This is from the annual report. If you take a good look at these...

This is from the annual report. If you take a good look at these numbers, the Quadpay acquisition represents a good portion of it. By all measures the Quadpay acquisition was a significant and necessary step forward for Zip and many analysts across the board remarked on how good the deal was for Zip.

The only one of the highlighted figures above that is concerning is the Bad Debts and Expected Credit Losses. This is significant, not as bad as SZL, but still significant enough to warrant concern. My assumption here is that it's already being addressed by the team at Zip as they have done in the past. They were able to reduce this from circa 1.8% to 0.9% previously and there is no reason why this cannot be done again.

Therefore the rest of the losses in share price recently are mostly due to
a) Negativity regarding BNPL across the Australian investment spectrum. We often hear negative reports by banks, and other incumbant institutional investment firms. This affects the opinion of relatively uninformed retail investors and puts further downward pressure on share price.
b) Possible further pandemic restrictions, unlikely in my opinion, but could easily be proven wrong.

This is just my perspective. You should definitely DYOR and make your own judgements.

Conclusion, it may fall a little further, but in the end the opportunity of Zip will show itself again to the big institutional investment firms and this will force the price up higher again. Where to is uncertain, but considering that Zip is a global player, the biggest by coverage, and has the largest presence in emerging markets, I consider it to be an investment worth holding for a few more years yet.