The Zip Co Ltd (ASX: ZIP) share price has been struggling in the year to date, but are there better days ahead?
Zip shares have shed 85% since market close on 31 December and are currently fetching 63 cents apiece.
In today's trade, the Zip share price is currently holding steady at yesterday's closing price. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.2% higher at the time of writing.
Let's take a look at what could be ahead for the Zip share price.
Image source: Getty Images
The next CBA?
The Zip share price may be having a tough year but it's been on a roll in the last week. Zip shares have gained more than 5% since market close on 17 October. As my Foolish colleague Sebastian noted yesterday, Zip's latest quarterly update was well received.
And Zip's CEO and founder Larry Diamond is confident the company can turn its fortunes around.
In an interview with the Australian Financial Review (AFR), Diamond touted Zip could become the next Commonwealth Bank of Australia (ASX: CBA). He said:
We still believe, in this market, we can be the next CBA. Why not? We have the right leadership, the best technology, and the best people. We are committed to the long term.
Diamond moved to the USA with his wife and family earlier this month to focus on the market there. He said he sees America as a "significant opportunity".
Zip's transaction volume leapt 15% in the first quarter to $2.2 billion, as my Foolish colleague James reported last week.
The company's revenue also increased 19% to $163.2 million, while customer numbers surged 50% to 12 million.
Diamond, speaking to the AFR, said Zip could move into the mortgage business in the future, adding:
There is no reason why deposits and mortgages can't be inside Zip, if customers trust us.
With the right passionate leadership, infrastructure and technology, if we maintain healthy financial standing – then yes, we can.
Share price snapshot
The Zip share price descended nearly 91% in the past year, while it has fallen 9% in the past month.
For perspective, the ASX 200 has shed nearly 9% in the past year.
Zip has a market capitalisation of more than $442 million based on the current share price.
