Another day, another Zip (ASX: Z1P) share price record

The Zip share price rocketed to a new 52 week high today despite there not being any news out of the company. We take a closer look.

| More on:
group of hands all giving thumbs up gesture

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Zip Co Ltd (ASX: Z1P) share price has been volatile today as it reached a new record high. The share is currently trading at $10.57.

However, earlier in the day the Zip share price reached a record price of $11.65. This is substantially higher than the previous record of $10.79.

Why is the Zip share price rocketing

The Zip share price is rocketing higher despite no notable announcements out of the company.

Shares in the company have been sparked back into life by the announcement of the company's quarterly report. In the days following the report, the Zip share price has rocketed more than 82%.

The company reported record metrics across the board with revenue rising by 88% YoY. As a result, Zip Co reported revenue of $102 million that was driven by the company's record transaction volume. In December alone the company achieved a transaction volume of $628 million.

Moreover, the company saw its acquisition of QuadPay paying dividends as it largely drove the company's revenue increase. In the US, revenue was up an astounding 119%. It comes as Affirm Holdings Inc (NYSE: AFRM), having recently listed in the US, have seen a 40% rise in their share price over the last month.

Despite impressive transaction volume in ANZ which was up 46%, revenue growth in the area was lagging. This resulted in revenue growth only increasing by 14% for the quarter, or 43% YoY.

New Horizons

Investors have also been excited by the company's recent admission that it is pondering another listing in the US. On top of the fact that Zip management are shopping around for new investors in the country, this would bring huge amounts of capital into the company.

According to the AFR:

It is understood Zip management will spend the next few days in front of US investors, seeking to explain the company's buy now pay later payments platform and highlight its growth in the world's biggest economy, where it owns QuadPay.

American giant Wells Fargo & Co (NYSE: WFC) is helping the company with its roadshow.

Furthermore, Zip will soon have a new region to announce metrics for as Zip UK was launched in December. The company explained that the country was a strategic focus for the group and it expects the UK to helped drive growth in 2021. These results will be included from next quarter.

About the Zip share price

The Zip share price is pushing higher today again as the company continues its fantastic recent run.

The Zip share price has outpaced its ASX rival, Afterpay Ltd (ASX: APT) share price recently. Gaining 100% in the last month compared with Afterpay's 36% gain.

Zip is currently trading at a market capitalisation of $5.95 billion.

Daniel Ewing owns shares of Zip Co Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

These ASX 200 shares could rise 50% to 60%

Brokers believe these shares could deliver big returns for investors.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Best Shares

8 ASX All Ords shares that tripled in value in FY25

Just 8 out of the 500 companies making up the ASX All Ords achieved share price growth of 200% or…

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why DroneShield, Gentrack, Metals X, and Northern Star shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »