this was on the motley fool article
Why is the Zip Co share price sinking lower today?
Zip Co’s shares have come under pressure despite there being no news out of it (excluding the capital raising) since its Amazon agreement in mid-November.
That announcement revealed that Zip has been made available as a payment option for customers shopping on the Amazon.com.au website. This made Zip Amazon’s first Australian instalment payment option and it remains the case today.
The Amazon deal was a great way to end a busy year which saw countless agreements being signed. Other notable retailers joining the Zip platform include the Woolworths Group Ltd (ASX: WOW) owned Big W brand, the Wesfarmers Ltd (ASX: WES) owned Kmart brand, and Chemist Warehouse.
The combination of these retailer additions and its impressive underlying sales growth, sent the Zip Co share price rocketing higher last year.
I suspect this means that profit taking is weighing on its shares at present. Especially given how in the next two to three weeks the company will be releasing its next quarterly update.
As this update contains the key Christmas trading period, it will have a major bearing on its full year results. Some investors may be a little nervous ahead of its release and are locking in some of their profits. The fact that Zip Co didn’t release a Black Friday update like rivals Afterpay Ltd (ASX: APT), Sezzle Inc (ASX: SZL) and Splitit Ltd (ASX: SPT), no doubt adds to the nerves.
However, given the growing popularity of the payment method and its international expansion, I feel quietly confident that Zip Co will have had a strong first half. This could make the recent pullback in its share price a buying opportunity.
few key points.
I also was worried zip never released its black Friday sales report.
as mentioned maybe holders are cashing out their profits before the report.
as we saw last report they showed great growth but the fact their profit margin reduced it was a short lived spike and it crashed hard after the report.
I have a feeling no matter how great this next update is.
if they don't show profit or that there managing their debt well people will freak and you can kiss $3 margin well and truly goodbye.
what does everyone else think?
this was on the motley fool articleWhy is the Zip Co share price...
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| Open | High | Low | Value | Volume |
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