The Zip Co Ltd (ASX: ZIP) share price’s poor performance continued last month.
As of the final close of April, the Zip share price was $1.10, 26.17% lower than it ended March.
The tumble saw the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) giant’s shares down nearly 75% year to date.
For context, the ASX 200 slipped 0.86% last month and, as of the end of April, it had fallen 2.04% in 2022.
Let’s take a look at what’s been going wrong for Zip lately.
What went wrong for the Zip share price last month?
The Zip share price spent nearly the entirety of April in the red, save for 3 sessions.
In fact, the stock tumbled to a new multi-year low of $1 near the end of last month.
Perhaps unsurprisingly, there wasn’t much good news from the BNPL company over the period.
Zip’s share purchase plan aimed to raise $50 million. It followed a $148.7 million institutional placement wherein new shares in the BNPL giant were offered for $1.90 apiece.
The share purchase plan closed on 1 April, but its results were no joking matter.
The company managed to raise just $23.98 million – not quite half of its anticipated revenue – as new shares were handed out for just $1.47 each under the plan.
The Zip share price slumped 4.52% following the news. It plunged another 4.96% on the back of its quarterly results, released later in the month.
The company reported increases in its revenue and transaction volumes. Though, the improvements seemingly represented a slowing of Zip’s previous growth. Additionally, its credit losses deepened over the quarter.
On the back of its results, many notable brokers dropped their expectations of the stock, slashing their price targets to as low as $1.
Fortunately, the Zip share price pulled itself up by its bootstraps on Friday to record an 8.91% gain, ending the month at $1.10.