Interesting point, but the idea that a weaker AUD will significantly boost ZIP’s profits feels overly optimistic. Currency conversion gains are meaningless if the underlying business struggles to generate meaningful US earnings in the first place. ZIP’s reliance on consumer spending in a fragile economy and its high operating costs outweigh any short-term forex tailwinds.
While some companies with robust US operations might see a genuine benefit from the AUD’s drop, ZIP isn’t in that league yet. Its cash burn and ongoing challenges in scaling profitability make it unlikely to capitalize meaningfully on currency movements. Forex gains might look good on paper for a quarter or two, but they don’t solve the deeper structural issues ZIP is facing. DYOR, as always.
ZIP Price at posting:
$3.12 Sentiment: Sell Disclosure: Not Held
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