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%.
Image source: Getty Images
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.
