Stock Track | Zip Co Ltd Plummets 5.10% Intraday After Announcing Wind Down of New Zealand Operations

Stock Track

07/17

Zip Co Ltd's stock fell 5.10% during intraday trading on Friday, following the company's announcement that it will wind down its operations in New Zealand.

The buy-now-pay-later provider said it decided to commence an orderly wind down of its New Zealand operations following a strategic review, as the company sharpens its focus on its Australian and US businesses, which continue to deliver strong growth and profitability.

While the company noted that the financial impact of the New Zealand wind down is expected to be immaterial to the group, investors reacted negatively to the news of the market exit. The decision represents a strategic shift as Zip Co concentrates resources on what it considers its core markets.

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