Zip (ASX:Z1P) share price is soaring 13%, smashing another record high

The Zip share price is breaking records yet again today despite no news out of the company. Let’s look at what could be driving its shares.
The post Zip (ASX:Z1P) share price is soaring 13%, smashing another record high appeared first on The Motley Fool Australia. –

ASX share price rise represented by man's hand grabbing onto red ladder that is pointed towards sky

The Zip Co Ltd (ASX: Z1P) share price is soaring today despite no notable recent news from the company. Shares in the buy now, pay later (BNPL) provider have smashed the record yet again, this time posting a high of $12.39 this afternoon.

At the time of writing, the Zip share price is trading 13.16% higher at $12.26.

Why is the Zip share price flying?

With no new news today, could the Zip share price still be lifting off the momentum of the company’s most recent quarterly report? Since the report was released on January 21, the share price is up a whopping 66.4%.

And according to the Australian Financial Review (AFR), last week’s best-performing stock on the S&P/ASX 200 Index (ASX: XJO) is also exciting investors over the prospect of a second listing on US markets.

Valuation push

In late January, Zip cofounder Peter Gray labelled its December quarter result “absolutely cracking” and questioned investors’ reluctance to value it on similar multiples to rivals Affirm Holdings Inc, Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL), as reported by the AFR.

Mr Gray told the AFR:

Our view would be on the revenue multiples, we’re significantly undervalued when directly compared to Afterpay and obviously Affirm.

To this point, Zip currently sits at a share price of $13.16, giving it a market capitalisation of $6.77 billion. In contrast, Afterpay sits at $154.49 with a market cap of $44.08 billion, almost 7 times that of its smaller counterpart.

However, in regards to its total transaction value, Afterpay boasts $4.1 billion against Zip’s $1.6 billion – a difference of 2.56 times.

About the Zip Share price

The Zip share price is currently trading strongly higher, continuing the company’s remarkable recent run. Shares in the company are now up 118% for the year, easily outpacing the S&P/ASX 200 Index (ASX: XJO).

On that front, Zip is the 4th best performer on the index with a return of 215.72% for the past 12 months. Coming in behind Afterpay at 290.7%, Ltd (ASX: KGN) at 242.25%, and Pointsbet Holdings Ltd (ASX: PBH) at 223.98%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Daniel Ewing owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ltd, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended ltd, Pointsbet Holdings Ltd, and Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Zip (ASX:Z1P) share price is soaring 13%, smashing another record high appeared first on The Motley Fool Australia.

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!