While ZIP’s recent 3.5% gain might seem encouraging, it doesn’t change the fact that there are several red flags surrounding the company. Its heavy reliance on the US market exposes it to significant risks, from shifting consumer behaviour to inflation and interest rate hikes that could quickly dampen demand. Moreover, ZIP still hasn’t proven it can turn a consistent profit, and until it does, its long-term prospects remain uncertain. On top of that, the growing competition in the buy-now-pay-later sector, combined with increasing regulatory scrutiny, makes it hard to see how ZIP can maintain any real momentum. Short-term gains could easily be wiped out, and investors should proceed with caution.
ZIP Price at posting:
$3.19 Sentiment: Sell Disclosure: Not Held
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