Let’s unpack this.First, while it’s true that the RBA has...

Let’s unpack this.

First, while it’s true that the RBA has limited room to cut rates due to the weak AUD, the idea that this won’t impact Zip ignores the broader implications. The AUD’s decline reflects a lack of global confidence in the Australian economy, and this sentiment impacts equity markets, particularly speculative growth stocks like Zip. Even if US funding remains accessible, Zip’s reliance on external funding is a weakness, not a strength. A company that constantly needs cheap debt or equity raises to sustain operations is fundamentally fragile. The falling AUD also increases the cost of any operations or debt obligations tied to the Australian market, which isn’t insignificant.

Second, while the US has been more disciplined in tackling inflation, that doesn’t translate to a clear win for Zip. Higher US interest rates still make funding more expensive for any BNPL provider, Zip included, particularly as risk premiums increase for companies with weak profitability. Additionally, inflation might be cooling, but consumer spending growth remains uncertain. Zip’s business model relies heavily on consumer confidence and discretionary spending, both of which are vulnerable to even mild economic contractions.

Finally, the argument about Zip being a cheap acquisition target misses the mark. While Block overpaid for Afterpay, that deal is now widely regarded as a cautionary tale rather than a success story. The synergies promised by these acquisitions rarely materialize as expected, and BNPL’s profitability struggles don’t make Zip an obvious target for big tech giants. Zip’s $2.5 billion USD market cap might seem “cheap,” but cheap doesn’t mean value—it means risk. If the BNPL industry continues to face regulatory and competitive pressures, any potential acquirer would likely wait for further declines or avoid the sector altogether.

Your optimism feels misplaced. Zip remains a speculative play in a sector with significant headwinds. It’s better suited for traders banking on short-term volatility than for those seeking reliable long-term growth.