Zip & Co. (ZIP)
Hi Market Matters Could I have your latest view on ZIP. From a high of $4.94 on 20th Oct to currently around $2.88 Would you consider ZIP a good buy at these levels? regards Debbie
The Latest Q&A
Answer
Hi Debbie,
Firstly, we must always put these large moves in the context of the overall market:
- Zip has fallen ~32% over the last month, as a “high beta” stock it often moves in an exaggerated manner.
- A number of other high profile growth names are down between 20 and 35% over the same timeframe, including WiseTech, Catapult, Life360, and Xero.
On the company level we really liked ZIP’s result last month and continue to hold the stock in our Emerging Companies Portfolio. Hence, we regard ZIP as good buying sub-$3 but caution we don’t believe the current volatility will dissipate overnight.
- MM remains long and bullish towards ZIP and would be a buyer under $3 if we did not already own it.
