The Zip Co Ltd (ASX: Z1P) share price has spent all morning in the red, dumping more than 6% in today’s trading session.
After closing yesterday at $8.78, the Zip share price has see-sawed from $8.53 to as low as $8.21. At the time of writing, shares in the popular buy now, pay later (BNPL) provider are swapping hands for $8.32, a drop of 5.30%.
Let’s take a look at what happening with the company today.
Zip share price tumbles with overall market
Zip has not released any price-sensitive news that could explain today’s bearish price action. It’s possible shares in the BNPL company could be feeling the effects of weakness in the overall market.
At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is well in the red today, with Zip being the second-worst performer in the index after Afterpay Ltd (ASX: APT) which has plummeted almost 7%.
In addition, the Zip share price had rallied more than 14% since Tuesday, which could be prompting investors to lock in profits.
Snapshot of the Zip share price
Overall, it has been a turbulent month for the Zip share price thus far.
Shares in Zip surged more than 13% yesterday following speculation that a rival BNPL provider acquired a stake in the company.
Although there has been no confirmation, Commonwealth Bank of Australia (ASX: CBA)-backed Klarna reportedly took a 4% stake in Zip.
Shares in Zip have also been one of the most shorted on the ASX. it appears some investors are pessimistic on the outlook for the company’s Quadpay business as Afterpay expands into the US.
Despite today’s turbulent price action, the Zip share price is still more than 58% higher for the year. However, the company’s shares are currently trading a long way off their all-time highs of $14.53 back in February.
The post The Zip (ASX:Z1P) share price is sinking today appeared first on The Motley Fool Australia.
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More reading
- ASX 200 midday update: Afterpay & CBA sink, Viva Energy jumps
- It’s been a big month for the Zip (ASX:Z1P) share price
- Here are 3 of the ASX 200’s most heavily traded shares today
- Why Alkane, Audinate, Megaport, & Zip shares are rising today
- ASX 200 midday update: Zip rockets, AMP asset sale
Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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