If you only adopt a pessimistic and negative outlook on all analysis I don’t think many would invest at all, as risks are present in all industries. BNPL is growing rapidly and Zip needs to take risks during this period, their growth rate will continue into the future and as market conditions change, it’s inevitable, zip will be positioned well. Zip changed their strategy to achieve sustainable growth with the goal of achieving profitable growth. It will get there, but headwinds will occur as market conditions change. They have a solid customer base and the ability to survive, when conditions change they will reap the rewards - it will happen, it’s only a matter of time. There is so much red tape globally and in Australia it is ridiculous. I do not believe the regulator will impact zip as afterpay is Australia’s success story, now they are going to push the brakes when zip is pulling out billions from the US market. I don’t think so. For those who purchased shares in the 30c to dollar range, all cream and a massive buffer from purchase to current market value. Many would have sold a few parcels but still have a good wicket - free ride. To reiterate, if zip is only 3-5% of your portfolio, I think most woild be happy to continue holding. I think you are like others I know, waiting for a price drop to get into zip, as they missed the run.
ZIP Price at posting:
$2.43 Sentiment: Buy Disclosure: Held
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