Invested $10,000 in Zip Co Ltd (ASX: ZIP) shares at the recent lows on April 7?
Smart move!
Zip shares are zipping higher again today.
Shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock closed yesterday trading for $1.825. During the Tuesday lunch hour, shares are changing hands for $2.10 apiece, up 15.1%.
What's driving the big gains on Tuesday?
Today's big rally is being driven by the surprisingly rapid and positive results in tariff negotiations between the United States and China.
Entering into a 90-day temporary deal, the US will cut tariffs on Chinese goods from 145% to 30%. And China agreed to cuts its retaliatory tariffs on most imported US products from 125% to 10%.
That welcome news sees the ASX 200 up 0.7% today, with Zip shares racing ahead of those gains.
"The US-China trade deal signals a de-escalation of tariff tensions that have shaken markets over the past month," Mena Theodorou, co-founder at crypto exchange Coinstash, said. "With tariff reductions confirmed, we could see a broader return to risk-on positioning."
Indeed.
Getting back to our headline question then, if you got in ahead of the crowd by accepting a higher risk level and bought $10,000 worth of Zip stock on 7 April, how much would you have today?
Let's find out!
Zip shares back on the fast track
Though Zip shares remain down 29.3% year to date, the rebound since 7 April has been nothing short of remarkable.
On 7 April, you could have picked up shares in the ASX 200 BNPL stock for as little as $1.08 apiece in intraday trade. (Shares closed the day down 7.4% at $1.19.)
If you'd jumped in at the lows that day, you could have bought 9,259 shares with a $10,000 investment.
Today, at $2.10 apiece, those same shares are worth $19,443.90.
That's a gain of 94.4%, or $9,443.90, on your $10,000 investment in just 21 trading days.
What else has been spurring investor interest in Zip shares?
Atop the détente in the US-China tariff dispute, the ASX BNPL stock enjoyed a lift from the April 9 announcement of an on-market share buyback of up to $50 million. When companies buy back shares, it reduces the supply of those shares, which helps support the share price.
And Zip shares closed up 16.2% on 16 April following the release of the company's third-quarter results.
Highlights for the quarter included total transaction value (TTV) of $3.3 billion, up 36% year on year. And cash earnings before tax, depreciation and amortisation (EBTDA) was up 219% to $46 million.
Management also upgraded Zip's full-year FY 2025 earnings guidance.
