The Zip Co Ltd (ASX: Z1P) share price has been the best performer on the S&P/ASX 200 index by some distance on Wednesday.
In afternoon trade the buy now pay later platform provider's shares are up a massive 11% to $3.86.
This latest gain means that the Zip Co share price has now gained a remarkable 250% since the start of the year.
Why is the Zip Co share price storming higher today?
Today's gain is a bit of a mystery as there has been no news out of the company since last week when it announced the pricing of its first issuance from the Zip Master Trust.
That deal, which was arranged by National Australia Bank Ltd (ASX: NAB), was significantly oversubscribed and raised a massive $500 million for the company. This was 25% higher than the original mandate of $400 million and made the issuance the largest of its nature by a financial technology company in Australia.
Settlement on the deal is expected tomorrow, but I'd be surprised if that were the catalyst for today's gain.
Instead, I suspect that today's buying is just down to ever-improving investor sentiment thanks to its stellar performance in FY 2019 and positive guidance for the year ahead.
In FY 2019 Zip Co reported a 138% increase in revenue to $84.2 million thanks to a 108% lift in transaction volume through its platform to $1,128.5 million.
This was driven by an 80% increase in customer numbers to 1.3 million, a 54% jump in partner numbers to 16,000, and a whopping 154% increase in transactions processed to 4.8 million.
In FY 2020 the company is aiming to almost double both its active customer numbers and annualised transaction volume. It has set itself a target of 2.5 million active customers and $2.2 billion in annualised transaction volume.
In order to achieve this the company intends to integrate the newly acquired PartPay business and grow its New Zealand market share and launch into the UK market where it will be taking on industry giant Afterpay Touch Group Ltd (ASX: APT).
Judging by the strong share price gain this week, it appears as though many investors are confident the company will hit its targets. And based on its track record, I certainly wouldn't bet against the company accomplishing this.
