The Zip Co Ltd (ASX: ZIP) share price is in the green year to date, despite falling nearly 85% in the last year.
Zip shares have risen 21% since market close on 31 December and are currently fetching 61.5 cents.
However, in today's trade, Zip shares fell sliding 1.6%. Let's take a look at what is going on with the Zip share price.
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What's going on?
Zip shares may be rising this year, but it is not the only ASX buy now pay later (BNPL) share rising year to date.
The Block Inc CDI (ASX: SQ2) share price is lifting 12% this year, while Sezzle Inc (ASX: SZL) shares are rising 8%.
Optimism in the BNPL sector appears to be impacting the Zip share price and other ASX BNPL shares.
As my Foolish colleague James reported earlier this month, investors could be buying up BNPL shares after they fell sharply in 2022.
USA BNPL stocks are also charging higher in 2023. For example, the Affirm Holdings Inc (NASDAQ: AFRM) share price has soared 24% year to date. Block's New York Stock Exchange listing Block Inc (NYSE: SQ) has also leapt 11% higher this year.
Zip has not provided any price-sensitive news to the market this year. However, the company is targeting earnings before interest, taxes and depreciation (EBITDA) profit in the 2024 financial year. Commenting on this outlook in November, CEO Larry Diamond said:
We expect to see the US exiting FY23 cash EBITDA positive and to neutralise the cash burn from our rest of world footprint during the second half of FY23.
We are on track to deliver positive cash EBITDA as a group in the first half of financial year 2024.
Zip's CEO has been upbeat with optimism in recent months. For example, in late October Diamond predicted Zip could be the next Commonwealth Bank of Australia (ASX: CBA). He said:
We still believe, in this market, we can be the next CBA. Why not? We have the right leadership, the best technology, and the best people. We are committed to the long term.
Further, Zip also advised in late 2022 that Diamond has moved to the USA, where he sees a significant opportunity for the company. He commented:
There is still a significant opportunity for fintech in the US, as US banks are asleep at the wheel.
