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Zooming higher: The Zip share price is up 7%

The BNPL sector is lighting the ASX up.
The post Zooming higher: The Zip share price is up 7% appeared first on The Motley Fool Australia. –

The Zip Co Ltd (ASX: ZIP) share price is performing strongly again today. It is up by a further 7%. That means it is currently up by almost 200% over the last month.

It’s not the only ASX 200 buy now, pay later (BNPL) share that’s doing well today. The Sezzle Inc (ASX: SZL) share price is up 6.9% and the Splitit Ltd (ASX: SPT) share price is up around 4%.

FY23 has seen an extraordinary rise in the Zip share price. It started at $0.44 and now it’s at $1.44. That’s a rise of more than 220%!

A substantial part of the recent rise could be due to market expectations that there could be a reduction of interest rates either near the end of 2023 or in early 2024. If interest rates don’t go (or stay) as high as expected, then perhaps that won’t hurt the profitability of Zip or the valuation of the Zip share price as much as previously expected.

Recent developments

Investors have also been digesting the news that Zip is no longer going to merge with Sezzle, which should bring forward cash flow profitability.

Zip has also told investors how it performed in the three-month period ending 30 June 2022.

Quarterly revenue rose 27% year over year to $160.1 million. Customer numbers rose 64% year over year to 12 million, while merchants on the platform increased by 77% year over year to 90,700. The cash transaction margin was 2.4%, while the revenue margin was 7.5%. Zip is focusing on its core markets of ANZ and the US, which aim to reduce cash burn.

The post Zooming higher: The Zip share price is up 7% appeared first on The Motley Fool Australia.

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More reading

Here are the top 10 ASX 200 shares today
Here are the 3 most heavily traded ASX 200 shares on Wednesday
Why is the Sezzle share price surging 8% on Wednesday?
Up 10%, what’s going on with the Zip share price today?
Here are the top 10 ASX 200 shares today

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. has positions in 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 Scott Phillips.

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