The Zip Co Ltd (ASX: ZIP) co-founder and CEO Larry Diamond has moved to the USA indefinitely.
Zip shares are down 0.78% today and are currently trading at 63.5 cents. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.19% in the green today.
Let's take a look at what is going on at Zip.
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Zip CEO moves
Zip's CEO and co-founder Larry Diamond moved to the USA "permanently" on Wednesday with his wife and family, the Financial Review reported.
Diamond sees the USA as a "significant opportunity". Zip's USA revenue grew more than the company's Australian revenue in FY22. After COVID-19 restrictions, Diamond had been spending two weeks in every six in the USA, the publication reported. Commenting on his move, reportedly to Manhattan New York, Diamond said:
It is important to be there to demonstrate what we have done in Australia.
It is hard to be there then come home: I have to be on the ground. There is still a significant opportunity for fintech in the US, as US banks are asleep at the wheel.
Zip made the decision to close its Singapore and UK arms in FY22 to "optimise" the global cost base.
The USA's Federal Reserve has raised interest rates from nearly zero to 3.25% since March. ZIP USA revenue exploded 69% to $282 million in the 2022 financial year. Australian revenue grew 39% to $297.4 million. At the time, Diamond highlighted the role of BNPL companies amid rising inflation. He said:
In times of heightened inflation and cost of living pressures, BNPL has become even more of an important budgeting tool for everyday consumers.
Meanwhile, the team at Macquarie has recently tipped the Zip share price to drop. Analysts placed a 60 cent per share price target on the Zip share price and gave it an underperform rating.
The Block Inc CDI (ASX: SQ2) share price is up 2.62% today, while Sezzle Inc (ASX: SZL) shares are 2% in the red.
Zip share price snapshot
The Zip share price has descended 85% year to date. In the past year, the Zip share price has sunk 90%.
Back on 19 February 2021, the Zip share price hit a high of $12.35.
Zip has a market capitalisation of about $448 million based on the current share price.
