Why did ASX buy now, pay later share Laybuy just rocket 95%?

Why are BNPL shares like Laybuy rocketing this week?

| More on:
Happy woman shopping online.

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

Key points

  • BNPL shares like Laybuy continue to rocket today 
  • Laybuy has just received a speeding ticket from the ASX for its troubles 
  • The company is now up 200% since Tuesday... 

It's been a pretty pleasant day so far for ASX shares. At the time of writing, the All Ordinaries Index (ASX: XAO) has added a robust 0.68% and has risen above 7,080 points. But it's been even better for the Laybuy Holdings Ltd (ASX: LBY) share price today.

Laybuy shares have rocketed an astonishing 55.84% so far today. The buy now, pay later (BNPL) share closed at 7.7 cents a share yesterday, but is now going for 12 cents at the time of writing after opening at 9.1 cents this morning. What's more, this company went as high as 15 cents earlier in today's trading session, which was worth a rise of almost 95% at the time.

The strange thing is that this stratospheric share price gain seems to have come out of the blue. There has been no news or announcements out of Laybuy itself today. Or indeed since 30 June.

But this isn't the first time Laybuy shares have given investors a day to remember. Just yesterday, the company rose from 4 cents a share to 7.7 cents, a one-day increase of almost 100%. Today's pricing means that Laybuy is now up 200% since Tuesday afternoon.

Laybuy shares get an ASX speeding ticket

These incredible gains have not gone unnoticed by the higher powers of the ASX. Just before market open this morning, Laybuy revealed that it had received a 'speeding ticket' from the ASX for yesterday's rocketing gains.

When asked if the company can explain yesterday's gains, Laybuy responded that it knew of nothing that could explain these share price moves. However, it did point the finger at some other factors that could have been in play.

Here's some of what the company said:

Laybuy notes the very material share price increases of other companies in the Buy Now Pay Later sector during the course of 27 July 2022, in particular Sezzle, Zip and Openpay. Laybuy believes that the recent trading in its securities may have been driven by the same factors that influenced the trading in some or all of those other securities.

ASX BNPL shares jump on a rocket

Indeed, it's not just Laybuy shares that have been throwing off impressive gains of late. The Zip Co Ltd (ASX: ZIP) share price rose more than 21% yesterday and is up another 14% today so far at $1.42 a share.

Openpay Ltd (ASX: OPY) shares rose 30% yesterday and are up another 32.84% so far today at 44 cents a share.

And Sezzle Inc (ASX: SZL) shares rose more than 97% yesterday and a further 17.7% so far today to 83 cents a share.

Zip and Openpay have not yet been pinged by the ASX for these massive increases in valuation (at the time of writing). However, Sezzle shares were halted from trading yesterday afternoon after the company received a speeding ticket of its own. The shares have obviously returned to trading today.

So all in all, no one knows why Laybuy and these ASX BNPL shares have jumped on a rocket this week. It just seems to be the result of some very potent buying pressure at this stage. But no doubt there are many ASX BNPL share investors out there today who are in a very jubilant mood.

Motley Fool contributor Sebastian Bowen 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.

More on Share Gainers

A young boy wearing a hat, sunnies and striped singlet looks fierce and flexes his arm in victory.
Share Gainers

Here are the top 10 ASX 200 shares today

It was certainly a day to remember for ASX investors this Friday...

Read more »

Three girls compete in a race, running fast around an athletic track.
Share Gainers

Do you own the 3 best performing ASX 200 shares of FY 2025?

The top three ASX 200 shares have already gained 13% to more than 20% in FY 2025!

Read more »

Woman looks amazed and shocked as she looks at her laptop.
Share Gainers

Why Immutep, Kingsgate, Netwealth, and Ora Banda shares are storming higher

These shares are ending the week with a bang. But why?

Read more »

Fancy font saying top ten surrounded by gold leaf set against a dark background of glittering stars.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors enjoyed a day to remember this Thursday...

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

3 ASX All Ords shares rocketing over 10% today

Investors are buying these shares with fever today.

Read more »

rocket taking off indicating a share price rise
Share Gainers

Why did this ASX mining stock just explode 203%?

Investors are sending the ASX mining stock to the moon on Thursday. But why?

Read more »

two men smiling with a laptop in front of them, symbolising a rising share price.
Share Gainers

Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher

These shares are shining brightly on Thursday. But why?

Read more »

A woman wearing a black and white striped t-shirt looks to the sky with her hand to her chin contemplating buying ASX shares today as the market rebounds
Share Gainers

Would I be crazy to buy DroneShield shares now at over $2?

After soaring more than 700% in a year, can DroneShield shares keep flying high?

Read more »