Zip Co Ltd (ASX: ZIP) shares have had a rollercoaster of a ride over the past 18 months.
At the time of writing on early Wednesday afternoon, they're trading 0.68% lower for the day at $2.92 each. The share price has now fallen nearly 40% from a 4-year peak in early October. The sell-off means the stock is now 36.7% lower over the past month, and down 10.67% over the year.
But the good news is that the shares are still a whopping 170.4% higher than their 52-week low of $1.08 per share.
So if I bought $10,000 of shares in January, how much are they worth now?
Zip shares are currently trading 1.52% below their value on 2 January. This means $10,000 invested at the beginning of the year would now be worth a total of $9,848.
What caused Zip's share price nosedive?
Zip shares started declining after the company released its Q1 FY26 results on 20 October. At the time, it looked like investors could have sold up and taken profits following the stock's peak.
They tumbled further following the company's annual general meeting (AGM) earlier this month. This was despite Group CEO and Managing Director Cynthia Scott telling investors that the company is on track to achieve its upgraded FY26 guidance. Management also ruled out any possibility of dividends in the near future, stating that the business plans to retain future earnings to finance company growth instead.
Is there any upside ahead for Zip shares?
The past year's performance might not have earned investors the big bucks, but there is still some opportunity for more momentum ahead.
The Australian financial technology company has grown its operations in Australia, New Zealand, and the United States to provide customer services in 12 countries. Zip now offers point-of-sale credit and digital payment services to consumers and merchants via interest-free buy-now, pay-later (BNPL) technology. The company has two consumer products: Zip Money and Zip Pay.
In late October, the company announced that its US segment is expanding its partnership with Stripe, a programmable financial services business.
Zip is scaling its US business too, and is considering a dual listing on Nasdaq, which could help it tap into US capital markets and boost its valuation among US-based investors.
What do brokers think of the stock?
Macquarie analysts initiated coverage of the Australian financial technology company in late October, saying it expects Zip to deliver rapid growth going forward. It has an outperform rating and $4.85 target price on Zip shares.
TradingView data shows some analysts are even more bullish on the stock. Out of 11 analysts, 9 have a buy or strong buy rating and 2 hold a neutral stance. The maximum upside is as high as $6.20, representing a potential 111.97% upside over the next 12 months, at the time of writing.
