ZIP’s double digit growth means nothing if it is unprofitable growth. The BNPL sector has been around for over a decade, yet these businesses still struggle to generate consistent net profit. Adding more users does not guarantee long term viability, just look at ZIP’s track record of burning cash and diluting shareholders.
Regulators might acknowledge BNPL’s role in sales conversion, but that does not mean they will turn a blind eye to the risks. Tighter regulations could hit profitability even harder, especially if compliance costs rise or lending standards tighten. Meanwhile, competition is relentless with traditional banks and fintechs integrating similar features into their offerings.
As for tax benefits, those only matter when you exit. Holding onto a structurally weak business in hopes of an eventual payday is a risky strategy. Growth alone is not enough, sustainable net profit is what drives real value and ZIP has yet to prove it can get there.
ZIP Price at posting:
$2.43 Sentiment: Sell Disclosure: Not Held
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