FREE Top 5 ASX Stocks for October 2026 Download Free Report
ASX 200

Zip Co Shares Rebound Hard – Is the Worst Now Behind This ASX Stock?

Written By: Varun Ratra   October 26, 2026
Varun Ratra

Written by

Varun Ratra

Oct 26, 2026  •  04:10 AM
Share

Zip Co shares bounced strongly on Monday after their worst day on record. The stock climbed 20.5 cents, or about 14%, to A$1.665.

It traded between A$1.48 and A$1.675. More than 43.4 million shares changed hands, making Zip one of the most actively traded stocks on the ASX. The rebound lifted the company’s market value to around A$2.1 billion.

What Happened on Friday?

Monday’s gain came after a brutal Friday session. Shares fell about 29% to close at A$1.46. Earlier in the day, they had dropped as much as 50.5% to an intraday low of A$1.025 — a two-and-a-half-year low. Volume exceeded 92 million shares.

The sell-off followed Zip’s first-quarter FY27 trading update for the three months to 30 September. The company disclosed an “external fraud event” in the United States, its largest market. Fraudsters used legitimate credentials to open new accounts in a coordinated way. The incident cost Zip roughly $10 million. Bad debts also rose.

The Numbers Behind the Update

Despite the fraud hit, several metrics held up. Total transaction volume grew 18% year-on-year to $4.6 billion. US TTV rose 34.1% in USD terms. Total income increased 17%.

Management reconfirmed full-year cash EBTDA guidance of $340 million, representing 26% growth on the prior year.

Why the Rebound Happened

Bargain hunters stepped in. Broker notes from Macquarie and UBS described the market reaction as excessive and pointed to the company’s longer-term growth profile. Zip also updated the market on its ongoing on-market share buyback.

High short interest of around 13.3% added further fuel through short-covering.

Even after Monday’s rise, the stock remains down about 58% over the past 12 months. Investors will now watch whether the fraud impact is contained and whether the growth trajectory continues.

Related reads :-

1. Best Tech Stocks to watch in 2026

2. Best AI stocks to watch in 2026

Unlock Full Article

Enter your details to continue reading

Get your Free Report on Top 5 ASX stocks for 2026
💬

Get Your Free Report on Top 5 ASX Stocks on WhatsApp

Instant Access. No Credit Card Required.

Receive on WhatsApp

TOP ASX STOCKS WORTH WATCHTING

  • ✓ Instant Access
  • ✓ No Credit Card Required
  • ✓ Free to join · No spam
Get Free Report on WhatsApp

Free to join · No spam · Unsubscribe anytime

By providing your details, you agree to Veye's Terms & Conditions, Privacy Policy, and Financial Services Guide and to receive marketing offers. Before you access our services, please read the Financial Services Guide available here.

EXCLUSIVE OFFER

7 day free trial

Start Free Trial
7‑day free trial

ASX Stock Research & Recommendations — 7‑day free trial

Independent, analyst‑driven insights.

  • Stock of the week report
  • Daily Analysis Report
  • No credit card required
General information only. Not financial advice.

Get Your FREE Report

Discover the Top ASX Stocks to Invest In 2026!

Expert Analysis of Top-Performing ASX Stocks

Market Insights and In-Depth Research

Buy, Sell, And Hold Recommendations

Almost There!

Enter your details to download the report

Success!

Preparing your download...

Disclaimer

Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.