The Zip Co Ltd (ASX: ZIP) share price has been on a descending rollercoaster ride during the month of October.
Zip shares have fallen 11.59% from 68.5 cents at the market close on 30 September to 61 cents at the time of writing today. Monday will be the last day of trading in October.
Let's take a closer look at what is happening with the Zip share price.
What's been going on?
Zip shares certainly have had some highs and lows in October. Between 5 and 11 October alone, the ASX buy now, pay later (BNPL) share plunged nearly 19% as fears of interest rate hikes weighed earlier in the month.
A broker downgrade from Macquarie may have also impacted investor interest in buying Zip shares. Analysts tipped Zip to underperform and placed a 60-cent price target on the company's shares.
However, on 18 October, Zip shares had a ripper of a day, soaring 13%. Zip shares surged on this day amid a wider rally of shares, including BNPL companies.
Zip shares also charged higher on 20 October amid a positive first-quarter update from the company. Transaction volume lifted 15% to $2.2 billion, while revenue leaped 19% to $163.2 million. Customer numbers lifted 50% to 12 million.
In other news this month, Zip CEO and co-founder Larry Diamond moved to the USA to capitalise on what he sees as a "significant opportunity" for the company. Diamond said:
It is important to be there to demonstrate what we have done in Australia. There is still a significant opportunity for fintech in the US, as US banks are asleep at the wheel.
Despite recent woes, Diamond believes Zip can be the next Commonwealth Bank of Australia (ASX: CBA). Quoted in the Australian Financial Review (AFR) earlier this week, 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".
Diamond suggested deposits and mortgages could be part of the Zip business plan going forward. He added:
There is no reason why deposits and mortgages can't be inside Zip, if customers trust us.
Share price snapshot
The Zip share price has fallen a hefty 91% in the past 12 months, while it has shed 86% year to date.
In comparison, the S&P/ASX 200 (ASX: XJO) has slid nearly 9% in the past year.
Zip has a market capitalisation of around $427 million based on the current share price.
