The S&P/ASX 200 Index (ASX: XJO) is having a pretty decent day on the markets this Thursday. At the time of writing, the ASX 200 is up a robust 0.37% to 7,407 points. But one ASX 200 share that’s doing a few better is the Zip Co Ltd (ASX: Z1P) share price.
Zip shares are currently up a healthy 4.57% to $6.86 a share, after closing at $$6.56 yesterday afternoon and opening at $6.65 a share this morning.
Like its typical pattern of late, Zip has had a wild week. Even though the company is up more than 5% today, Zip shares are still down almost 3% over the past 5 trading days, and down more than 10% over the past month.
The entire buy now, pay later (BNPL) sector was rocked by news earlier this month that both Apple Inc (NASDAQ: AAPL) and PayPal Holdings Inc (NASDAQ: PYPL) would be expanding their BNPL products.
In Apple’s case, it was a rumour that the electronics giant would be introducing a BNPL version of its popular Apple Pay service in ‘Apple Pay Later’. In PayPal’s case, it was the news that the company would be abolishing late fees on its own BNPL ‘Pay in 4’ service.
This news (which came out on the same day) really spooked BNPL investors, and the Zip share price (along with other ASX BNPL shares) has struggled ever since.
So what’s going on with this BNPL ASX share today?
Zip shares zip higher
Well, it’s not immediately obvious what has lit a rocket under Zip shares today, thus far. There have been no major news or announcements out of the company since 22 July, when Zip delivered its quarterly results report.
However, there is an obvious pattern today which Zip is clearly a part of. Most ASX BNPL shares are enjoying very healthy gains this Thursday. Take Zip’s arch-rival Afterpay Ltd (ASX: APT). Afterpay shares are currently up 3.4% to $102.35 a share. Sezzle Inc (ASX: SZL), Openpay Group Ltd (ASX: OPY) and Splitit Ltd (ASX: SPT) are also performing very well today.
The US BNPL company Affirm Holdings Inc (NASDAQ: AFRM) was also up big last night in US trading hours. Affirm shares rose a very enthusiastic 2.82% to finish the trading day at US$61.18 a share. Perhaps ASX investors have taken a lead from our American counterparts, and seen fit to pick up BNPL shares for relatively cheap prices today.
At the current Zip share price, the company has a market capitalisation of $3.68 billion.