Home / Sector / BNPL shares / The Zip share price is actually climbing today. What's going on?

The Zip share price is actually climbing today. What's going on?

Zip shares are on form on Friday….

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James Mickleboro
Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett
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The Zip Co Ltd (ASX: ZIP) share price has surprisingly avoided the market sell-off on Friday.

In afternoon trade, the buy now, pay later (BNPL) provider's shares are up 6% to 53.5 cents.

As a comparison, the ASX 200 index is down 2.2% at the time of writing.

BNPL written on a laptop.

Image source: Getty Images

What's going on with the Zip share price?

Today's gain by the Zip share price is a bit of a mystery. However, it is worth noting that this outperformance isn't exclusive to Zip's shares.

For example, the Openpay Group Ltd (ASX: OPY) share price is up a whopping 20% today and the Sezzle Inc (ASX: SZL) share price is up 2%.

This is despite there being no real industry news to speak of, other than Latitude Group Holdings Ltd (ASX: LFS) bailing on its plan to buy the BNPL business of Humm Group Ltd (ASX: HUM).

What could be driving its shares higher?

Investors may believe that ASX BNPL shares have been oversold in recent weeks and have decided that now is the time to pounce.

After all, despite their gains today, year to date, the Zip share price is down 88%, the Openpay share price is down 70%, and the Sezzle share price is down 90%.

Time will tell if they hold onto today's gains.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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