Swings and roundabouts: What’s with the Zip share price today?

Smiling adult pushing toddler on a swing at the park.Smiling adult pushing toddler on a swing at the park.

The Zip Co Ltd (ASX: ZIP) share price is rallying after a steep early morning slide amid a tough day for buy now, pay later (BNPL) shares.

The Zip share price fell as low as 9.65% in early trading but has made its way back into the green, up 2.27% to 90 cents at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.04%.

Let’s take a look at what is happening to the Zip share price.

What’s happening to the Zip share price?

The Zip share price struggled early but it was not the only BNPL share in the red. Block Inc (ASX: SQ2) shares are down 3.86% while the Sezzle Inc (ASX: SZL) share price is 10% lower at the time of writing.

Today’s fall follows the S&P 500 Index sliding 0.93% and the NASDAQ dropping 1.87% in US markets on Friday.

Investors were alarmed after Snap Inc (NYSE: SNAP) reported a net loss of $422 million compared to its $152 million loss in the previous quarter. Snapchat shares fell 39% on the back of the results.

BNPL share Block’s New York Stock Exchange listing was among other shares in the red, down nearly 4%. Commenting on the market falls, Crossmark Global Investments chief investment officer Bob Doll said, cited by Reuters:

Earnings are coming in less bad than feared, but they’re deteriorating from what we got used to and accustomed to over the last several quarters

Meantime, Zip reported a 27% increase in revenue to $160 million last week compared to the prior corresponding period. Customer numbers also grew 5.3% from the previous quarter to 12 million.

ZIP CEO and co-founder Larry Diamond said:

All this was done whilst balancing and implementing our updated financial strategy to fast-track profitability, by reducing our global cost base, and refocusing our capital and efforts on core products and core markets.

Share price snapshot

Zip shares have slid 87% in the past year, losing 79% in the year to date.

However, in the past month, Zip shares have surged 68%.

For perspective, the benchmark ASX index has declined about 8% in the past year.

Zip has a market capitalisation of about $619 million based on today’s share price.

The post Swings and roundabouts: What’s with the Zip share price today? appeared first on The Motley Fool Australia.

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

Before you consider Zip Co Ltd, 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 Co Ltd wasn’t one of them.

The online investing service he’s run for over 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.

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Monica O’Shea 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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/zAoH5gv

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s