The Zip Co Ltd (ASX: ZIP) share price is having much-needed positive day.
In afternoon trade, the buy now pay later (BNPL) provider's shares are up a massive 14% to 67.5 cents.
What's going on with the Zip share price?
The catalyst for the rise in the Zip share price has been a rebound in the tech sector.
This rebound has been particularly strong among beaten down loss-making tech shares like Zip.
For example, the Life360 Inc (ASX: 360) share price is currently up 6%, the PointsBet Holdings Ltd (ASX: PBH) share price is up 9%, and the BrainChip Holdings Ltd (ASX: BRN) share price is up 12% at the time of writing.
This has driven the S&P ASX All Technology index 4% higher today.
What's driving tech shares higher?
Investors have been piling into the tech sector on Wednesday following a very strong night of trade on the tech-focused NASDAQ index.
This was driven by optimism that markets have now bottomed and it is onwards and upwards from here.
Among the best performers on the NASDAQ index was the Affirm share price with a 9% gain. Investors appear to believe this BNPL share has been oversold and created a buying opportunity.
The same seems to be happening on the Australian share market with the Zip share price.
Quarterly update
The Zip share price will be in focus again on Thursday when the company releases its quarterly and full year update.
In respect to its full year performance, according to note out of Macquarie, its analysts are expecting Zip to report a 59.9% increase in revenue to $644.24 million in FY 2022.
And while it is unlikely to release an update on its earnings until next month, the broker has pencilled in an EBITDA loss of $201.8 million for the year.
