Zip Co. Ltd (ASX: ZIP)

Hi Wayne,

Thanks for the kind words, always appreciated!

ZIP shares have actually been on a rollercoaster ride since before COVID, when they rose from ~$1 to above $14 before falling back well under $1, the last few months have actually been relatively calm in the scheme of it, though we know it doesn’t feel that way when we look at our P&L! ZIP remains a classic “show me” stock, with investors still skeptical after multiple false starts in previous recovery attempts.

The first negative report you highlight was about an uptick in bad debts. However, Zip’s funding profile is short term in nature, and that trend proved to be more of a blip than a trend, hence the recovery when they next reported better metrics and upgraded guidance.

Ultimately, the investment case still hinges on US transaction growth and credit losses. Both of these aspects are heading in the right direction. We covered their 3Q update here.

• We still think ZIP is a buy ~$2.30 after its recent update but this is not a set and forget stock – we must keep our fingers on the pulse here.

We own ZIP in our Emerging Companies Portfolio with the position currently up ~22%.

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Zip Co. Ltd (ZIP)

LAST UPDATED 21/05/2026 13:17

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Zip Co. Ltd (ZIP)

LAST UPDATED 21/05/2026 13:17