The Zip (ASX:Z1P) share price sank below $6 for the first time since January. What's happening?

Thursday's was a bad session for the BNPL company's stock. Here are the details.

The Zip Co Ltd (ASX: Z1P) share price fell below the $6 mark for the first time in nearly 10 months yesterday.

Making the dip more boggling, is the fact the market hasn't heard anything from the company since the middle of last month when it released its latest quarterly update.

As of yesterday's close, the Zip share price is $5.70, 5.16% lower than it was at the end of Wednesday's session.

On top of that, Zip's stock was swapping hands at $5.68 in intraday trade yesterday, marking the lowest price the company's shares have experienced since January.

Let's take a look at what might be weighing on the buy now, pay later service provider's share price lately.

woman head in hands online shopping

Image source: Getty Images

What drove the Zip share price down?

Yesterday's session was a bad one for the Zip share price, but at least it wasn't alone in its suffering.

As The Motley Fool Australia reported yesterday,  struggles exhibited by the Nasdaq Composite and the S&P 500 Index likely weighed on the ASX and, in particular, ASX tech shares.

Indeed, the S&P/ASX 200 Index (ASX: XJO) fell 0.5% yesterday. The S&P/ASX 200 Info Tech Index (ASX: XIJ) had a worse time, tumbling 2.5%.

Zip's BNPL peer, Afterpay Ltd (ASX: APT), also had a shocking day yesterday. Its share price fell 2.2%.

Additionally, as my Foolish colleague reported yesterday, some analysts are bearish on the Zip share price. Though, Morgans still has an $8.56 price target on the stock.

However, today looks like it could be a better day for Zip on the ASX. Overnight, the Nasdaq Composite gained 0.5% while the S&P 500 was up 0.05%.

Right now, the Zip share price is hanging in the long-term green by the skin of its teeth. It is currently 1.9% higher than it was at the start of 2021.

Though, yesterday's slide sees it 14.2% lower than it was this time last month.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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