Everyone is worried about dilution, interest rates rising and...

Everyone is worried about dilution, interest rates rising and regulatory changes to BNPL, however every week there seems to be an announcement by a different group wanting to entry the space, merchants incorporating BNPL is growing, total active users is growing, revenue keeps growing QoQ, awareness of BNPL as a pay method is growing and the average spend is also growing.

The whole Tech sector is currently being revalued and any stock that is trading in excess of 10 times revenue is getting smashed as we enter an interest rate tightening cycle.

Zip is well off a multiple of 10x of current revenue which continues to grow QoQ. If this stock was reporting profits today I feel the SP would be over $10, however with this tech sell off and the poorly kept secret (media leak) of the potential acquisition of SZL through dilution. We are seeing retail investors dump this stock at a quicker rate than other techs. The light bulb moment will eventually arrive and we should see a period of consolidation followed by a period where SP movement will be more correlated to the company's reporting.

I suspect many SH have sold off in recent months (understandable), but post calming this going to zero is quiet depressing. It doesn't help when a company is in the middle of acquisitions focused on growth, and a Tech sell off hits. It's unclear to me why this poorly timed media leak (or perfectly timed) was allowed to happen then followed up by an ASX announcement released 12hrs later.

Hopefully management realise the market won't accept dilution for the acquisition of a struggling operations at a premium to current SP, especially during a period of extreme market uncertainty. I think with a slight change of direction or at least clearer messaging from management we can see this stock turn the corner.

In order to truly buy the dip, the key is to have a diversified portfolio, own Sydney property, have a long term view on all your investments and don't run out of capital.

DYOR, just my opinion