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