Why has the Zip (ASX:Z1P) share price plunged 6% today?

The Zip Co Ltd (ASX: Z1P) share price is plummeting today and, with no news from the buy now pay later company, investors are wondering why.

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The Zip Co Ltd (ASX: Z1P) share price is plummeting today and, with no news out today from the buy now, pay later (BNPL) company, investors are scratching their heads.

At the time of writing, the Zip share price is trading at $8.05, down 5.9%.

In comparison, the All Ordinaries Index (ASX: XAO) is also down, but by only 0.3%.

Let’s take a look at the Zip share price’s recent performance to see if we can garner any clues as to what’s caused today’s dramatic drop.

The year that’s been for the BNPL darling

The Zip share price got off to a roaring start on the ASX this year, but its highest point is long behind it now.

In the middle of February, the company’s share price recorded its highest closing price ever – closing the day’s trade at $13.92.

Unfortunately, it was caught in the US-driven tech sell-off in March. Over the course of the month, the Zip share price fell by 29%.

Since then, the BNPL giant’s share price has been on a rollercoaster. For the first half of April, it performed in an upwards pattern.

Zip received a whopping 16.9% boost on the back of its third-quarter results.

All good things must come to an end though. Since then, they’ve been sliding.

Between the Zip share prices’ highest April close and yesterday’s close, it lost 12% of its value.

Last week, it traded mostly flat. This week it’s plunged a whopping 9.7%. 

Zip share price snapshot

There don’t seem to be any obvious answers as to why the Zip share price is falling on the ASX today.

Long-term shareholders can still rest well, however. Despite this week’s poor performance, the company’s share price is up 44% year to date. It’s also up 281% over the last 12 months.

Zip has a market capitalisation of around $4.7 billion, with approximately 552 million shares outstanding.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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