The Zip Co Ltd (ASX: ZIP) share price seems to be pulling itself together after a disastrous week, surging nearly 10% on Friday morning.
And its timing couldn’t be better. The buy now, pay later (BNPL) giant’s stock tumbled 2.7% on Tuesday and 5.1% on Wednesday before ending yesterday’s session flat.
At the time of writing, the Zip share price is trading at $1.09, 7.39% higher than its previous close.
For context, the All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are both in the green on Friday. They’ve gained 0.8% and 0.75% respectively.
Let’s take a look at what might be pushing the BNPL stock to a strong week’s end.
Zip share price soars towards the weekend
The Zip share price is the ASX 200 financial sector’s top performer on Friday.
But another sector is likely helping to boosting it higher. The BNPL stock generally tracks more in line with the S&P/ASX 200 Information Technology Index (ASX: XIJ) – and that’s good news today.
The tech sector is currently the ASX 200’s best performing sector, recording a gain of 2.09%.
Today’s top performing ASX 200 tech shares include Life360 Inc (ASX: 360), EML Payments Ltd (ASX: EML), and Tyro Payments Ltd (ASX: TYR).
Its strong performance on Friday is likely a reaction to yesterday’s session on the tech-heavy NASDAQ exchange.
While most of Australia slept last night, the Nasdaq Composite Index (NASDAQ: .IXIC) gained 3%. And while its nice to wake up to a sea of green, we probably shouldn’t get used to it.
Nasdaq futures have slipped on Thursday night (Friday, Aussie time), after Amazon.com Inc (NASDAQ: AMZN) and Apple Inc (NASDAQ: AAPL) posted results.
Sadly, today’s gains haven’t been enough to boost the Zip share price into the green.
The BNPL stock has tumbled nearly 75% since the start of 2022. It’s also around 87% lower than it was this time last year.
The post TGIF: Why is the Zip share price rocketing 10% today? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Zip right now?
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- Have ASX tech shares finally reached the bottom?
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Brooke Cooper 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 Amazon, Apple, EML Payments, Life360, Inc., Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool Australia has recommended Amazon, Apple, and Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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