Zip, other BNPL companies in retreat after strong gains
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Who could have seen this coming?
Zip Co (ASX:Z1P) has fallen more than 10 per cent in morning trade after double-digit gains the past two days, while several other buy now, pay later companies are also in the red.
Fatfish (ASX:FFG), whose shares nearly tripled yesterday to close at 27c, fell 25.9 per cent to 20c.
Zip shares, which traded for around $5 for most of December and January, have taken off in the past few days, hitting an all-time intraday high of $14.53 yesterday.
The rally may have been in part because of the market was re-rating its valuation compared to Afterpay – but some traders also saw a speculative mania at work.
$Z1P has run 150% to 200% in 1 month on nothing. #RBA thinks they are not making bubbles….what a joke! #BNPL makes $NEA look normal. #markets #investors #asx #traders #daytrader #investing #trading https://t.co/RUsxZppod1
— Aus Equity Flash (@EquityAus) February 16, 2021
#BNPL Going nuts!
$Z1P adds another $1B cap on no news 🤷🏻♂️
Now $7B cap!
— Ron Shamgar (@RonShamgar) February 15, 2021
Shares in IOUpay (ASX:IOU), another BNPL company whose shares have taken off in the last few days, were in a trading halt for a capital raising.
The other ASX BNPL companies haven’t really participated in the huge rally of the last few days and their shares were mostly just down modestly this morning. Laybuy (ASX:LBY) was the outlier, rising 2.2 per cent to $1.42.
Zip, Fatfish, Afterpay, Sezzle, IOUpay, Laybuy shares