The Zip Co Ltd (ASX: Z1P) share price has been under pressure this week. Shares in the buy now, pay later (BNPL) leader are down 2.4% from Monday's opening price of $7.04 per share.
Here's what's affecting the Aussie payments company's value in recent days.
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It's been a tough week for the Zip share price
Whenever an ASX share slides lower, it's always worth checking for any new announcements to contextualise the move. Unfortunately for curious investors, the last announcement from Zip was the company's full-year results release last Wednesday.
Zip reported a 293% surge in transaction numbers to 41.3 million in FY21. Total transaction value (TTV) jumped 176% to $5.8 billion as customer numbers jumped 248% to 7.3 million.
Those all look like solid growth numbers on the surface. However, investors didn't appear thrilled with the latest update with the Zip share price slipping following the release of the results.
That came after Zip noted a 30 basis point (bps) decline in cash transaction margin to 3.5%. Zip's marketing costs also surged 650% during the year as the company chases more market share in the growing sector.
The Zip share price has been sliding lower since last Wednesday's result. The valuation slide comes as shares in rival Afterpay Ltd (ASX: APT) have climbed 2.6% higher in the last 5 days.
There's also been increasing competition in the BNPL landscape. In a space that was ruled by Zip and Afterpay, new entrants such as PayPal Holdings Inc (NASDAQ: PYPL) and Commonwealth Bank of Australia (ASX: CBA) are now snapping at Zip's heels.
Foolish takeaway
The Zip share price has been under pressure in recent days in what appears to be a hangover from the BNPL group's FY21 results.
It's not all doom and gloom, however, with shares in the ASX company still up 22.9% year to date.
