everywhere with access to fair and transparent payment products. The Zip share price rose on the news.

On the latter, Zip says it will integrate its technology into the shopping experiences within Microsoft Edge. In turn, shoppers using the web browser will be able to use a digital payment option provided by Zip.

The integration into the company’s web browser will begin rolling out in the United States first. Microsoft is the second-largest company on the planet by market capitalisation. This news was a big deal for Zip. It is not uncommon for momentum from material developments to carry on for days afterwards.

Zip share price snapshot

Over the past 12 months, the Zip share price has decreased by about 6%. Year-to-date, however, shares in the company are up by roughly 22%. Its 52-week high is $14.53 per share and its 52-week low is $4.96 per share.

Zip has a market cap of approximately $3.9 billion.

The post How did the Zip (ASX:Z1P) share price perform last quarter? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Zip Co right now?

Before you consider Zip Co, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip Co wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why the Zip (ASX:Z1P) share price is storming 5% higher this Thursday
These are the 10 most shorted ASX shares

ASX 200 (ASX:XJO) midday update: Afterpay & Zip sink, energy shares rise

Why the Zip (ASX:Z1P) share price is down 4% today
ASX 200 tech shares set to slide as Nasdaq plunges 2%

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Microsoft and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!