Blast off! Why is the Zip share price zooming on Friday?

The BNPL giant is ending a tough week on a high.

| More on:
A happy girl in a yellow playsuit with a zip gives the thumbs up

Image source: Getty Images

Key points

  • The Zip share price is back in the green on Friday, gaining 5% to trade at 98.5 cents at its intraday high
  • It follows yesterday's pressure that saw the Zip share price slide 6.5%
  • The BNPL stock is recovering alongside the ASX 200 technology sector today

The Zip Co Ltd (ASX: ZIP) share price is ending the week on a high after yesterday’s catastrophic session.

And it’s not alone in its gains. The tech-adjacent stock is leaping alongside many of the S&P/ASX 200 Index (ASX: XJO)’s technology shares.

At the time of writing, the Zip share price is trading at 97 cents, 3.74% higher than its previous close.

For context, the ASX 200 is also in the green, gaining 1.35%.

Let’s take a look at what might be going on with the buy now, pay later (BNPL) provider’s shares.

Zip share price takes off on Friday

Zip shares are back on the horse after tumbling to a multi-year low of 91.5 cents in intraday trade yesterday.

And the BNPL stock was joined in the red by most ASX 200 tech shares. In fact, the S&P/ASX 200 Information Technology Index (ASX: XIJ) fell a whopping 8.7% on Thursday amid news of inflation overseas.

But today’s a new day. The tech sector is up 4.89% on Friday with none of its constituents recording a loss.

The Block Inc (ASX: SQ2) share price is leading the pack. It’s currently up 12.5%, clawing back some of yesterday’s 17.6% tumble.

Despite today’s partial rebound, the Zip share price is 77% lower than it was at the start of 2022. It has also dumped 85% since this time last year.  

Should you invest $1,000 in Zip right now?

Before you consider Zip, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Zip wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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

More on Share Market News

Top 10 ASX 200 shares today
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Monday.

Read more »

blue arrows representing a rising share price ASX 200
Share Market News

Here are the 3 most heavily traded ASX 200 shares on Monday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

Model bear in front of falling line graph, cheap stocks, cheap ASX shares
Share Market News

These are the 10 most shorted ASX shares

Short sellers are currently targeting these ASX shares...

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Cryptocurrencies

Can regulators prevent another US$45 billion crypto stablecoin meltdown?

Terra's LUNA token, meant to help its UST token remain pegged to the US dollar, has lost 99.99% of its…

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Share Market News

ASX 200 midday update: Brambles rockets, Goodman upgrades guidance

The ASX 200 is having a decent start to the week...

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Monday

Here's what to expect on the ASX 200 on Monday...

Read more »

Family of four celebrating inside a grocery store or supermarket
Share Market News

4 ASX shares of the most trusted brands in Australia

Which companies are best placed to attract the hearts, minds and wallets of consumers as interest rates rise?

Read more »

Coal-fired power station generic.
Energy Shares

How dependant on coal closure is the AGL share price?

Climate activists disagree with AGL's decision to hold onto coal, saying its depleting shareholder value.

Read more »