The Zip share price just rocketed 13%. Here's why

The Zip Co Ltd (ASX: ZIP) share price is surging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock closed yesterday at $2.09. In afternoon trade on Wednesday, shares are swapping hands for $2.37 apiece, up 12.7%.

That's a strong performance on any given day. But it's particularly impressive knowing that the ASX 200 is down 0.5% at this same time.

So, what's going on?

Zip share price rebounds from selloff

ASX 200 investors look to be doing some bargain hunting after the Zip share price closed down a precipitous 7.9% yesterday.

The ASX 200 BNPL stock closed on Monday at $2.27 a share and popped higher on Tuesday's open to $2.32 a share. But it was all downhill from there until the closing bell saw shares trading for $2.09 each.

Yesterday's big selloff followed Zip's release of its full-year financial results for the 12 months ending 30 June (FY 2024).

I covered that release on the day.

To be honest, I was surprised by the negative market reaction.

And judging by the big leap higher in the Zip share price today, it looks like I wasn't alone.

Indeed, Zip reported strong growth across almost all of the company's core financial metrics.

For example, revenue of $868 million was up 28.2% from FY 2023. And Zip's FY 2024 cash gross profit of $373 million was up 52.8% year on year.

The strong results were driven by a 14.0% increase in total transaction volume (TTV) over the year, which reached $10.1 billion.

Indeed, after struggling in FY 2022 and FY 2023, Zip delivered four consecutive quarters of profitability.

And management remains optimistic about the outlook for FY 2025.

"We maintain a clear strategy with identified growth opportunities in both markets to drive continued profitable growth in FY 2025 and beyond and deliver long-term value for our customers, merchants and stakeholders," CEO Cynthia Scott said.

How has the ASX 200 BNPL stock been tracking?

The Zip share price has been among the top performers on the ASX 200 over the past year.

And with today's big surge, the ASX 200 BNPL share is helping cement its leadership spot.

At $2.33 a share, Zip stock is up an eye-popping 615% over 12 months.

Or enough to turn a $6,000 investment into $42,900 in one year!