Zip Co shares (ASX:ZIP) have faced intense selling pressure over the past week, reflecting broader market anxieties and a reassessment of high-growth technology stocks. The company’s stock price managed to rally today, gaining 6.72% on the day, but remaining firmly down over the past week (-23.49%), and even moreso YTD (-57.24%).
This has been a rather punishing period for Zip shareholders who have entered a position anytime recently. Unsurprisingly, this recent volatility places the stock much closer to the lower end of its 52-week range (AUD 1.055 – 3.56) and represents a dramatic fall from its peak of AUD 14.53, achieved during the BNPL frenzy in February 2021.
The technical picture for Zip currently appears decidedly bearish. The stock is trading significantly below its key short-term and long-term moving averages – the 10-day (~AUD 1.90), 20-day (~AUD 2.05), 50-day (~AUD 2.40), and the crucial 200-day moving average (~AUD 2.46). This configuration typically signals negative momentum, and technical indicators derived from these averages are flashing “Sell” or “Strong Sell” signals. Zooming out on to the 1 year, and there is a small ray of light for holders, who have seen ZIP gain, albeit a meagre 1.60%.
Despite the grim short-term price action and technical readings, Wall Street analysts maintain a surprisingly bullish long-term perspective on Zip Co. While the company’s last half-year earnings per share (EPS) of AUD 0.02 came in below the consensus estimate of AUD 0.04, it crucially surpassed revenue expectations, posting AUD 509.20 million against forecasts of AUD 501.25 million. This revenue beat hints at continued underlying business momentum in its core ANZ and US markets.
Looking ahead, analysts are forecasting a significant ramp-up in financial performance. Consensus estimates for the next half-year results, anticipated around August 22, 2025, point to an EPS of AUD 0.06 on revenue of AUD 543.20 million. Beyond the immediate reporting period, the growth trajectory is expected to accelerate markedly. Analysts project average annual earnings growth of around 61.2% and revenue growth of approximately 16% per annum over the next few years. Investment bank UBS, for instance, forecasts Zip achieving a net profit of AUD 31 million in Fiscal Year 2025, jumping significantly to AUD 118 million in FY26. This anticipated sustained profitability has even led to speculation that Zip could initiate dividend payments by FY28.
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