Things just go from bad to worse for the Zip Co Ltd (ASX: ZIP) share price.
On Tuesday morning, the buy now pay later provider's shares dropped 21% to a new multi-year low of 49.5 cents.
This latest decline means the Zip share price has now lost almost 90% of its value in 2022.
Image source: Getty Images
Why is the Zip share price sinking again?
The weakness in the Zip share price has been driven by a broad market selloff which has been felt hardest in the tech sector.
For example, the S&P ASX All Technology index is down 7% at the time of writing. This compares to a 5% decline from the ASX 200 index.
This has been sparked by concerns that central banks could increase interest rates quicker than expected and stifle economic growth.
It isn't just Zip that is sinking. Block Inc (ASX: SQ2) shares are down 17% and Sezzle Ltd (ASX: SZL) shares are down 13%.
Based on the current Zip share price and its ~688 million shares outstanding, the buy now pay later provider now has a market capitalisation of just over $340 million.
It's been a very long time since the company's valuation was as low as that and a far cry from its $4 billion+ market cap around a year ago.
