Zip Co Ltd Shares Surge 432% in 2024; Co-Founder Larry Diamond Steps Down After $100M Share Sale

December 05, 2024 03:55 PM AEDT | By Team Kalkine Media

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Zip Co Ltd Shares Surge 432% in 2024; Co-Founder Larry Diamond Steps Down After $100M Share Sale — Image source: © Timonschneider | Megapixl.com

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Highlights

Remarkable Growth: Zip Co Ltd (ASX:ZIP) shares have surged 432% this year, now trading at $3.44, with a 12% increase in the last month.

Larry Diamond's Departure: Co-founder and US chairman Larry Diamond has stepped down after a successful tenure.

Share Sale: Diamond sold 30 million shares at $3.35 each, likely netting him around $100 million.

Future Plans: Diamond plans to start a family office and philanthropic foundation but will remain an adviser to Zip.

Zip Co Ltd (ASX:ZIP) has enjoyed an extraordinary 2024, with its share price climbing a staggering 432% year-to-date, reaching $3.44 per share. This explosive growth has been a windfall for its co-founder Larry Diamond, who, following his departure as director and US chairman this week, sold 30 million shares for approximately $100 million.

The sale, which represented more than half of his holdings, was executed at $3.35 per share—slightly below the Monday closing price. Despite stepping down, Diamond plans to remain involved with Zip as an adviser, and he intends to focus on launching a family office and a philanthropic foundation.

Zip's strong performance has helped fuel the growth, with a 19% increase in revenue to $240 million for the September quarter and a 22.8% rise in transaction volumes. The company has gained over 4 million active users in the US, its next key growth market. CEO Cynthia Scott expressed confidence that Zip's leadership team is well-positioned to continue delivering success for the company and shareholders. Investors are now keenly watching Zip’s next steps in light of Diamond’s exit.

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