The Zip share price is rocketing 14% today. What’s going on?

ASX BNPL shares are enjoying a welcome boost today.

| More on:
Four people gather around laptop and cheer

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Zip Co Ltd (ASX: ZIP) share price is soaring today, up 13.6% in early afternoon trading.

Zip shares closed yesterday trading for 44 cents and are currently swapping hands for 50 cents.

Certainly, that’s welcome news for Zip shareholders, who’ve watched the stock crash since hitting all-time highs in February last year.

ASX BNPL shares lifting off

It’s not just the Zip share price surging today. The wider ASX buy now, pay later (BNPL) sector is enjoying a strong showing.

The Sezzle Inc (ASX: SZL) share price is up 11.3% at the time of writing. And industry giant Block Inc (ASX: SQ2), which acquired Afterpay in January, is up 10.4%.

This as the All Ordinaries Index (ASX: XAO) is up a more modest 0.7%.

As the best performing of the BNPL shares today, the Zip share price could be getting a boost from its release earlier this week reporting that the company is “well placed to respond to and offset” rising interest rates.

The company also reported on its relatively strong financial position, with CEO Larry Diamond adding, “We have been clear that in response to current market conditions our strategic priorities are to focus on our core business, both products and regions, and accelerate the group’s path to profitability.”

Another factor that’s lifting the Zip share price and the wider ASX BNPL sector is the strong performance of the dual-listed Block on US markets yesterday (overnight Aussie time). Block closed up 10.9% on the NYSE.

The catalyst for that lift looks to be news breaking that Cathie Wood’s ARK Innovation fund acquired some 82,000 Block shares this week for almost $5 million.

Zip share price snapshot

Despite today’s big lift, the Zip share price remains down 88% in 2022. That compares to a year-to-date loss of 15% posted by the All Ordinaries.

Zip shares are also down 94% since this time last year and 43% over the past month.

Motley Fool contributor Bernd Struben 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 Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on BNPL shares

a man's hands hold the ends of the zipper at the bottom of a jacket as if to try to put them together again.
BNPL shares

Up and back down: Why is the Zip share price volatile today?

The Zip share price got up on the right side on Monday.

Read more »

ASX shares downgrade A young woman with tattoos puts both thumbs down and scrunches her face with the bad news.
BNPL shares

The Zip share price lost 94% of its value in FY22

Zip shares were the worst performers on the ASX 200 in FY22..

Read more »

Happy man wearing a blue shirt and glasses holding a card and using buy now pay later services to purchase a product on his office computer
BNPL shares

Why is the Zip share price jumping 11% today?

The Zip share price has finally given investors a break today.

Read more »

Man open mouthed looking shocked while holding betting slip
BNPL shares

Why did the Zip share price crash more than 50% in June?

Zip shares were sold off again in June...

Read more »

Upset woman with her hand on her forehead, holding a credit card.
BNPL shares

June was a terrible month for ASX BNPL shares. Here’s why

Last month brought more suffering for ASX BNPL stocks.

Read more »

BNPL written on a laptop.
BNPL shares

Could ASX BNPL shares be set for imminent regulation as spending swells to $12 billion?

Buy Now Pay Later shares could soon be facing more regulation.

Read more »

An angry man struggles with a broken zip in his jacket
BNPL shares

Zip shares sink 6% despite BNPL spend doubling this financial year

The BNPL company's shares are tumbling today. We take a look at why.

Read more »

Upset woman with her hand on her forehead, holding a credit card.
BNPL shares

Down 6%, what is dragging the Block share price lower on Wednesday?

What's going on with Block today?

Read more »