Zip Co shares plunged 35 percent following February earnings despite fundamentally healthy operations.

Zip Co shares plunged 35 percent following February earnings despite fundamentally healthy operations. The buy-now-pay-later provider faces mounting pressure as its U.S. expansion strategy encounters headwinds, with comparable player Klarna struggling significantly in recent months. Market sentiment has shifted dramatically from the company's former status as a fintech darling. Analysts remain divided on the outlook for 2026. A veteran trader sees recovery potential toward prior price levels, while market observers question whether Zip has lost competitive appeal in an increasingly saturated BNPL landscape. The company's pivot toward American markets presents both opportunity and risk as consumer payment preferences continue evolving.