https://www.livewiremarkets.com/wires/buy-hold-sell-4-fundie-favourites-and-why-csl-is-a-sellZip Co (ASX:Z1P)James Marlay: Okay. Blake, buy now, pay later has been all the rage. Zip. Buy, hold, or sell?
Blake Henricks (Sell): Zip's a sell. When you think about these growing markets, it generally is winner takes all. Afterpay is probably going to be the one. And the other thing we've done is we actually took all the analyst expectations for all the buy now, pay laters and what the TAM (total addressable market) is, and I'll tell you what, this is going to be a huge market if they're all right. We don't think they are. It's a sell.
James Marlay: Jun Bei, Zip Co's been the laggard in the buy now, pay later space. It's only gone up 100% this year. Buy, hold, or sell?
Jun Bei Liu (Buy): It's absolutely a buy for me. Well in many parts of the technology space, if the market is small enough, it's winner that takes all, but this is an enormous market. In the U.S., a couple of BNPL players have now, with all that investment, only penetrated 1% of the U.S. Market; 8% in Australia versus 1% in the U.S. Now Zip Co just bought into that market. And now Zip has exposure to eight different markets. Now, there's Canada, there's U.K. There's so many markets that could potentially be coming online. It's enormous now. And this market is real because we've seen Silicon Valley investors putting money in Zip. We've seen Tencent putting money with Afterpay. And potentially there will be more further M&A and activity picking up because they are taking notice that this is a real market.
So today Afterpay said they now can be sold through Google Pay, Apple Pay, all of that. QuadPay, which has been acquired by Zip, is already on there. So, the market is enormous and they bought a great platform onto it. And in terms of market cap, Afterpay at $18 billion, Zip, $2.5 billion. And Afterpay has 10 million customers. Zip has now, including the acquisition, over three, close to four million customers. So Zip has a long runway to go. By then probably Afterpay will be in the top five Australian companies, but Zip certainly will catch up quite a lot on that basis.
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