We are also a Corporate Authorised Representative of Countrywide Insurance Group Pty Ltd trading as "Austbrokers Countrywide" ABN 51 586 953 292 AFSL No. We can also provide you with general advice and factual information on about a range of other products, services and providers. Please refer to our Credit Guide for more information. We also provide general advice on credit products under our own Credit Licence ACL 385509. Please refer to our FSG - Financial Products. Tech giant Apple recently announced its move into the BNPL space, joining the likes of financial giant PayPal, and Australia's own Commonwealth Bank and NAB.ĭisclaimer - Hive Empire Pty Ltd (trading as, ABN: 18 118 785 121) provides factual information, general advice and services on a range of financial products as a Corporate Authorised Representative (432664) of Centra Wealth Pty Ltd AFSL 422704. Investors are also turning away due to increasing competition and the prospect of much higher regulatory scrutiny.Īnd finally adding to their woes are the incumbents. With none of the Australian players as yet profitable despite 3 years of explosive growth, the slim-margin business model is being squeezed by their need to fund the interest-free payment offering amid rapidly rising cost of funds and cautious spending by consumers. Last week, smaller Australian BNPL rival Openpay Group ( ASX: OPY) halted its foray into the United States just months after launching them while Swedish BNPL giant Klarna raised funds that slashed its valuation from $US46 billion a year ago to just $US6.5 billion now.Ĭonditions have changed significantly for the BNPL industry over the last year. While these decisions will not result in any immediate improvement of its finances, they are in line with more practical decisions by Zip's BNPL peers in recent days as the entire sector faces headwinds from the aggressive interest rate upcycle.
ZIP SHARE PRICE TODAY ZIP
While a cloud hangs over its deal with Sezzle, Zip has announced it will be winding down its small-business lending operation Zip Business as well as closing down personal finance app Pocketbook. The longer term odds certainly seem stacked against Zip Co shares recovering ground with the company's growth aspirations grounded. I agree to the Privacy & Cookies Policy, Terms of Use, Disclaimer & Privacy Policy and to receive emails from Finder UBS says in order to attain profitability, Zip needs to achieve revenue and cost synergies with its still-to-be-completed merger with US-focused Sezzle ( ASX: SZL), an improvement in credit performance, and organic growth – a tall ask for a company already struggling with high debt.Īccording to Refinitiv data, only 2 of the 8 analysts who still rate the Zip stock hold a "buy" rating on it. That message will certainly add to the woes of shareholders who have already seen the value of their investment slide 93% in the last 12 months. As a result, they expect credit quality to remain soft in the current half year too. They estimate that Zip's annualised bad and doubtful debts have risen to 12.4% in the first half of 2022 due to removal of pandemic-related economic stimulus and pressures in household spending, compared to 7.4% a year ago. UBS analysts on Thursday halved their price target on Zip Co shares to just 45 cents with a "sell" rating on account of rapidly rising interest costs and growing arrears as bad debt expenses rise. This week has brought a fresh round of bad news for the biggest remaining pure play BNPL stock on the ASX. to 55 cents at the time of writing.īy comparison, ASX-listed shares in US payments giant Block ( ASX: SQ2) – which now owns Zip's bigger rival Afterpay – were up 2.1% and have shown a clear recovery all through this month. Shares in buy now pay later operator climbed more than 12% on Wednesday before sinking 5% on Thursday.Įven today, the stock is being volatile and was up 1 cent, or 1.8%. The last week has been a snapshot of the rollercoaster ride that investors in Zip Co Ltd ( ASX: ZIP) have had to endure. Shares in the BNPL operator are down nearly 30% in the last month alone, but are bouncing around this week.
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