Zip Co Ltd (ASX: ZIP) shares have crashed another 4% in Thursday lunchtime trade, to $2.20 a piece.
Today's sell-off follows a long run of declines, reversing any gains made during a brief recovery in June and July. The shares are now down 11% this week, and have shed just over 22% over the past month alone.
The shares are now also around 52% lower than 12 months ago.
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What is going on with Zip shares this week?
There hasn't been any price-sensitive news out of Zip this week to explain the latest sell-off.
The buy now, pay later (BNPL) provider's shares have been very volatile throughout 2026 so far, swinging anywhere between $3.56 in January, and a low of $1.38 in March.
Most recently, the sell-off picked up pace after the company posted its FY26 results on the 20th of August.
Zip posted a record result, including a huge 57.9% increase in its cash EBTDA, a 24.7% increase in total revenue, and a 45.7% hike in its NPAT for FY26.
The company also said it expects its cash EBTDA to climb even higher in FY27, by around 26% thanks to strong growth and greater scale across the business.
The announcement was initially well received by investors, who rushed to snap up the BNPL provider's shares. But gains were quickly reversed and the shares are now down around 28% since the announcement.
While the result itself was positive, it looks like many investors were underwhelmed by the company's expectations for future growth.
Zip said it is aiming to deliver a group cash EBTDA of $340 million in FY27, up 26% on FY26, and target an operating margin of 20% to 22%. That's much lower than the 57.9% cash EBTDA growth the company experienced in FY26.
The news also came against a backdrop of volatile markets and weak investor sentiment, adding further pressure to the share price.
Now the question is, is the latest sell-off a buying opportunity to buy the ASX tech shares for cheap, or is there more downside coming?
Here's what the experts think.
What's ahead for the ASX tech stock?
Analysts are incredibly bullish on Zip shares, with widespread anticipation that we'll see a significant upside over the next 12 months.
Market Index data shows all brokers agree on a strong buy rating, and the $3.95 target price implies around a 78% upside, at the time of writing.
TradingView data shows something similar. All 12 analysts have a buy/strong buy rating on the shares. The average $4.56 target price implies a potential 106% upside ahead, at the time of writing. Although some are confident that Zip shares can climb another 171% to $6.03 over the next 12 months.
UBS recently confirmed its buy rating and $4.70 target price on Zip shares. The broker said that the outlook for the current year was better than expected, providing comfort around the defensive qualities of the buy now, pay later business model through slowing economic times.
The team at Macquarie also agrees. The broker has a buy rating and $3.50 target price on the shares. Macquarie said "Zip's outlook remains attractive as management executes the market opportunity in the US, supported by performance in AU".
