The Zip Co Ltd (ASX: Z1P) share price is making up for lost ground after a poor performance on Monday.
Zip shares managed to close 5.19% higher at $7.10 on Tuesday, propping up its weekly performance to a gain of 3.65%.
What happened to the Zip share price?
Zip delivered an upbeat first-quarter update on Monday, delivering record figures across most key operating metrics. Some highlights for the quarter ended 30 September include:
- Revenue rose 89% on the prior corresponding period to a record $136.8 million
- Transaction volume jumped 101% to a record $1.9 billion
- Transaction numbers surged 177% to a record 14.7 million
- Active customers increased 82% to 8.0 million
- Active merchants increased 71% to 55,200
Zip’s strong growth was headlined by its US performance where revenues grew 182% to $67.1 million. This was backed by a 204% increase in transaction volumes to $955.4 million and a 165% increase in transactions to 5.3 million.
The company continued to execute on its international expansion strategy with a strategic investment in ZestMoney for India, organically going live in Mexico, launching in Canada, and completing its Middle East Spotii acquisition.
Despite the seemingly positive announcement, the Zip share price finished Monday’s session down 1.75% to $6.73.
Zip bounces back on Tuesday
The Zip share price rebounded strongly on Tuesday, closing 5.19% higher at $7.10.
This move was on the back of above average volumes, with 9.28 million shares trading hands compared to its 10-day average of 6.12 million.
The ASX-listed BNPL sector has remained largely uneventful in the past few months, with most players trading sideways.
That said, US-listed rival Affirm Inc (NASDAQ: AFRM) managed to surge 7.17% on Monday night to a fresh all-time high of US$157.25.
Affirm has outperformed most ASX-listed BNPL players, rallying 62% year-to-date and up 32% in October alone.
The post Zip (ASX:Z1P) share price rallies 5% on Tuesday appeared first on The Motley Fool Australia.
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More reading
- Why Bapcor, Cochlear, Novonix, and Zip shares are rising
- Leading brokers name 3 ASX shares to sell today
- What these brokers think of the Zip (ASX:Z1P) share price after its update
- These are the 10 most shorted ASX shares
- ASX 200 (ASX:XJO) midday update: Aristocrat’s $5bn acquisition, Zip falls on Q1 update
Motley Fool contributor Kerry Sun 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 Affirm Holdings, Inc. 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.
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