Here is my view for Zip now and well into the future!
Zip is undervalued IMO, compared to its peers ( Affirm, Sezzle, Sq2) etc. Klarna IPO shortly with a predicted MC of 15B -20B
Independent reports indicate that BNPL is becoming the norm and BNPL has cemented itself in the payment landscape under the credit rules, and more popular and is showing huge growth over the next 5 - 10 years in the payment sector as consumer habits change.
Inflation is settling down, and interest rates are coming down, this reduces Zip's funding costs which increases profitability & strengthens the consumer with more spending, although even with rates at highs and consumers being under pressure, Zip has continued positively throughout 2024 and providing to a larger demographic mainstream consumer, not just your stero typical people using bnpl.
Zip is focused more on marketing and customer growth now that they are cash flow positive and a profitable company - they have shown they can survive through a negative macro environment, including high interest rates over the past few years, and now things are turning slowly and predicably from a central banks control point of view, I've given my view on this for over the last 12 + months, and all these analysts' predictions who IMO have no real idea, take Warren Hogan as an example these people are just puppets for the system and anyone could have predicted rate rises from 2 years ago you can't print billions of dollars and inject that into the economy without inflation going up, this is across the globe not just here in Aus {economics 101}, Zips bnpl payment environment is becoming one in which they can grow sustainably now and well into the future.
Zip has new products (Zip Plus in Aus, physical card in the US, pay in 8 in the US). that have been proven to increase revenue/profits and still continuing being rolled out. The continued roll out of these products will keep increasing the profitability/growth now and well into the future.
Adding more on the above, the US is a huge market with minimal BNPL penetration, even with other competitor bnpl companies, ensuring there is ample growth available, Zip's US growth has been great, bad debts are low, etc and now the leadership team has Cynthia Scott at the helm, at this point of Zips journey as a bnpl company, first payment choice anywhere everywhere, she has forecasted that they will continue to grow extremely well (30%+ growth) in the US over the next 12 + months Zip is in great hands under CS leadership imo.
Zip has also looked at adding other products to diversify their revenue stream, for example home loans, personal loans, (Neobank style) this might not happen, but there is talk that they might go this way at some point, would be an interesting path to follow.
GLTAH
Expand
(20min delay)