Zip CEO Assures Investors As Stock Falls To New Low
Zip CEO Larry Diamond issued a business update to investors in a bid to reassure the market as the company’s stock fell to new five-year lows.
The share price fell 11 per cent on Wednesday, closing at a five-year low of 46c.
Stocks have rebounded 12.5 per cent today, currently sitting at 50c. The company is still down 95 per cent from where it was a year ago.
Diamond admits that Zip is “not immune to market volatility” but claims “there remains significant opportunity for Zip and Buy Now, Pay Later products in a heightened inflationary environment”.
He also said that the acquisition of competitor Sezzle is on track.
“We have been clear that in response to current market conditions our strategic priorities are to focus on our core business, both products and regions, and accelerate the group’s path to profitability,” Diamond said.
“In an environment where wage growth is falling behind heightened inflationary pressures, affordability becomes an even more important priority for consumers as they budget each month.
“We believe our business model will stand up exceptionally well in such an environment as we continue to provide significant value and benefit to our customers and importantly our merchant partners seeking to drive continued growth.
“We are well-funded and positioned to execute on the significant market opportunity as we execute and take control of our future.”