Zooming higher: The Zip share price is up 7%

A woman sits on a chair smiling as she shops online.

A woman sits on a chair smiling as she shops online.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.

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 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.

from The Motley Fool Australia https://ift.tt/1UCaiwy

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