@pgjuro - Zip's growth narrative is built on aggressive expansion and risk taking, but that strategy only works in favourable market conditions. BNPL is growing, but so is regulation, competition, and the cost of capital. Sustainable growth isn’t just a slogan, it requires profitability, and Zip has struggled to prove it can operate without constantly raising capital.
The idea that market conditions will inevitably change in Zip’s favour assumes too much. Higher for longer interest rates put pressure on BNPL margins, delinquencies remain a concern, and regulatory risk isn’t going away. The argument that regulators won’t step in because of Afterpay’s success ignores how quickly sentiment can shift, especially with consumer credit models that rely on easy money.
As for those who bought in at lower prices, many have already taken profits, meaning new investors are the ones holding risk at these levels. A “free ride” is great for them, but not for those looking at Zip as a fresh opportunity. The stock’s recent rally is just another cycle in its volatile history, and anyone ignoring the risks is assuming the market will reward them simply for waiting. That is not how it works.
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