It's certainly been a wild ride for Zip Co Ltd (ASX: ZIP) investors.
After shares were issued for 20 cents apiece during its initial public offering (IPO), the fintech debuted on the ASX in September 2015.
That 20 cent stock rocketed 6,000% in just a few years to be trading around $12.35 in February 2021.
But as investors soured on the buy now, pay later sector, Zip's valuation started taking a hammering.
From that high point above $12 in early 2021, Zip shares have lost a stunning 97% of their value, to be languishing at 37.5 cents at the close on Friday afternoon.
Over the past 12 months alone, the stock has plunged 41%.
So what's doing here?
Is this a bargain? It's the same business that was above $12, so can the shares climb back to those heights again?
Image source: Getty Images
Hard to find friends
Unfortunately, bargain hunters will have to keep hunting because the experts are not convinced Zip Co can turn it around.
According to CMC Markets, six out of seven analysts covering the stock reckon it's a hold. One lone professional is rating it a buy.
Last month, The Motley Fool's Mitchell Lawler perhaps summed up investors' fears:
"Since listing, Zip has not produced a net profit after tax (NPAT) as a group, prioritising growth instead. As such, Zip stock could look cheap based on book value, but earnings are generally what drives the share price over the long term."
The company held its annual general meeting last week, and the response to that was less than flattering.
The stock plunged 5.8% just on that day.
One development worth noting is that two of its directors picked up shares in recent weeks, which could indicate their confidence about where the business is heading.
ASX records indicate Zip Co chair Diane Smith-Gander and fellow board member Meredith Scott both bought stock on 28 September.
Zip Co was established in 2013 as Zip Money by Larry Diamond and Peter Gray.
