The Zip Co Ltd (ASX: Z1P) share price appears to be defying expectations today, currently rallying by 5.97% to $7.45.
This follows a sharp selloff on Wall Street overnight. The tech-heavy Nasdaq Composite (NASDAQ: .IXIC) fell 1.06% and US-listed buy now, pay later (BNPL) share Affirm Holdings Inc was down by 2.85%.
Why the Zip share price is bouncing
Big players eyeing Zip shares
On Monday, a change in substantial holding announcement revealed that Bank of America Corp had increased its stake in Zip from 6.15% to 7.45%.
Bank of America has had a longstanding relationship with Zip, acting as its financial advisor and placement agent during the company's QuadPay acquisition.
The major US bank also played a part in assisting Zip with its $400 million convertible bond raising.
Bank of America's initial 6.15% stake was announced back in April this year.
It was also just two weeks ago the Australian Financial Review speculated that Swedish BNPL provider Klarna had accumulated a 4% stake in Zip as well.
The Klarna news witnessed a 21.98% surge in the Zip share price between 7 and 8 June.
BNPL shares bounce back
Most ASX-listed BNPL shares tumbled more than 10% last week when news broke about Apple Inc potentially launching its own BNPL service and PayPal Holdings Inc's plans not to charge any late fees for its BNPL services.
After a grim performance last week, BNPL shares are bouncing back today. In addition to the surging Zip share price, Afterpay Ltd (ASX: APT) shares are also up by 2.57% at the time of writing.
The Sezzle Inc (ASX: SZL) share price has bounced off session lows, but is still down 0.73% to $8.17.
Quarterly update on the horizon
In the past, Zip typically delivers its fourth-quarter results in the latter half of July.
The last time we heard a meaningful update from Zip was its third-quarter results on 13 April which was followed by a $400 million notes offering to fund the company for growth. The Zip share price rocketed almost 17% higher on the day the company's record results were released.
