After hitting a multi-year low of 83 cents this week, the Zip Co Ltd (ASX: ZIP) share price is recovering some lost ground.
In the first three days of this week, the buy now, pay later (BNPL) company's shares recorded consecutive losses totalling 9%.
However, investors are bidding up Zip shares today with a 4.14% rise to 88 cents apiece.
For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.31% to 7,132.7 points.
Let's take a look at what's driving these gains.
Zip stages a mini rebound
The Zip share price is on the move following an uptick across the S&P/ASX All Technology Index (ASX: XTX).
At the time of writing, the tech sector is up 1.37% to 2,061 points.
While the strong ascent could be attributed to the big rise in the Appen Ltd (ASX: APX) share price following a takeover bid, many other ASX tech shares are also gaining today.
Sezzle Inc (ASX: SZL), which Zip is still in the process of acquiring, is currently up 8.16%, while Block Inc (ASX: SQ2), the owner of Zip's old rival Afterpay, Xero Limited (ASX: XRO), and Altium Limited (ASX: ALU) have all edged into the green
No doubt, the rise in the Zip share price today will bring relief for shareholders who have seen the company's shares continue to drop in value this year.
Selling pressure has mounted on the BNPL market due to a shift in the external environment. This includes rising interest rates, dried-up government stimulus packages, and a global economic slowdown.
In its half-year results in February, Zip reported growth across its global operations, however, investors have focussed on the bottom line.
As such, the company registered a loss of $153.6 million compared to the $139.8 million in H1 FY21.
Furthermore, net bad debts stood at $115.4 million, up from the $22.4 million written off in the prior comparable period.
Zip share price summary
Over the past 12 months, the Zip share price has plummeted 87%, and it is currently down 79% this year to date.
This is a massive contrast to when its shares reached an all-time high of $14.53 a little more than a year ago.
Based on today's price, Zip presides a market capitalisation of around $580.74 million.
