The Zip Co Ltd (ASX: Z1P) share price has significantly outperformed many of its ASX peers in 2019.
Zip shares have rocketed 245.45% since the start of January to outpace even rival Afterpay Touch Group Ltd (ASX: APT) on the ASX.
But that wasn't the case in October, as Zip shares plummeted 21.83% to close out the month at $3.76 per share.
Why the Zip share price fell in October
The buy-now, pay-later (BNPL) company's shares tracked the broader ASX 300 lower in the last two weeks of October.
The company's lacklustre first-quarter trading update also hurt the Zip share price late in the month.
Zip still reported record quarterly revenue up 107% to $31 million and doubled its receivables during the quarter.
Cash earnings before interest, tax, depreciation and amortisation (EBITDA) did fall to 1%, down from 2.2% in Q4 2019.
Investors seemed unimpressed with the numbers as the company's shares closed lower following Tuesday's announcement.
The company's share price decline is even more remarkable given it also hit a record high in early October.
What's causing the share price surge in 2019?
Putting aside a lacklustre October, the Zip share price has been on a roll so far this year.
A bumper half-year and full-year result, as well as favourable regulatory decisions, have boosted Zip shares higher.
The company has seen similar share price growth to BNPL rival Afterpay, but could be better value right now.
Zip currently boasts a market cap of $1.3 billion and is trading near the middle of its 52-week range, although both companies have a long way to go before delivering strong cash flow to its investors in the form of dividends.
Should you buy Zip shares?
While Zip shares have been steadily rising throughout 2019, I'd be concerned with the pace of growth.
In my view, the current Zip share price could be a touch expensive at $3.80 per share and I'd be waiting until half-year results in February before buying.
