The embattled Zip Co Ltd (ASX: ZIP) share price is recovering some of its earlier losses as the end of the trading week approaches.
The buy now, pay later (BNPL) giant’s stock traded within half a cent of its 52-week low of $1 this morning.
Fortunately, it’s since bounced back. At the time of writing, the Zip share price is $1.04, 2.35% lower than its previous close.
That’s relatively in line with the broader market’s performance on Friday. The S&P/ASX 200 Index (ASX: XJO) is currently trading 2.39% lower while the All Ordinaries Index (ASX: XAO) has dropped 2.49%.
Let’s take a closer look at what might be impacting the stock on Friday.
Zip share price recovers some of Friday’s losses
The Zip share price is trading higher – though, still in the red – this afternoon after avoiding hitting its 52-week low by a fraction of a cent.
The stock is now trading just 5% lower than it was at the end of last week. The ASX 200 also has dumped around 3% since last Friday’s close.
And while the BNPL stock is certainly in the red, it’s outperforming the tech sector.
The S&P/ASX 200 Information Technology Index (ASX: XIJ) is currently down 4.36%.
While Zip is technically at home on the S&P/ASX 200 Financials Index (ASX: XFJ) – which has fallen 2.09% today – it more often trades in line with the tech sector.
The tech index’s plunge is being led by the Life360 Ltd (ASX: 360) share price’s 10% tumble.
Meanwhile, stock in Block Inc (ASX: SQ2) – the new owner of Zip’s former BNPL peer Afterpay – is one of the sector’s better performers, recording a drop of just 1.8%.
Today’s falls included, the Zip share price is 76% lower than it was at the start of 2022. It has also tumbled 85.5% since this time last year.
The post Why is the Zip share price making a partial recovery this afternoon? appeared first on The Motley Fool Australia.
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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 Block, Inc., Life360, Inc., and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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