The Zip share price is rocketing 6% today. Here’s why

The buy now, pay later company is enjoying a change of fortunes today, along with its fellow ASX tech shares

| More on:
A male ASX investor sits cross-legged with a laptop computer in his lap with a slightly crazed, happy, excited look on his face while next to him a graphic of a rocket shoots upwards with graphics of stars scattered around it

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Well, it’s turning into a pretty welcome end to the week for ASX shares after a week of multiple market falls. The S&P/ASX 200 Index (ASX: XJO) is currently up a robust 1.21% and back over 7,100 points. But the Zip Co Ltd (ASX: ZIP) share price is faring even better.

Zip shares are currently up by a pleasing 6.3% at 92.5 cents each. That is well up from yesterday’s closing share price of 87 cents, which was also a new 52-week low for Zip.

Why are Zip shares zipping higher?

Well, we can’t say for sure. There hasn’t been any major news or announcements out of the buy now, pay later company today.

But what we do know is that ASX tech shares of most shapes and stripes are having a very pleasing day of gains this Friday.

The S&P/ASX All Technology Index (ASX: XTX) itself has risen by around 3.6% so far this Friday. And individual shares are doing well too. Take Altium Limited (ASX: ALU). Its shares are up by 6.5% so far today. Block Inc (ASX: SQ2), the new owner of Zip’s old rival Afterpay, is currently up by 9.2%.

These moves follow some big shifts in US tech shares overnight. US BNPL share Affirm Holdings Inc was up 5.15%, as was payments company PayPal Holdings Inc.

So it’s likely that the rise in the Zip share price today is just part of this trend back into tech shares on the ASX. And after Zip’s horror day yesterday, when it lost almost 4%, it will no doubt come as some sweet relief for investors.

At the current Zip share price, this ASX BNPL share has a market capitalisation of $628.85 million.

Motley Fool contributor Sebastian Bowen has positions in PayPal Holdings. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Affirm Holdings, Inc., Altium, Block, Inc., PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on BNPL shares

Happy man wearing a blue shirt and glasses holding a card and using buy now pay later services to purchase a product on his office computer
BNPL shares

Why is the Zip share price jumping 11% today?

The Zip share price has finally given investors a break today.

Read more »

Man open mouthed looking shocked while holding betting slip
BNPL shares

Why did the Zip share price crash more than 50% in June?

Zip shares were sold off again in June...

Read more »

Upset woman with her hand on her forehead, holding a credit card.
BNPL shares

June was a terrible month for ASX BNPL shares. Here’s why

Last month brought more suffering for ASX BNPL stocks.

Read more »

BNPL written on a laptop.
BNPL shares

Could ASX BNPL shares be set for imminent regulation as spending swells to $12 billion?

Buy Now Pay Later shares could soon be facing more regulation.

Read more »

An angry man struggles with a broken zip in his jacket
BNPL shares

Zip shares sink 6% despite BNPL spend doubling this financial year

The BNPL company's shares are tumbling today. We take a look at why.

Read more »

Upset woman with her hand on her forehead, holding a credit card.
BNPL shares

Down 6%, what is dragging the Block share price lower on Wednesday?

What's going on with Block today?

Read more »

a woman with lots of shopping bags looks upwards towards the sky as if she is pondering something.
BNPL shares

Why this economist believes ASX 200 BNPL shares are key to keeping the market competitive

BNPL players have their place, this report says.

Read more »

Woman looking sad while paying.
BNPL shares

Zip share price bucks the trend with 5% fall. What’s happening?

The BNPL giant is back in the red on Monday.

Read more »