the call: Friday 23 October | small caps

Panel sees crowded AI/growth trades unwinding violently in small caps while XRF Scientific and Hub24 stand out as rare quality-growth buys.

• Zip crashes on fraud: Zip Co fell 30% (opened near -50%) after a US coordinated-fraud incident cost ~$10m in opex, despite 18% transaction volume growth to $4.6bn; both guests called it a sell, likening fintech lenders to 'picking up pennies in front of a steamroller.'
• Broad small-cap carnage: NextDC fell 40%, Nextscally ~25%, amid crowded AI/mining-capex trades unwinding; ASX 200 barely moved as capital hid in banks, miners, supermarkets.

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