URGENT UPDATE: Major shifts in the Australian stock market as two ASX 200 stocks, Zip Co Ltd (ASX: ZIP) and GQG Partners Inc. (ASX: GQG), faced significant sell-offs yesterday, with declines of 7.6% and 8.6% respectively. Investors are now questioning whether this represents a prime “buy the dip” opportunity.
The S&P/ASX 200 Index (ASX: XJO) rose by 0.56% overall, but the sharp declines in Zip and GQG have raised eyebrows across the investment community. As of yesterday, Zip Co’s share price fell to $3.28, a stark contrast to its impressive growth of over 27% in the preceding six months.
Zip Co, a prominent player in the buy now, pay later (BNPL) sector, experienced a sell-off likely driven by profit-taking. Industry analysts suggest there was no adverse news affecting the company, indicating that this dip might be a strategic entry point for investors. Macquarie has recently maintained an outperform rating with a target price of $4.85, suggesting a potential upside of nearly 48%.
In addition, the Motley Fool’s Grace Alvino highlighted projected earnings per share of 7.9 cents for FY26, increasing to 12.1 cents in FY27. TradingView analysts anticipate a one-year price target of $5.45 for Zip, representing a staggering 66% upside from current levels.
Meanwhile, GQG Partners also faced a tough day, with shares plummeting 8.6%. The fund manager reported Funds Under Management (FUM) of US$163.9 billion as of 31 December 2025, a notable increase from US$153.0 billion the previous year. However, the company also disclosed net outflows of US$2.1 billion in December, which likely fueled investor concerns.
Despite the challenges, analysts remain optimistic. Macquarie has placed an outperform rating on GQG with a target price of $2.50, indicating a potential upside of over 52%. Income investors may find the anticipated yield of approximately 12% appealing, further complicating the decision for many.
As these developments unfold, investors are urged to consider the implications of these price drops. Will the volatility create a buying opportunity, or are there deeper issues at play?
Stay tuned for more updates as analysts continue to monitor these stocks closely. The urgency of the situation calls for immediate attention from investors looking to navigate these turbulent waters.
This is a developing story—share your thoughts below!
