Do you believe Affirm and Sezzle are overvalued as well? Or just Zip?
Also, what evidence do you have to suggest that the active users are not becoming stretched? As far as I can tell this is not true at all.
In addition, the company actively chose not to onboard new customers - that is entirely different from being unable to do so. They chose to be strict with their criteria and achieve sustainability/become cash flow positive, which they achieved. And now they are refocusing on growth in a sustainable way and got hundreds of thousands of new customers recently - and I imagine we will continue to see strong customer growth over the next 12 months.
Merchants are also not as important given the business model of being able to use the Zip card anywhere - Zip customers aren't restricted to only being used at partnered merchants. More merchants would obviously still be great for advertising the company etc, but I don't think it's quite as important as you are making it seem.
And in what way are "true bad debts" rising much faster than revenue?
ZIP Price at posting:
$2.46 Sentiment: Buy Disclosure: Held
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