If I'd put $10,000 into Zip shares at the start of 2024, here's what I'd have now

For the record, I did not put $10,000 into Zip Co Ltd (ASX: ZIP) shares at the start of 2024.

But I really wish I had!

Why?

Because in intraday trade on 2 January – the first trading day of 2024 – I could have picked up shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock for 61 cents apiece.

Of course, at the time, Zip shares weren't part of the ASX 200, but rather listed among the All Ordinaries Index (ASX: XAO) stocks.

The ASX BNPL shares lost their spot on the index of top 200 Aussie stocks after its market cap crumbled from all-time highs in February 2021 and continued to slide all the way through to October 2023.

But with the business then taking a sharp turn for the better and Zip's market cap surging, the stock officially rejoined the ASX 200 on 22 July.

As for 2024, Zip shares have rocketed from 61 cents on 2 January to close yesterday at $1.84, up 201.6%.

This means my $10,000 investment at the start of 2024 would now be worth an eye-popping $30,164!

Now, if I can only get that darn time machine working.

What's been driving Zip shares higher?

The ASX BNPL company counts among the top performers on the ASX 200 year to date.

Indeed, the 201.6% share price surge sees its market cap back above $2.3 billion.

This has come alongside a change in management and operational tactics, which no longer target growth at all costs but rather favour a new, more sustainable, and profitable business model.

In the long term, the company's readmission to the ASX 200 should also help support Zip shares. That's because the stock will now be owned by various index-tracking funds that aim to track the benchmark index. Zip is also now open again to a range of fund managers who are restricted to investing in the biggest ASX stocks.

Turning to some recent tailwinds, the ASX BNPL company enjoyed a huge boost following its quarterly update and announcement that it was raising $267 million to pay down the company's debt, providing flexibility and liquidity to "pursue further growth".

And there was plenty to like from the quarterly results.

Highlights included a 22.1% year-on-year increase in revenue, which came in at $223.6 million for the three months. That was spurred by a 19% increase in quarterly transaction volumes, which hit $2.6 billion.

Zip shares closed up 11.2% on 18 July, the first day the stock traded after announcing the capital raise and its quarterly results.