Why is the Zip share price getting smashed so much more than other BNPL stocks in 2022?

The Zip Co Ltd (ASX: Z1P) share price is suffering this year, falling more than its fellow ASX-listed buy now, pay later (BNPL) peers.

And the past 30 days have seen that gap widen. Australia's biggest BNPL stock has seen its value tumble by around 24% since this time last month. The Zip share price is currently down 3.95% today at $1.58.

For context, the second worst-performing ASX BNPL share is Sezzle Inc (ASX: SZL). Its stock has slipped around 7% over the last month.

Let's take a look at what might be dragging on the Zip share price lately.

What's behind the ZIP share price's recent tumble?

Zip's stock has tumbled 64% since the start of 2022.

That sees it taking the rear among its BNPL peers, of which Humm Group Ltd (ASX: HUM) has come out as one of the best performers. It has fallen just 12.5% in 2022.

However, the Zip share price has really underperformed over the last month, despite the announcement of a major acquisition.

As most market watchers will be aware, Zip and Sezzle are planning to come together in an all-scrip acquisition by the September quarter, subject to approvals.

Brokers' mixed opinions regarding the transaction might have weighed on the BNPL provider's stock lately.

Additionally, Zip's recent $148.7 million capital raise and the release of its half-year results might have further dampened market enthusiasm for the company's share price.

Zip officially released its half-year results late last month, detailing an 89% increase in revenue and a 92% increase in transaction volumes.

However, rising costs (the company's cost of sales increased 192.5% last half) pushed Zip's gross profits 23.2% lower.

Zip also offered 78.3 million new shares for $1.90 apiece as part of its recent institutional placement. At the time, the offer price represented a 14% discount to Zip's stock's previous closing price.

Finally, Zip is currently undergoing a share purchase plan, offering eligible shareholders the option to buy up to $30,000 worth of shares.

Under the plan, each new share will cost participating investors either $1.90 or a 2% discount on the Zip share price's five-day volume-weighted average price for the period ending 1 April, whichever is lesser.

All that is likely weighing on the BNPL giant's stock and might be causing it to underperform its peers.