Back in the green: Zip share price launches 6% on Tuesday

It’s a good day for the ASX tech sector.

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Key points

  • The Zip share price is making moves today, gaining 5.9% to trade at $1.17 
  • There's been no news from the company to explain its gains, though, its been on a green streak for 3 consecutive sessions now 
  • Additionally, today is a good day for the broader ASX 200 tech sector. Right now, the information technology index has risen 1.7% 

The Zip Co Ltd (ASX: ZIP) share price is continuing to recover on Tuesday, gaining 5.91%.

There’s been no news to explain the lift.

Though, it’s worth noting the buy now, pay later (BNPL) stock struggled through April, recording a 26% slump for the month despite a last minute 8.9% boost on Friday.

At the time of writing, the Zip share price is $1.17. That’s 17% higher than the new 52-week low it struck last week.

For context, the S&P/ASX 200 Index (ASX: XJO) is slipping today. It’s currently down 0.1%.

Let’s take a look at what might be going on with the BNPL giant on Tuesday.

What’s going on with the Zip share price today?

The Zip share price is in the green once more today, bringing its gains for the last 3 sessions to nearly 16%.

The BNPL stock’s gains come as the ASX tech sector outperforms the broader market.

While Zip is technically a constituent of the financial sector, it tends to trade alongside the S&P/ASX 200 Information Technology Index (ASX: XIJ).

Right now, the ASX 200 tech sector is recording a 1.71% gain, with shares in Appen Ltd (ASX: APX), Block Inc (ASX: SQ2), and EML Payments Ltd (ASX: EML) leading the rise.

They’re currently up 6.45%, 5.62%, and 5.19% respectively.

The broader technology sector is also gaining. The S&P/ASX All Technology Index (ASX: XTX) is up 1.35% right now.

Unfortunately, today’s rise is barely putting a dent in Zip’s year to date losses.

The BNPL provider’s stock is still trading for 72% less than it was at the start of 2022. It’s also 84% lower than it was this time last year.

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. has positions in and has recommended Appen Ltd, Block, Inc., EML Payments, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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