It's been a bit of a stop-start kind of day for the S&P/ASX 200 Index (ASX: XJO) so far this Tuesday. At the time of writing, the ASX 200 has gained an almost-indistinguishable 0.01% after stints in both positive and negative territory, closing back on 6,800 points. But that's nothing compared to the Zip Co Ltd (ASX: ZIP) share price.
Zip shares are having a cracker today. Presently, the buy now, pay later (BNPL) share has gained an impressive 15.2% and is trading at 98 cents a share after opening at 85 cents this morning. But not only that, earlier we saw Zip rise as high as $1.07 a share.
Not only was that a gain of more than 24% at the time, but it also represents the first time in two months that Zip shares have ventured above the $1 a share mark. Since hitting a new 52-week low of 44 cents a share on 30 June, Zip is now up an extraordinary 125%. What a start to the new financial year.
So what's going on with Zip shares today that might have elicited such a decisive push upwards in valuation?
Why are Zip shares on a 24% rocket today?
Well, it's not entirely clear. There hasn't been any new news out of Zip today. Or indeed this week so far.
But we did get some big news from the BNPL share last week, which could still be pushing on the Zip share price today.
Last week, Zip released its quarterly update, covering the three months to 30 June 2022. This update revealed Zip's quarterly revenue rose a healthy 27% to $160.1 million. Transaction volumes were also up by 20% year on year, while customer numbers rose 5.3% on a quarter-on-quarter basis.
Investors clearly liked what they saw in this report, judging by the fact that since its release, Zip shares have jumped almost 27%. Investors have also responded positively to the news earlier this month that Zip's proposed merger with its fellow BNPL share Sezzle Inc (ASX: SZL) has been scrapped.
So it seems it is a combination of these events that is still driving the Zip share price higher today. But remember, Zip is still down a painful 77% or so over 2022 so far.
At the current Zip share price, this ASX 200 BNPL share has a market capitalisation of $684.5 million.
