Should I buy Zip Co stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Zip Co for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Zip Co.

What is Zip Co?

How much is Zip Co stock?

The price of Zip Co stock is rising this week. Trading at $3.08 AUD, Zip Co has gained 1.32% in the past 24 hours and 4.76% over the week, with a market capitalisation now at $3.98 billion AUD. The average trading volume is around 21.96 million shares over three months. The P/E Ratio is not applicable as the company remains loss-making, the dividend yield is 0%, and the stock’s beta stands at 2.97, indicating high volatility. This dynamic profile reflects significant growth potential but also highlights the need for a considered investment approach.

Our full analysis of Zip Co stock

We have reviewed Zip Co's latest financial results alongside three years of share price data and market trends. Leveraging a blend of up-to-date financial indicators, technical signals, sector data, peer benchmarking, and proprietary algorithms, our analysis seeks to bring fresh perspective to Zip Co's current investment profile. So, why might Zip Co stock once again become a strategic entry point into the fintech sector in 2025?

Recent performance and market context

Zip Co has delivered a remarkable turnaround over the past year, with its share price advancing over 100% year-on-year and currently trading at $3.08 AUD. In just the last month, the stock surged by 59.17%, and it has already appreciated 4.76% in the past week, cementing its position among the top-performing Australian fintechs in 2025. Notably, Zip Co’s resurgence has been fuelled by resilient US market expansion, ongoing share buybacks, and record financial results announced for Q3 FY2025.

Recent developments highlight the company’s innovative thrust: the core US business is benefiting from a new partnership with GameStop and a strategic integration with Stripe, both of which have amplified Zip Co’s reach among merchants and customers. The macro backdrop remains favourable for digital payments and BNPL solutions, particularly in Australia and North America where consumer adoption and spend are rebounding post-COVID, backed by regulatory clarity and robust retail sales.

Add to this a broader sector rally, driven by a search for efficient digital payment platforms in an inflation-sensitive environment, and Zip Co stands out as a beneficiary of global financial technology tailwinds.

Technical analysis

Technically, Zip Co displays an exceptionally bullish structure. The share price sits comfortably above all key moving averages: the 20-day SMA ($2.78), 50-day SMA ($2.23), 100-day SMA ($2.10), and 200-day SMA ($2.53)—each registering persistent buy signals. Technical consensus currently reports 15 buy indicators versus only 1 sell.

The Relative Strength Index (RSI) is at 69.98, signalling momentum nearing, but not yet breaching, traditional overbought levels. This reflects high institutional interest and positive short-term trading flows while allowing for further price appreciation before triggering a broader retracement. The MACD remains in clear buy territory (0.26), correlating with ongoing upward momentum.

Support is established at $3.00, $2.96, and $2.84, providing firm technical “floors” for medium-term investors. Resistance levels at $3.18, $3.30, and $3.41 suggest that new buying interest could be unleashed should the stock break above its current range. The Bollinger Bands indicate an expansion phase, which is consistent with a stock preparing for a potential volatility breakout to the upside.

Short- and medium-term traders can comfortably rely on these signals, which point to continued bullish action, while long-term investors benefit from the strong base built over recent months.

Fundamental analysis

Underlying Zip Co’s share price resurgence is a clear narrative of accelerating revenue growth and substantial operational improvement. Q3 FY2025 produced a record total revenue of $278.9 million (+26.5% year-on-year), with Cash EBITDA surging to $46.0 million—a 219.4% increase year-on-year, demonstrating the conversion of growth into operational efficiency.

Although Zip Co remains loss-making at the net income level (hence no P/E ratio), key value metrics such as price/sales (3.78x) and price/book (5.60x) remain attractive for a high-growth tech story. Consistent growth in active customers—now at 6.25 million worldwide—illustrates strong engagement and retention, with US operations posting 44% revenue growth and ANZ providing a solid, cash-generating foundation.

• A dual-market strategy with leading brands in both Australia-New Zealand (ANZ) and the US.
• Robust technological infrastructure powering scalable merchant onboarding and seamless BNPL solutions.
• A significant reduction in bad debts (down to 1.6% of total transaction value), showcasing effective risk controls as the business scales.
• Ongoing investments in merchant and customer acquisition, plus strong management confidence as indicated by an active $30 million share buyback.
• Participation in the high-growth $100 billion+ US gaming industry through its GameStop BNPL partnership.

This blend of sector leadership, geographical diversification, and operational discipline under CEO Cynthia Scott’s leadership is building a durable platform for future growth.

Volume and liquidity

Zip Co’s liquidity profile is another strong pillar of its investment appeal. With an average three-month trading volume at nearly 22 million shares, the stock is highly liquid—affording institutional and retail investors alike the ability to enter and exit positions efficiently. Its daily volume (over 14 million shares most recently) supports tight spreads and active price discovery.

At a market capitalisation of $3.98 billion AUD and with a broad float, Zip Co remains one of the ASX’s largest, most dynamic digital payments equities. Such volume-driven liquidity has historically corresponded to price resilience and the capacity to absorb market shocks, enabling Zip Co to remain a core holding across benchmarks and index-tracked funds.

Catalysts and positive outlook

• US expansion: The company’s rapid US market gains are validated by new flagship merchant wins and its deepening presence in the booming gaming sector—one of the largest global consumer spend markets.
• Technology partnerships: The Stripe integration greatly simplifies merchant onboarding and payment processing, driving incremental user and merchant acquisition.
• Operational leverage: Rising transaction volumes and improved credit quality are translating into positive cash EBITDA, with FY2025 guidance upgraded to at least $153 million.
• Buyback program: The $30 million share buyback both signals management confidence and provides a supportive mechanism for the share price.
• ESG and risk management: Zip Co stands out in the BNPL space for its industry-compliant lending practices and focus on transparency, helping to navigate evolving regulations—an increasingly critical differentiator as global scrutiny intensifies.
• Analyst momentum: Consensus targets now place Zip Co shares as high as $4.00 (implied +30%), with most brokers publishing “Buy” ratings following the Q3 result.

Against this backdrop, Zip Co is positioned to extract value from rising digital consumption patterns, ongoing product innovation, and a resilient consumer finance ecosystem in both core and adjacent markets.

Investment strategies

• Short-term traders may leverage momentum above the $3.00 support or ride breakouts through $3.18 and $3.30 resistance levels.
• Medium-term investors can focus on upcoming catalysts—such as full year results, new partnerships, or regulatory developments—anticipating another leg of growth as Zip Co cements its US leadership.
• Long-term holders are well placed to benefit from sustained digital transformation trends, with Zip Co’s proven scalability and international reach offering compound growth potential.

Ideal entry points may be found during technical consolidations near support levels or in anticipation of major news events, such as annual results or the next merchant partnership announcement.

Where appropriate, prudent risk controls (such as portfolio diversification and attention to Zip Co’s higher volatility with a 2.97 beta) can further enhance risk-adjusted returns, positioning investors to capture outperformance in the rapidly evolving fintech and BNPL ecosystem.

Is it the right time to buy Zip Co?

Current analysis points overwhelmingly to Zip Co as a company entering a new bullish phase. The blend of resurgent top-line growth, operational discipline, market applause for its partnerships and strategy—combined with robust technical signals and active management initiatives—means the stock seems to represent an excellent opportunity for investors seeking exposure to payment technology and BNPL growth in Australia and abroad.

While conscious of the sector’s competitive and regulatory dynamics, the evidence now justifies renewed interest in Zip Co, with both near-term momentum and long-term growth potential clearly present. The coming months, punctuated by earnings events, further US expansion, and continued innovation, should offer ample opportunities for investors to participate in Zip Co’s next chapter.

Zip Co stands out as an ambitious, liquid, and innovative fintech leader for the Australian market—one whose strength, adaptability, and vision signal promising upside for those prepared to take a position ahead of the sector’s next major wave.

How to buy Zip Co stock in Australia?

Buying Zip Co stock online is straightforward and secure with an Australian regulated broker. Investors can choose between two main methods: directly buying (spot) Zip Co shares to own them outright, or trading Zip Co using CFDs for leveraged exposure and added flexibility. Each method suits different risk profiles and objectives. You’ll find a detailed broker comparison further down the page to help you select the right platform for your needs.

Spot buying

A spot (cash) purchase of Zip Co stock means you directly own Zip Co shares on the ASX. Australian brokers usually charge a fixed commission per order, typically around $5–$10 AUD.

Gain scenario

If the Zip Co share price is $3.08 AUD, you can buy around 324 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFD trading on Zip Co shares means speculating on price movements without owning the actual shares. You trade with leverage (e.g., 5x), but will pay a spread and possible overnight financing fees.

Gain Scenario: CFD on Zip Co shares

You open a CFD position on Zip Co shares, with 5x leverage.
This gives you a market exposure of $5,000.
Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing, always compare brokers’ fees, conditions, and available trading tools to find the best fit. The most suitable method comes down to your own objectives, risk tolerance, and the strategy you want to use. A broker comparison is available further down the page to help with your decision.

Our 7 tips for buying Zip Co stock

The latest news about Zip Co

Zip Co shares rose 4.76% this week, continuing impressive year-to-date gains in 2025. The stock now trades at AUD $3.08, benefiting from strong investor interest in Australia as transaction volumes and revenues surge, both regionally and globally. This rally reflects the market’s confidence following Zip Co’s announcement of its best-ever quarterly cash EBITDA and reinforced guidance upgrades.

Zip Co’s Q3 results confirmed record major financial milestones, with cash EBITDA up 219% and revenue up 26.5% year-over-year. Australian operations remain stable, while growth from the expanding US business drives group performance. Analysts cite effective credit management and healthy customer growth among Zip Co’s key operational highlights in Australia.

The recent extension of Zip Co’s merchant network in Australia, including Temu, has improved its domestic competitive position. With more than 83,000 merchants in its network and increasing customer engagement, Zip Co consolidates its leadership in the local Buy Now Pay Later market and supports greater transaction frequency in Australia.

Analyst sentiment in Australia remains positive with several recent price target upgrades and an ongoing buyback program. New broker research this week highlights robust momentum, credit discipline, and Zip Co’s focus on sustainable expansion, reinforcing a constructive view among institutional and retail investors.

Technical signals and trading liquidity continue to favour buyers, driven by strong volume on the ASX and bullish indicators. Key momentum markers—such as the 20, 50, 100, and 200-day moving averages—remain in ‘Buy’ territory, while daily trading volumes above 14 million shares illustrate consistent market confidence in Zip Co’s growth strategy.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.