Zip Co Ltd (ASX: ZIP) shares were one of the best performers on the ASX 200 index during the last financial year.
During the 12 months, the buy now pay later (BNPL) provider wowed investors and delivered market-thumping returns for its shareholders.
But let's see what a $10,000 investment in the company's shares would have turned into over the period.
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$10,000 invested in Zip shares
At the end of the 2024 financial year, you could have picked up Zip shares for $1.46 a piece.
This means that with a $10,000 investment (and $1.00 extra for good measure), you could have landed 6,850 shares in your investment portfolio.
Since then, Zip shares have been on a wild but successful ride.
It started very strongly with investors bidding its shares higher and higher. Then it seems that for a little while in early 2025 the market was concerned that its growth would not be sustainable.
As a result, Zip shares fell from $2.96 at the end of December to a lowly $1.09 in April.
But a series of impressive updates turned things around and rewarded patient investors.
In April, with its shares down in the dumps, Zip announced a $50 million share buyback. This was a milestone moment for the company. After raising millions through capital raisings over the past decade, Zip was now swimming in cash and in a position to return it to shareholders.
Commenting on the buyback, Zip's CEO, Cynthia Scott, said:
We continue to execute on our strategic priorities with the group generating strong operating cashflows and maintaining balance sheet strength.
This was then followed up with a strong quarterly update later that month and then a guidance upgrade in June. The latter meant that it had upgraded its guidance twice in FY 2025. Speaking about the upgrade, Scott, said:
Zip's momentum has continued throughout May, particularly in the US where TTV has continued to grow above 40% year on year, reflecting the resilience of our business model and disciplined execution of our strategy.
How much?
In light of the above, Zip shares ended the period with a 114% gain to $3.10.
This meant that those 6,850 shares had a market value of $21,235 at the end of the 2025 financial year. That's over $11,000 more than an investor would have started with.
And with Ord Minnett recently putting a buy rating and $3.40 price target on its shares, the gains may not be over.
