Zip (ASX:Z1P) share price finally moving, up 9% today

It’s been a while since Zip shares made a meaningful move up.

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The Zip Co Ltd (ASX: Z1P) share price has been largely stuck around the low $7 level since early May.

But the leading buy now, pay later (BNPL) share is finally making some moves, up 8.64% to $8.05 at the time of writing.

Despite the shorter trading week, with the Queen’s Birthday holiday on Monday, Zip shares have added an impressive 12% since Tuesday.

What’s driving the Zip share price?

Zip has been relatively quiet on the announcement front, with the most recent news on its European and Middle East expansion announced on 24 May.

Today’s strong move up could be being influenced by broader movements among tech and BNPL sectors.

US tech shares push higher

The tech-heavy Nasdaq Composite (NASDAQ: .IXIC) had a strong showing overnight, up 0.87%. This compares to the S&P 500 Index (SP: .INX) which finished the session down 0.04% and the Dow Jones Industrial Average Index (DJX: .DJI) which was also down 0.62%.

The recent strength of the Nasdaq has put it within ~0.3% of its 29 April 2021 all-time record highs.

US tech mega-caps all advanced higher, with household names including Apple Inc, Amazon.com Inc, Facebook Inc, Alphabet Inc, Microsoft Corporation and Tesla Inc all rising between 0.80% to 2.2%.

Zip’s US-listed rival, Affirm Holdings Inc (NASDAQ: AFRM) also pushed 2.94% higher to US$69.39 per share.

Affirm shares closed at all-time lows of US$48.30 on 13 May after running as high as $146.90 in February. The company’s shares have bounced more than 40% off their lows, perhaps signalling a renewed interest in the BNPL sector.

With the Nasdaq now within an arm’s reach of all-time record highs and outperforming the other indices, some investors will be hoping this signals another rotation out of value and defensive stocks, and back into growth and tech shares.

ASX tech and BNPL shares on the rise

The Zip share price is among many tech and BNPL shares in the green on Friday.

The S&P/ASX 200 Info Tech Index (ASX: XIJ) is up by almost 3% today, and around 13% this month.

Large-cap tech shares are leading the charge, with the likes of Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO), and WiseTech Global Ltd (ASX: WTC) up 5.29%, 2.01% and 1.82% respectively.

Based on the current Zip share price, the company has a market capitalisation of around $4.2 billion.

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Kerry Sun has no position in any of the stocks mentioned.  John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Facebook, Microsoft, Tesla, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $1,920 calls on Amazon, long March 2023 $120 calls on Apple, short January 2022 $1,940 calls on Amazon, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and Facebook. 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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