Up 59% this week: Why is the Zip share price surging another 17% today?

a group of young people dance together with their hands in the air, moving to music.a group of young people dance together with their hands in the air, moving to music.

This week is proving to be monumental for the Zip Co Ltd (ASX: ZIP) share price. The S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) favourite is racing towards the finish line in a blur of green.

At the time of writing, the Zip share price is 90.5 cents. That’s 17% higher than its previous close and 59% higher than it was at the end of last week.

For context, the ASX 200 has fallen 0.04% today and is currently 2.8% higher than it was at last Friday’s close.

Let’s take a closer look at what’s been going on with the ASX BNPL share this week.

Why has the Zip share price rocketed 59% this week?

The Zip share price is leaping higher on Friday, topping off an incredible week’s trade. There has only been one announcement from the BNPL stock this week, and boy did it get the market in a spin.

Zip released its results for the final quarter of financial year 2022 yesterday, detailing a 27% jump in quarterly revenue compared to the prior corresponding period.

The company’s quarterly transaction numbers also lifted 37% year-on-year, while its bad debts in Australia and New Zealand increased 42 basis points quarter-on-quarter.

Interestingly, Zip co-founder and CEO Larry Diamond said the company’s decision to scrap its planned merger with Sezzle Inc (ASX: SZL) earlier this month will see it reach profitability earlier.

The Zip share price gained 13% amid anticipation of the results on Wednesday and launched 17% following their release on Thursday. Thus, today’s gains might be yet another reaction to the company’s quarterly results.

The post Up 59% this week: Why is the Zip share price surging another 17% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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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