Yes I got that wrong I miss read the second tranche as $10 and...

Yes I got that wrong I miss read the second tranche as $10 and not $100 as the first tranche was 1 cent.

So in effect Amazon can convert warrants to a value of $2 billion in cash and not $4 billion.

The argument is however still the same that all BNPL are effectively buying business with enterprise clients and Affirm is annualising at over $1 billion dollar loss in the next 12 months

Affirm interest income was in excess of network income which confirms the majority of their revenue comes from the consumer so BNPL is really a fallicy and they are nothing more than a " dressed up " credit card.

They are trading on a price to sales ratio of over 30 compared to its peer group of circa 5

The same applies to Zip as nothing more than a credit card but it is priced at a much more reasonable price to sales of 7 and well below that on a forward looking basis.

On face value this would suggest Zip is a screaming buy but the market is telling you something much different and in my view terminal.

The market is pricing in either

1. Zip will go bust

2. The aggressive expansion is going to require hundreds of millions of more capital and as share price declines any further raising will be at much lower levels and invariably the stock price migrates to the CR price.

My view is they will not be able to raise any more funds and go bust but in event they do it will only be from hedge funds who will continue to short the stock and they could well have 2 billion shares in issue before they get anywhere near break even.