I largely agree with you, however, my major issue with zips financials are to do with the lack of equity in the business. They have an incredibly large proportion of borrowing to their equity. I think obviously the reason the stock is worth so much is dependent on having further growth in both revenue and hopefully positive earnings by the end of the financial year.
I think given that, it's probably in our best interest that they are aiming for revenue even at the expense of some bad debt because the stock is probably highly overvalued if they don't aim for growth even at current prices.
Also it's important to know that zip does greater credit checks than afterpay so that hopefully will be an indicator that there is some degree of additional financial security in the loans.
Z1P Price at posting:
$2.23 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)