Shares in Zip Co Ltd (ASX: Z1P) are generally the talk of the ASX, so why have they been slipping lower?
At the time of writing, the Zip share price is trading at $7.64. That represents a 45% fall from its highest closing price ever – $13.92 – which it nabbed just two and a half months ago.
Over the last 30 days, Zip shares have continued to fall, dropping by another 9% since 6 April.
So, what's been driving the Zip share price recently? Let's take a look at the month that's been for the buy now, pay later (BNPL) provider.
Image source: Getty Images
Fall from grace
The Zip share price started strong in April, as investors responded well to the company's third-quarter results. On the day the results were released, Zip's shares closed 16% higher than the previous day.
Within its quarterly results, Zip delivered record revenue and transactions. It recorded an 80% increase in group quarterly revenue, raking in $114.4 million. As well as a 195% increase in transactions, processing an impressive 12.4 million. Zip also posted a 114% jump in quarterly transaction volume to $1.6 billion.
On 14 April, Zip's shares were put into a trading halt. They stayed there until the following day when Zip announced it would undertake a $400 million senior unsecured convertible notes offering. The notes, which are convertible into fully paid ordinary shares at an initial conversion price of $12.39, mature 7 years after they were issued unless otherwise redeemed, repurchased, or converted.
That same day, Zip shared its co-founders Larry Diamond and Peter Gray had offloaded a total of 2 million shares for $9.18 apiece. As a result of the day's news, the Zip share price fell another 6%.
The announcement, made on 20 April that the Bank of America (NYSE: BAC) has been slowly purchasing shares in Zip, didn't help save its share price – which closed another 2% lower that day. Zip stated that the Bank of America now holds 6.15% of the company.
The final news from Zip in April was when it announced its agreement with Adobe (NASDAQ: ADBE) to become an Accelerate partner in the Adobe Exchange Partner Program. The partnership will see Zip become the BNPL provider for Adobe's e-commerce software, Magento. As a result of this last piece of news, the Zip share price gained a measly 1.6% by the day's close.
The Zip share price since
Since Zip released its latest piece of news to the ASX, its share price has fallen another 13%.
Despite the poor monthly performance, the Zip share price is 37% higher than it was at the start of the year. It's also still up 194% over the last 12 months.
