The Zip Co Ltd (ASX: ZIP) share price has plummeted to its lowest point since 2018 this morning, hitting an intraday low of 74.5 cents.
That marks a 5.7% tumble on Friday’s close. Its new multiyear low also represents a near 95% fall on the buy now, pay later (BNPL) share’s all-time high of $14.53, reached in February 2021.
At the time of writing, the Zip share price has ever-so-slightly recovered. The stock is currently swapping hands for 75.5 cents a piece, 4.4% less than it was at its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is also down 0.4% on Monday.
Let’s take a closer look at what’s dragged the Zip share price to its lowest point of the last four years.
Zip share price plunges to 75 cents on Monday
The Zip share price is being bludgeoned on Monday, as is the S&P/ASX 200 Information Technology Index (ASX: XIJ).
While Zip technically doesn’t call the tech sector home — it’s housed on the S&P/ASX 200 Financials Index (ASX: XFJ) — it tends to trade in line with its technology-focused peers.
The tech sector is currently down 1.84% following a tough Friday session on Wall Street.
The tech-heavy Nasdaq Composite plunged 2.47% on Friday, while the S&P 500 slipped 1.63% and the Dow Jones Industrial Average fell 1.05%.
Block Inc (ASX: SQ2) – home of BNPL giant Afterpay – is among the tech sector’s biggest weights today. Its share price is currently down 4.1%.
Meanwhile, shares in payments provider Tyro Payments Ltd (ASX: TYR) have slumped 4.2%.
And today’s struggles have only added to the tech sector’s recent woes. It’s tumbled nearly 34% since the start of 2022 amid rising inflation and resulting interest rate hikes.
At the same time, the financials sector is outperforming the ASX 200. It has fallen nearly 2.4% in 2022 while the ASX 200 has slumped 5.2%.
At today’s intraday low, the Zip share price was down approximately 83% year to date. It was also 89% lower than it was this time last year.