Headquartered in Sydney, Zip Co. is one of the largest BNPL players in Australia. Zip has operations across Australia, New Zealand, South Africa, the United Kingdom, and the USA. With Zip’s acquisition of QuadPay, the firm has entered the highly lucrative North American market.
Late last month, Zip also announced their expansion into Europe and the Middle East. by acquiring the remaining shares on top of their existing holdings in European BNPL provider Twisto Payments and of UAE-based BNPL leader Spotii Holdings Ltd. The transactions align with Zip’s global expansion plans and the rapidly accelerating global BNPL opportunity. As demonstrated through the acquisition of QuadPay, where annual transactions have soared by over 200% post acquisition, Zip is building its playbook in successfully identifying, completing,and integrating strategic acquisitions.
After Z1P shares reached a high of over $14 a share in February 2021, the stock has largely been on a downward spiral given the volatility in the bond yields and the shift from growth to value stock over fears of inflation. Since the past couple of weeks however, the markets have largely been estimating inflation to be transitory and bond yields as a result have been declining consistently – resulting in the resurgence of growths stocks and Z1P shares have been a direct benefactor of this thematic that is playing out not just here in Australia, but globally.
During the trading session today, Z1P shares jumped over 10% and finally settled on a 9.85% increase and closed at $8.14 a share – still some way off its $14 highs seen in February. The growth story is positive for the company that is now expanding across North America, Europe and the Middle East, while Australia and New Zealand become a largely mature market for the firm. The entry into these markets that have a lot more consumer spending mean that the total addressable market is huge – resulting in valuation upgrades for Zip Co.
With Z1P shares still trading 44% off its 52-week high, with bond yields stabilizing, there is a lot of positivity surrounding what Z1P shares can do on the ASX.
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