The Splitit Ltd (ASX: SPT) share price has dropped 3.85% at the time of writing and is currently trading at $1.00 a share.
The Splitit five-day average volume of 2.5 million has been exceeded three out of the past five days. Today's trade volume currently sits at around 2 million shares.
Let's take a look at some recent happenings to consider what might be moving the Splitit share price and why it's being so heavily traded.
Image source: Getty Images
Why is the Splitit share price lower today?
The Wall Street Journal notes that the Nasdaq Composite Index is about to enter correction territory resulting in a slump for tech stocks.
The Splitit share price is dipping along with its big siblings Netflix Inc (NASDAQ: NFLX) and Facebook, Inc. (NASDAQ: FB) which lost 4.47% and 3.39%, respectively, in yesterday's trade.
The WSJ points out that the Nasdaq has declined for 3 consecutive weeks losing more than 2% last week. This is likely because investors are betting that growth will slow in the tech space as the coronavirus gradually winds down.
What's on the horizon for Splitit?
Reflecting on the achievements of 2020, Splitit CEO Brad Paterson said:
"Splitit delivered a breakout year with record financial and operational results in FY20, despite a globally challenging year due to the COVID-19 pandemic…
With financial empowerment and responsibility core to our values, 2020 was a year we refreshed our brand and visual identity that positions Splitit as the only buy-now-pay-later solution to empower shoppers to use their existing credit to pay over time…"
In the latest financial performance report Splitit advised that the company is well funded with plans to continue its "strong growth trajectory".
As of 31 December FY20, the company held US$92.8 million in cash.
Splitit snapshot
At the current share price, Splitit has a market capitalisation of $486.4 million. There are presently 456.7 million shares outstanding.
Over the past year, the Splitit share price has jumped 123.6%.
