The Zip Co Ltd (ASX: Z1P) share price has been volatile today as it reached a new record high. The share is currently trading at $10.57.
However, earlier in the day the Zip share price reached a record price of $11.65. This is substantially higher than the previous record of $10.79.
Why is the Zip share price rocketing
The Zip share price is rocketing higher despite no notable announcements out of the company.
Shares in the company have been sparked back into life by the announcement of the company’s quarterly report. In the days following the report, the Zip share price has rocketed more than 82%.
The company reported record metrics across the board with revenue rising by 88% YoY. As a result, Zip Co reported revenue of $102 million that was driven by the company’s record transaction volume. In December alone the company achieved a transaction volume of $628 million.
Moreover, the company saw its acquisition of QuadPay paying dividends as it largely drove the company’s revenue increase. In the US, revenue was up an astounding 119%. It comes as Affirm Holdings Inc (NYSE: AFRM), having recently listed in the US, have seen a 40% rise in their share price over the last month.
Despite impressive transaction volume in ANZ which was up 46%, revenue growth in the area was lagging. This resulted in revenue growth only increasing by 14% for the quarter, or 43% YoY.
Investors have also been excited by the company’s recent admission that it is pondering another listing in the US. On top of the fact that Zip management are shopping around for new investors in the country, this would bring huge amounts of capital into the company.
According to the AFR:
It is understood Zip management will spend the next few days in front of US investors, seeking to explain the company’s buy now pay later payments platform and highlight its growth in the world’s biggest economy, where it owns QuadPay.
American giant Wells Fargo & Co (NYSE: WFC) is helping the company with its roadshow.
Furthermore, Zip will soon have a new region to announce metrics for as Zip UK was launched in December. The company explained that the country was a strategic focus for the group and it expects the UK to helped drive growth in 2021. These results will be included from next quarter.
About the Zip share price
The Zip share price is pushing higher today again as the company continues its fantastic recent run.
The Zip share price has outpaced its ASX rival, Afterpay Ltd (ASX: APT) share price recently. Gaining 100% in the last month compared with Afterpay’s 36% gain.
Zip is currently trading at a market capitalisation of $5.95 billion.