The Afterpay Ltd (ASX: APT) share price is plunging lower today despite no news having been released by the buy now, pay later (BNPL) company.
It's likely the last thing the company's shareholders want to see after Afterpay's stock fell 10% over the course of last week.
One explanation for Afterpay's recent struggles could be that its shares are trending alongside those of Square Inc (NYSE: SQ). Square's stock also fell 10% last week before tumbling 5.45% on Monday (Tuesday AEST).
At the time of writing, the Afterpay share price is $113.69, 4.94% lower than its previous close.
That's a larger drop than the one the broader market is experiencing today. Right now, the S&P/ASX 200 Index (ASX: XJO) is down 0.3% while the All Ordinaries Index (ASX: XAO) has dipped 0.5%.
Let's take a closer look at what might be driving the Afterpay share price lower on Tuesday.
Afterpay's stock struggles alongside Square's
The Afterpay share price is plummeting today despite the company's silence.
However, while most of Australia slept, Afterpay's likely future buyer, Square, had a tough day on the New York Stock Exchange.
Square's stock slipped more than 5% on Monday to close the session at US$226.25.
Of course, Square is planning to purchase Afterpay for a whopping $39 billion all-scrip deal.
Therefore, if all goes to plan, investors with a holding in Afterpay will soon become Square shareholders.
So, it makes sense the two companies' share prices often move in relative unison.
Additionally, Afterpay isn't the only BNPL company struggling on the ASX today.
The Zip Co Ltd (ASX: Z1P) share price is currently down 4.3% while that of Sezzle Inc (ASX: SZL) has fallen 9.4%.
Afterpay share price snapshot
Today's drop has added to the Afterpay share price's recent woes.
Right now, it is 4% lower than it was at the start of 2021. However, the company's stock's value has gained 43% since this time last year.
