AUS
NZ
UK
CA
USA
IND
Highlights
- Zip Co shares pull back after testing key resistance near A$3.21
- Momentum remains strong despite short-term overbought signals
- Strategic updates and U.S. growth fuel long-term optimism
Zip Co (ASX:ZIP) saw its impressive upward momentum pause as the share price declined by 5.61% on the day, closing at A$3.03. This came after an attempt to break past resistance at A$3.21, which marked a potential turning point following a sharp rally in recent weeks. The stock briefly dipped to retest the psychologically significant A$3.00 level, signaling a moment of consolidation after a robust ascent. As investors assess this shift, many are also watching ASX 200 today to gauge broader market sentiment and its influence on ZIP’s next move.
Over the past month, Zip Co has delivered a remarkable 56.19% gain, pushing its Relative Strength Index (RSI) to 75.93, well into overbought territory. Despite the day's pullback, technical indicators still reflect strong underlying momentum. The current price remains well above both the 50-day and 200-day moving averages (A$1.95 and A$2.48, respectively), highlighting a positive trend trajectory.
This recent rally was driven largely by a full-year earnings outlook upgrade, announced on June 11, 2025. Zip Co projected cash earnings before tax, depreciation, and amortization (EBTDA) of at least A$160 million for FY 2025. That announcement alone helped trigger a 19% single-day increase in the stock price.
A key contributor to the improved forecast was the robust growth in Zip's U.S. business, where Total Transaction Volume (TTV) expanded by over 40% year-on-year. In addition, the initiation of a A$50 million share buyback program in April 2025 further bolstered investor confidence, contributing to a 20% appreciation in the stock around that time. These developments reflect the company’s efforts to reinforce shareholder value and streamline its capital structure.
Still, some headwinds remain. Zip Co continues to report losses, with a 12-month net loss of A$46.37 million and a loss per share of A$0.04. While revenue over the same period stood at A$951.74 million, consistent profitability remains an area of investor attention.
Despite the current technical cooling and resistance encountered at A$3.21, Zip Co's longer-term trajectory shows resilience. The stock has appreciated 114.89% over the past 12 months. Today’s pullback may represent a normal market response to overbought conditions and recent gains, while broader growth and strategic moves continue to support a positive narrative for the company’s outlook.
