Why does Zip Co (ZIP) keep falling
ZIP -5.22%: UBS cut their price target for the BNPL stock in half yesterday which put pressure on the stock today. The analyst talked to higher bad debts and the strategies put in place to limit the issue potentially doing the opposite. While bad debts in the retail arms of banks are decreasing, BNPL has been experiencing the opposite. In an economic downturn, this is likely to accelerate further at the same time capital dries up causing added problems for the smaller lenders.
MM is neutral ZIP, looking to exit the position in the Emerging Companies Portfolio
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