Why is the Nearmap share price soaring 5% on Thursday?

Nearmap shares are rebounding today.

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Key points

  • Nearmap shares accelerate 5% to $1.05 during late afternoon trade 
  • While the company hasn't made any specific announcements, an uptick across the tech sector is leading the charge 
  • Nearmap is hoping to further grow in the massive North American market with the launch of its HyperCamera3 system 

The Nearmap Ltd (ASX: NEA) share price is flying higher today after posting losses over the last two days.

At the time of writing, the aerial imagery specialist’s shares are up 5% to $1.05 apiece.

With no news out of the company, we take a closer look at what could be pushing its company’s shares higher.

What’s driving Nearmap shares higher?

Following heavy losses on the ASX this week, a sharp rebound has ensued, sending the Nearmap share price higher.

In particular, the S&P/ASX All Technology Index (ASX: XTX) is climbing 0.26% to 1,829.6 points.

It’s worth noting that the index was up as much as 2.8% during mid day trade.

Furthermore, with Nearmap shares tanking 10% in a week, investors looking for a bargain may be providing support. This comes after its shares dipped under the psychological $1 barrier on Tuesday.

The last time this was seen was during the COVID-19 crash in March 2020.

Nonetheless, the company has been making tailwinds in recent times with the launch of its aerial camera system, HyperCamera3.

This is expected to be rolled out in both Australia and New Zealand before entering the North American market.

Nearmap’s content is regularly relying upon government customers from 42 out of 50 states in America. To put that into perspective, the average revenue per subscription is around US$22,350 in the North American market.

Nearmap share price summary

Since November 2021, the Nearmap share price has struggled to hold its ground, falling 55% over the 7-month time frame.

This comes regardless of the company announcing that it’s expecting to achieve the upper-end of its FY22 guidance.

It’s worth noting that Nearmap shares touched a 52-week low of 98 cents on Tuesday.

Based on today’s price, the company commands a market capitalisation of roughly $551.47 million.

Motley Fool contributor Aaron Teboneras has positions in Nearmap Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Nearmap Ltd. The Motley Fool Australia has positions in and has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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