Insights

If you invested $1,000 in Zip shares four years ago, here’s what it would be worth now

Zip shares have risen a lot over the last four years.
The post If you invested $1,000 in Zip shares four years ago, here’s what it would be worth now appeared first on The Motley Fool Australia. –

The Zip Co Ltd (ASX: Z1P) share price has performed very strongly over the last four years.

Buy now pay later (BNPL) has seen a lot of growth with an enormous rise in transaction value, leading to a rise of revenue and also the market capitalisation of the companies involved.

Indeed, just look at the all-share deal by Square to buy Afterpay Ltd (ASX: APT) which valued the ASX share at $39 billion at the time of the announcement.

How much has the Zip share price risen?

Zip shares have risen by almost 900% over the last four years, making it one of the leading performers in the S&P/ASX 200 Index (ASX: XJO), though it hasn’t been in the ASX 200 that whole time.  

It’s a very different business compared to August 2017.

The business in 2017

So much has changed that it even used to have a different name. Four years ago it was called ZipMoney.

In August 2017 it reported that during FY17 it made $17 million of revenue (which was an increase of 431% over the year), with transaction volume of $230.7 million (up 348%). Bad debts were 1.9% in percentage terms.

At the time, it had more than 300,000 customers and 4,400 merchants.

A lot of growth

The 2018 calendar year saw a number of big wins such as Super Retail Group Ltd (ASX: SUL) the Wesfarmers Ltd (ASX: WES) businesses of Target, Bunnings and Officeworks.

It’s a very different beast now, compared to four years ago. The Zip share price may be benefiting from Zip’s global reach.

Zip has acquired Quadpay in the US, Twisto Payments in Europe and Spotii in the Middle East.

The company also recently launched Zip organically into Canada and Mexico.

Remembering that Zip made $17 million of revenue in FY17, it generated $129.9 million of revenue in the last quarter of FY21. With a record month of revenue in June, it said its revenue is annualising at $537.2 million.

Quarterly transaction volume for the three months to 30 June 2021 was $1.8 billion (up 116%). It finished the quarter and FY21 with 7.3 million customers and 51,300 merchants.

At 30 June 2021, Zip said that its net bad debts were 1.82%.

How much did $1,000 of Zip shares turn into?

The rise of the Zip share price would have turned $1,000 into just over $9,900. That means that the investors would have gained almost $9,000.

However, the law of large numbers certainly makes it harder to keep growing at such a rapid rate considering how big the Zip business already is.

The post If you invested $1,000 in Zip shares four years ago, here’s what it would be worth now appeared first on The Motley Fool Australia.

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

Before you consider Zip, 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 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 May 24th 2021

More reading

When was the best day on the Zip (ASX:Z1P) share price chart in 2021?
Up 20% in 10 days: Can the Zip (ASX:Z1P) share price keep rising?
Afterpay and Zip were among the most traded ASX shares last week

Here are the 10 top moving ASX shares on Monday

How did the Zip (ASX:Z1P) share price respond last earnings season?

Motley Fool contributor Tristan Harrison 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 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!