The Zip Co Ltd (ASX: Z1P) share price is having another wild ride today. Not that the current share price reflects that too clearly. At the time of writing, Zip shares are down 1.6% to $8.61 after opening at $8.71 this morning.
But Zip was also trading at $9.12 a share at one point earlier today soon after open, up by more than 3%.
But that volatility pales in comparison with what's been happening with the Zip share price over the year to date so far. Zip started 2021 at around $5.60 a share, meaning investors are up roughly 54% since then.
But in mid-February, this company shot all the way to a new 52-week high of $14.53. That number represents a year-to-date gain of nearly 160%. But since 16 February, the company has also lost roughly 40% of its market capitalisation.
If you're looking for a poster child for ASX volatility, it seems Zip would make a fine candidate.
So aside from this volatility, how has Zip actually performed as an investment for its shareholders? The company neither pays, nor has ever paid, a dividend, so we'll have to go by its share price alone.
Image source: Getty Images
Zip shares bring both volatility and windfalls
So, bottom line, at the current Zip share price, anyone who bought shares before 25 August 2020 is likely still in the green on their investment. On 26 August, Zip hit what was then a new record high of $9.65 before retreating again going into September.
Further, anyone who purchased Zip shares between 1 September 2020 and 4 February of this year is also likely in the green on those purchases. Naturally, Zip has been volatile in between these dates but did not exceed the pricing peaks we saw on 26 August.
But of course, Zip's biggest winners have been its long-term investors. The Zip share price is up 420% over the past two years alone, and a staggering 2,300% over the past five years. And anyone who took advantage of the market crash that was in full swing exactly a year ago is enjoying a nice 437% gain today.
But recent movements have been more unkind.
Unfortunately, anyone who purchased Zip between 5 February and today is probably ruing their decision since their investment would likely be in the red. And (as we touched on earlier), investors who bought Zip shares on 16 February would be nursing a nasty loss indeed.
As we discussed earlier this week, sometimes the best investments come with the most volatility. That has certainly been the case with Zip shares. But for those with the nerves of steel to hold on for the ride, it has (mostly) paid off handsomely.
