Why are ZIP shares (ASX:ZIP) on investors' radar? - Kalkine Media

May 20, 2022 07:37 PM AEST | By Priyanka Payal
Follow us on Google News:

Highlights

  • Zip Co Limited shares closed 6.896% higher at AU$0.930 per share on the ASX today.
  • Friday turned out to be a gratifying day for technology stocks.
  • Today, the S&P/ASX All Technology Index (ASX:XTX) was up 3.571% at 2128.300 points at 3:55 PM AEST.

Today, the share price of ASX-listed buy now, pay later (BNPL) company Zip Co Limited (ASX:ZIP) remained on investors' radar as the stock gained almost 7% and ended 6.896% up at AU$0.930 per share on the ASX. The company's share price jumped even though it did not issue any market-sensitive announcement on the ASX board today. 

Nevertheless, one reason why the stock fared well today could be due to the overall performance of the Australian equity market. The Australian share market traded on a positive note on the last trading day of this week. The benchmark index ASX200 was up 1.147% at 7145.600 at 3:50 PM AEST.

Meanwhile, Friday turned out to be a pleasing day for technology stocks. The S&P/ASX All Technology Index (ASX:XTX) was up 3.571% at 2128.300 points at 3:55 PM AEST. 

Nine of 11 sectors traded higher today, while Information Technology was the top-performing sector. Materials, Consumer Discretionary, Telecommunications Services, and other sectors led today's gains. 

The S&P/ASX 200 Information Technology Index (ASX:XIJ) was up 4.559% at 1518.100 points at 3:01 PM AEST. 

Zip Co Limited is a financial technology company which commands a market capitalisation of AU$597.91 million. In the last one year, Zip shares have fallen 86.79%, while the stock is down 78.52% year-to-date (YTD). 

Read More: Titomic to deliver first-of-its-kind glass mould coatings system

Image Source: © Andreypopov | Megapixl.com

A glimpse at the recent update by ZIP:

Last month, the fintech company announced its third-quarter results for the period ending 31 March 2022 (Q3 FY22). During this period, the company's revenue grew 39% YoY. During this period, Zip announced the proposed acquisition of the US BNPL operator Sezzle (ASX:SZL). The transaction is anticipated to considerably enhance Zip's scale and offering in the key US market, accelerating growth and delivering significant synergies. This will likely support the group's path to EBTDA profitability and positive cash flow during FY24. 

Meanwhile, the shares of another BNPL operator Sezzle Inc. (ASX:SZL) closed 1.709% higher at AU$$0.595 per share on ASX. The share price of Sezzle Inc. has fallen 92.34%. 

Read More: Which Penny Stocks are making it big in the market today?


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.



Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK