The cognitive dissonance is amazing. Bears do what bears do....

The cognitive dissonance is amazing. Bears do what bears do. Anyway, let's update my projections based on ZIP's financials However I am more conservative and expect just over $2. The recent sideways movement probably has to do with point 3 and some profiteering.

"Zip Co Limited: Projecting a Brighter Future Amidst Economic Challenges - Expected Share Price of $3.31 in One Year"

Analysis:

Zip Co Limited has demonstrated robust performance despite the high inflation and overall lower consumer demand impacting the USA. Here's why Zip is poised for growth:

1. Robust Revenue Growth:

   • Despite the challenging economic environment, Zip reported a remarkable 26.1% increase in quarterly revenue for 2Q24 compared to 2Q23. The document titled "2Q FY24 Results and Interim 1H24 Results Update" states, “Quarterly revenue of $225.6m (up 26.1% vs 2Q23)” (page 1). This shows Zip's ability to generate strong revenue growth even amid high inflation, indicating that demand for its services continues to rise.

2. Strong Cash Position and Liquidity:

   • Zip’s cash and liquidity position improved significantly, reaching $81.3 million by the end of 2Q24. According to the same document, “Available cash and liquidity position increased to $81.3m (from $53.2m on 30 September 2023)” (page 1). This robust liquidity provides Zip with the financial flexibility to navigate high inflation and lower consumer spending. With a strong cash reserve, Zip is well-positioned to invest in growth opportunities and sustain its operations.

3. Benefits of Senior Convertible Notes Redemption:

   • Zip recently completed the early redemption of all outstanding Senior Convertible Notes, converting them into fully paid ordinary shares. According to the document titled "Completion of Early Redemption of Zip Senior Convertible Notes," this move has "extinguished the remaining Senior Convertible Notes, further simplifying Zip’s capital structure and strengthening the Company’s balance sheet" (page 1). For shareholders, this means reduced debt obligations, improved financial stability, and potentially higher shareholder value as the company can now focus more on growth and profitability.

Expected Share Price in One Year:

Despite the previous 6-month average increase of 15% per month an adjusted conservative monthly growth rate of 8.22%, the projected share price for Zip in 12 months is approximately $3.31.