Zip, Sezzle smashed by confidence crisis
Affirm stock plunged 15.5 per cent in response to the Bloomberg report, and is down 82 per cent since November. US-focused rivals and merger candidates $ZipRecruiter (ZIP.US)$ $Zip (Z1P.AU)$ and Sezzle hit multi-year lows on the ASX on Monday and have cratered more than 80 per cent in 12 months.
Over first-half financial 2022, Zip’s net bad debts of $148.3 million ($204 million) reached 2.6 per cent of its total transaction volume, equal to 9.7 per cent of closing receivables owed by customers on an annualised basis.
Affirm’s balance sheet shows its allowance for credit losses of $US158.3 million grew to 6.5 per cent of loans held for investment at $US2.4 billion as of December 31, versus 5.8 per cent at June 30 last year.
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