The IOUpay (ASX:IOU) share price is soaring 11% today. Here’s why

It’s proving to be a big day for IOUpay shares. We take a closer look.

| More on:
a happy young woman holding multiple shopping bags

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The IOUpay Ltd (ASX: IOU) share price is soaring today despite no news having been released by the company.

Right now, IOUpay shares are trading for 24 cents apiece, 11.63% more than their previous close.

Additionally, more than 10.9 million IOUpay shares have swapped hands today. For context, over the past 4 weeks, the average number of IOUpay shares traded per day is around 4.3 million.

Let’s take a look at what might be driving IOUpay’s shares higher today.

What might be driving IOUpay?

The IOUpay share price could be being boosted by a number of factors today.

The share price movement could be a belated reaction to IOUpay’s exciting news found within its quarterly report.

The report was released on Thursday. Within it, IOUpay detailed the successful launch of its myIOU buy now, pay later (BNPL) service.

As part of the service, IOUpay released a myIOU app to both the Apple App Store and the Google Play Store.

Despite only just launching the service, myIOU saw $584,459 worth of sales in June. After the end of the June quarter, IOUpay recorded another $1,609,431 worth of sales through myIOU.

Another factor that might be boosting the IOUpay share price is the broader BNPL market. Many BNPL shares are gaining at around the same rate as IOUpay today, likely spurred by the market’s excitement over Afterpay Ltd‘s (ASX:APT) takeover offer from Square Inc.

Afterpay’s board recommended Square’s acquisition offer on Monday.

The Afterpay share price is up 12% today. Fellow BNPL giant Zip Co Ltd (ASX:Z1P) is gaining 9.2%, while Sezzle Inc (ASX:SZL) is also performing better than the broader market, gaining 4.4%.

IOUpay share price snapshot

The IOUpay share price is having a good year on the ASX. Right now, it’s 20% higher than it was at the start of 2021. It has also gained 512% since this time last year.

The company has a market capitalisation of around $118 million, with approximately 551 million shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, 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), Apple, and ZIPCOLTD FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on BNPL shares

a man's hands hold the ends of the zipper at the bottom of a jacket as if to try to put them together again.
BNPL shares

Up and back down: Why is the Zip share price volatile today?

The Zip share price got up on the right side on Monday.

Read more »

ASX shares downgrade A young woman with tattoos puts both thumbs down and scrunches her face with the bad news.
BNPL shares

The Zip share price lost 94% of its value in FY22

Zip shares were the worst performers on the ASX 200 in FY22..

Read more »

Happy man wearing a blue shirt and glasses holding a card and using buy now pay later services to purchase a product on his office computer
BNPL shares

Why is the Zip share price jumping 11% today?

The Zip share price has finally given investors a break today.

Read more »

Man open mouthed looking shocked while holding betting slip
BNPL shares

Why did the Zip share price crash more than 50% in June?

Zip shares were sold off again in June...

Read more »

Upset woman with her hand on her forehead, holding a credit card.
BNPL shares

June was a terrible month for ASX BNPL shares. Here’s why

Last month brought more suffering for ASX BNPL stocks.

Read more »

BNPL written on a laptop.
BNPL shares

Could ASX BNPL shares be set for imminent regulation as spending swells to $12 billion?

Buy Now Pay Later shares could soon be facing more regulation.

Read more »

An angry man struggles with a broken zip in his jacket
BNPL shares

Zip shares sink 6% despite BNPL spend doubling this financial year

The BNPL company's shares are tumbling today. We take a look at why.

Read more »

Upset woman with her hand on her forehead, holding a credit card.
BNPL shares

Down 6%, what is dragging the Block share price lower on Wednesday?

What's going on with Block today?

Read more »